Variable Rate Technology Market Growth & Trends
The global variable rate technology market size is anticipated to reach USD 10.3 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to witness a CAGR of 12.3% over the forecast period. Variable Rate Technology (VRT) is a tool that allows farmers to apply water, fertilizer, seed, and chemicals at different and suitable rates across a field. When a producer uses VRT to apply the correct amount of nutrients blended with the ideal seeding rate, they can produce more agricultural produce from every acre of the land and also reduce the wastage of input materials. Produce can be maximized by customizing each field zone’s seeding and crop nutrition applications.
The fertility profile of different field areas is checked and applied with complementary seed, fertilizer, and irrigation applications; these pairings are known as prescriptions. The variable rate technology market has a vast scope for expansion. To realize this potential farm operation services, integration services, and other services are included. Numerous global businesses offer these services, including farm mapping, soil and moisture management, boundary mapping, and others. Companies such as Trimble, Inc. offer variable rates hardware technologies such as planting solutions, application control products, and displays, guidance systems, among others.
Due to its various inclusive features of variable rate technology, including crop health monitoring, data security, data administration, and stock management, the variable rate technology software market are predicted to expand significantly in the coming years. The variable-rate hardware solutions, including GPS/DGPS receivers, portable computers, sensors, and yield monitor systems, made up about half of the market for VRT offerings in 2021. The COVID-19 pandemic outbreak temporarily decreased demand for expensive agricultural machinery and related technology. The agriculture variable rate technology business picked up quickly post-pandemic. Due to the severe labor scarcity during the pandemic, which adversely affected the agriculture sector, the farmers were compelled to deploy agriculture-related technologies rather than depending on the workforce.
It remains challenge the industry is expected to face is data privacy and security. The key players in the market are focusing on new product development to increase their market share. For instance, the XAG P40 Agricultural Drone, a new generation of agricultural drones specifically created for smallholder farms, was introduced in February 2021 by the agricultural machinery manufacturer XAG, based in China.
The XAG P40 Agricultural Drone can carry up to 40 kilograms and cover up to 20 hectares in an hour. It is designed for big field areas. This aids in defending a huge expanse of land from pests, diseases, and weeds. The medium-to-large farm owners have hugely benefitted from the product. In December 2021, NX9, a software suite that delivers ISOBUS applications and core technologies for agricultural equipment and corresponding intellectual property rights, was acquired by CNH Industrial N.V. This acquisition builds upon the company’s strategic momentum to efficiently develop and innovate products in the precision agriculture space and provide superior value for its farming clients.
Variable Rate Technology Market Report Highlights
- Variable Rate Technology is gaining traction owing to the fast adoption of cutting-edge technology to lower labor costs in agriculture across the globe
- The hardware segment dominated the market in 2021 with a market share of about 69.87%. Guidance and Steering systems are the largest sub-segment of a hardware component in revenue
- The service segment is anticipated to witness a CAGR of 14.3% during the forecast period. The farm operation services sub-segment generated the highest revenue in 2021 in the service segment, accounting for USD 258.1 million. There is a growing demand for climate information, analytics, and data services
- The map-based technology segment contributed to more than half of the market revenue of technology component in 2021 as satellites are mainly used for farm mapping because they provide accurate results within a limited time, and the segment is anticipated to grow at a CAGR of 11.3% over the forecast period
- Cereals & Grains are the most grown crops, and therefore contributed to the highest revenue share in the year 2021, and is anticipated to register a CAGR of 12.8% over a forecast period.
- In August 2021, Bear Flag Robotics was acquired by Deere & Company. The agreement complements John Deere’s goal to produce more intelligent machines with cutting-edge technology to fulfill unique client requirements, accelerate the farming sector, development and delivery of automation and autonomy