North American agricultural robots and mechatronics market is projected to grow at a CAGR of 17.2% for the forecast period(2020-2025). The major driving factor behind the market is the need to increase yields and reduce costs simultaneously. Agriculture, in some cases, is not profitable as it consumes huge amounts of labor, and land prices are high. Mechatronic robots greatly reduce human intervention and are much more efficient than humans in agricultural practices.
Additional drivers are the prevention of harmful effects of chemicals used in agriculture on humans, especially in indoor farming and the ability of robots to work in all weather. The United States is the largest market with many established companies, and Canada follows the list. Technology adoption is rapidly progressing in the United States due to high-income levels. Even though robots and mechatronics are fast evolving, there is still a large amount of development needed in agricultural applications.
Key Market Trends
Growing Practice of Precision Farming
Precision agriculture involves the use of technology (software, equipment, and IT) to ensure adequate conditions for crops and soil. The demand for precision agriculture is increasing in the agriculture sector as it increases crop production and farming efficiency. The robots are used across various agricultural applications, including seeding, weed control, picking, harvesting, monitoring, and soil analysis, termed agricultural robots. Mechatronic robots greatly reduce human intervention and are much more efficient than humans in agricultural practices. Precision agriculture in North America was worth USD1.7 billion in 2018 and is growing rapidly. This increased adoption of precision farming spurs the agriculture robots and mechatronics market further.
Increasing Penetration of UAV Usage in Agriculture
Due to their ease-of-use and low-cost, unmanned aerial vehicles (UAVs) or drones can be used for producing time-series animations, showing the precise development of a crop. The new generation of agriculture drones are technologically advanced, which can support pest control, monitoring soil and crop conditions, mapping, and estimating acreage and crop types. These drones also support the surveying of areas, where there is a limited possibility of humans to assess. This technology will help farmers plan input use, like crop protection chemicals, with the use of common detection methods and to reduce their monitoring costs. Factors like an effective assessment of farms using drones can help in the farmers' overall profitability, which is expected to drive unmanned aerial vehicles during the forecast period.
North America's agricultural robots and mechatronics market are slightly fragmented, with some players operating in the market. In 2018, North America accounted for 36.1% of the global agricultural robot market. AG Leader Technology, Agribotix LLC, Harvest Automation, Blue River Technology, and Drone Deploy are some major players in the agriculture robotics and mechatronics market in North America.
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