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.
Read Report Overview: Variable Rate Technology Market
Market Lifecycle Stage
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.
Impact of COVID-19
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.
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.
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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.