Agriculture Variable Rate Technology Market: Industry Analysis and Forecast (2023-2029)

Agriculture Variable Rate Technology Market Overview:

The rapid rise in population and increased demand for food have promoted technological development in the agricultural sector to increase efficiency and lower costs. Big data's capabilities are the collection and compilation of data and subsequent processing of that data to make it worthwhile for decision-making and problem-solving. Big data is expected to play a significant role in smart farming, with benefits extending throughout the supply chain and markets. Agriculture is getting more complex, and many factors influence it.

 

In precision agriculture, variable rate application (VRA) is a method that focuses on the automated application of resources to a particular terrain. Data obtained by sensors, maps, and GPS determines how the materials are applied. Fertilizers, chemicals, and seeds are examples of these substances, and they all aid in crop output optimization. Variable-rate application for precision agriculture employs various technologies such as drones and satellites, as are artificial intelligence (AI) and hyperspectral imaging. Because certain places have varying nutritional requirements due to their location, crops may not always require a uniform application (soil properties, sunlight). Variable-rate fertilizer spreaders can use a global positioning system to increase or decrease fertilizer application rates.

Agriculture Variable Rate Technology Market Dynamics:

Increasing Population Driving Demand for Food:

 

The annual rise in the number of live humans peaked in 1989 at 88.0 million, then gradually decreased to 73.9 million in 2003, before rising to 75.2 million in 2006. In 2017, the world's population grew by 83 million people. Developed countries' growth rates have slowed in recent decades; however, yearly growth rates in the Middle East and Sub-Saharan Africa and South Asia, Southeast Asia, and Latin America have remained above 2%.

 

In 2030, the global population is expected to exceed 8.5 billion people, rising to 9.7 billion in 2050 and 11.2 billion in 2100. Like any other sort of projection, these most recent demographic forecasts are subject to some uncertainty. In contrast, by 2050, the populations of 55 countries or areas of the world are anticipated to decline, with 26 experiencing a ten percent decrease. Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Japan, Latvia, Lithuania, Republic of Moldova, Romania, Serbia, and Ukraine are among the countries whose populations are anticipated to decline by more than 15% by 2050.

 

Food demand for world cereal equivalent (CE) food is expected to be around 10,094 million tonnes in 2030 and 14,886 million tonnes in 2050, with a marginal surplus of 10,120 million tonnes in 2030 and 15,970 million tonnes in 2050. India and China are absorbing a significant portion of world food demand. Thus, the rising demand for food is expected to drive the global agriculture variable rate technology market during the forecast period.

 

Government Initiatives and Development in Agriculture Technology:

 

Governments across the globe have undertaken various initiatives in the agriculture sector to increase productivity and reduce costs to meet increasing food demand. The AIA is a department-wide initiative to align USDA's resources, programs, and research to give farmers the tools they need and position American agriculture as a leader in meeting future food, fiber, fuel, feed, and climate demands. USDA will specifically encourage innovation so that American agriculture can meet its goal of boosting agricultural production by 40% while halving its environmental footprint by 2050.

 

Recent revisions to replace intervention pricing for key crops with direct payments based on the planted area are a step toward rebalancing the policy portfolio in favor of measures that reflect China's policy orientation toward long-productivity development and sustainability. The recent transformation of the maize purchasing and storage system to direct payments has reduced the cost of public stockholding, which accounts for most general services support expenditure. These reforms could be gradually expanded to encompass rice and wheat. Suppose direct payments to farmers are to be preserved in the long run; in that case, the relationship between them and production decisions can be further loosened by making payments based on historical area and 'greened' by making them conditional on ecologically friendly practices.

 

Agriculture has been shaped significantly by technological advancements over time. Humans have found innovative techniques to make farming more efficient and raise more food, from the invention of the plow to the global positioning system (GPS) driven precision agricultural equipment. We're always trying to develop innovative techniques to irrigate crops or develop disease-resistant kinds. These iterations are critical for feeding the world's ever-growing population while freshwater supplies dwindle. Artificial intelligence is a significant advancement in agriculture (AI). Data collection is aided by modern AI-based technology technologies, which benefit precision farming and informed decision-making. Drones, remote sensors, and satellites collect data on weather patterns in and around the fields 24 hours a day, seven days per week, supplying farmers with critical information on temperature, rainfall, soil moisture, and other factors.

 

Agriculture Variable Rate Technology Market Segmentation:

The Agriculture Variable Rate Technology market is segmented by product type, application, by Services,by by Crop Type,by farm type, and geographical region in this report. The Agriculture Variable Rate Technology market by Product type is segmented into Soil Sensing, Fertilizer VRT, Crop Protection Chemical VRT, Sedding VRT, Yield Monitoring, Irrigation VRT,and Others.The report also contains geographical segmentation of Europe, North America, Asia-Pacific, Middle East, and South America.

 

Variable-rate fertilizers apply the correct amount of fertilizer at the proper time and in the correct location. Better synchronization between crop demand and fertilizer delivery must be implemented at the right time. It is critical to increasing the efficiency of using nutrients, particularly nitrogen. Split Nitrogen applications during the growing season, rather than a single, extensive application before planting, have improved nitrogen use efficiency. The variable rate fertilizers are expected to dominate the product type segment during the forecast period.

 

The map-based VRT segment is the most extensively utilized agriculture VRT application approach. The popularity of map-based VRT stems from its cost-effectiveness and the scarcity of experienced farmers to operate sensor-based VRT. Sensor-based VRT comes at a high cost, making farmers unwilling to use it. However, sensor-based VRT is becoming more popular in industrialized countries like the United States and Canada. The market is dominated by map-based VRT, which is growing at a CAGR of 13.12 percent.

 

The variable rate technology is divided into three categories based on its services: hardware, software, and others. The hardware segment holds the highest market share due to massive investments such as in guidance and steering systems. Guidance and steering systems are most commonly used to boost agriculture productivity in industrialized economies and significant farm holdings. Farmers can collect farm-related data using various hardware devices, which will aid them in making better decisions and increasing the production of their fields.

 

Agriculture and its implementation VRT can transform agriculture, making it more efficient and predictable. The primary drivers driving the growth of the agriculture VRT market include rising global food consumption, increased profitability and output, and crop monitoring for yield production benefits.

Agriculture Variable Rate Technology Market Regional Analysis:

The report contains an in-depth analysis of the Agriculture Variable Rate Technology market by geographical region across North America, Asia-Pacific, South America, Middle East, and Africa. The two most populated countries globally, India and China, are expected to drive the region's Agriculture Variable Rate Technology market growth. Hence, the Agriculture variable rate technology market is forecasted to grow significantly in Asia-Pacific.

 

Due to increased factory automation and technical advancements, the agriculture variable rate technology market in North America is constantly growing every year. The existence of prominent market players and continual technological advancements that lower equipment prices are the primary drivers of the agriculture variable rate technology market in North America. North America is expected to dominate the agriculture variable rate technology market during the forecast period with a growth rate of 11.9 percent annually.

 

This report aims to analyze current market trends and potential opportunities to enhance growth to succeed in the industry. The report identifies factors influencing market dynamics and development of the Agriculture Variable Rate Technology market and how this will control investment during the forecasting period. The report studies regional markets to provide valuable insights into revenue and predicted value; information also includes the competitive landscape of key industry players and their recent developments.

 

Through comprehensive research supported by qualitative and quantitative data, this report provides essential information on the market behavior during the projection period (2022-2027). It also recognizes dominant segments in the market, projects their development, and identifies new elements that will dominate with technological advancements.

 

 

The report contains detailed analyses through Porter's five forces model to determine the industry's structure and help devise a corporate strategy for the market. The model reports provide essential information about stakeholders' influence, product quality, substitute products, etc. The report also analyses whether the Agriculture Variable Rate Technology market is accessible for new competitors to gain a foothold, whether they enter or exit the market regularly, and if a few players dominate it.

 

A measured approach is adopted through Pestel analysis to quantify factors including government policies, economic structure, and political situations that will affect the development of this sector. Economic variables aid in studying financial performance drivers that impact the Agriculture Variable Rate Technology Market. The report also considers environmental and legal factors that may affect the progress in this industry.

 

Agriculture Variable Rate Technology Market Scope:

Agriculture Variable Rate Technology Market Scope
Market Size in 2022	USD 8.59 Bn.
Market Size in 2029	USD 19.16 Bn.
CAGR (2023-2029)	12%
Historic Data	2017-2021
Base Year	2022
Forecast Period	2023-2029
Segment Scope	By Product type Soil Sensing Fertilizer VRT Crop Protection Chemical VRT Seeding VRT Yield Monitoring Irrigation VRT Others
	By Application Sensor-Based VRT Map-Based VRT Other Applications
	By Services Hardware Software Other Services
	By Crop Type Cereals and Grains Oilseeds and Pulses Fruits and Vegetables
	By Farm Type Small Medium Large
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Agriculture Variable Rate Technology MArket Major Players:

The Agriculture Variable Rate Technology demands innovation and progress in a continuously changing landscape with new government policies and development. Thus, significant players often opt for strategies to invest in research and more recent technologies to be market-ready. Details profiles about the competitors, including revenue, market size, analysis, and technological advancements, are covered in this report.

 

• AG Leader Technology (US)
• AGCO Corporation (US)
• AgJunction (Brazil)
• CNH Industrial NV (UK)
• Deere & Company (US)
• Hexagon (Brazil)
• Kubota Corporation (Japan)
• Lindsay Corporation (US)
• SZ DJI Technology Co., Ltd. (China)
• Teejet Technologies (US)
• The Climate Corporation (US)
• Topcon Corporation (Japan)
• Trimble, Inc (US)
• Valmont Industries, Inc (US)
• Yara International (Norway)