Agricultural Robots Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Agricultural Robots Market is segmented by Type (Unmanned Aerial Vehicles, Milking Robots, Driverless Tractors, and Automated Harvesting Systems), Application (Broad Acre Applications, Dairy Farm Management, Aerial Data Collection, Weather Tracking and Forecasting, and Inventory Management), Offering (Hardware, Software, and Services), and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts in value (USD million) for all the above segments.

Market Snapshot

Agricultural Robots Market Summary
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Europe
Largest Market: North America
CAGR: 4.5 %
Agricultural Robots Market Major Players

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Market Overview

The agricultural robots market is projected to register a CAGR of 4.5% over the forecast period (2022-2027).

The COVID-19 outbreak has hit the business worldwide so hard. The restrictions imposed by the governments, such as the closure of factories, quarantine measures, and social distancing, have been implemented across the globe. Restricting movement and business activities to mitigate the spread of the COVID-19 virus during the pandemic situation led to the economic loss to the industry.

The rising population, declining availability of farmworkers, and rising wages are driving the market growth. The untapped market potential and scope for automation in agriculture, use of real-time multimodal robot systems in fields, and increased use of electrification technology in agricultural robots are also expected to create opportunities for the manufacturers and suppliers of agricultural robots, driverless tractors, milking systems, UAVs and drones. In terms of geography, North America is the largest region in the market studied due to high-income levels and the need to increase yields and reduce costs simultaneously.

Scope of the Report

Agricultural robots are specialized articles of technology that are capable of assisting farmers with a wide range of operations for improving the quality and efficiency of yield, minimizing reliance on manual labor, and increasing overall productivity. They have the capability to analyze, contemplate, and carry out a multitude of functions.

The agricultural robots market is segmented by type (unmanned aerial vehicles, milking robots, driverless tractors, and automated harvesting systems), application (broad acre applications, dairy farm management, aerial data collection, weather tracking and forecasting, and inventory management), offering (hardware, software, and services), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts in value (USD million) for all the above segments.

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Key Market Trends

Labor Shortage and Increasing Costs of Labor

The agriculture labor force has decreased in recent years due to the decreased interest in farming, combined with the aging farmer population. As the population of farm labor continues to decline, farmers are feeling the pressure to keep up with production for the growing demand for fresh produce. Moreover, the downward trend of labor is translating into higher labor wages. For instance, according to The National Agriculture Statistical Service’s Farm Labor Survey (NASS FLS), in 2018, the agriculture industry experienced a 7% decline in hired farm labor and a 5% increase in labor wages. Automated farming systems can help to reduce the pressures of the farm labor shortage. Agtech can bring new efficiencies to farm systems and drive overall productivity without requiring that costs soar in tandem. Thus, with a shortage of available workers, stakeholders are looking at how to modernize the nation's farms. For instance, The American Farm Bureau Federation (AFBF) reported that 56 % of US farms have begun using agritech, with more than half stating labor shortage as the reason. The use of innovative agrotechnology includes wireless sensors, robotics, predictive forecasting model, and data analytics. Thus, increasing labor shortages and wages are driving the growth of the market.

Agricultural Robots and Mechatronics Market: Agricultural Employment in %, Global, 2019-2020

North America Dominates the Market

North America accounted for the largest share of the agricultural robots market. The market in the region is driven by the higher adoption of advanced technology due to increasing labor shortage, high labor costs in the region, and high per-capita disposable income. Increasing government encouragement for the deployment of robots in agriculture, such as unmanned aerial vehicles, driverless tractors, and other agriculture systems to provide smart farming, are some of the factors contributing to the region's growth. To increase the yields and reduce the costs of farmers, some of the players in this market are heavily investing in developing cost-efficient and highly productive robots.

In 2021, Future Acres, based in Santa Monica had, launched its first robot, Carry, with the plans to tackle grape picking. Carry relies on AI to transport hand-picked crops, working alongside humans. Hence, to reduce the challenges of labor shortages, and introduction of new products into the market suiting the farmer needs are driving the growth of the agricultural robots market in the North American region.

Global Agricultural Robots Market: Market Size By Region, 2021

Competitive Landscape

The agricultural robot market is consolidated with active players competing on the basis of product quality and promotion and focusing on their strategic moves to hold larger market shares. Companies are investing heavily to develop new and cost-efficient products and collaborating and acquiring other companies. This factor is expected to increase its market shares and strengthen R&D activities. The companies like AGCO Corporation, Deere & Company, Agrobot, and Agribotix LLC are some of the major players in the agricultural robots market.

Major Players

  1. Deere & Company

  2. AGCO Corporation

  3. Agribotix LLC

  4. Agrobot

  5. Blue River Technology

Agricultural Robots Market Concentration

Recent Developments

In 2022, Verdant Robotics had launched its robot-as-a-service (RaaS) model to ensure access for more specialty crop farmers to meet farmers’ demands for more sustainable and profitable growing practices,

In August 2021, John Deere acquired Bear Flag Robotics for USD 250 million. Bear Flag Robotics specializes in autonomous farming heavy machinery.

In July 2021, AGCO Corporation launched the pilot of its Precision Ag Line (PAL) program, a tool designed to streamline support services for farming customers using AGCO solutions with mixed-fleet operations.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Unmanned Aerial Vehicles (Drones)

      2. 5.1.2 Milking Robots

      3. 5.1.3 Driverless Tractors

      4. 5.1.4 Automated Harvesting Systems

    2. 5.2 By Application

      1. 5.2.1 Broad Acre Applications

        1. 5.2.1.1 Field Mapping

        2. 5.2.1.2 Seeding and Planting

        3. 5.2.1.3 Fertilizing and Irrigation

        4. 5.2.1.4 Intercultural Operations

        5. 5.2.1.5 Picking and Harvesting

      2. 5.2.2 Dairy Farm Management

        1. 5.2.2.1 Milking

        2. 5.2.2.2 Shepherding and Herding

      3. 5.2.3 Aerial Data Collection

      4. 5.2.4 Weather Tracking and Forecasting

      5. 5.2.5 Inventory Management

    3. 5.3 By Offering

      1. 5.3.1 Hardware

      2. 5.3.2 Software

      3. 5.3.3 Services

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Spain

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Africa

        1. 5.4.5.1 South Africa

        2. 5.4.5.2 Rest of Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Agrobot

      2. 6.3.2 Blue River Technology

      3. 6.3.3 Harvest Automation

      4. 6.3.4 AGCO Corporation

      5. 6.3.5 Lely Industries

      6. 6.3.6 Naio Technologies

      7. 6.3.7 Precision Hawk

      8. 6.3.8 Deere & Company

      9. 6.3.9 AG Eagle LLC

      10. 6.3.10 Agribotix LLC

      11. 6.3.11 Trimble

      12. 6.3.12 IBM

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF THE COVID-19 IMPACT ON THE MARKET

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Frequently Asked Questions

The Agricultural Robots Market market is studied from 2017 - 2027.

The Agricultural Robots Market is growing at a CAGR of 4.5% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Deere & Company, AGCO Corporation, Agribotix LLC, Agrobot, Blue River Technology are the major companies operating in Agricultural Robots Market.

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