Agriculture Robots Market

The global Agricultural Robots Market is experiencing prominent growth, with an estimated value projected to reach USD 51.0 billion by 2029 from the 2024 valuation of USD 16.6 billion, indicating a significant Compound Annual Growth Rate (CAGR) of 25.2%. The increasing problem of labor shortage is the primary driver for robotics adoption. With the aging farming population and the migration of younger generations to urban areas for high-paying jobs, farms across the globe are struggling to find reliable, skilled workers. Agricultural Robots act as an attractive solution to this critical problem by providing consistent, efficient labor support that can operate year-round. To mitigate the problem of labor shortage farmers are increasingly adopting agricultural robots to increase farm productivity and efficiency, especially in developed nations, thereby, boosting the growth of the agricultural robots market.

Moreover, the market is witnessing a rising demand for robots custom-tailored for specific crops and tasks, such as weeding, planting, and spraying. As technology continues to advance, rise in awareness and affordability, more farmers are anticipated to adopt agriculture robots in their day-to-day operations, fostering sustainable and efficient farming practices.

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Market Dynamics

Driver: The rapid adoption of advanced technologies due to shortage of labor

With the increasing demand for food and the declining availability of labor, the agriculture industry is adopting smart technologies to address these challenges. Agricultural robots, help farmers manage their crops more efficiently and effectively, reducing the need for manual labor and increasing productivity.

According to the Lea Valley Growers Association, 10% of its cucumber-growing members could not plant a third crop due to a shortage of workers in 2021. Additionally, Riviera Produce Ltd. reported that it had to let approximately USD 545,000 worth of produce rot in the fields during 2021–2022 due to a shortage of workers, and Boxford Suffolk Farms Ltd. stated that it had to waste approximately 44 tonnes of fruit due to a lack of labor. Thus, to meet the labor shortage, farmers are expected to adopt agricultural robots. These advanced technologies would help farmers to optimize crop yields, reduce waste, and improve profitability, all while reducing the need for manual labor. The agricultural robots market is anticipated to witness significant growth as the industry continues to embrace these technologies in the face of declining labor availability.

Restraint: High cost of automation for small farms

Although auto-steering and drone technologies have relatively matured and are some of the least expensive automation solutions, the penetration in small farms is still not widespread. Smaller farms have largely been left behind by successive waves of automation that include agriculture robots. A tractor with autopilot capability can cost upwards of USD 100,000 and often does not provide sufficient Return on Investment (RoI) for small farmers. The high cost of equipment and insufficient returns on investment discourages small-scale farmers to invest in advanced technologies like agricultural robots. These farms are expected to be further left behind in technology with the introduction of more specialized and expensive robots and software systems. This issue is particularly widespread in developing countries, such as India, China, and Brazil, as there is a lack of skill technical awareness, and low income among farmers. Profitability and cost considerations prominently impact the adoption of robotization in agriculture by influencing the feasibility of high initial investments and prospective benefits of agricultural robots. Although the benefits of agricultural robots are significant the high upfront costs are limiting the adoption of agricultural robots and hindering the growth of the market.

Opportunity : Increased use of electrification in agricultural robots

Owing to advancements in electric powertrains and batteries, electric power is expected to provide better controllability and opportunities for automation in tasks such as seeding, weeding, and harvesting. It is anticipated that smaller electric farm vehicles, including pure electric and plug-in hybrid options, will enter mainstream markets before larger vehicles, for instance, tractors. Stricter limitations on diesel emissions are expected to lead to the development of electric farm vehicles replacing diesel-burning equipment regardless of price points to stay compliant with local environmental and health regulations. In September 2021, a carbon robotics company developed an agricultural robot capable of eliminating 100,000 weeds an hour using precision lasers and artificial intelligence systems. In February 2021, Future Acres developed an autonomous, electric agricultural robotic harvest companion – Carry – to help farmers gather hand-picked crops faster and with less physical demand. Hence, the drive for autonomous agricultural robots is also expected to provide an opportunity for the increased deployment of electrification technology.

Challenge: High complexity of fully autonomous robots

The robotic technologies, such as auto-steering guidance technologies and aerial mapping, have already achieved or are approaching the robustness and cost-effectiveness required for real-world use, other technologies are not yet at that stage for field deployment. For example, prototypes of fully autonomous and driverless tractors by John Deere (US), AGCO Corporation (US), CNH Industrial N.V. (Netherlands), Kubota (Japan), and Yanmar (Japan) have started emerging recently. For example, in 2024, Kubota Corporation launched a fully autonomous robot for agriculture. However, except for drones, many industry experts predict that fully autonomous robots in agriculture, such as driverless tractors or weeding robots, will become commonplace and operational only after 2025. These highly advanced autonomous robots require a high degree of technical know-how, which is not easily accessible, making it difficult for farmers to adopt these technologies posing a major challenge to the manufacturers to enhance their market penetration. Lack of technical knowledge in understanding the operation of advanced fully autonomous agricultural robots is a major factor restraining the farming community in developing countries such as China, India, and Brazil, along with many African countries. Governments and market players are taking initiatives to provide training and consultation to farmers to tackle this problem; however, many farmers remain away from the purview of these efforts. To overcome this challenge, many developing countries invest in educating and informing their farming populace about the benefits of advanced agricultural technologies such as agricultural robots.

AGRICULTURAL ROBOTS MARKET ECOSYSTEM

In the type segment, the market for unmanned aerial vehicles is projected to grow at the highest CAGR during the forecast period.

Unmanned aerial vehicles (UAVs) or drones make prominent important contribution to the technological revolution in the agricultural industry. Drones are equipped with several sensors and microcontrollers, infrared and multispectral cameras, and GPS receivers. They support farmers in protecting plants through selective pesticide spraying, providing important field data (on soil, water, and crops), and monitoring the movement of cattle. UAVs have a vast potential in agriculture and a wide range of applications. The UAVs (Unmanned Aerial Vehicles) segment is growing rapidly due to several key factors. Firstly, technological advancements have led to more sophisticated and affordable UAVs, making them accessible to various industries. Secondly, UAVs offer cost-effective solutions for data collection, surveillance, and inspection tasks, reducing the need for manned aircraft or ground-based operations. The versatility, efficiency, and potential for automation in various industries are propelling the UAV market to grow during the forecast period.

In the application segment, field farming are expected to account for a major share of agricultural robot applications.

Agricultural robots have become indispensable tools in modern field farming applications, revolutionizing traditional farming practices and enhancing agricultural productivity. These versatile machines are designed to perform a wide range of tasks, from soil preparation and planting to monitoring crops and applying precise treatments. The driving force behind the adoption of agricultural robots in field farming lies in their ability to cultivate efficiency, reduce labor dependency, optimize resource usage, and improve overall farm sustainability. Field farming systems include systems that can perform monitoring (crop, soil, and water), plant counting, planting, spraying, and weeding. For any smart farming or precision agriculture application, these actions are essential for farm automation. These actions can be performed by UAVs, driverless tractors, and other robots, for instance, AGVs. UAVs have the largest market share, and driverless tractors have the highest growth potential. UAVs are almost exclusively used for field farming, whereas driverless tractors are used primarily for farming and harvest management. Hence, field farming has not only the largest market share but also the highest growth potential compared to other applications.

The agricultural robots market in the North American region is dominating during the study period.

In North America, the United States and Canada are dominating the adoption of agricultural robots, propelled by the availability of cutting-edge technology infrastructure and the integration of AI and machine learning algorithms in agricultural operations. The presence of many vendors, continuous advancements in technology, and reduction in the prices of equipment with technology advancements are contributing to the growth of the agriculture robots market in North America. Furthermore, the demand for livestock monitoring technologies in North America is increasing because of factors such as continuous advancements in technologies, a drop in the prices of automated milking systems and automated feeding systems, and usage of social media and online publications for education related to agriculture. Innovations in technology and the emergence of data generation, storage, cloud computing, computer processing capacity, and delivery systems have led to the growth of the agriculture robots market in North America.

Key Market Players

The key players in the agricultural robots market include Deere & Company (US), CNH Industrial N.V. (United Kingdom), DJI (China), Lely (Netherlands), DeLaval (Sweden), and AGCO Corporation. (US). These market participants are increasing their market presence via product launches. Companies focus on expanding their production facilities by entering into partnerships and agreements as well as by launching products to grow their businesses and their market shares.

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Scope of the Report

Target Audience

• Agricultural robot manufacturers
• Agricultural robots integrated hardware and software manufacturers
• Related government authorities, commercial research & development (R&D) institutions.
• Venture capitalists and investors.
• Technology and raw material providers to agricultural robots companies.
• Government agricultural departments and regulatory bodies such as the US Department of Agriculture (USDA), Food and Agricultural Organization (FAO), Indian Council of Agriculture Research (ICAR), the Ministry of Farmers Welfare & Farmers Welfare (MoA & FW), and International Fund for Agricultural Development (IFAD).

Agricultural Robots Market:

By Type

• Unmanned Aerial Vehicles/Drones by Type
• Fixed Wing Drones
• Rotary Drone Blades
• Hybrid Drones

By Ingredient Unmanned Aerial Vehicles/Drones by Components

• Hardware
  • Frames
  • Controller
  • Propulsion System
  • Camera systems
  • Navigation systems
  • Batteries
  • Others
• Software
  • Software used for data management, imaging, and data analytics applications
  • Milking Robots

Milking Robots by Component

• Hardware
  • Automation and control devices
    • Robotic Arm devices
    • Control & Display units
    • Milk meters & analyzers
    • Cleaning & Detection systems
  • Sensing and Monitoring Devices
    • Sensors
  • Camera Systems
  • Others

By Farming Environment

• Indoor
• Outdoor

By End Use

• Farm Produce (Area)
  • Cereals and Grains
    • Corn
    • Wheat
    • Rice
    • Other cereals and grains
  • Oilseeds and Pulses
    • Soyabean
    • Sunflower
    • Other oilseeds and pulses
  • O Fruits and Vegetables
    • Pome Fruits
    • Citrus Fruits
    • Berries
    • Root and Tuber Vegetables
    • Leafy Vegetables
    • Other fruits and vegetables
• Other Crop types (turf & ornamentals, plantation crops, fibre crops, and silage & forage crops)
• Dairy & Livestock

By Application

• Harvest Management
  • Field Farming
  • Plowing & Seeding
  • Crop Monitoring & Weed Detection
  • Plant Scouting
  • Crop Protection and Scouting
  • Weather Tracking & Monitoring
• Dairy & Livestock Management
  • Dairy Farm Management
  • Livestock Monitoring
  • Precision Fish Farming
• Soil & Irrigation Management
• Others

By Region

• North America
• Europe
• Asia Pacific
• South America
• RoW (the Middle East & South Africa)

Recent Developments

• In April 2024, AGCO Corporation and Trimble have completed their joint venture (JV) transaction, establishing PTx Trimble. This new entity merges Trimble's precision agriculture expertise with AGCO's JCA Technologies to provide improved factory-fit and retrofit solutions for the mixed-fleet precision agriculture market. AGCO holds an 85% stake in PTx Trimble, while Trimble retains a 15% stake. Moving forward, PTx Trimble is going to be included in AGCO's consolidated financial statements.
• In March 2024, New Holland, a CNH brand, partnered with Bluewhite, a company which specializes in AI-driven autonomous farming technology, to improve the autonomy of New Holland tractors in North America. This is a multi-phase, multi-year partnership that aims to integrate Bluewhite's autonomous solutions across New Holland's tractor lineup, targeting specialty crop operations like orchards and vineyards. The objective of this partnership is a regional and global expansion to broaden customers' access of CNH’s solutions.
• In February 2024, John Deere in partnership with GUSS Automation launched the Electric GUSS, which is the industry's first and only fully electric autonomous herbicide orchard sprayer. It empowers growers to manage multiple sprayers remotely and aids in optimizing productivity and labor efficiency.
• In March 2023, DeLaval launched the OptiWagon, a key module in its DeLaval Optimat™ automated feeding solution, enhancing feeding efficiency for dairy farms. The system, available in Standard and Master versions, supports operations from 120 to 1,000 cows and is being introduced across most European markets.

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