Global Agriculture Variable Rate Technology Market - 2024-2031

Global Agriculture Variable Rate Technology Market - 2024-2031

The global agriculture variable rate technology market reached US$ YY million in 2023 and is expected to reach US$ YY million by 2031, growing at a CAGR of YY% during the forecast period 2024-2031.

Variable rate technology (VRT) is a technology utilized in precision agriculture to apply inputs such as fertilizers, pesticides, and seeds at variable rates across the field based on the specific needs. This technology utilizes information from the GPS, soil samples to create a map for optimized input levels depending on the crop needs. VRT works to optimize input returns and resource preservation, addressing the issue of variability in fields, and thereby enhancing efficiency and yields.

Market Dynamics: Drivers

The rapid adoption of advanced technologies in the agriculture sector

Adopting new technologies in the agricultural sector has reduced labor costs, allowing industry participants to produce large amounts of product in a shorter time. For instance, automation is taking over the task that laborers once performed. Drone-assisted pesticide application is the most recent agricultural technology to gain popularity. Numerous other ways in agriculture are also aided by it. Drones' sensors include time-of-flight, chemical, stabilization, and orientation sensors, as well as ultrasonic, laser, or lidar distance sensors.

Smart sensors, GPS, GNSS, and guidance technology are the main technologies for agriculture variable rates. To locate exact locations in the field for material application, VRT uses GPS and GIS(Geographic information system) technology. This technology is combined with data collection to inform a piece of equipment that is VRT-enabled, such as a seeder, sprayer, or fertilizer spreader. These technologies are used to make the best use of the available resources, reduce waste, and lower labor costs.

For instance, on April 8, 2024, AGCO Corporation. launched PTx, a precision agriculture platform, to serve farmers globally. The platform will offer retrofit and factory-fit solutions for precision agriculture technologies. PTx will be based on AGCO's heritage of precision agriculture and advanced technologies. The company will also expand its relationships with over 100 OEM partners.

Moroever, the growing demand for food globally with the rising population is expected to drive the market growth in the forecast period.

Restraints

The high cost of VRT equipment is expected to hamper the market growth. The adoption of VRT requires farmers to invest in specialized equipment, such as variable rate applicators, sensors, GPS (Global Positioning System) technology, and farm management software. These technologies can be expensive, particularly for small-scale farmers or those operating in regions with limited financial resources. The high upfront costs act as a barrier, making it difficult for many farmers to afford the necessary equipment and technologies for implementing VRT. Farmers consider the ROI(Return on investment) when making investment decisions. While VRT has the potential to improve yields and reduce input costs, the uncertainty surrounding the financial benefits and the time it takes to recoup the initial investment can be a deterrent. Farmers may be hesitant to invest in VRT if they are unsure about the potential returns or if the payback period is perceived as too long.

Segment Analysis

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

The fertilizer VRT in the product segment accounted for approximately 45.2% of the global agriculture variable rate technology market share

In the agriculture sector, fertilizers play a crucial role for providing essential nutrients for the crop growth, and to improve the yeild. Several fertilizers are employed in a crop cycle, that needs multiple applications. The requirement of fertilizers is higher for long term crops, as they depend completely on the soil fertility and deplete the nutrient content of the soil, over a period of time. If the farming land is suitable for only growing a specific type of crop that require a specific nutrient for its growth, the chances are higher that the specific nutrient gets depleted fast from the soil. Farmers need to ensure that the soil is rich enough with the nutrients required for plant growth. This can be achieved by applying fertilizers on timely basis. For some crops, it is often essential to give multiple applications of fertilizers within its lifetime, to maximize the yield. This is a very tideous process and is very expensive due to high labour costs.

With the advent of technology, the agriculture sector has reshaped in the recent years. Variable rate technology has shown good potential for fertilizer application. Variable rate technology accurately monitors the nutrient requirement of the crop and the available nutrient content in the soil. By doing so, the optimum quatity of fertilizer to be added and the frequency of application can be set, which helps to minimize the expenses by the farmer.

For instance, as per International Fertilizer Associated report published in May 2023, the usage of nitorgen based fertilizers stood at 190.7 metric tonnes globally in 2022. In the same year, the phosphate based fertilizers and potash fertlizer quatities stood at 61.7 metric tonnes and 63.3 metric tonnes. This fertilizer usage is anticipated to grow rapidly in the upcoming decade.

Precise application of fertilizers through VRT helps minimize nutrient runoff and leaching, which can contribute to water pollution and environmental degradation. By applying fertilizers in a more targeted manner, VRT supports sustainable farming practices and reduces the environmental impact of agriculture. These advantages have led to the fertilizer VRT segment accounting for a significant share of the global agriculture variable rate technology market

Geographical Analysis

North America is expected to dominate the market with a 43.2% share in the global agriculture variable rate technology market

North America is known for its large-scale farming operations. For instance, according to USDA, Agriculture, food, and related sectors made up 10.5 percent of U.S. employment in 2021 and contributed 5.4 percent to the country's gross domestic product. The vast agricultural lands in countries like the United States and Canada provide an opportunity for farmers to benefit from the precision and efficiency offered by VRT.

With the use of advanced machinery and equipment, farmers in North America can effectively implement variable rate applications, such as seed planting, fertilization, and pesticide application. North America has been at the forefront of technological advancements in agriculture. The region has a well-developed agricultural infrastructure and a strong focus on precision farming practices. This has led to the widespread adoption of variable rate technology (VRT) in agricultural practices.

For instance, as per the U.S. Government Accountability Office (GAO) statistics published in January 2024, the overal adoption of precision agriculture among U.S. farmers stood at 27%. More than 40% of the farmers in 7 states of the U.S. followed precision agriculture practice between june 2022 to june 2023. 30-40% of the farmers in 10 states followed precision farming, 20-30% of farmers in 20 states followed precision farming practice in the same duration.

Market Segmentation

By Product Type
• Fertilizer VRT
• Seeding VRT
• Chemical VRT
• Others

By Crop Type
• Cereal and Grains
• Oilseeds and Pulses
• Fruits and Vegetables
• Others

By Offering
• Hardware
• Services
• Software

By Farm Size
• Large Farms
• Small Farms
• Mid-Size Farms

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
U.K.
France
Spain
Italy
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
• Middle East and Africa

Competitive Landscape

The major players in the agriculture variable rate technology market include Deere & Co., CNH Industrial NV, Trimble, Inc., AGCO Corporation, Kubota Corporation, Yara International, AgJunction, Teejet Technologies, AG Leader Technology and The Climate Corporation among others.

Why Purchase the Report??
• To visualize the global agriculture variable rate technology market segmentation based on product type, crop type, 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 data points of agriculture variable rate technology market-level with all 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 70 tables, 64 figures, and 187 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies