Market Trends of Variable Rate Technology Industry
This section covers the major market trends shaping the Variable Rate Technology Market according to our research experts:
Increasing Adoption of Digital Technologies in the Agricultural Sector
Innovation and technology have led to major developments in various areas and agriculture is one of them. Sensing technologies, software applications, communication systems, data analytics solutions, and positioning technologies are some of the latest technologies used in precision farming. Various technologies, such as driverless machinery, automated milking systems, and drone crop dusters are providing important and attractive opportunities for the growth of precision agriculture. As stated by the United Nations Conference on Trade and Development in September 2019, over the years the adoption status of digital technologies in agriculture has shown a significant rise. For instance, in 2019, automatic section control, variable rate technology, precision maps, yield monitoring, satellite or aerial imaging, and chlorophyll sensors garnered the shares of 40%, 31%, 48%, 44%, 22%, and 5% respectively in the agricultural sector. Thus, the increasing adoption of digital technologies in the agricultural sector is anticipated to accelerate the growth of the variable rate technology market during the forecast period.
North America to Drive the Variable Rate Technology Market
Over the years, the increasing adoption of digital technologies has made it possible to collect huge amounts of critical data at minimal costs, thus making field operations more insight-driven, and potentially more productive and efficient. Until recently, the impact of variable rate treatment application has been limited by the granularity and timeliness of the data they use and their lack of day-to-day operational decision support. However, according to USDA, over 60% of the United States' agricultural input dealers offer some kind of variable-rate technology services. Contrasting to this, less than 20% of the acreage is currently being managed using technology due to the relatively higher costs of gathering precise field data. Thus, the rising availability of the variable rate treatment application services in the United States market is likely to accelerate the variable rate technology market during the forecast period.
