The Global ISOBUS Component Market is projected to grow at a CAGR of 10.08% during the forecast period, 2022-27, says MarkNtel Advisors in their recent research report. According to the Worldometer population projection, the global population is expected to reach 8.1 billion by 2025. Maintaining food sufficiency while using limited resources is becoming increasingly important as the global population grows. However, the frequent climate disruptions caused by rising global temperatures and water scarcity impede agricultural production. Under these conditions, smart farming is viable because the farming method provides greater efficiency, real-time statistics, and continuous cop monitoring through the use of the Internet of Things (IoT) and ISOBUS standards that promote sustainable resource management.
ISOBUS system in agriculture equipment supports agriculture farm operations by proving machinery compatibility for easy farm operations & cost savings. ISOBUS provides a higher level of productivity & continuous monitoring of agriculture activities in each stage, including soil tilling, planting, and harvesting, etc. Countries are making significant investments and strategic agreements to meet the growing demand for ISOBUS in agricultural equipment. For instance, McCormick, a US-based agriculture tractor manufacturer, announced the launch of a new XS range of tractors with ISOBUS components for global markets in August 2021.
Furthermore, in November 2021, Kubota Corporation, a Japanese agricultural machinery company, and Escorts Limited, an Indian tractor manufacturer, agreed to expand Kubota's business in Southeast Asia's emerging markets. Furthermore, rising government initiatives to boost agricultural productivity through smart-farming technologies are expected to drive the global growth of the ISOBUS Components market, further states the research report, "Global ISOBUS Component Market Analysis, 2027."
Hardware to Capture a Significant Market Share
Based on the product type the market is classified as Hardware & Software. Of them, the Hardware product is expected to gain a substantial market share between 2022 and 2027. The expanding use of Electronic Control Units (ECUs), Universal Terminals, and Cable & Connectors in tractors and harvesters as integrated control systems to provide easier interconnections between operating equipment is a key driver contributing to a global demand boost for ISOBUS components. For instance, Farmers Edge will introduce FarmCommand, a universal terminal, in June 2020 to assist growers, equipment dealers, and retail service providers in lowering costs, reducing risks, and improving efficiencies in farming operations.
The FarmCommand universal terminal would eliminate clutter in the tractor cabin and could be seamlessly connected to all ISOBUS-enabled monitors. Furthermore, several companies around the world are making investments in research & development to provide plug-and-play access to agricultural equipment (tractors, harvesters, and so on) without the requirement for an independent mobile device. Furthermore, substantial investments in ISOBUS hardware components are expected to drive demand in the coming years.
North America to be a Dominant Region in the Market
North America generated the most revenue during the historical period and is expected to continue to lead the market during the forecast period. The dominance of the region is attributed to the presence of leading ISOBUS-enabled agricultural implement manufacturers, as well as ongoing government initiatives in the region to promote the deployment of ISOBUS equipment in the field.
Furthermore, the significant investment made by regional governments to boost agricultural productivity to meet the region's growing food demand is projected to augment ISOBUS components in the North American market in the coming years. Furthermore, the United States Department of Agriculture (USDA) announced the Agriculture Innovation Agenda to stimulate innovation in American agriculture and increase US agriculture production by 40% by 2050.
Moreover, the presence of agricultural implement manufacturers in the country aids farmers in picking the best implement for their needs. As a result of the region's initiatives and investments, the North America ISOBUS Component market is expected to grow significantly over the coming years, reveals MarkNtel Advisors in their research report, "Global ISOBUS Component Market Analysis, 2027."
According to MarkNtel Advisors, the leading players in the Global ISOBUS Component Market are AMAZONEN-WERKE H. DREYER SE & Co. KG, Anedo GmbH, CLAAS KGaA mbH, CNH Industrial N.V., DEUTZ-FAHR, Fendt, Deere & Company, Hexagon Agriculture, Krone NA, Inc., Kuhn Group, Kvaser, Kverneland Group, LEMKEN GmbH & Co. KG, Massey Ferguson, PÖTTINGER Landtechnik GmbH, and Others.
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