Dutch Agricultural Robot Market Could Triple in 10 Years
Global population growth, scarcity of labor and agricultural land, and the trend toward a more sustainable food chain are set to trigger a breakthrough in agricultural robotization, reports ABN AMRO at PrecisionAg. The Dutch banking firm estimates current worldwide turnover at more than 6 billion euros in the agritech market, encompassing field robots, drones, milking and feeding robots, and related data analysis hardware and software.
Dutch manufacturers hold a market share of over 11%, thanks largely to their very strong position in milking and feeding robots. They currently account for a turnover of 715 million euros in the agritech market. ABN AMRO predicts this could potentially rise to 2.5 billion in 2030 – reflecting an average growth of 13% per year.
Agritech Market Driven by Growing Labor Shortage and Sustainability Trend
The shortage of workers is an important driver behind the agritech boom. Seasonal workers in particular are often in short supply, as the coronavirus crisis has made all too clear.
“The harvesting of various products stalled when the virus made migrant workers return to their home countries,” says Sector Banker Jan de Ruyter of ABN AMRO’s Plant-Based Sectors. The rise in labor costs in the agricultural sector in recent years, driven partly by the shortage, is encouraging farmers to invest in technology.
Another driver behind agritech is the stronger focus on sustainability. This is a major challenge facing the sector. The European Commission has ambitious goals in areas such as organic crop cultivation and reducing the use of crop protection products. Pressure on already scarce agricultural land is increasing, partly due to the growing world population, while sustainable crop cultivation is still often more labor intensive.
Continue reading at PrecisionAg.
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