Autonomous tractors, ag robots taking the farmer out of farming
The global market for autonomous tractors will grow at an annual rate near 25 percent through 2025, driven primarily by the improved efficiency and productivity of the crop yield offered by these tractors, along with government initiatives for the adoption of new technologies.
The near-term uptick in demand will also be impacted by an increase in the average age of farmers in developed countries and a decline in the availability of labor.
Machines of 101 horsepower and above will account for the largest share of the burgeoning demand in 2019, followed by the 31-to-100 horsepower machines.
The demand for medium-powered tractors is expected to grow at a higher rate compared to high-powered autonomous machines – due to the benefits provided by four-wheeled tractors, such as better soil quality maintenance and control and cultivating capacities with high fuel economy. Tractors in that range are versatile and can be used for multiple applications on and off the field, leading to their preference by most farmers.
Component-wise, the radar segment will account for the largest market share in 2019, thanks to sensors that can determine the velocity, range and angle of moving objects and their ability to work in almost every weather condition. They are more cost-effective than LiDAR (light detection and ranging) systems, but more expensive compared to cameras.
Meanwhile, based on crops, the fruits and vegetable segment will have the highest application of autonomous tractors, because machinery damage to fragile fruits and vegetables and the trees that produce them are fueling demand for new technologies.
North America will account for the largest share of the autonomous tractors market in 2019 due to the presence of large-scale manufacturers like AGCO and Deere that are investing heavily in the development of tractors. Other reasons for the market’s imminent expansion include the higher disposable incomes of farmers, lack of trained farm labor and well-developed technology.
Other leading companies in the space include United Kingdom-based CNH, India’s Mahindra & Mahindra, Kubota Corporation and Yanmar in Japan and Autonomous Tractor Corporation in the United States.
Meanwhile, the agricultural robots market – comprised of driverless tractors, unmanned aerial vehicles, milking robots and automated harvest robots that are responsible for dairy, irrigation, harvest, soil and inventory management – is estimated to reach an annual revenue of $11.05 million by 2023. That’s up from an annual market revenue of less than $3 million in 2016.
Agricultural robots are experiencing adoption because they allow for efficient and sustainable methods for producing higher agricultural yields. Robots are deployed to eliminate human interferences and farming complications faced by farmers. The market is driven by the large number of agricultural technology companies developing, experimenting, piloting and launching an expansive range of robotic systems programmed for various agricultural purposes.
Other contributing factors to market growth include population increase, rise in demand for food supply, the high popularity of indoor farming, frequent climate variations and growth in the adoption of automation technology. That said, growth is hampered by limited awareness about agricultural robots among farmers and the inability of robots to match human-like dexterity.
Overall, the market provides an opportunity to enable digital farming with the adoption of telematic sensor-enabled robots. Robotic systems are expected to help the agriculture industry gain improved decision-making solutions on various farming processes.
Globally, the agricultural robots market is also segmented by North America, Asia-Pacific, Europe and LAMEA — which includes Brazil, Argentina, United Arab Emirates, Saudi Arabia, South Africa and Nigeria. Key corporate players in the market are DeLaval, GEA Group, Autonomous Tractor Corporation, AGCO, Lely, Autonomous Solutions Inc., Harvest Automation, John Deere, Clearpath Robotics and Deepfield Robotics.
In related news, the variable rate technology market will grow at a better than 9 percent rate annually through 2022, when it’s expected to reach an annual revenue of $2.24 billion.
Increasing focus on farm efficiency and productivity are the most significant driving factors, specifically due to a boost in global food demand, extended profitability and production and crop monitoring for yield production. Government initiatives across countries are helping farmers use optimized agricultural and technological tools and improve production levels.
Variable rate seeding is used increasingly by growers because it reduces seed costs and maximizes yield by optimizing seeding rates according to field variability. For those reasons, growers adopting variable rate technology mostly start with seeding VRT, leading to the expectation it will dominate the market.
The oilseeds and pulses segment is projected for the highest annual growth rate through 2022 thanks to increased use of VRT in soybean and cotton. Soybean is an important crop globally because of a significant use in animal feed, and its future production growth will also be fueled by population expansion and an increase in per capita meat consumption. Meanwhile, cotton is a basic resource for thousands of U.S.-manufactured consumer and industrial products, and the contribution made by cotton to the food and fiber industry continues to grow in importance as well.
North America will remain the largest contributor to the global variable rate technology market due to early adoption by the United States and Canada, among other countries. The presence of a large quantity of vendors, continuous advances in technology and reduced equipment prices are significant reasons for the growth of the market across the continent.
Leading VRT companies worldwide, thanks to their well-established and financially stable statuses, include Deere & Company, AGCO, Trimble Inc., Raven Industries Inc. and Ag Leader Technology in the U.S., CNH Industrial NV in the United Kingdom, Topcon Corporation in Japan, SZ DJI Technology Co. Ltd. In China and Norway’s Yara International ASA.