Global Agricultural Variable Rate Technology Market Insights Forecasts to 2033

• Global Agricultural Variable Rate Technology Market Size was Valued at USD 6.95 Billion in 2023
• The Market Size is Growing at a CAGR of 13.85% from 2023 to 2033
• The Worldwide Agricultural Variable Rate Technology Market Size is Expected to Reach USD 25.43 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

 

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The Global Agricultural Variable Rate Technology Market Size is Anticipated to Exceed USD 25.43 Billion by 2033, Growing at a CAGR of 13.85% from 2023 to 2033.

 

Market Overview

The variable rate technology is an innovative method of farming management that utilizes data-driven technologies to improve the application of commodities that include fertilizers, seeds, and irrigation water. To maximize crop productivity, these items include seeds, fertilizers, and crop protection agents. This technological industry focuses on automated applications, particularly those utilized in agriculture. Sensors, maps, and GPS are utilized to collect agricultural data. Variable Rate Technology (VRT) helps farmers to apply water, fertilizer, seed, and pesticides at varying rates throughout a field. As farmers utilize VRT to apply the appropriate amount of nutrients combined with the optimal seeding rate, they yield much more from each acre of land while minimizing waste. Customizing seeding and crop nutrition solutions for each zone allows them to make maximal use of every possibility. VRT-based crop management has an advantage over traditional uniform crop management due to lower production costs, boosts crop yield profitability, and has a beneficial impact on the environment. The goal of variable-rate technology (VRT) in agriculture is to boost the production of crops and their profitability by promoting other agricultural innovations through the utilization of drone technology, artificial intelligence (AI), and machinery that can operate at varying rates. Growing global food demand necessitates efficient agricultural practices, government incentives to promote precision agriculture, and increased knowledge of sustainable agriculture, all of these contribute significantly to market growth. Furthermore, technological developments in the field of sensors and enhanced communication solutions enable decision-making in real-time, boosting the application of variable rate technology in agriculture.

 

Report Coverage

This research report categorizes the global agricultural variable rate technology market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global agricultural variable rate technology market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each global agricultural variable rate technology market sub-segment.

 

Driving Factors

The conventional agriculture business depends significantly on personnel for a variety of activities. With technological improvements, automation has taken over laborers' tasks, allowing industrial players to produce more in less time. Several government groups, economists, and policymakers are trying to develop agricultural technology. Smart sensors, GPS, GNSS, auto-steering and guidance technology, and VRT are some of the most commonly utilized technologies for agriculture variable rates. They not only serve to cut labor costs but also to maximize resource utilization and minimize waste, which is higher in traditional farming approaches. VRT and other precision farming approaches enable farmers to customize inputs such as water, fertilizer, and herbicides to the specific needs of their fields. The aim to maximize the efficiency of resources, reduce the effect on the environment, and enhance output is driving the demand for precision agriculture. Governments throughout the world are implementing schemes and initiatives to promote sustainable agriculture and the use of precision agricultural technologies. Subsidies, grants, and incentives are used to minimize the financial barriers to VRT implementation and motivate farmers to use precision agriculture technologies.

 

Restraining Factor

Agriculture VRT can be used by small, medium, and big farms; however, the technology is primarily used by large farms. The high expenses of agricultural variable rate equipment. Agriculture variable rate technology and equipment, such as smart sensors, drones, VRT, guidance tools, GPS, GNSS, and receivers, are simultaneously efficient and expensive. Furthermore, trained individuals are necessary to install and operate agricultural variable rate equipment. As a result, in emerging economies such as India, China, and Brazil, where agricultural resources are limited, producers prefer traditional farming over new technology-based farming due to the expensive initial investment.

 

Market Segmentation

The global agricultural variable rate technology market share is classified into component, technology, and crop type.

 

• The hardware segment is expected to dominate the global agricultural variable rate technology market during the forecast period.   

Based on component, the global agricultural variable rate technology market is divided into hardware, services, and software. Among these, the hardware segment is expected to dominate the global agricultural variable rate technology market during the forecast period. The variable rate technology software market is expected to grow quickly due to its many features, such as data security, agricultural work mapping, crop health monitoring, data administration, and stock management. The extensive usage of variable-rate technology and hardware solutions, comprising GPS/DGPS receivers, portable computers, sensors, and yield monitor systems, accounted for roughly half of the market for VRT services.

 

• The map-based segment is expected to hold the largest share of the global agricultural variable rate technology market during the forecast period.

Based on the technology, the global agricultural variable rate technology market is divided into map-based and sensor-based. Among these, the map-based segment is expected to hold the largest share of the global agricultural variable rate technology market during the forecast period. Map-based VRT alters the application rate using an electronic map, also known as a prescription map. The input concentration as the applicator moves across the field is calculated using a prescription map of the planned speed and field location obtained from a GPS device. Some strategies rely on multiple sources, whilst others depend on a single information source. Regardless of the approach used, the user eventually controls the application rate.

 

• The cereals and grains segment is expected to dominate the global agricultural variable rate technology market during the forecast period.

Based on the crop type, the global agricultural variable rate technology market is divided into grains and cereals, oilseeds and pulses, fruits and vegetables, commercial crops, and others. Among these, the cereals and grains segment is expected to dominate the global agricultural variable rate technology market during the forecast period. Among different crop kinds, cereals such as wheat, corn, and rice have the greatest rate of adoption since they are mostly grown on large farms. Site-specific management of the field fluctuations is possible with the variable input application rates. VRT assists in lowering input consumption, reducing adverse environmental effects such as soil deterioration and erosion and greenhouse gas emissions. VRT contributes to improved land and crop yield and reduces input waste.

 

Regional Segment Analysis of the Global Agricultural Variable Rate Technology Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

North America is anticipated to hold the largest revenue share of the global agricultural variable rate technology market over the predicted timeframe.

 

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North America is anticipated to hold the largest revenue share of the global agricultural variable rate technology market over the predicted timeframe. VRT helps farmers optimize inputs, increase yields, and reduce environmental impact. The US has seen a significant increase in investment in precision agriculture technologies with agricultural technology companies. North America now controls the majority of the global market for variable rate technology due to the region's significant developments in the automation and digitization of agriculture. New industry norms are being established for the agricultural VRT market as a result of the growing industrialization and digitization of agriculture. The rising crop usage is driving the annual growth of the VRT market in North America. Farmers in North America are able to use innovative equipment and machinery for efficiently performing variable rate procedures such as seed planting, fertilizer, and pesticide spraying. North America has led the way in agricultural technology developments. The region has an established agricultural infrastructure, with a significant emphasis on precision farming practices. This has resulted in the widespread implementation of variable rate technology (VRT) in agricultural activities.

 

Asia Pacific is expected to grow at the fastest CAGR in the global agricultural variable rate technology market during the forecast period. The enormous farmlands and fast population expansion in Asia Pacific are expected to contribute to VRT's significant expansion in the future. It is one of the most promising markets for agriculture VRT due to its vast cropland and rapid population growth. The Asia Pacific region is huge and includes countries like Japan, China, South Korea, India, and Australia. Population growth in the region's emerging countries puts pressure on the agriculture industry to raise efficiency, driving demand for VRT (Variable Rate Technologies). Drones utilized to plant seeds and spray pesticides and fertilizers are gaining popularity in the Southeast Asian country, which is dealing with a labor shortage caused by the coronavirus outbreak and restrictions on employee migration.

 

List of Key Companies

• Deere & Company
• Trimble Inc.
• AGCO Corporation
• Topcon Corporation
• CNH Industrial N.V.
• Lindsay Corporation
• Ageagle Aerial Systems
• Raven Industries Inc.
• AG Leader Technology
• Valmont Industries Inc.
• The Climate Corporation
• Yara International ASA
• AgJunction Inc.
• Kubota Corporation
• Hexagon AB
• Others

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Recent Developments

• In October 2023, Deere & Company launched an important partnership with Iowa State University (ISU) to establish an experimental facility with four fields and processes, permitting Deere to test sustainable solutions for enormously grain manufacturing systems in the real world.

 

• In August 2021, the Massey Ferguson VE series planters, which were introduced by AGCO Corporation, provide producers with options ranging from conventional to no-till operations that demand the newest technologies, such as individual row control, variable rate, high-speed planting.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global agricultural variable rate technology market based on the below-mentioned segments: 

 

Global Agricultural Variable Rate Technology Market, By Component

• Hardware
• Services
• Software

 

Global Agricultural Variable Rate Technology Market, By Technology

• Map-Based
• Sensor-Based

 

Global Agricultural Variable Rate Technology Market, By Crop Type

• Grains and Cereals
• Oilseeds and Pulses
• Fruits and Vegetables
• Commercial Crops
• Others

 

 Global Agricultural Variable Rate Technology Market, By Regional

• North America
  • US
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa