Published Year: 2023
Autonomous Agriculture Equipment Market - A Global and Regional Analysis: Focus on Product, Applicat
The global autonomous agriculture equipment market was worth $5.81 billion in 2022 and is...
Market Research Report
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Global Agriculture Autonomous Retrofit Market Overview
The agriculture autonomous retrofit market for driverless tractor kit, in-cab display, spot spraying kit, and planting automation kit exhibits a notable concentration, with key players such as AGCO Corporation, Ag Leader Technology, CNH Industrial N.V., and Deere & Company holding significant market shares. This concentration is indicative of the dominance of a few major manufacturers in the industry. Recent strategic initiatives focus on technological advancements, reflecting the concerted efforts of major players to strengthen their positions in this concentrated market.
Market Introduction
The global agriculture autonomous retrofit market was valued at $1,931.1 million in 2023 and is expected to reach $10,760.3 million by 2033. Companies involved in manufacturing driverless tractor kits, spot spraying systems, and other autonomous retrofit solutions can strategically position themselves for this growth by investing in research and development, fortifying production infrastructure, and forging strategic partnerships. This strategic positioning aligns with market trends as the agriculture industry increasingly embraces sustainable and efficient farming practices enabled by autonomous technologies. As the demand for agriculture autonomous retrofit solutions continues to soar, companies adopting proactive strategies are likely to shape the future of the global agriculture autonomous retrofit market and cater to the evolving needs of farmers worldwide.
Industrial Impact
The agriculture autonomous retrofit market is witnessing significant activity from key players, each employing strategic initiatives to capitalize on the growing demand for advanced farming solutions. AGCO Corporation, a major player in the industry, made a noteworthy move by acquiring an 85% interest in Trimble's agriculture technology business in September 2022. This strategic partnership aims to integrate Trimble's precision agriculture technologies with AGCO Corporation's retrofit offerings, particularly focusing on enhancing precision planting seed planter products.
Similarly, CNH Industrial N.V. has been actively advancing in precision agriculture. In 2021, CNH Industrial N.V. acquired Raven Industries for $2.1 billion, integrating Raven's guidance systems, crop-spraying machines, and autonomous driving systems into their product lineup. CNH Industrial N.V.'s focus on smart machines capable of adjusting to variances in field conditions underscores their commitment to delivering precise and efficient farming solutions. Moreover, the company’s Harvest Automation System and tillage automation technology demonstrate their dedication to optimizing farm operations and increasing productivity.
Market Segmentation:
Segmentation 1: by Application
• Tractor Autonomy
• Implement Autonomy
Tractor Autonomy to Dominate the Global Agriculture Autonomous Retrofit Market (by Application)
The tractor autonomy segment is expected to maintain its dominance in the agriculture autonomous retrofit market during 2023-2033. This is driven by increasing demand for efficient and cost-effective farming solutions, especially in regions facing labor shortages and relying on aging equipment. Retrofitting existing tractors with autonomous capabilities offers economic and operational advantages, making it the preferred choice for many farmers.
Segmentation 2: by Product
• Driverless Tractor Kit
• In-Cab Display
• Spot Spraying Kit
• Planting Automation Kit
Driverless Tractor Kit to Dominate the Global Agriculture Autonomous Retrofit Market (by Product)
The global agriculture autonomous retrofit market is currently undergoing a significant transformation, with the driverless tractor kit segment expected to hold a dominating share throughout the forecast period. This shift is notably propelled by both developed and developing countries, particularly due to strong government support advocating for reduced taxes, incentives, and infrastructure development. Companies are also coming up with new products and taking strategic initiatives to grasp the market opportunity. In December 2022, CNH Industrial N.V. unveiled its newest automation and autonomy solutions during its Tech Day in the U.S. These include innovative Driverless Tillage and Driver Assist Harvest solutions from Raven, as well as Baler Automation from Case IH and New Holland. These advancements in automation and autonomous equipment aim to address key challenges in farming, such as improving productivity and achieving sustainability goals with fewer resources.
Segmentation 3: by Region
• North America: U.S., Mexico, and Canada
• Europe: France, Germany, Italy, Spain, U.K., and Rest-of-Europe
• Asia-Pacific: China, Japan, Australia, and Rest-of-Asia-Pacific
• Rest-of-the-World: Brazil and Other
North America has been playing an instrumental role in shaping the global agricultural autonomous retrofit market. The significant traction gained by autonomous retrofit solutions in the region is a result of increasing demands for precision agriculture and the growing recognition of autonomous technology as a key enabler of efficiency and productivity. Government support has also played a crucial role in accelerating the growth of the agricultural autonomous retrofit market in North America. The United States Department of Agriculture (USDA) implemented programs to accelerate the automation and mechanization of specialty crop production, as announced in January 2024, indicative of the government’s strategic commitment to advancing autonomous technology in agriculture. Moreover, strategic initiatives by companies are further propelling the market forward. In March 2023, Ouster and Fieldin announced the largest known deployment of retrofit autonomy kits for tractors in the agricultural industry. Fieldin deployed over 100 autonomy retrofit kits on tractors across the U.S. by the end of 2023, each equipped with an Ouster OS1 sensor.
Recent Developments in the Global Agriculture Autonomous Retrofit Market
• In August 2023, New Holland Agriculture, a brand of CNH Industrial N.V., launched the world's first accessible farm tractor, the TL5 Acessível, in Brazil. Designed for individuals with lower limb disabilities, the tractor aims to provide autonomy for farmers with physical challenges, addressing a significant portion of the Brazilian population and is financially supported by the Brazilian government's 'Rota 2030' financing line for innovation projects in social inclusion.
• In October 2023, the Sabanto Steward-equipped Kubota M5 111 is the first aftermarket-installed level five autonomous tractor in Canada, featuring a retrofittable system allowing remote programming and operation. Priced at $65,000 with an annual subscription, it offers efficiency gains, labor savings, and potential return on investment within a year to a year-and-a-half, addressing challenges in agriculture, such as labor shortages and maximizing productivity.
• In September 2023, AGCO Corporation planned to establish a 300-acre smart farm in North Dakota's Grand Farm Innovation Campus, focusing on precision agriculture and retrofit technologies. The project, led by Agca subsidiary Appareo, aimed to develop sustainable farming practices through advancements in crop production, resource utilization, and overall farm management.
Demand - Drivers, Challenges, and Opportunities
Market Drivers: Alleviating Farming Labor Shortages with Autonomous Tractor Technology
• Labor shortage in agriculture is a major challenge faced by many countries across the world. It refers to a situation where the demand for agricultural workers exceeds the supply, resulting in lost productivity, income, and food security.
• The Canadian Agricultural Human Resource Council (CAHRC) has revealed a severe labour shortage in the agriculture sector, causing an estimated $3.5 billion in losses for on-farm businesses in 2022. With a 7.4% vacancy rate, two in five farmers struggle to find necessary workers. To overcome labour challenges, the agriculture industry is exploring autonomous tractor technology to reduce dependency on human labour and enhance productivity.
Market Challenges: Navigating Data Ownership and Privacy Challenges
• Agricultural hardware, including automatic crop sprayers, drones, and robotic harvesters, could be exploited by hackers, as highlighted in a University of Cambridge report. Ethical hackers have identified vulnerabilities in Deere & Company's and CNH Industrial N.V.'s systems, emphasizing the need to prevent disruptions to critical agricultural infrastructure during key periods such as seeding or harvesting. Experts stress that hacking into a fleet of tractors could impact yields across entire regions.
• The major stakeholders in agricultural data include farmers, agricultural technology providers, input companies, and governments. A survey by the American Farm Bureau Federation revealed that over 75% of farmers worry about data ownership and potential regulatory use, while 60% fear companies influencing market decisions using their agricultural data.
Market Opportunities: Growing Demand for Carbon Footprint Cutbacks
• Agriculture contributes to greenhouse gas emissions through various processes, including the use of fossil fuels, fertilizers, and land-use changes. As a result, there is a growing emphasis on adopting technologies and practices that can help minimize the carbon footprint of agricultural operations.
• Nations are putting concerted efforts into reducing their carbon footprint. For instance, the release of the U.S. Department of Agriculture's (USDA) comprehensive assessment in 2023 on the role of agriculture and forestry in carbon markets aligns with the growing demand for carbon footprint cutbacks, creating significant opportunities for agriculture autonomous retrofit equipment manufacturers. The report, a key deliverable under the Growing Climate Solutions Act (GCSA), underscores the Biden-Harris Administration's commitment to leveraging agriculture and forestry as solutions to climate change while fostering economic opportunities for rural communities.
Analyst View
According to Debraj Chakraborty, Principal Analyst, BIS Research, “Impressive strides in technology are transforming the global agriculture landscape, and the autonomous retrofit market is a key player in this revolution. As precision agriculture becomes increasingly vital for sustainable food production, retrofit solutions in autonomous machinery are poised to be a game-changer. The intersection of innovation and agriculture promises efficiency, sustainability, and a paradigm shift in farming practices, making the global agriculture autonomous retrofit market a compelling frontier for investment and growth.”
Agriculture Autonomous Retrofit Market
A Global and Regional Analysis, 2023-2033
Some Faq's
Frequently Asked Questions
Ans: The global agriculture autonomous retrofit market refers to the industry involved in enhancing traditional farming machinery with autonomous capabilities. This includes retrofitting tractors, harvesters, and other equipment to operate autonomously for tasks such as planting, spraying, and harvesting. The market focuses on integrating precision farming technologies, data analytics solutions, and sustainable practices to optimize agricultural operations. This sector addresses the increasing demand for advanced and efficient farming methods in response to evolving agricultural challenges and the need for sustainable practices.
Key opportunities in the global agriculture autonomous retrofit market include precision farming integration for optimized operations, the development of data analytics solutions for farm management insights, and the creation of sustainable retrofit solutions supporting autonomous practices aligned with eco-friendly agriculture.
The global agriculture autonomous retrofit market is poised to grow over time, compelling companies to come up with collaborative strategies to sustain themselves in the intensely competitive market. Companies with an identical product portfolio with a need for additional resources often partner and come together for joint venture programs, which help the companies gain access to one another’s resources and facilitate them to achieve their objectives faster.
A new entrant could focus on partnering with existing autonomous retrofit kit producers. Also, startups could focus on funding, launching new innovative products, and expanding their sales and distribution networks.
The following are some of the USPs of this report:
• A dedicated section focusing on the trends adopted by the key players operating in the global agriculture autonomous retrofit market
• Competitive landscape of the companies operating in the ecosystem offering a holistic view of the global agriculture autonomous retrofit market
• Qualitative and quantitative analysis of the global agriculture autonomous retrofit market at the region and country level and granularity by application and product segments
• Supply chain and value chain analysis
Agricultural technology companies, farm equipment manufacturers, investors, government agencies, and technology providers can buy this report.
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