Autonomous tractors are self-driving tractors that use cutting-edge technologies to optimize efficiency while minimizing human involvement. Their steering, braking, speed, and navigation can be handled autonomously by a variety of systems, including lasers, global positioning systems (GPS), and cameras.
The global autonomous tractors market is valued at US$ 1.5 billion in 2023. Overall market value is anticipated to reach US$ 13 billion by 2033, advancing at a remarkable CAGR of 24% from 2023 to 2033.
The United States Farm Service Agency (FSA) offers secured and direct farm ownership and operation loans to family-size farmers who are unable to acquire commercial credit through a farm credit system institution, a bank, or other lenders. FSA loans can also be used to purchase land, equipment, livestock, seed, feed, and supplies.
The US Department of Agriculture has announced many financing schemes, including a direct farm ownership down payment program. The maximum loan amount rose from US$ 200,000 to US$ 250,000, while the fixed amount for conservation loans grew from 70 to 75%.
Why are Autonomous Tractors Attracting Worldwide Attention?
“Scarcity of Farm Workers to Spur Demand for Autonomous Tractors”
Farm labor prices are growing as agricultural labor becomes scarce. Using fundamental demand-supply economics, the cost of farm labor relates specifically to the percentage of a country’s overall population employed in agriculture. Agriculture employs a greater proportion of the population in emerging economies. Nonetheless, the percentages have reduced over time as more individuals migrate to cities each year.
Which Aspect Can Adversely Impact the Sales Growth of Autonomous Tractors?
“High Cost of Autonomous Tractors and Lack of Technical Expertise”
Vehicle automation is used by businesses to boost efficiency while decreasing expenses. However, vehicle automation is quite costly and requires a significant investment. Furthermore, a lack of technical expertise among farmers about robotic vehicles can negatively impact market growth.
Country-wise Insights:
Why is the United States a Key Market for Autonomous Tractor Manufacturers?
“Strong Government Support for Sustainable Farming & Production Practices”
According to Fact.MR, a market research and competitive intelligence provider, North America captured 38% of the global market for autonomous tractors in 2022. North America is dominating the worldwide market due to the increased disposable income of farmers, lack of skilled agricultural labor, and the adoption of advanced technologies.
Why are South Korea and Japan Exhibiting High Demand for Autonomous Tractors?
“Shortage of Farm Labor in These Countries”
The demand for autonomous tractors is escalating in Asia Pacific due to the rapidly expanding agriculture industry in developing nations such as China and India. Moreover, South Korea and Japan are also witnessing high demand for autonomous tractors due to the shortage of farm labor in these countries.
Category-wise Insights:
Why Do Farmers Prefer Semi-autonomous Tractors Over Fully Autonomous Tractors?
“Cost Factor and Safety Offered by Semi-autonomous Tractors”
Semi-autonomous systems work independently enough within acceptable distances that the farmer can react if difficulties arise, making them more practical than completely autonomous systems. Due to the presence of the operator on agricultural vehicles, the safety of such a semi-autonomous system is guaranteed without the integration of expensive sensors and complex sensor fusion algorithms, making them the most affordable for farmers to purchase, particularly in emerging economies.
Why is Demand for Radar Sensors Snowballing?
“Cost Efficiency and Uniqueness of Radar Sensors”
Radar sensors can measure the distance, velocity, and angle of moving objects and can operate in practically all weather conditions. They are less expensive than LiDAR systems but more specialized than cameras, making them a better alternative than other components manufacturers choose for autonomous tractors. As a result, the demand for radar sensors is increasing rapidly.
Competitive Landscape:
Monarch, a U.S.-based start-up, manufactures AI-powered electric autonomous tractors. The start-up is engaged in the design and development of electric self-driving tractors for farming. The tractors are outfitted with a comprehensive camera and sensor suite that maps and tags each crop while providing real-time alerts. The vehicle has AI-powered full-body awareness, swappable batteries, and slope stability.
Deere & Company acquired Bear Flag Robotics for US$ 250 million in August 2022. The acquisition will speed up the development and deployment of farm automation equipment. It will also assist John Deere in meeting its long-term aim of developing more creative tractors with advanced technologies to fulfill unique customer demands.
In April 2022, Mahindra & Mahindra and Kubota joined forces in Japan to deliver products, services, and solutions to fulfill customer needs via resource sharing. Under the terms of the agreement, the companies will broaden their current field of original joint equipment manufacturing supply, concentrating on tractors, combine harvesters, rice transplanters, and implements and supporting equipment.
