A new market report by MarketsandMarkets estimates the global agricultural variable rate technology to be valued at USD 7.4 billion in 2022. It is projected to reach USD 13.7 billion by 2027.
According to the report ”Agricultural Variable Rate Technology Market by Offering (Hardware, Software, Service), Type (Fertilizer Vrt, Crop Protection VRT), Crop Type, Application Method, Farm Size, Application Fit and Region – Global Forecast to 2027” the cereals & grains segment dominated the agricultural variable rate technology market.
Cereals such as corn, wheat and rice have the highest adoption among various crop types as these are majorly grown in large farms. The adoption rate of variable rate technology (VRT) is expected to be high compared to other technologies. VRT helps in applying the right amount of input at the right place on the field, which minimizes the input waste and increases the productivity of land and crop.
Sensor-based VRT is projected to account for the fastest growth in the variable rate technology market. The report states sensor-based VRT, which utilizes active optical sensors, drone and satellite mapping, is gaining importance during the forecast period as it is are real-time. However, the high cost of these sensor-based VRT will be a major concern during the forecast period.
According to MarketsandMarkets, mid-sized farms will account for the highest growth rate during the forecast period, especially in developed countries such as the U.S., Australia and the United Kingdom. However, the researchers say the increasing demand for food security has led to growing adoption of precision farming technologies on medium-sized farms in emerging countries.
North America accounts for the largest share of the agricultural VRT market, according to the report. Increasing automation and digitisation of agriculture is creating new business models. The agricultural VRT market in North America is actively growing every year owing to increasing adoption in various crops.