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The forestry software market size is estimated to grow at a CAGR of 6.2% between 2022 and 2027. The size of the market is forecast to increase by USD 456.39 million.Forestry software is designed to assist users in the forest industry to efficiently manage tasks such as inventory tracking, harvesting, contract management, and forecasting. The software enables companies to forecast harvest sizes and allocate resources optimally. With the help of this software, users can create schedules to manage operations and allocate equipment to complete tasks related to lumber production. The growth of the market depends on several factors, including the rise in the adoption of cloud-based forestry software, the adoption of automated forestry management, and the digitalization of forest operations.
This market report extensively covers market segmentation by deployment (on-premise and cloud-based), end-user (large enterprise, small, and medium enterprise), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The adoption of automated forestry management is notably driving the market growth, although factors such as the availability of open-source forestry software may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Forestry Software Market Driver
The growth of the forestry software market is being driven by the adoption of automated forestry management. One of the main reasons for this adoption is the reduction of time between forestry and logging operations and wood processing. In the past, forestry management relied heavily on manual communication and management platforms, resulting in long cycle times. Automating this process simplifies forestry management, reduces paperwork, and provides an integrated approach to managing all tasks, resulting in cost and time savings. This automated management process is gaining importance among forestry companies due to its benefits such as asset tracking, compliance with regulations, automated weighing, point-to-point transactions with time stamps, and real-time overview of financial positions. Furthermore, it is leading to advances in timber technology and harvest techniques, increasing productivity and efficiency. As most forestry companies shift their focus toward automation, there is high potential for vendors operating in the market to explore new opportunities and establish hybrid or new business models integrated with both legacy and automated business processes. Hence, the adoption of automated forestry software is expected to drive market growth during the forecast period.
Significant Forestry Software Market Trend
The rising adoption of big data in forestry is a major trend in the market. The architecture and design of forestry software are evolving to support real-time data management. Forestry companies need to predict appropriate terrain conditions, which are often unreliable. Thus, forestry companies are integrating big data to generate predictive modeling to plan their operations.
Forestry is evolving at a faster rate with the use of new technologies and procedures, which create a large amount of data, and in turn, provide an opportunity for vendors to integrate big data analytics into their offerings. The integration of big data is also supported by the increasing adoption of cloud computing, networking, and data analytics, which are gaining significance among forestry companies.
Big data creates a chain containing links, where each stage of work is related to the next stage and used in creating the prediction model. Big data enables the collection and analysis of large amounts of data for creating prediction models. Big data-enabled systems help in learning and predicting environmental and harvest conditions that are reliable and highly accurate. The data generated in forestry processes are used to improve and dynamically change business processes based on predictive modeling. Big data also provides effective ways of measuring and analyzing the forestry data, which helps in developing insights and necessary measures to improve forest and soil health as well as maintain consistency.
These capabilities are being incorporated within the forestry software architecture, allowing companies to execute/run simulation, planning, modeling, and forecasting without the need for standalone analytics applications. Thus, the above-mentioned factors are expected to drive the growth of the market during the forecast period.
Major Forestry Software Market Challenge
The availability of open-source forestry software is a major challenge impeding the market. The complexity of implementation and the high cost of software are increasing the adoption of this software. The adoption of open-source software is increasing in developing economies such as China, India, and South American countries. The major reason for the adoption is the inadequate capital investment for licensed software. Therefore, open-source forestry software is an economical solution for forestry departments with limited resources and expertise availability.
Open-source software provides functionalities that are suitable for small forestry companies with a low number of employees. Open-source software can also be downloaded and run on all platforms. Thus, the availability and adoption of open-source forestry software can pose a challenge for vendors offering on-premise and cloud-based forestry solutions. This can hinder the growth of the global forestry software market during the forecast period.
Key Forestry Software Market Customer Landscape
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Forestry Software Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Caribou Software Inc. - The company offers business segments such as forestry, oil patch, and maintenance. The company's key offerings include forestry software such as Loggers Edge, and Cutting Edge among others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premise segment will be significant during the forecast period. On-premise forestry software is deployed by large forestry companies as well as companies that are equipped with IT infrastructure, internal IT support teams, and servers.
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The on-premise segment shows a gradual increase in the market share of USD 794.84 million in 2017 and continue to grow by 2021. The on-premise deployment model requires software procumbent and installation on companies' servers and dedicated IT support teams are needed for maintenance. On-premise software provides companies with control and ownership over the management of software operations and critical data. The software can be customized as per companies' requirements and provides an extra layer of security, which are the major factors driving the growth of the segment. The forestry market is heavily regulated, and large forestry companies do not prefer to store their business information in the cloud environment. As a result, most companies opt for the on-premise deployment model for their forestry software. This model enables them to remove vendor dependency and provides them with a dynamic solution for operational planning and management. However, due to the fast evolution of cloud computing, software vendors are adopting cloud architecture and offering cloud-based software with features of on-premise software. The implementation of on-premise software also takes longer implementation time than cloud-based software. As a result, the adoption of on-premise forestry software is declining.
The global forestry software market is experiencing a shift towards reducing IT infrastructure costs by adopting cloud computing. The cloud-based forestry segment has been experiencing significant revenue growth in recent years, and this trend is expected to continue in the forecast period. The dominance of the cloud-based forestry software segment is expected to contribute to the overall incremental growth of the global forestry software market. The demand for cloud-based forestry software is increasing because companies aim to improve their scalability, flexibility, agility, and efficiency. Vendors are also introducing cloud-based forestry solutions, such as Trimble's Forestry Connected Forest Xchange, a collaborative cloud solution that provides secure access to all supply chain data in one place. Cloud-based forestry software is hosted on remote data centers, allowing users to access it via the Internet. The low upfront cost of cloud-based forestry software makes it an attractive option for small forestry companies with limited IT budgets and resources. Cloud-based forestry software provides benefits such as real-time application performance analytics, regular security updates, accessibility from any location, and no dedicated IT support teams. Additionally, cloud-based forestry software provides role-based access control, allowing companies to maintain security risk tolerance by adding permission levels to their business models.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is expected to register high growth during the forecast period owing to the high presence of a large number of vendors and the increasing adoption of this software in comparison to other regions. The adoption of this software is the highest in North American countries such as the US and Canada, as forestry companies are focusing on creating highly integrated, diverse, productive, and healthy forest areas.
Most of the vendors are based in North America. Several vendors in the region are coming up with advanced technologies such as cloud computing, AI, big data, analytics, mobile technology, and sensor technologies, which are gaining popularity among end-users. The adoption rate of cloud-based software in North America is expected to be high. Vendors operating in the market are involved in frequent product introduction and software upgrades to overcome the challenges of competitive pressure from global and regional vendors. Established vendors in the market are experiencing a strong technological push toward the adoption of cloud-based forestry software. This is another factor driving the adoption of forestry software.
Forestry management in North America is subject to federal, state/provincial, and local regulations and guidelines, which are followed by forestry companies for the harvesting process. The regulations and guidelines are set to protect wildlife habitat, water quality, soil, and other resources. In addition, government bodies such as FIA (Forest Invention and Analysis) are responsible for highly integrated, diverse, productive, and healthy forest areas. The Forest Inventory and Analysis (FIA) Program of the US Forest Service provides the information needed to assess the country's forests and is responsible for the wide adoption of forestry software in the region, thereby driving the market growth.
In 2020, the forestry software market in North America witnessed a temporary decline owing to the COVID-19 outbreak. However, many companies that can operate remotely are gradually increasing the use of cloud-based forestry software to continue operations with employees who can work from home. Companies such as Trimble Forestry and BCS Systems are making investments to enhance their cloud-based infrastructure, which has increased the demand for cloud-based forestry software in the region. Such factors are expected to drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
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Forestry Software Market Scope |
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Report Coverage |
Details |
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Page number |
157 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.2% |
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Market growth 2023-2027 |
USD 456.39 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.68 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ARBORMETRICS, ArborNote, ArboStar, Assisi Software Corp, Caribou Software Inc, Creative Information Systems Inc., Disprax Pty Ltd, Enfor Consultants Ltd, Esri, Forest Metrix, Forestry Systems Inc, Landmark Spatial Solutions LLC, Legna Software LLC, Mason, Bruce and Girard Inc, Microforest Pty Ltd, PlanIT Geo, Remsoft, Softree Technical Systems Inc, Timber Apps LLC, and Trimble Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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