Increasing Research & Development activities in farm automation and rising global food demand are some key factors said to drive the global agricultural robot market revenue growth.
The global agricultural robots market size reached USD 6.94 Billion in 2021 and is expected to register a significantly rapid revenue CAGR (compound annual growth rate) during the forecast period, according to latest analysis by Emergen Research.
Decrease in workforce in the agriculture sector, steady deployment of agricultural robots, and shift to more advanced farming techniques and approaches are factors expected to continue to support revenue growth of the market. Younger individuals in the population are less inclined to seek engagement in the agricultural sector owing to availability of better career prospects and higher paying employment. Besides, increasing labour costs is a factor expected to support deployment of robots owing to long-term profitability and dependability.
The researchers however state stat concerns regarding high purchasing cost of agricultural robots such as Unmanned Aerial Vehicles (UAVs) and driverless tractors are key factors hampering market revenue growth. Initial stage of robot installation is capital-intensive, and many high-cost robots may not always provide sufficient Return on Investment (RoI). Also, lack of skilled personnel to handle such robots is expected to hamper market growth to some extent during the forecast period.
Robot as a Service (RaaS) model, where the farmer doesn’t have to buy the robot himself, is a current trend that is contributing to growth of the agricultural robot market, according to the report. RaaS model is expected to increase use of robots in agricultural sector.
The global agricultural robots market revenue is expected to register a CAGR of 34.4% over the forecast period and revenue is projected to increase from USD 6.94 Billion in 2021 to USD 99.30 Billion in 2030. Increasing government encouragement such as subsidies provided to farmers towards adoption of agricultural robots is driving market revenue growth.
COVID-19 brought some positive impacts with regards to using agricultural robots. During the pandemic, labor force shrunk drastically, which resulted in need for a more viable and reliable solution, and this has driven demand for agricultural robots. Lack of workforce during lockdowns and restrictions also played a major role in a shift towards automation and reliance and dependence on non-human workforce, and this trend is expected to continue over the forecast period.