Forestry Software Market Size, Share, and Industry Analysis, By Deployment (On-premise and Cloud), By Application (Forest Management, Logging Management, Mapwork Harvester, Inventory & Logistics Management, and Others), and Regional Forecast till 2032

The global forestry software market is witnessing significant growth due to the high adoption of cloud-based forest management software to eliminate the need for computing hardware. Increasing usage of the software helps to improve the forest supply chain visibility operations, optimization, and monitoring of forest inventory management operations. These factors are expected to generate significant opportunities for the growth of the market.

The mounting need for forest services, the need for intelligent forest management solutions to maintain ecosystems, and the increasing usage of various digital technologies are fueling the expansion of the global forestry software market. Additionally, the increasing demand for effective forest management, the rise in government efforts to encourage forest management, and the rising investments in research and development are other key factors anticipated to propel the growth of the global market over the forecast period.

• For instance, in May 2023, OCELL, a Munich-based forestry software provider secures USD 5.0 million seed funding to bring development in forest management and integrate the digitalization processes of forestry operations. The company also aims to develop high-quality carbon credits for optimal forest management.

Impact of AI on the Forestry Software Market

The adoption of AI has a significant impact on the market. The integration of artificial intelligence (AI) with remote sensing, robotics, and other advanced technologies helps to automate planting, harvesting, and other forest monitoring, which significantly helps minimize the need for manual labor and enhance efficiency. For instance,

• In July 2021, EOS Data Analytics (EOSDA), a provider of AI-based satellite software for forestry management, launched “EOSDA Forest Monitoring” software. This software helps to manage forest stands, analyze and monitor forest health via remote locations, and inform landowners about forest productivity.

The growing usage of AI algorithms can forecast forest fire risks, estimate timber yield, and predict pest invasions for proactive forest management. The rising implementation of AI-powered forestry software helps to analyze satellite and drone imagery for the early detection of issues. It helps to build effective management strategies by analyzing historical data. Thus, the integration of AI helps enhance the capabilities of the software and improve efficiency.

Forestry Software Market Driver

Growing Need for Data-Driven Decision-Making in Forestry Operations Boosts the Market Growth

The rising demand for making decisions based on data in forestry operations is becoming increasingly crucial in forestry operations. As forestry operations become more complex, organizations need to depend on precise data to make well-informed decisions and enhance the value of their forests. Utilizing data-driven decision-making in forestry operations enables organizations to make more accurate decisions, leading to enhanced efficiency and cost reductions.

• According to Forest Economic Advisors (FEA) analysis, the software-driven harvesting equipment aims to optimize and reduce operational costs by 20%. This factor led to the enhanced usage of forestry software by multiple end-users over the forecast period.

Similarly, the growing implementation of AI-driven models assists in decision-making for forest professionals by integrating various data sources. This factor helps to inform forest professionals regarding harvesting, conservation, and land use.

Hence, the increasing need to make data-driven decisions in forestry operations fuels market growth.

Forestry Software Market Restraint

High Cost of Software and Lack of Skilled Professionals Hinders Market Growth

The prices of effective forestry software can be high, resulting in potential customers being unwilling or unable to invest in the technology. It limits the overall growth potential of the market as many small & medium-sized enterprises may not be able to afford the software.

Furthermore, the lack of professionals leads to the growth opportunities of the forestry software market. Hence, these factors may hamper the growth of the market over the forecast period.

Forestry Software Market Opportunity

Rising Demand for Traceability and Transparency in Timber Industry Propel the Market Growth

The primary demand for forestry software is coming from the timber industry, which is expected to increase due to the growing demand for wood products such as furniture, flooring, and paper. In addition, there is an increasing focus on sustainable forestry management practices, which is driving the demand for forestry software. With the increasing demand for traceability and transparency in the timber industry, the software demand is also rising.

Moreover, governments and non-governmental organizations are investing in forestry software to improve the management practices of their forests. It leads to an increase in the software demand in the public sector. Furthermore, the increasing popularity of cloud-based and mobile-based software is also contributing to the growth of the market. Overall, the global software market is expected to witness strong growth in the coming years due to the growing demand for efficient forestry management tools.

Segmentation

By Deployment	By Application	By Geography
On-premise Cloud	Forest Management Logging Management Mapwork Harvester Inventory & Logistics Management Others (Reporting & Analytics)	North America (U.S., Canada, and Mexico) Europe (U.K., Germany, France, Spain, Italy, Russia, Benelux, Nordics, and the Rest of Europe) Asia Pacific (Japan, China, India, South Korea, ASEAN, Oceania, and the Rest of Asia Pacific) Middle East & Africa (Turkey, Israel, South Africa, North Africa, and the Rest of the Middle East & Africa) South America (Brazil, Argentina, and the Rest of South America)

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of AI on the Global Forestry Software Market


• Consolidated SWOT Analysis of Key Players

Analysis by Deployment

By deployment, the market is segregated into cloud and on-premise.

Among these, the cloud-based software helps to centralize data plans and optimize different aspects of forest management operations. Integrating geographic information systems (GIS) with cloud-driven forestry software helps map and analyze geospatial data, which helps make better decisions for sustainable forest management (SFM).

Analysis by Application

By application, the market is divided into forest management, logging management, mapwork harvesting, inventory & logistics management, and others.

The forest management segment accounts for the largest share of the forestry software market. It empowers professionals in the forestry sector to oversee, monitor, report, and analyze the condition of the forests. It facilitates the mapping and analysis of vital inventory data for land use, along with tracking and analyzing the changes in forests over time. It leads to making informed decisions about road construction logging and taking restoration initiatives to enhance efficiency.

The mapwork harvesting segment is anticipated to grow at the highest rate. The harvesters are mainly used for harvesting, mapping, and processing forests, which is particularly beneficial for companies to bring automation to the forest management operation process and aims to deliver a better customer experience.

Regional Analysis

By geography, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America is anticipated to account for the largest share of the global forestry software market during the forecast period. This is due to the growing demand for cost-effective and efficient forest management solutions to improve the ability and sustainability of forestry operations. The integration of digital technologies in wood processing industries present across countries such as Canada and the U.S. aims to enhance productivity and minimize operational costs. This led to the growth of the North America market over the forecast period.

• According to a 2023 analysis by the World Economic Forum, the U.S., Canada, and Mexico have covered 723 million hectares of forest area.

This led to an increase in the presence of forestry software vendors in North American countries.

The Asia Pacific is set to grow at the highest CAGR over the forecast period. The increasing knowledge about the benefits of forestry software and the mounting need for effectively managing forest resources to promote sustainable forest management practices drives the growth of the market.

The South America market records significant growth due to increasing economic growth and the increasing emergence of large forestry companies in countries such as Brazil and other South American countries.

 

The above graph represents the percentage of top 5 countries with the largest forest area in 2023, according to World Bank data. Among these, the Russian Federation alone accounts for 1/5^th of earth’s forests (20.10%) followed by Brazil and Canada. The presence of large sized forest area generates the demand for adopting forest management software to manage end-to-end forestry operations and to mitigate the risk. It concludes that the demand for forestry software is high in the Russian federation compared to other countries present across the globe.

Key Players Covered

The global market is fragmented, with the presence of a large number of companies and standalone providers.

The report includes the profiles of the following key players:

• EOS Data Analytics, Inc. (U.S.)


• Trimble Inc.  (U.S.)


• Silvacom FMS (U.S.)


• Hexcuity Limited (U.K.)


• REMSOFT (Canada)


• Assisi Software Corp (U.S.)


• Bruce & Girard, Baywood Technologies (U.S.)


• Raven Industries, Inc. (U.S.)


• AFRY AB (Sweden)


• VSN International Ltd. (U.K.)

Key Industry Developments

• In April 2024, Holmen, a Sweden-based renewable forest product provider, selects Trimble’s connected forest management system, “CONNECTED FOREST,” to make data-driven decisions while managing the forestry operations.


• In September 2023, Trimble Inc. developed a new version of cloud-based log inventory and forestry management software named “LIMS PRO.” It helps to enhance operational visibility for sawmills and bring digitalization across supply chain operation workflows.