Global Variable Rate Technology Market
Dublin, Sept. 08, 2022 (GLOBE NEWSWIRE) -- The "Variable Rate Technology Market - A Global and Regional Analysis: Focus on, Application, Technology, Solution, and Region - Analysis and Forecast" report has been added to ResearchAndMarkets.com's offering.
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.
The global variable rate technology market is still in the introductory phase in developing countries and reached the growth phase in developed countries. Globally, research and development activities are underway to develop highly productive variable rate technology products. The demand for variable rate technology is expected to increase in the future as the government across the nations are planning for sustainable agricultural production.
Tapping the smallholder farmer segment with affordable variable rate technology solutions for agricultural input application is one of the major opportunities in the global variable rate technology market. Many start-ups have been emerging across the global variable rate technology market with affordable variable rate technology software solutions to attain a competitive advantage by tapping the smallholder farmer segment.
The gap between the U.S. and other global countries in the pace of adoption of other precision agricultural technologies is relatively narrow. However, in the case of variable rate technology, the adoption rate is around 14.1%. Therefore, the global variable rate technology market players have room for growth across the U.S. and other global countries during the forecast period.
As per the World Bank data, the employment percentage in agriculture decreased by around 13% during 2000-2019. The steep decrease in the agricultural labor population has to be replaced with an efficient technological solution to bridge the supply and demand gap in the agricultural industry. Reducing the agricultural workforce and increasing labor costs is expected to bring more space for automation in the agriculture industry and, thus, the demand for variable rate technology.
The outbreak of COVID-19 made the farmers realize the benefits of investing in technologies rather than relying on the workforce, as they experienced the worst labor shortage during the pandemic, which negatively impacted overall production. Using variable rate technology in agriculture is a suitable solution to overcome these difficulties. Thus, COVID-19 has positively impacted the global variable rate technology market in the long run by making farmers realize the financial benefits of investing in variable rate technology.
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. 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.
The global variable rate technology market is expected to be slightly more dominated by the map-based technology segment during the forecast period. The dominance of map-based technology is mainly due to the unavailability of appropriate sensors to collect soil and plant data.
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.
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.
Recent Developments in the Global Variable Rate Technology Market
In August 2021, AGCO Corporation launched Massey Ferguson VE series planters that offer solutions for all growers from conventional to no-till operations requiring the most cutting-edge technology like variable-rate, high-speed planting, and individual row control.
In August 2020, Lindsay Corporation launched FieldNET with a water trend that provides growers with important crop water usage insights. It can incorporate satellite imagery, customize irrigation parameters, and receives continuously updated variable-rate irrigation prescriptions.
In November 2021, CNH Industrial N.V. acquired Raven Industries Inc. The acquisition was a significant step forward in CNH Industrial N.V.'s digital transformation and building on long-standing cooperation.
In January 2020, Lindsay Corporation partnered with Farmers Edge Inc to connect the digital platforms to give a fully integrated crop management software suite to Lindsay Corporation's producers and dealer networks.
Key Market Players and Competition Synopsis
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.
Some prominent names established in this market are:
Company Type 1: Public Companies
CNH Industrial N.V.
Deere & Company
Farmers Edge Inc
Company Type 2: Private Companies
Ag Leader Technology
Crop Quest Inc
Company Type 3: Start-Up Companies
DataFarming Pty Ltd
HUMMINGBIRD TECHNOLOGIES LIMITED
Key Topics Covered:
1.1 Industry Outlook
1.1.1 Market Definition
1.1.2 Value Chain Analysis
1.1.3 Ongoing Programs
126.96.36.199 Government Initiatives
188.8.131.52 Key Consortiums and Associations
1.1.4 Gap Analysis
184.108.40.206 Financial Barriers
220.127.116.11 Technological Barriers
18.104.22.168 Environmental Barriers
22.214.171.124 Gap Impact Analysis
1.1.5 Roadmap for Future Market
126.96.36.199 Expected Farm Consolidation
188.8.131.52 Government Support in Variable Rate Technology Adoption
184.108.40.206 Expected Demand for VRT Contract Services among Small Farms
220.127.116.11 Growing Millennial Population in Agriculture
1.2 Business Dynamics
1.2.1 Business Drivers
18.104.22.168 Rapid Adoption of Precision Agricultural Technologies
22.214.171.124 Need for Automation of Work Force in Agriculture
126.96.36.199 Need for Input Optimization in Agriculture
1.2.2 Business Challenges
188.8.131.52 Lack of Standardization Hampering VRT Performance
184.108.40.206 High Cost of Investment
220.127.116.11 Lagging VRT Adoption among Smallholder Farmers
1.2.3 Market Strategies and Developments
18.104.22.168 Business Strategies
22.214.171.124.1 Product Developments and Innovations
126.96.36.199.2 Market Developments
188.8.131.52 Corporate Strategies
184.108.40.206.1 Mergers and Acquisitions
220.127.116.11.2 Partnerships, Collaborations, and Joint Ventures
1.2.4 Business Opportunities
18.104.22.168 Tapping Smallholder Farmer Segment with Affordable VRT Solutions
22.214.171.124 Growing Emphasis on Sustainable Agricultural Production
1.3 Start-Up Landscape
1.3.1 Key Start-Ups in the Ecosystem
1.3.2 Funding Analysis
126.96.36.199 Investment and Funding Analysis
188.8.131.52 Top Investors
1.4 Impact of COVID-19 on the Global Variable Rate Technology Market
2.1 Global Variable Rate Technology Market (by Application)
2.1.1 Variable Rate Fertilization (VRF)
184.108.40.206 Barriers to VRF Adoption
220.127.116.11 Drivers in VRF Adoption
18.104.22.168 Cost-Benefit Analysis
2.1.2 Variable Rate Seeding (VRS)
22.214.171.124 Barriers to VRS Adoption
126.96.36.199 Drivers in VRS Adoption
188.8.131.52 Cost-Benefit Analysis
2.1.3 Variable Rate Irrigation (VRI)
184.108.40.206 Barriers to VRI Adoption
220.127.116.11 Drivers in VRI Adoption
18.104.22.168 Cost-Benefit Analysis
2.1.4 Variable Rate Crop Protection Chemical (VRC)
22.214.171.124 Barriers to VRC Adoption
126.96.36.199 Drivers in VRC Adoption
188.8.131.52 Cost-Benefit Analysis
2.2 Demand Analysis of Global Variable Rate Technology Market (by Application)
3.1 Global Variable Rate Technology Market (by Technology)
3.1.1 Map-Based Technology
3.1.2 Sensor-Based Technology
3.2 Demand Analysis of Global Variable Rate Technology Market (by Technology)
3.3 Innovations in Map-Based and Sensor-Based VRT
3.4 Cost-Benefit Analysis
3.5 Global Variable Rate Technology Market (by Solution)
3.6 Demand Analysis of Global Variable Rate Technology Market (by Solution)
3.7 Patent Analysis
3.7.1 Patent Analysis (by Patent Objective)
3.7.2 Patent Analysis (by Patent Office)
4.1.1 Buyer Attributes
4.1.2 Key Providers in North America
4.1.3 Business Challenges
4.1.4 Business Drivers
5 Markets - Competitive Benchmarking & Company Profiles
5.1 Competitive Benchmarking
5.2 Market Share Analysis
5.3 Company Profiles
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