Robotic tractors demand will increase globally to meet rising demand for food per a Global Industry Analysts report.
By Andrew Joseph, Farms.com; Photo via www.istockphoto.com
The global market for autonomous tractors has been estimated to be at 15,200 units in 2022 but is expected to have a CAGR (compound annual growth rate) of 23.5 percent through 2026 reaching some 38,900 units.
The prognosis was compiled by Global Industry Analysts Inc. and released via its "Autonomous Tractors - Global Market Trajectory & Analytics" market report.
Combined with an increasing average age of farmers globally, a scarcity of farm labour, higher employee wage necessities, and an ever-increasing demand for foods and agricultural commodities, the report indicated that more growers would see the cost-savings benefits of autonomous tractors and sundry vehicles going forward. There is also the opportunity for autonomous tractors to increase crop yield and thus profits.
As of 2022, autonomous tractor usage in the US is about 35 percent of global usage at 5,400 units.
While current Chinese application of autonomous tractors is lagging behind the US, the report predicts that by 2026, the Asian giant will almost catch up to have some 5,300 units.
The Canadian market is expected to grow by 21.9 percent by 2026, and Japan by 21 percent. Germany is seen to grow by 22.9 percent CAGR.
Why? The report indicated that countries with larger fields, issues with labour availability, and having massive grasslands are factors for farmers looking to adopt autonomous tractors in these markets.
The presence of many large manufacturers of autonomous tractors in North America helps support its dominance in the global market, as does having a higher average disposable income.
Japan continues to have an ever-advancing average population age, along with a lack of workers in the ag sector are pushing it more and more to adopt autonomous and semi-autonomous tractors.
It is expected, said the report, that within the 101HP+ autonomous tractor segment, Canada, US, Japan, China and Europe will drive the 22.3 percent CAGR estimated for this segment.
Although these five countries currently account for about 4,000 100HP+units, the report suggests that it will combine for about 16,300 units by 2026, led by China.
The ≤30HP (less than and equal to) global autonomous tractor market is expected to grow by 24.8 percent CAGR reaching 13,600 units by 2026, while the 31-100HP segment will see a 23.8 percent CAGR over the next seven years.
The middle-power segment (31-100HP) currently accounts for a 31.3 percent share of the global autonomous tractor market. The report said its strength lies in its higher fuel economy, better cultivating and soil-quality maintenance, and control.
The middle-power segment offers many different power outputs supporting its versatile usage range. In the years ahead, the report said, demand for medium-power output tractors will likely post a high growth compared to the higher powered (101HP+) tractors because of the benefits noted above.