The global agriculture robot market’s revenue had reached US$ 830 million in 2015, and is projected to reach US$ 5.70 billion by 2024, after expanding at a compound annual growth rate (CAGR) of 24.1 percent from 2016 to 2024, a study released by Transparency Market Research (TMR) has revealed.
Regionally, the global agriculture robots market has been segmented into North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and Latin America. In 2015, North America led the global agriculture robots market in terms of revenue generation. The US was a key contributors to the lead held by North America and is expected to continue doing that over the coming years, the study says.
Asia Pacific, on the other hand, is showing a much faster rate of growth in the global agriculture robots market. This region ranked third in terms of market share hold in the global agriculture robots market for 2015 and was already making a fair contribution to the overall revenue generated in the global scenario. China and Japan have been the chief contributors in the Asia Pacific region due to a high rate of adoption of agriculture robots as well as capable players that are putting forth a consistent rate of development and product innovation. The use of agriculture robots in dairy management and horticulture are expected to be significant contributors towards the growth of Asia Pacific in this market from 2016 to 2024. Automated harvesting machine and driverless tractors are extensively used in Asia-pacific region, the TMR study further adds.
The diverse nature of the competitive landscape in the global agriculture robots market presents a number of prominent players for each of its key regions. PrecisionHawk, Inc., Clearpath Robotics, and Harvest Automations, Inc., were the leaders of the agriculture robots market in North America, while SenseFly SA and Naio Technologies led the market in Europe for 2015. At the time, Shibuya Seiki was the leading players in the agriculture robots market for Asia Pacific. There are also a diverse array of names appearing as emergent players in the global agriculture robots market within each region, denoting a strong scope of entry for advanced innovations and increased player competition.
Agriculture robots perform different operational tasks such as capturing images, seeding, spraying water, harvesting, and milking among others. The growing need for food and scarcity of agriculture labour is boosting the growth of agriculture robots market in the United States and European markets. The global market for agriculture robots is majorly driven by increase in precision agriculture and increase in need for real time data which helps in decision making. Moreover, the global market of agriculture robots is experiencing a growth due to increased corporate farming and increase in demand for food production.
The trends are propelling the market of agriculture robots globally at a significant pace. Ongoing research and developments undertaken by different companies across the globe are expected to boost the market of agriculture robots during the forecast period.
The growing market in the emerging regions such as Asia-Pacific and Latin America are anticipated to grow the market of agriculture robots in these regions. Propelled by rapidly increasing demand for food, the manufacturers are adopting new robust technologies to modernise the existing robots.
In addition, robots also help in spraying the right amount of chemicals, fertilisers and pesticides without human involvement, which is generating interest among the farmers or growers round the globe. However, due to high cost of the machineries, the market of agriculture robots is experiencing a limitation in the market growth. Another factor hindering the growth of the market is the limited functionality of the agriculture robots. The effects of these limiting factors are expected to reduce over the forecast period from 2016 to 2024.
The rising demand for agriculture robots on a global scale is attributed to the staggering rate of growth in the world population and a relative reduction in the average available agriculture workforce. This is a direct consequence of an increase in urban migration. Agriculture robots are expected to mitigate the human labour and can thus help overcome the scarcity of physical labour. These robots bring with them advantages such as constant work rates under a diverse array of harsh environmental conditions, a reduction in the use of chemicals and pesticides applied to crops, and the heavily sought-after concept of precision agriculture.
However, the global agriculture robots market is being restrained by the very high investments required for installing and maintaining robots. The use of technologies such as integrated high definition cameras and obstacle sensors, along with the incoming wave of increasing advanced technology are drastically increasing the cost of each unit within the global agriculture robots market in terms of both purchasing them as well as maintaining them, further deterring several local farmers from incorporating agriculture robots into their farmlands.