Global Agriculture Variable Rate Technology Market - 2023-2030

Market Overview

The Global Agriculture Variable Rate Technology Market reached US$ 7.5 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 20.0 billion by 2030. The market is growing at a CAGR of 13.1% during the forecast period 2023-2030.

The Internet of Things (IoT) and sensor technologies continue to evolve and contribute to the growth of VRT. IoT devices and sensors provide real-time data on soil moisture, nutrient levels, weather conditions, and equipment performance. Integration of these technologies with VRT systems enables farmers to make precise and timely decisions on variable rate applications, leading to optimized resource utilization and improved crop outcomes.

Automation and robotics are transforming the agricultural sector, and variable rate technology is no exception. Automated machinery and robotics are being integrated with VRT systems to perform tasks such as seed planting, fertilization, and pesticide application with high precision. This integration enhances operational efficiency and reduces labor requirements.

Market Dynamics

The Rising Global Population and Food Demand are Driving Market Growth.

The global population is predicted to reach 8.5 billion in 2030 and to increase further to 9.7 billion in 2050 and 10.4 billion by 2100, according to the United Nations. This population growth leads to an increased demand for food to feed the growing population. To meet this demand, farmers need to maximize agricultural productivity. VRT allows farmers to optimize input applications, enhance crop yields, and increase overall food production efficiency.

As the global population increases, there is a heightened focus on resource efficiency in agriculture. VRT allows farmers to apply inputs such as fertilizers, water, and pesticides precisely where they are needed, minimizing waste and reducing environmental impact. By optimizing resource usage, VRT helps improve efficiency and sustainability in agricultural practices.

The Rising Need For Precision Agriculture Fuels the Growth of the Agriculture Variable Rate Technology Market

Precision agriculture combines various advanced technologies such as Global Positioning System (GPS), Geographic Information System (GIS), remote sensing, and data analytics. These technologies enable farmers to collect accurate and detailed data about their fields, including soil characteristics, crop health, and topography. By integrating these technologies with VRT systems, farmers can make informed decisions about the precise application of inputs, leading to improved efficiency and productivity.

Precision agriculture technologies facilitate the collection of real-time data from multiple sources, including sensors, drones, and satellite imagery. This data provides valuable insights into field conditions, crop variability, and yield potential. With advanced data analysis techniques, farmers can identify spatial variations within their fields and generate prescription maps for VRT. These prescription maps guide the VRT systems in applying inputs at the right rate, time, and location, resulting in optimized resource utilization and improved crop performance.

Infrastructure Limitations Hamper the Growth of the Agriculture Variable Rate Technology Market

VRT relies on robust and reliable internet connectivity to transfer data, access cloud-based platforms, and receive real-time information. However, in rural or remote farming areas, internet connectivity may be limited or unreliable. This can hinder the seamless integration and operation of VRT systems, as timely data transfer and communication are essential for effective VRT implementation.

GPS technology plays a crucial role in VRT, enabling precise positioning and accurate mapping of fields. However, in areas with poor GPS coverage, the accuracy of VRT systems may be compromised. This can impact the accuracy of input applications and limit the effectiveness of VRT in optimizing crop management practices.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it to pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

AI Impact

AI-based algorithms and machine learning techniques have enhanced yield monitoring capabilities. AI models can analyze large datasets, including sensor data, historical yield data, weather patterns, and soil information, to predict and estimate crop yields with greater accuracy. AI algorithms combined with remote sensing technologies, such as satellite imagery and drones, enable efficient crop sensing. These technologies capture high-resolution images of fields, which AI models analyze to assess crop health, identify stress factors, and detect anomalies.

AI plays a crucial role in farm management by analyzing diverse data sets and providing actionable insights. AI-based farm management systems can integrate data from various sources, including weather data, soil composition, crop health information, and machinery data, to offer farmers comprehensive recommendations and optimize farm operations. These systems can automate and streamline tasks such as planning planting schedules, optimizing irrigation schedules, and managing inventory.

Segment Analysis

The global agriculture variable rate technology market is segmented based on product, crop, offering, farm size, and region.

Fertilizer VRT Held the Highest Share

Based on service product, the agriculture variable rate technology market is classified into Soil Sensing, Fertilizer VRT, Seeding VRT, Crop Protection Chemical VRT, and Others

In 2022, fertilizer VRT had a high share in the agriculture variable rate technology market. According to THE WORLD BANK, in 2020, the world's per-hectare fertilizer use was 146.4 kg. Fertilizers play a crucial role in modern agriculture by providing essential nutrients to crops for optimal growth and productivity. Effective fertilizer application is key to maximizing yields and ensuring efficient nutrient utilization. VRT enables the precise and targeted application of fertilizers based on field variability, crop requirements, and soil nutrient levels.

Agricultural fields often exhibit variability in soil composition, nutrient levels, and crop requirements. VRT allows farmers to account for this variability by mapping the field and applying fertilizers at varying rates based on specific field zones or sub-field areas. By adjusting fertilizer application rates according to field conditions, VRT helps optimize nutrient distribution and promotes balanced crop nutrition.

Geographical Analysis

The Large Agricultural Sector in the Asia-Pacific Region

In 2022, the Asia Pacific region has a significant share in the Agriculture Variable Rate Technology market. Asia Pacific is home to some of the world's largest agricultural economies, including China, India, and Indonesia. These countries have a substantial agricultural sector that contributes significantly to their economies. According to the Asia Development Bank, 75% of farmers in Asia are dependent on agriculture. Climate change is predicted to cause a 15%-20% (or perhaps 50%) drop in crop productivity by 2050. This generates a sizable market for agricultural variable rate technology services that can aid farmers in streamlining their operations and raising yields.

Precision agriculture practices, including VRT, have been gaining traction in the Asia Pacific. Farmers in the region are increasingly recognizing the benefits of adopting precision agriculture technologies to optimize input application, enhance crop yields, and reduce environmental impact. This growing awareness and adoption of precision agriculture contribute to the significant share of VRT in the region.

Competitive Landscape

The major global players include: Deere & Co., CNH Industrial NV, Trimble, Inc., AGCO Corporation, Kubota Corporation, Yara International, AgJunction, Teejet Technologies, AG Leader Technology, and The Climate Corporation

Why Purchase the Report?

• To visualize the global agriculture variable rate technology- market segmentation based on product, crop, offering, farm size and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous agriculture variable rate technology market-level data points all for segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Global Agriculture Variable Rate Technology Market Report Would Provide Approximately 69 Tables, 70 Figures, And 200 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies