PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1453679
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1453679
Global autonomous tractor market is projected to witness a CAGR of 15.13% during the forecast period 2024-2031, growing from USD 2.51 billion in 2023 to USD 7.75 billion in 2031. Autonomous tractors are vehicles that are outfitted with advanced technology such as GPS, sensors, cameras, and artificial intelligence algorithms, allowing them to execute a variety of activities without human intervention. These tasks may include plowing, sowing, spraying, and harvesting, etc. The primary advantage of autonomous tractors is their capacity to work continuously around the clock, increasing total farm efficiency and output.
Modern agriculture faces the problem of increasing yields to feed a growing population while reducing environmental impact. Autonomous tractors play an important role in accomplishing these objectives by enabling precision farming. Their precise application of resources such as fertilizers, herbicides, and irrigation decrease waste and lessens agriculture's environmental impact. Self-driving tractors save water, reduce chemical runoff into ecosystems, and cut greenhouse gas emissions by optimizing resource utilization. The eco-friendly strategy is consistent with the global movement for sustainable agriculture, making autonomous tractors an important tool for decreasing the environmental footprint of farming operations while preserving productivity.
One of the key driving forces behind the autonomous tractor market is the requirement for enhanced agricultural production to fulfill rising global food demand. With the world's population anticipated to reach 9.7 billion by 2050, farmers must produce more food with fewer resources. Autonomous tractors address this issue by streamlining agricultural operations, decreasing waste, and guaranteeing that every inch of farmland is used effectively. Furthermore, autonomous tractors result in significant cost reductions for farmers. Labor expenditures contribute as a large component of farming expenses and autonomous tractors dramatically minimize the requirement for manual labor. These machines can work constantly without rest or pauses, resulting in faster task completion and higher production. Farmers can profit from lower fuel use, as autonomous tractors follow precise lines and optimize routes, reducing fuel waste.
The market for autonomous tractors is not confined to large-scale commercial farms, while small and medium-sized farms have the potential to benefit as well. Modular and scalable solutions are being created to meet the different needs of farmers across the board. The inclusivity ensures that the advantages of self-sufficient farming are available to a diverse spectrum of agricultural activities. As technology advances and costs fall, the usage of autonomous tractors is expected to increase, benefiting both farmers and the global food supply chain. With continued research and development efforts, the future of autonomous tractors appears bright, providing a more efficient, sustainable, and productive agricultural sector in the future.
For instance, in February 2024, Bluewhite, an Israeli American technology company, showcased its retrofit kits that added autonomous operation to existing traditional tractors. The equipment includes both Lidar on the front of the machine and numerous optical cameras, each of which communicates with the other and works together to help a tractor navigate a field safely. GPS will be utilized as a redundant backup, allowing a newly autonomous machine to operate without a cellular or GPS connection. The kit can connect with smart implements including a smart sprayer system as well as traditional implements such as mowers and discs.
Growing Population to Drive the Market Growth
The world is increasing at an unprecedented rate, in terms of technology, infrastructure development, and population. Almost every day, 200,000 people are added to the world's population, increasing the requirement for food production. As a result, the increased demand for food forces farmers to supply more to the market, and the productivity and efficiency of machines and machine tools considerably outweigh the work done by manual labor. Hence, farmers use equipment like autonomous tractors to boost their output and productivity. To meet the market's increasing demand. The expanding population pushes the food and farm industries to produce more, increasing the demand for food security. The current method of farming, marketing, and distributing food to the people is inefficient and ineffective, which has opened many opportunities for growth in the global autonomous tractor market.
For instance, according to the United Nations, the world population is expected to grow by approximately 2 billion people to 9.7 billion by 2050. India, Nigeria, Pakistan, the Democratic Republic of the Congo, Ethiopia, the United Republic of Tanzania, Indonesia, Egypt, and the United States are expected to account for 50% of the population growth.
Rising Technological Advancements
The growing technological improvement in self-driving technology for vehicles with object-detecting capabilities, such as radar, multi-camera systems, and Lidar technology, is expected to promote the use of autonomous tractors. Low-cost IoT sensors linked to farm management software assist farmers in analyzing data on weather, temperature, moisture, and accounting. They offer insights to help optimize yield, improve planning, and make better decisions to increase production. GPS real-time kinematics (RTK) navigation has become the industry standard for auto-steering systems in tractors and combine harvesters. Multimodal systems based on a combination of GPS, Lidar, and vision technologies enable improved accuracy for high-precision operations.
Furthermore, tractor automation has become a popular trend, hastening the spread of precision agriculture operations. Presently, farmers have access to innovative technologies like GPS, sensors, laser diodes, and others to automate their work, which is driving the market for autonomous and semi-autonomous tractors.
For example, in February 2024, Mojow Autonomous Solutions received funding from the Canadian Agri-Food Automation and Intelligence Network (CAAIN) to develop a self-driving, autonomous operating system for tractors. The system will enable considerably more advanced machine operation than simply running up and down pre-mapped guidance lines. It will enable a tractor to undertake a variety of additional activities, including autonomously arriving at a field and moving the implements from transport to field locations.
Dominance of Autonomous Tractors in Tillage Application
Tillage traditionally required a large amount of manual labor and trained operators to precisely navigate the tractor and equipment. Farmers can reduce their reliance on trained labor using self-driving tractors, particularly during busy seasons, resulting in cost savings and greater operational flexibility. Furthermore, many autonomous tractors are outfitted with sensors that may gather vital data throughout the tillage process, such as soil moisture levels, compaction, and other soil properties.
The information can be used to make informed judgments on soil health and future tillage techniques, resulting in more sustainable agricultural methods. Furthermore, as manual tillage tasks become more time-consuming and expensive, there is an increasing demand for tillage automation on medium and large farms worldwide. Agriculture sectors around the world are stressing the use of new technologies to increase farm productivity while addressing workforce shortages and the need for sustainable practices. These factors further contribute to the expansion of the autonomous tractor market, especially in tillage applications.
For instance, in January 2022, Deere & Company announced the production of a fully autonomous tractor for farm tillage application. The machine combines Deere's 8R tractor, TruSet-enabled chisel plow, GPS guidance system to increase productivity while overcoming any shortages of skilled labor. The autonomous tractor utilizes 12 stereo cameras to detect obstacles and a "deep neural network" to determine whether to stop or continue moving. GPS technology keeps the tractor within the field boundaries and ensures precise movement.
North America Dominates Autonomous Tractor Market
North America's dominant market position is linked to the high adoption rate of modern technology due to huge farm sizes. Farmers in affluent countries, such as the United States, face challenges related to labor shortages. To tackle these issues, farmers in these countries use modern agricultural equipment, such as autonomous tractors, which drives market growth. Additionally, the region has a strong innovation ecosystem, including a dense network of technology companies, research institutions, and venture capital firms that actively encourage and invest in autonomous technologies. Furthermore, farmers' high disposable incomes encourage the adoption of innovative agricultural equipment, which helps to boost the autonomous tractors market in the region.
For example, in February 2023, Sabanto Inc. announced the establishment of a dealer network across North America to ensure that farmers can easily purchase and use its tractor autonomy systems, which can be retrofitted into existing machinery, allowing farmers to convert their existing tractors into autonomous machines.
Future Market Scenario (2024 - 2031F)
The demand for autonomous tractors is expected to grow due to factors such as population growth, labor shortage, and reducing arable land.
Smartphone integration with agricultural hardware and software apps for autonomous tractors can provide farmers with exact information on climate, weather, water, seed grain, and fertilizers, allowing them to plan, plant, and harvest more effectively. Due to the ease of use and effectiveness, demand for autonomous tractors will increase in the global market.
Many government initiatives, such as farm mechanization support, subsidies, and credits to encourage the adoption of automated equipment and boost agricultural productivity, are projected to help the autonomous tractor industry flourish in the future.
Key Players Landscape and Outlook
Key participants in the autonomous tractor market include AGCO Corporation, Autonomous Tractor Corporation, CNH Industrial N.V., Monarch Tractor, and Deere & Company, and others. Companies are focusing on increasing their manufacturing facilities through partnerships and agreements, as well as introducing new products, to boost their businesses and market share. Major market participants' core tactics include new product launches due to considerable R&D initiatives, as well as geographical expansion to capitalize on the potential of emerging markets.
In August 2023, CNH Industrial N.V. introduced the T4 Electric Power, an all-electric utility tractor with autonomous features that is ideal for low horsepower field operations and can be used in a variety of applications, including mixed farm, hay and forage, dairy, livestock, municipality, greenhouse, and specialty crops.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.