MARKET ANALYSIS

Global market for Ag-robots to double in 5 years

According to a recent study from Dutch ABN AMRO bank, the worldwide market for agricultural robots can double in size in 5 years’ time.

Labor shortages and sustainable food production are the main growth drivers. ABN AMRO has researched and mapped the global market for drones, milking and feeding robots, field robots and autonomous tractors and related machines, hardware and software for data analysis.

According to calculations and estimations from the bank, the existing worldwide market for this ‘agritech’ sector amounts to €6.2 billion and expected doubling in 2025. The average annual growth will be 15%. Dutch manufacturers currently have a market share of 11% (€715 million), mainly thanks to dominant markets shares in milking and feeding robots with Lely at the forefront.

The overall turnover of Dutch agritech technology is able to grow to €2.5 billion in 2030, with an average annual growth of 13%. ABN AMRO also signals existing bottlenecks that tamper the growth and possibilities of Dutch-made agricultural robots. These are legislation, fragmented knowledge, and insufficient access to subsidies, funding and private equity.

The growing world population and growing middle and upper classes have to result in more and more efficient food production from a decreasing available acreage suitable for food production. Consumer preferences for sustainable and organic food as well as legislative regulations to lower the amounts of crop protections chemicals, fertilizer and antibiotics (such as the EU Farm to Fork Strategy), put an extra pressure on food production but are also likely to accelerate farmers’ interest in robotization.