Variable rate technology functions through variable rate application (VRA), which varies the agricultural input application rates, and avoids the time-consuming and human-error component that can arise when input applications are performed manually. The variable rate technology can adjust the rate at which agricultural inputs such as fertilizers, seeds, irrigation, and crop protection chemicals are applied throughout a field based on location and soil conditions.
The key trends in the global variable rate technology market include tapping the smallholder farmer segment with affordable VRT solutions and a growing emphasis on sustainable agriculture production.
The global variable rate technology market was valued at $2.02 billion in 2021, and it is expected to grow with a CAGR of 20.28% during the forecast period 2022-2027 to reach $6.09 billion by 2027. The growth in the global variable rate technology market is expected to be driven by increasing demand for agricultural output and decreasing labor force in the agriculture industry.
Read report overview- variable rate technology market
Strategies involved in VTR Agriculture market
Product/Innovation Strategy: The product segment helps the reader understand the different technologies used for variable rate application and their potential globally. Moreover, the study gives the reader a detailed understanding of the different solutions provided by the variable rate technology providers, such as hardware, software, and services.
Growth/Marketing Strategy: The global variable rate technology market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been product launch activities to strengthen their position in the global variable rate technology market.
Competitive Strategy: Key players in the global variable rate technology market analyzed and profiled in the study involve variable rate technology-based product manufacturers, including hardware, software, and service providers. Moreover, a detailed competitive benchmarking of the players operating in the global variable rate technology market has been done to help the reader understand how players stack against each other, presenting a clear market landscape.
VTR Market Segmentation:
Segmentation 1: by Application
• Variable Rate Fertilization (VRF)
• Variable Rate Seeding (VRS)
• Variable Rate Irrigation (VRI)
• Variable Rate Crop Protection Chemical (VRC)
• Others
The global variable rate technology market in the application segment is expected to be dominated by the variable rate fertilization segment during the forecast period.
Segmentation 2: by Technology
• Map-Based Technology
• Sensor-Based Technology
The dominance of map-based technology is mainly due to the unavailability of appropriate sensors to collect soil and plant data.
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Segmentation 3: by Solution
• Hardware
• Software
• Service
Based on solution, the hardware segment will dominate the global variable rate technology market during the forecast period. The requirements of high-cost components such as receivers, control systems, sensors, and others will make the hardware solution segment dominate the global variable rate technology market during the forecast period.
Segmentation 4: by Region
• North America - U.S., Canada, Mexico, and Rest-of-North America
• Europe - Germany, France, Italy, and Rest-of-Europe
• Asia-Pacific and Japan - Japan, Australia, India, and Rest-of-Asia-Pacific and Japan
• South America - Brazil, Argentina, and Rest-of-South America
• China
• Middle East and Africa - Israel, South Africa, and Rest-of- Middle East and Africa
• U.K.
The U.S. generated the highest revenue of $569.7 million in 2021. The country has been experiencing a rapid growth rate in the past few years owing to rising high-value crop production as farmers enjoy short payback in variable rate technology investment for high-value crop production.
Demand drivers and Key Market Players
Rising awareness about the risk associated with the over-application of fertilizer to the soil and increasing fertilizer costs are the major driver which triggers the demand for variable rate fertilization in the global variable rate technology market.
Rapid Adoption of Precision Agricultural Technologies• Need for Automation of Work Force in Agriculture
• Need for Input Optimization in Agriculture
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
The top leading players include the public companies operating in the global variable rate technology market, which had a market share of around 62% in 2021. The rest of the market share, 38%, was taken by the private and start-up companies.
Conclusion
According to the U.S. Bureau of Labor Statistics, employment of agriculture workers is expected to grow only 2% between 2020-2030, which is slower than the average employment growth for all other occupations. Growing labor scarcity in the agriculture industry is one of the major drivers which is expected to accelerates the demand for variable rate technology in the forecast period.. The variable rate technology helps to automate the application of chemicals, fertilizers, irrigation water, and other farm inputs at different rates across the agricultural field without any manual intervention.
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Precision Agriculture Market - A Global and Regional Analysis
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