OEMs shift to subscription models as software grows up to 13.4% CAGR
Precision Farming Market 2025 to 2032: Hardware Dominance, Software Value Capture and the Digital Agriculture Transition →Major OEMs including John Deere, CNH Industrial, and AGCO are pivoting away from hardware margin reliance toward recurring subscription models, edge-AI diagnostics, and integrated APIs. Software solutions are projected to grow at a CAGR of 9.7% to 13.4% through 2032. Meanwhile, hardware continues to hold the majority revenue share, accounting for over 51% to 55% of total revenue in 2024–2025.
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Structure multi-year OEM contracts to unbundle hardware costs from recurring software subscription licenses.
Hardware margins are facing compression while OEMs pivot to recurring subscription fees, making unbundled pricing structures essential for controlling long-term software licensing costs.
Source · prnewswire.com