Variable Rate Technology (VRT) Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product (Soil Sensing VRT, Fertilizer VRT, Seeding VRT, Crop Protection Chemical VRT, Yield Monitor VRT, Irrigation VRT, and Other), Crop Type (Cereals and Grains, Oilseeds and Pulses, Fruits and Vegetables, and Others), Farm Size (Large Farms, Small Farms, and Mid-Size Farms), Offering (Hardware, VRT Service, and VRT Software) and Region Forecast 2019-2030

Variable Rate Technology (VRT) Market size was valued at US$ 2,891.2 million in 2023 and is projected to reach a value of US$ 5,598.4 million by 2030, at a CAGR of 9.9% from 2024-2030. Moreover, the U.S. variable rate technology (vrt) market is projected to grow significantly, reaching an estimated value of US$ 3,326.8 million by 2032.

Variable Rate Technology, as a tool in precision agriculture, will allow the input applications like fertilizers, pesticides, seeds, and water into a field on a varied rate basis. In order to minimize underutilization and waste of applied resources and maximize crop yield, the program will apply precise and necessary inputs for regions with different fields using GPS, GIS, and sensor-based data. This is because of the increased demand for efficient and sustainable farming practices. Adoption of VRT is, therefore, mainly driven by the need to reduce input costs, increase crop productivity, and minimize environmental impact.

Key players

The Variable Rate Technology (VRT) market share is inclusive of several companies such as Crop Quest, Inc., Ag Leader Technology, Deere & Company, AGCO Corporation, CROPMETRICS, Trimble Inc., Topcon, Raven Industries, Inc., Lindsay Corporation, Yara, AgJunction, The Climate Corporation, DJI, TeeJet Technologies, Sentera, Inc

In the market, top key players like Crop Quest, Inc. are among the largest VRT providers. Crop Quest provides precision agriculture services in variable rate seeding, fertilization, and crop management. Crop Quest designs specific VRT programs to cater to individual needs of the farmer with the use of advanced layers like yield maps, soil texture, and elevation data for optimized input usage and better crop yields. Their innovative solutions enhance farmer productivity, lower their cost of production, and foster sustainable agriculture practices.

Key Takeaways

• The fastest-growing region is Asia-Pacific
• Based on product type, the soil sensing VRT segment holds the 29.8% market share
• Based on crop type, cereals and grains segment holds a 37.4% market share
• Based on farm size, large farms segment holds the 43.6% market share
• Based on offering, VRT service segment holds the 49.1% market share

Facts & Figures

• As of April 2023, it is estimated that 70% of all large farms in the United States are using VRT to implement precision agriculture that will maximize resource utilization while optimizing crop yields.
• A June 2023 study reported that VRT adoption reduced fertilizer application by about 15-20% in Western Europe, saving money and resources while yielding benefits for the environment.
• Farms that were using precision agriculture in Canada, 60% used variable seeding rates to attain an average increase of 5-10% yields per acre in January 2023.
• Currently, more than 40% of big agribusinesses reported the use of VRT in crops, particularly in soybean and corn, driven by the demand for effective input use.

Key Developments

• In 2020: John Deere acquired Blue River Technology, enhancing its VRT capabilities with advanced machine learning and computer vision technologies.
• In 2021: CNH Industrial acquired Raven Industries to expand its precision agriculture offerings, including VRT solutions.

Variable Rate Technology Market Segmentation

By Product: The Soil Sensing VRT segment has the largest market share of VRT. This is because soil data is the most important input in precision agriculture for optimizing the application of inputs such as seeds, fertilizers, and water-based on specific soil conditions. Accurate soil sensing is a prerequisite to ensure good crop yields and resource efficiency, thus it is the most important part of a VRT system.

By Crop Type: The  Cereals and Grains segment is the largest as cereals and grains constitute staple foods in most places around the world, with immense demand. VRT application to this segment maximizes input use, increases crop yields and ensures quality uniformity as well, making it a highly critical application of precision agriculture technology.

By Farm Size: Large Farms holds the highest share in the VRT market. This is because large farms possess all the necessary resources and funds to invest in a more advanced VRT system. It will improve productivity and efficiency. In addition, large farms are often huge and can make full use of precision agriculture. Therefore, VRT can be quite a valuable tool for them in optimizing input usage and maximizing yields.

By Offering: The largest share in the Variable Rate Technology market was through the VRT Service segment. This is because so many farmers and farming enterprises would like to outsource such services to specialized firms dealing with comprehensive solutions involving data analysis, prescription map creation, and equipment management. Such services ensure efficient implementation and utilization of the VRT, ensuring proper crop management and thereby high yields.