Global ag robot market expected to reach $99B by 2030
The global ag robots market size reached $6.94 billion in 2021 and is expected to reach $99 billion by 2030, according to the latest analysis by Emergen Research, a private market research and consulting company. The global ag robots market revenue is expected to register a compound annual growth rate of 34.4% between 2022 and 2030.
Increasing research and development activities in farm automation and rising global food demand are some key factors driving global ag robot market revenue growth. Government subsidies for farmers toward adoption of ag robots are another of the market drivers.
Other growth drivers:
A decrease in labor in the ag sector, steady deployment of agricultural robots and a shift to more advanced farming techniques are factors expected to keep revenue growth climbing in the market, according to the analysis.
During the pandemic, the labor force shrunk drastically, resulting in the need for a more reliable solution such as ag robots.
Additionally, younger people are less inclined to seek employment in the ag sector because of the availability of other career prospects and higher paying employment. Increasing labor costs is another factor expected to support deployment of robots because of long-term profitability and dependability.
Restraints to growth:
Concerns regarding the high prices of ag robots such as drones and autonomous tractors are key factors hampering market revenue growth, the analysis said. Ag robot investments are capital-intensive, and high-cost robots may not provide a sufficient return on investment. Also, lack of a skilled workforce to handle such robots is slowing market growth to some extent.
Strategic initiatives:
In January, Deere and Company, a U.S.-based ag machinery manufacturer, successfully added a total of seven companies to the 2022 Startup Collaborator Program. The companies included Four Growers, Burro, Crop.Zone, ViewAR, SeeDevice, Ucropit and Yard Stick, according to a news release from the company.
This collaboration would help Deere and Company to improve its interactions with startup companies, whose technologies would add substantial value for clients. Additionally, this collaboration program enables Deere and Company to explore broad areas of technologies while enhancing value for customers across different production systems.
COVID-19 impact analysis:
The pandemic had a wide-ranging impact. Shutdown of businesses has resulted in production disruptions. Travel restrictions and limited market accessibility impacted the growth of the global ag robot market.
Lack of workforce during lockdowns and restrictions also played a major role in a shift toward automation and reliance on ag-tech solutions. This trend is expected to continue.
Current trends and innovations:
The “robot as a service,” or RaaS, model is trending and contributing to the growth of the ag robot market, according to the analysis. The RaaS model is expected to increase the use of robots in the ag sector.
The RaaS model is highly flexible and affordable. It’s also more economical for smaller farms. A drones as service model is also being widely used in the sector and drones are being leased out to smaller farmers by service providers.
Geographical outlook:
The ag robot market in North America is expected to register a significantly robust revenue growth rate between now and 2030. This is because of increasing research and development initiatives for modernizing farming.
