Agriculture and Forestry Services Market – Global Industry Size, Share, Trends, Opportunity, & Forecast, Segmented By Type (Timber Production, Wood Technology, Forestry Economics, Others), By Nature (Organic, Conventional), By Application (Construction, Industrial Goods), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 360.11 Billion
CAGR (2026-2031)	5.71%
Fastest Growing Segment	Construction
Largest Market	Asia Pacific
Market Size (2031)	USD 502.49 Billion

Market Overview

The Global Agriculture and Forestry Services Market will grow from USD 360.11 Billion in 2025 to USD 502.49 Billion by 2031 at a 5.71% CAGR. Agriculture and forestry services encompass a diverse range of specialized support activities, including soil management, crop monitoring, timber valuation, and pest control, designed to optimize yield and resource efficiency for primary producers. The market is fundamentally supported by the intensifying global demand for food and timber products, which compels operators to adopt advanced agronomic practices and sustainable land-management strategies to maximize output from limited arable land.

However, the sector faces a significant impediment in the form of escalating climate volatility, which disrupts operational continuity and production stability. According to the American Farm Bureau Federation, in 2024, agricultural operations in the United States sustained approximately $20.3 billion in losses attributable to severe weather events. Such environmental unpredictability poses a critical challenge to market expansion, as extreme conditions can negate the benefits of service interventions and deter investment in long-term agricultural projects.

Key Market Drivers

Rapid Adoption of Precision Agriculture and Digital Forestry Technologies is fundamentally reshaping the market by necessitating specialized expertise to manage complex data ecosystems and automated machinery. As primary producers increasingly integrate advanced tools like yield monitors and drones, they require third-party services for data interpretation, system maintenance, and agronomic consulting to optimize return on investment. According to the USDA Economic Research Service, December 2024, data from the 'Agricultural Resource Management Survey' indicated that guidance autosteering systems were utilized on 70% of large-scale crop-producing farms, highlighting the critical dependence of commercial operations on sophisticated technical infrastructure. This trend extends to the forestry sector, where professional management is essential for asset valuation and sustainability compliance; according to Tilhill Forestry, November 2024, in the 'UK Forest Market Report 2024', the value of forestry properties listed for sale reached £95.4 million, underscoring the scale of assets requiring professional service oversight.

Acute Labor Shortages Driving Automation and Mechanization act as a second pivotal catalyst, compelling agricultural and forestry operators to substitute manual workforce with contracted mechanized services. The diminishing availability of skilled field labor, coupled with rising employment costs, forces land managers to outsource harvesting, planting, and maintenance tasks to service providers equipped with autonomous fleets and high-efficiency machinery. According to the USDA National Agricultural Statistics Service, November 2024, in the 'Farm Labor' report, the annual average gross wage rate for hired workers rose to $19.10 per hour in 2024, a 3% increase from the previous year. This escalating financial burden drives the market for cost-effective, automated service solutions that mitigate workforce volatility and ensure operational continuity.

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Key Market Challenges

Escalating climate volatility acts as a formidable barrier to the growth of the Global Agriculture and Forestry Services Market by directly undermining the financial stability and operational planning of primary producers. When extreme weather events such as prolonged droughts, unexpected frosts, or torrential rains occur with increasing frequency, they frequently negate the potential benefits of contracted services. For instance, sophisticated soil management and crop monitoring programs yield minimal return on investment if the underlying crop is subsequently destroyed by an unforeseen climatic disaster. This uncertainty forces farmers and timber managers to prioritize immediate survival over investment in yield-enhancing support activities, effectively shrinking the addressable market for service providers.

The financial strain resulting from these environmental disruptions severely limits the capital available for external services. Producers facing significant yield losses are often compelled to cut operational costs, with third-party support services being among the first expenditures to be reduced. According to Copa-Cogeca, cereal production across the European Union declined by approximately 4.7% in 2024 compared to the previous year, largely due to adverse weather conditions that hampered sowing and harvesting operations. Such contractions in output directly correlate with reduced revenue for producers, thereby dampening demand for specialized agriculture and forestry services as clients adopt a more conservative fiscal approach to mitigate risk.

Key Market Trends

The Rise of Carbon Sequestration and Credit Certification Services is establishing a new revenue paradigm where land managers are compensated not only for physical commodities but also for verified ecosystem outcomes. Service providers are increasingly specializing in the rigorous measurement, reporting, and verification (MRV) required to monetize soil health improvements, effectively transforming carbon storage into a tradable asset. This shift demands high-precision data collection to satisfy stringent third-party registry standards, moving beyond traditional agronomic advice into financial compliance and environmental auditing. According to Indigo Ag, February 2024, in the 'Third Carbon Crop' announcement, the company’s program generated 163,048 registry-issued agricultural soil carbon credits, illustrating the rapidly scaling demand for professional services that facilitate access to voluntary carbon markets.

The Expansion of Farming-as-a-Service (FaaS) Business Models is simultaneously altering the sector's economic structure by transitioning advanced technical capabilities from capital-intensive investments to flexible, subscription-based operational expenses. Instead of purchasing proprietary hardware and software outright, operators are increasingly subscribing to integrated platforms that offer on-demand access to predictive analytics, fleet management, and digital agronomy tools. This model lowers entry barriers for sophisticated technologies and ensures continuous updates without significant upfront capital deployment. According to Trimble, August 2024, in the 'Second Quarter 2024 Results', the company reported that its annualized recurring revenue reached a record $2.11 billion, highlighting the substantial market momentum toward recurring software and information service subscriptions over traditional one-time asset acquisitions.

Segmental Insights

The construction segment represents the fastest-growing category within the global agriculture and forestry services market due to escalating demand for sustainable building materials. This growth is propelled by an industry-wide shift toward timber and wood-based products for residential and commercial infrastructure to lower carbon emissions. Consequently, forestry services related to timber extraction and land management are experiencing heightened activity. Support from regulatory bodies like the United States Department of Agriculture regarding wood utilization in infrastructure projects further validates this expansion, positioning the sector as a vital supplier to the global construction industry.

Regional Insights

Asia Pacific dominates the Global Agriculture and Forestry Services Market, underpinned by its vast share of the world's arable land and a rapidly expanding population that necessitates sustained food security. Nations such as China and India are aggressively transitioning toward modernized agricultural operations to enhance yield efficiency and mitigate labor shortages. This structural shift is reinforced by robust government initiatives and subsidies designed to accelerate the integration of technologies like precision farming and remote sensing. Consequently, the region’s intense focus on increasing output through supported modernization cements its leadership position in the global sector.

Recent Developments

• In May 2025, Komatsu commenced the trial introduction of its specialized forestry machinery in Japan to promote the Cut-to-Length harvesting method within the domestic market. This initiative involved deploying advanced harvesters and forwarders at customer sites to assess their effectiveness in enhancing safety and productivity compared to traditional logging practices. The project was designed to address critical labor shortages and modernize forestry operations by demonstrating the advantages of mechanized timber production. By adapting global technologies to local terrain conditions, the company aimed to drive a significant transformation in the efficiency and sustainability of the regional forestry services sector.
• In December 2024, Bayer extended its strategic partnership with Silal to advance sustainable agriculture practices and digital farming solutions specifically for desert environments. The collaboration, originally established to implement best-in-class farming techniques, was expanded to include vegetable seed trials and the development of a digital platform tailored to regional agricultural needs. Through this agreement, the companies aimed to improve food security and support agricultural innovation by leveraging advanced technologies and data analytics. The partnership also focused on establishing a demonstration site to showcase regenerative agricultural systems, thereby fostering the adoption of modern, climate-resilient farming methods in arid regions.
• In April 2024, Trimble announced that a major Swedish forestry enterprise had selected its Connected Forest suite as the central management system for its timber operations. The forestry company integrated this digital platform to streamline silviculture, harvesting, and transport activities, effectively replacing legacy systems with a unified software-as-a-service solution. This collaboration enabled the firm to enhance data accuracy, improve supply chain visibility, and support sustainability objectives by digitizing critical workflows. The adoption of this technology highlighted the accelerating shift towards digital transformation within the forestry services market, aimed at optimizing resource efficiency and operational control across the value chain.
• In February 2024, Corteva Agriscience launched Enversa herbicide, a new crop protection solution designed to provide superior weed control for soybean and cotton cultivators. This proprietary product, featuring an encapsulated acetochlor formula, was introduced to handle challenging broadleaf and grass weeds while ensuring high crop safety. The herbicide offered farmers a flexible application window, extending from preplant stages to early bloom, which facilitated better field management during unpredictable weather conditions. This strategic addition to the company's portfolio reinforced its dedication to providing innovative agricultural products that secure yield potential and streamline weed management programs for growers facing complex field environments.

Key Market Players

• Cargill Incorporated
• Arbor Forest Management Ltd
• Dairy Farmers of America Inc.
• Bayer AG
• West Fraser Timber Co. Ltd.
• Hancock Victorian Plantations Holdings Pty Limited
• Forestry corporation of NSW
• Rayonier Inc
• China Forestry Group Corporation
• Tilhill Forestry Limited

By Type	By Nature	By Application	By Region
Timber Production Wood Technology Forestry Economics Others	Organic Conventional	Construction Industrial Goods	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Agriculture and Forestry Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Agriculture and Forestry Services Market, By Type:

• Timber Production
• Wood Technology
• Forestry Economics
• Others

• Agriculture and Forestry Services Market, By Nature:

• Organic
• Conventional

• Agriculture and Forestry Services Market, By Application:

• Construction
• Industrial Goods

• Agriculture and Forestry Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE