Machinery

News last update:18 Feb 2020

Farm robots market to be worth $ 20.6 Billion by 2025

Increasing affordability of IoT and GPS technologies is driving the growth of the market.

The agricultural robots market is projected to grow from USD 7.4 billion in 2020 to USD 20.6 billion by 2025, according to a new market research report by MarketsandMarkets (sources at bottom of this article). The researchers predict the market to grow at a CAGR (compound annual growth rate) of 22.8% during the forcast period (2020-2025).

Increasing affordability of IoT and GPS

According to the researchers, growing agricultural automation owing to a decline in the availability of skilled labour and increasing affordability of IoT and GPS technologies is driving the growth of the market.

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Growing agricultural automation owing to a decline in the availability of skilled labour and increasing affordability of IoT and GPS technologies is driving the growth of the market. - Photo: Hans Prinsen
Growing agricultural automation owing to a decline in the availability of skilled labour and increasing affordability of IoT and GPS technologies is driving the growth of the market. - Photo: Hans Prinsen

The report further states that the decrease in the number of young farmers entering the agricultural sector and the rise in minimum wages of farmers are also driving the growth of the agricultural robots market. “The advent of low-cost IoT devices is enabling companies to offer various agricultural software and analytics services to their customers,” say the researchers.

Furthermore, the use of multi-modal systems for coordination among various hardware such as unmanned aerial vehicles (UAVs), autonomous tractors, and other automated farm equipment through a centralised management software acts as a growth opportunity for agricultural robots market.

Driverless tractors

The driverless tractors segment of the agricultural robots market is projected to grow at the highest CAGR during the forecast period, according to MarketsandMarkets.

Driverless tractors have for quite some time been field-tested in countries such as the US and Japan.

Also read: Yanmar demonstrates autonomous tractors

Even emerging economies such as India are using driverless tractors. Thus, the growing adoption of driverless tractors in agricultural fields is expected to fuel the growth of the driverless tractors segment of the market.

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All tractor manufacturers, whether they will admit it or not, and in secret or not, are working on the development of autonomous tractors. - Photo: Mark Pasveer
All tractor manufacturers, whether they will admit it or not, and in secret or not, are working on the development of autonomous tractors. - Photo: Mark Pasveer

Hardware segment to dominate agricultural robotics market

Although the number of emerging agricultural software and services is increasing at a rapid pace, the agricultural hardware is still expected to dominate the agricultural robotics market.

“Increasing affordability of auto-steering systems and improving GPS accuracy have enabled tractors and other agricultural ground vehicles to operate autonomously. Swarm vehicles are set to replace heavy tractors in the future to minimise soil damages,” say the researchers.

Drones

Agricultural drones are increasingly being used by farmers due to their effective utility and high affordability in crop monitoring and spraying applications. The deployment of IoT devices and sensors in farms is also contributing to the overall growth of the hardware segment of the market, according to the report.

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Agricultural drones are increasingly being used by farmers due to their effective utility and high affordability in crop monitoring and spraying applications. - Photo: XAG
Agricultural drones are increasingly being used by farmers due to their effective utility and high affordability in crop monitoring and spraying applications. - Photo: XAG

Americas to hold the largest share agricultural robots market in 2025.

North and South America are expected to hold the largest share of the agricultural robots market in 2020. The market in the region is also projected to account for the largest share of the market in 2025. The US is set to be the largest contributor to the agricultural robots market in the Americas.

Sources

Primary and secondary sources that were used by MarketsandMarkets for the Agricultural Robots Markets research report include:

  • International Federation of Robotics (IFR)
  • Federal Aviation Administration (FAA)
  • Transport Canada
  • European Aviation Safety Agency (EASA)
  • Civil Aviation Administration of China (CAAC)
  • Association for Unmanned Vehicle Systems International (AUVSI)
  • euRobotics
  • China Agricultural Wholesale Market Association (CAWA)
  • RobAgri
  • Magazines/websites
  • Interviews with industry experts

Also read: 21 autonomous tractor projects around the world

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