Global Variable Rate Technology (VRT) Market Report 2022-2027: Opportunities in Tapping Smallholder Farmer Segment with Affordable VRT Solutions
DUBLIN, Sept. 15, 2022 /PRNewswire/ -- The "Variable Rate Technology Market - A Global and Regional Analysis: Focus on, Application, Technology, Solution, and Region - Analysis and Forecast" report has been added to ResearchAndMarkets.com's offering.
The global variable rate technology market was valued at $2.02 billion in 2021, and it is expected to grow with a CAGR of 20.28% during the forecast period 2022-2027 to reach $6.09 billion by 2027
The growth in the global variable rate technology market is expected to be driven by increasing demand for agricultural output and decreasing labor force in the agriculture industry.
The global variable rate technology market is still in the introductory phase in developing countries and reached the growth phase in developed countries. Globally, research and development activities are underway to develop highly productive variable rate technology products. The demand for variable rate technology is expected to increase in the future as the government across the nations are planning for sustainable agricultural production.
Tapping the smallholder farmer segment with affordable variable rate technology solutions for agricultural input application is one of the major opportunities in the global variable rate technology market. Many start-ups have been emerging across the global variable rate technology market with affordable variable rate technology software solutions to attain a competitive advantage by tapping the smallholder farmer segment.
The gap between the U.S. and other global countries in the pace of adoption of other precision agricultural technologies is relatively narrow. However, in the case of variable rate technology, the adoption rate is around 14.1%. Therefore, the global variable rate technology market players have room for growth across the U.S. and other global countries during the forecast period.
As per the World Bank data, the employment percentage in agriculture decreased by around 13% during 2000-2019. The steep decrease in the agricultural labor population has to be replaced with an efficient technological solution to bridge the supply and demand gap in the agricultural industry. Reducing the agricultural workforce and increasing labor costs is expected to bring more space for automation in the agriculture industry and, thus, the demand for variable rate technology.
The outbreak of COVID-19 made the farmers realize the benefits of investing in technologies rather than relying on the workforce, as they experienced the worst labor shortage during the pandemic, which negatively impacted overall production. Using variable rate technology in agriculture is a suitable solution to overcome these difficulties. Thus, COVID-19 has positively impacted the global variable rate technology market in the long run by making farmers realize the financial benefits of investing in variable rate technology.
The global variable rate technology market in the application segment is expected to be dominated by the variable rate fertilization segment during the forecast period. Rising awareness about the risk associated with the over-application of fertilizer to the soil and increasing fertilizer costs are the major driver which triggers the demand for variable rate fertilization in the global variable rate technology market.
The global variable rate technology market is expected to be slightly more dominated by the map-based technology segment during the forecast period. The dominance of map-based technoloy is mainly due to the unavailability of appropriate sensors to collect soil and plant data.
Based on solution, the hardware segment will dominate the global variable rate technology market during the forecast period. The requirements of high-cost components such as receivers, control systems, sensors, and others will make the hardware solution segment dominate the global variable rate technology market during the forecast period.
The U.S. generated the highest revenue of $569.7 million in 2021. The country has been experiencing a rapid growth rate in the past few years owing to rising high-value crop production as farmers enjoy short payback in variable rate technology investment for high-value crop production.
Recent Developments in the Global Variable Rate Technology Market
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
The top leading players include the public companies operating in the global variable rate technology market, which had a market share of around 62% in 2021. The rest of the market share, 38%, was taken by the private and start-up companies.
Some prominent names established in this market are:
Company Type 1: Public Companies
Company Type 2: Private Companies
Company Type 3: Start-Up Companies
Key Topics Covered:
5 Markets - Competitive Benchmarking & Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/vu8h6c
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SOURCE Research and Markets