The agricultural drone market, also known as unmanned aerial vehicles (UAVs) or drones, plays a vital role in precision farming. Agricultural drones are used for monitoring crop growth, mapping fields, analysing soil conditions, surveying livestock, and detecting problems with crops. These drones help farmers optimize crop production through precise application of inputs like seeds, water, and fertilizers.
The global Agricultural Drone Market is estimated to be valued at Us$ 2580.9 Mn in 2023 and is expected to exhibit a CAGR Of 5.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Precision farming provides the opportunity for agricultural drones to significantly boost crop productivity and farm profits. Drones enable precision application of inputs only where needed through geospatial imaging and analysis. This targeted approach conserves inputs, reduces costs, and minimizes environmental impact through avoidance of over-application of chemicals. Drones also help detect problems in crops early on when they are still localized and easy to address. Real-time monitoring of fields allows farmers to proactively tackle issues and prevent losses. As global population rises and arable land decreases, precision farming through drones is crucial for sustainable intensive agriculture to meet growing food demand.
Porter’s Analysis
Threat of new entrants: Low due to high initial investments required for R&D and manufacturing. The optical encoder market is dominated by well-established players.
Bargaining power of buyers: Moderate. Buyers have few alternatives in the industry and look for quality and service which limits their bargaining power.
Bargaining power of suppliers: Low. There are numerous component suppliers for optical encoder with no single major supplier having significant influence on prices.
Threat of new substitutes: Low. Optical encoders have advantages over alternatives in terms of accuracy, reliability and durability making substitutes less attractive.
Competitive rivalry: High. The market is characterized by stiff competition between major players focusing on new product launches and innovation.
SWOT Analysis
Strength: Optical encoders offer high resolution, durability and reliability. Demand from manufacturing sectors boost market growth.
Weakness: Require skilled workforce for maintenance and high initial costs affect small businesses.
Opportunity: Adoption in robotics, automation and motor control expands market scope. Technological advances will fuel new product development.
Threats: Economic downturns impact capital expenditure. Growing demand for alternatives like magnetic encoders.
Key Takeaways
The Global Optical Encoder Market Demand is expected to witness high growth during the forecast period supported by industrial automation trends across regions. The global Agricultural Drone Market is estimated to be valued at US$ 2580.9 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030.
Regional analysis:
North America dominates due to strong manufacturing sector and early technology adoption. Asia Pacific shows fastest growth led by China, India with rising robotics and automation. Europe remains a major revenue generator though growth is modest.
Key players:
Key players operating in the optical encoder market are Renishaw plc, BEI Sensors, Broadcom, Dynapar, US Digital, Hengstler GmbH, Rockwell Automation, Baumer Group, Tokyo Sokuteikizai Co. Ltd.
Get more insights on this topic :
Market Research Future (MRFR), conducted a detailed study of the impact ofCOVID-19 on the worldwide optical encoder market 2020.
MRFR study reveals that the optical encoder market can rise at 15.55% CAGR across the forecast period 2018 to 2024.
The valuation of the optical encoder market can touch USD 2.55 Bn by 2024 from USD 1.18 Bn in 2018.The availability of different optical encoder types to settle different optical encoder applications can cause expansion of the optical encoder market across the study period.
The use of pulses of light by optical encoder for the representation of data offers competitive advantage to the optical encoder market.
In optical encoder rotary applications, the response to the rotating shaft is received as movement related data.
These factors can prompt the expansion of the optical encoder global market.Key PlayersBEI Sensors (US), Broadcom, Inc. (US), Renishaw Plc.
