Global ISOBUS Component Market Size USD 1,470 Million By 2031 | CAGR of 8.7%

Introduction

ISOBUS or ISO11783 is the protocol standardized by the International Organization for Standardization (ISO) and the Agricultural Industry Electronics Foundation (AEF) for inter-device communication among agricultural equipment. ISOBUS was created in 1990 with the primary objective of enhancing agricultural device connectivity and communication. Many types of farm equipment, such as tractors, harvesters, planters, seeders, and sprayers, are utilized simultaneously. Most of this equipment lacks an electronic control unit (ECU) and is attached to a tractor for operation in the field. The connection between the various equipment and the tractor has been the driving factor behind the development of ISOBUS.

Market Dynamics

Need for Standardized Communication Between Agricultural Equipment Drives the Global Market

In the agricultural industry, multiple pieces of equipment are required to complete a specific task. The equipment used in agricultural activities includes tractors, equipment, cultivators, harrows, seed drills, and rollers. It has always been an issue among agriculturalists to correctly match and use different equipment to reduce operation time and increase efficiency. ISOBUS standard has brought a solution to this long-standing problem.

ISOBUS or ISO 11783 standard has helped achieve communication between different agricultural equipment as the standard specifies an essential requirement to be met in each piece of equipment. The standard makes it possible to manage the communication between tractors, software, and equipment by other manufacturers, allowing the exchange of data and information with a universal language through a single control console in the tractor's cab.

With the increased usage of ISOBUS-compliant equipment in the field, field workers have realized the need for ISOBUS as the standard has increased efficiency, productivity, and transparency. Also, the data collected using ISOBUS equipment can be used for remote fleet management and diagnostics of agricultural activities. GPS-enabled systems can measure the status and position of tractors, track their productivity and receive updates in case of any variation. Thus, the need for standardized communication between agricultural equipment has become a crucial driver for the global ISOBUS component market.

Increased Emphasis on Smart Farming Creates Tremendous Opportunities

Intelligent agriculture is primarily seen as the future of the agricultural business. It is a new concept that encourages farmers to use technology like IoT, robotics, drones, and artificial intelligence to raise the quantity and quality of their products while minimizing the amount of human labor required for production. Products that comply with the ISOBUS standard might be a significant step towards introducing smart farming in the agriculture business.

Smart farming is anticipated to involve modern equipment, such as smart sensors for soil and temperature management, GPS and satellite connectivity, robotics in autonomous tractors, and data analytics solutions, such as stand-alone analytics solutions, for a better comprehension of field activities. Farmers armed with these tools can monitor conditions without physically visiting the field and make strategic decisions for the entire farm or a single plant. Products and sensors conforming with the ISOBUS standard can aid in the global development of smart farming technology. Connect machinery will lessen reliance on humans, and automated robotics will boost production efficiency.

Regional Analysis

North America is the highest revenue contributor and is estimated to exhibit a CAGR of 7.8% during the forecast period. North America is one of ISOBUS standards' primary markets. Agriculture is one of the most critical sectors in the North American region. The expansion of the agricultural business in the region has contributed to the rise in ISOBUS-compliant field equipment. The United States has been at the forefront of innovations in seed enhancement, such as hybridization and increasing crop uses, from the work of George Washington Carver through bioplastics and biofuels. The agricultural equipment manufacturers in the region have incorporated the ISOBUS standard into their goods, thereby expanding their product line. Moreover, the ISOBUS standard has allowed equipment from different manufacturers to communicate. This has increased synergistic collaborations between makers of agricultural equipment. CNH Industrial N.V., for example, established a partnership with Microsoft and Accenture in November 2020 to aid the capital goods company in expanding its digital capabilities and developing smart-linked products and services.

Europe is the second largest region and is anticipated to grow at a CAGR of 7.1% during the forecast period. Agriculture has impacted Europe's landscapes for millennia and remains one of Europe's most influential economic sectors. The region's environmental challenges have prompted the European agricultural sector to adopt eco-friendly farm production techniques in the past decade. The newest agricultural technologies, such as agricultural robots, variable rate technology, and ISOBUS equipment, have enhanced the agricultural sector in the region with minimal wasting of resources, such as water, pesticides, and labor, to satisfy the increased need for production. Europe's nations have understood that implementing modern technologies in agricultural endeavors would be advantageous. Hence, the farmers in this region have adopted new technology, like ISOBUS equipment, in the field.

Key Highlights

• The global ISOBUS component market was worth USD 695 million in 2022 and is estimated to reach an expected value of USD 1,470 million by 2031, growing at a CAGR of 8.7% during the forecast period (2023 – 2031).
• By application, the global ISOBUS component market is segmented into the tractor, harvester, planter and seeder, and others. The tractor segment dominated the market and is estimated to exhibit a CAGR of 8.7% during the forecast period. 
• By product, the global ISOBUS component market is segmented into hardware and software. Hardware dominated the market and is estimated to exhibit a CAGR of 6.8% during the forecast period.
• North America is the highest revenue contributor and is estimated to exhibit a CAGR of 7.8% during the forecast period.

Competitive Players

Competitive Players

The key players profiled in the global ISOBUS component market are Amazonen-Werke H. Dreyer SE and Co. KG, Anedo GmbH, CLAAS KGaA mbH, CNH Industrial N.V, DEUTZ-FAHR, Deere and Company, Hexagon Agriculture, and Krone NA Inc.

Recent Developments

Market News

• In March 2023, AGTEK Development Company, a division of Hexagon, announced the release of Materials SA, Underground SA, and the Gradework software suite for the year 2023. The additional capabilities will simplify takeoff and improve production control for building materials, utility installation, and earthmoving projects.
• In February 2023, Hexagon AB, a global leader in digital reality solutions combining sensor, software, and autonomous technologies, announced the launch of Nexus. Nexus is an open, flexible, future-ready digital reality platform purposely built for the discrete manufacturing ecosystem – from aerospace, automotive, and electronics to consumer products and general manufacturing. For the first time, stakeholders across engineering, manufacturing, and quality disciplines can easily connect, collaborate and exchange data in real-time to accelerate new and innovative approaches to making higher-quality products more efficiently and sustainably.

Segmentation

Global ISOBUS Component Market: Segmentation

By Applications

• Tractor
• Harvester
• Planter and Seeder
• Others

By Product

• Hardware
• Software

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa