The variable rate technology market is projected to reach a value of USD 2.24 billion by 2022, at a CAGR of 9.65% from 2017. Government initiatives such as incentives and guidance at various levels to increase food production with limited resources such as land, fertilizer, and water have been encouraging farmers to invest in variable rate technologies. Increasing average farmer ages in developed nations have led to difficulties in carrying out on-field practices, manually. This is also driving the use of variable rate technologies that automate the entire process of scouting, along with various other practices.
Market Dynamics:
Drivers:
- Improved Efficiency and Productivity Through Improved Crop Yields and Field Quality
- Favorable Government Initiatives for Adoption of Modern Agricultural Techniques
- Increase in Average Age of Farmers in Developed Countries
Restraints:
- High Initial Capital Investment
- Lack of Technical Awareness and Understanding Regarding Advantages of VRT Over Traditional Agricultural Practices
Opportunities:
- Integration of Smartphones With Agricultural Hardware and Software Applications
- VRT Services Provided By Leading Market Players in Developing Economies
Challenges:
- Lack of Data Management Practices for Productive Utilization of VRT in Agriculture
- Smaller Land Holdings in Developing Economies
Rapid investment in this technology and relaxation of government rules regarding its use have been increasing the usage of both ground-based and aerial equipment in agriculture for soil and field analysis, planting, crop spraying, crop monitoring, irrigation, and health assessment. SZ DJI Technology Co., Ltd. (China), AgEagle Aerial Systems, Inc. (U.S.), and Agribotix LLC (U.S.) are among a few agricultural drone providers.
The fertilizer variable rate technology segment is projected to grow at a relatively higher CAGR during the forecast period due to its growing number of applications and cost-effectiveness in terms of reduced fertilizer wastage and optimal application.
Target Audience:
- Variable rate technology component manufacturers
- Variable rate technology product importers and exporters
- Variable rate technology product traders, distributors, and suppliers
- Government and research organizations
- Original equipment manufacturers
- Satellite service providers
- Software, service, and technology providers
- Original equipment manufacturers
- Commercial research & development (R&D) institutions and financial institutions
- End users
On the basis of offering, the VRT software segment is projected to grow at the highest rate in the global variable rate technology market from 2017 to 2022. Software systems have become essential in variable rate technology; they are used to interpret & analyze the gathered data and is being increasingly adopted by agronomist and farmers in the North American and European countries. Some of the companies providing variable rate technology software are Deere & Company (U.S.), Trimble, Inc. (U.S.), Agrivi d.o.o. (U.K.), i.Agri Limited (New Zealand), Irish Farm Computers Ltd. (Ireland), and Ag Leader Technology (U.S.).
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Key industrial players are expanding their operations in the emerging markets to increase their geographical presence and customer base. Global variable rate technology manufacturers are actively involved in the implementation of various R&D activities to discover novel products. This is expected to lead to the development of the variable rate technology market.
