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. Dutch banking firm ABN AMRO 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.

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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.

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Robotization to Accelerate in Dutch Agricultural Sector

The pace of robotization in the Dutch agricultural sector is expected to accelerate. “We’re seeing more widescale use of robots such as drones, harvesting robots and ground sensors that measure humidity and soil quality. The asparagus robot that was recently developed is a good example. It uses underground detection to harvest asparagus even before it breaks the surface, replacing up to 25 manual harvesters,” explains David Kemps, Sector Banker Manufacturing at ABN AMRO.

Agritech manufacturers stand to benefit from this growth, but it won’t be an easy ride. Other countries have also seen the growth potential in this market. The sector also needs to address the existing bottlenecks. Kemps: “Knowledge in the market is fragmented and the connection with the business world could be better. It’s important to ensure agricultural workers and new students are trained to use agritech in practice.”

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