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SAP SE: Double-Digit Growth Across Revenue, Profit and Cash Flow

Vlad Poptamas

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  • New Cloud Bookings Up 39%, Software License Revenue Down 1%
  • Cloud Revenue Up 37%
  • Cloud Gross Margin Up More Than 5 Percentage Points
  • IFRS Operating Profit Up 36%; Non-IFRS Operating Profit Up 20%
  • IFRS Operating Margin Up 4.2pp; Non-IFRS Operating Margin Up 1.7pp
  • Q3 Operating Cash Flow Up 28%, Free Cash Flow Up 116%

Cloud Revenue 

Total Revenue

in € millions 

in € millions

IFRS

Non-IFRS

IFRS

Non-IFRS

1,789

1,807

6,791

6,809

+37%

+37% (+33% cc)

+13%

+13% (+10% cc)

The share of more predictable revenue reached 69% in the third quarter of 2019 (+2 percentage points)

Cloud & Software Revenue

Operating Profit

in € millions

in € millions

IFRS

Non-IFRS

IFRS

Non-IFRS

5,629

5,647

1,679

2,086

+12%

 +13% (+10% cc)

+36%

+20% (+15% cc)

“In April we promised a stronger focus on profits and here we go: Q3 marks yet another milestone in delivering on this commitment. Q3 is also a manifesto of us keeping our second promise: continued strong top line momentum. Despite continued macro uncertainties we couldn’t be more confident to make 2019 another stellar year for SAP.”
Luka Mucic, CFO

“Our third quarter results reflect the momentum we’ve built entering the final quarter of the year and more broadly where we are on our journey of growth and opera-tional excellence. We are excited and energized to write the next chapter in SAP’s story alongside the best workforce anywhere in the technology industry.”
Jennifer Morgan and Christian Klein, Co-CEOs

SAP SE (NYSE: SAP) today announced its financial results for the third quarter ended September 30, 2019.

Business Performance

Financial Highlights Third Quarter 20191

In the third quarter, new cloud bookings were up 39% to €572 million (34% at constant currencies) and up 51% excluding Infrastructure-as-a-Service (IaaS). A new partnership with Microsoft contributed 18 percentage points to the 39% Q3 new cloud bookings growth. The deal has a term of 3 years, with revenue recognition starting in the fourth quarter 2019. Cloud revenue grew 37% year over year to €1.79 billion (IFRS), up 37% (non-IFRS) and 33% (non-IFRS at constant currencies). Software licenses revenue was down 1% year over year to €932 million (IFRS), down 1% (non-IFRS) and down 4% (non-IFRS at constant currencies). New cloud and software order entry was up 20% (15% at constant currencies) year over year in the third quarter. Cloud and software revenue grew 12% year over year to €5.63 billion (IFRS), up 13% (non-IFRS) and 10% (non-IFRS at constant currencies). Total revenue grew 13% year over year to €6.79 billion (IFRS), up 13% (non-IFRS) and 10% (non-IFRS at constant currencies).

The share of more predictable revenue grew by two percentage points year-over-year to 69% in the third quarter.

Cloud gross margin increased 5.9 percentage points year over year to 64.5% (IFRS) and increased by 5.4 percentage points year over year to 69.0% (non-IFRS).

Operating profit increased 36% year over year to €1.68 billion (IFRS), up 20% (non-IFRS) and up 15% (non-IFRS at constant currencies). Operating margin increased 4.2 percentage points year over year to 24.7% (IFRS) and expanded by 1.7 percentage points year over year to 30.6% (non-IFRS) and 1.5 percentage points to 30.4% (non-IFRS at constant currencies). Operating profit in the third quarter benefitted from disciplined hiring and accelerated operating efficiency gains. IFRS operating profit additionally benefitted from lower share-based compensation expenses.

Earnings per share was up 28% to €1.04 (IFRS) and up 14% to €1.30 (non-IFRS).

Operating cash flow in the third quarter developed significantly better than in the first half of 2019 and contributed €638 million (up 28% year-over-year) to the nine-month operating cash flow. Operating cash flow for the first nine months was €3.32 billion, down 5% year-over-year. The decrease in operating cash flow was primarily due to higher payouts related to share-based compensation (€205 million), restructuring payouts (€239 million) and higher tax cash outflows (€490 million) compared to the first nine months of 2018. In addition, operating cash flow experienced a year over year benefit of roughly €288 million from the application of IFRS 16. Free cash flow2 was flat year-over-year at €2.33 billion. At the end of the third quarter, net liquidity was -€8.28 billion.

Segment Performance Third Quarter 2019

SAP’s three reportable segments “Applications, Technology & Services”, “Intelligent Spend Group” and “Customer and Experience Management” showed the following performance:

Applications, Technology & Services (AT&S)

In the third quarter, segment revenue in AT&S was up 9% to €5.52 billion year-over-year (up 6% at constant currencies). Solutions which contributed to this growth are listed below.

In the third quarter, SAP and Microsoft established a preferred partnership to move on-premise SAP ERP and S/4HANA customers to the cloud through industry specific best practices, reference architectures, and cloud-delivered services on Microsoft Azure. This partnership will both accelerate and simplify customer migration to S/4HANA on Microsoft Azure, and Microsoft will embed SAP Cloud platform solutions and related services within Azure Cloud Services.

SAP S/4HANA

SAP S/4HANA is at the core of the Intelligent Enterprise. It embeds analytics, simulation, prediction, and decision support to run LIVE business. SAP offers customers a choice of deployment options including cloud, on-premise and hybrid so they can choose any scenario or combination that is right for them. Built on SAP’s advanced in-memory computing platform, SAP S/4HANA is the market-leading intelligent ERP that provides unparalleled business agility, empowering companies across all industries to reinvent their business models for the digital economy and navigate dynamic marketplaces.

Adding over 500 customers in the quarter, S/4HANA adoption grew to more than 12,000 customers, up 25% year over year. In the third quarter close to 40% of the additional S/4HANA customers were net new.

S/4HANA continues to be selected by world-class organizations, including State of NevadaGrupo Crystal and BrandX. Dow Jones, Callaway Golf, Daewoong Pharmaceutical and Breitling have gone live on S/4HANA. A growing number of companies including British Telecom and CIE Automotive have chosen S/4HANA in the Cloud. McDonald’s UAE and Xinjiang Daming Mining Group Co. have gone live on S/4HANA Cloud.

Human Capital Management Solutions (HCM)

SuccessFactors’ evolution towards Human Experience Management (EmployeeXM™) represents the next generation of human capital management (HCM).

The unique combination of SAP SuccessFactors and Qualtrics Employee Experience Management elevates HCM solutions beyond facilitating transactions to truly reinvent human experiences in ways that accelerate business growth. Employees are the frontline face to the customer. Delivering great customer experiences requires focusing on employees and delivering great employee experiences. Organizations that deliver exceptional employee experiences achieve better business results and outperform the competition.

Proximus Group, a top Belgian provider of information and communications technology, selected Qualtrics Employee Experience to support an ambitious new employee listening program. The combination of SAP and Qualtrics solutions will ultimately empower Proximus Group to blend customer experience data with employee experience data to enable holistic, personalized experience management.

SAP SuccessFactors Employee Central, which is the flagship of SAP’s HCM offering, added more than 150 customers in the quarter and has now more than 3,500 customers globally. Vonovia SE was one of many competitive wins and the International Committee of the Red Cross went live on SAP SuccessFactors this quarter.

Business Technology Platform

SAP’s business technology platform represents an evolution of the digital platform helping customers to turn their data into business value. It encompasses database and data management, application development and integration, analytics, and intelligent technologies. The business technology platform represents a combination of SAP’s leading technologies such as SAP HANA, SAP Cloud Platform, SAP Data Warehouse Cloud, SAP Analytics Cloud, SAP Data Intelligence and SAP Intelligent Robotic Process Automation bundled into one single reference architecture. It supports cloud, on-premise and hybrid customer landscapes. Additionally, the business technology platform offers seamless interoperability with hyperscalers’ technologies to deliver a high level of scalability and flexibility. The business technology platform provides customers with convenient access to SAP data, SAP technology and SAP pre-configured business services to help them drive business value across their entire solution landscape.

Nippon Express, Impossible Foods Inc and Amazonas & Roraima Energia selected SAP’s business technology platform and analytics cloud solutions in the third quarter.

Intelligent Spend Group

In the third quarter, segment revenue in the Intelligent Spend Group was up 23% to €828 million year-over-year (up 18% at constant currencies).

With the Intelligent Spend Group, SAP provides collaborative commerce capabilities (SAP Ariba), effortless travel and expense processing (SAP Concur) and flexible workforce management (SAP Fieldglass). The Intelligent Spend Group portfolio represents the largest commerce platform in the world with approximately $3.4 trillion in global commerce annually transacted in more than 180 countries.

British Telecom, Prada, and Xiaomi Communications chose SAP’s Intelligent Spend Group solutions in the third quarter.

Customer and Experience Management (CXM)

In the third quarter, segment revenue in Customer and Experience Management was up 75% to €371 million year-over-year (69% at constant currencies). Solutions which contributed to this growth in the third quarter are listed below3.

SAP C/4HANA

SAP’s C/4HANA suite enables companies to manage and deliver personalized customer experiences across every touchpoint and across channels based on a complete view of the customer. C/4HANA combines leading solutions for marketing, sales, commerce, service and customer data. As part of the Intelligent Enterprise, C/4HANA integrates with S/4HANA to connect demand signals to fulfillment in one end-to-end process.

SAP C/4HANA solutions also leverage Qualtrics CustomerXM™. This enables organizations to combine customer feedback and operational data to listen, understand and take action in the moment to improve the customer experience.

E.ON, Swift, and Cintac Mining all chose SAP C/4HANA in Q3.

Experience Management Solutions (Qualtrics)

With Qualtrics, SAP combines market leadership in Experience Management (XM) with end-to-end operational power in over 25 industries to help organizations manage and improve the four core experiences of business: customer, employee, product, and brand.

The Qualtrics XM™ Platform is trusted by approx. 11,000 customers to listen, understand, and take action on experience data (X-data™) by combining X-data with the operational data (O-data™) systems of the enterprise.

In Q3, Slack Technologies, U-Haul, Sharper Image Corp, Stanley Black & Decker, Garmin International, Dish Networks and many others selected Qualtrics to move beyond systems of record to new systems of action and achieve breakthrough results.

Segment Results at a Glance4

Segment Performance Third Quarter 2019

Applications, Technology & Services

Intelligent Spend Group

Customer and Experience

Management

€ million, unless otherwise stated

(Non-IFRS)

Actual

Currency

∆ in %

∆ in %

const. curr.

Actual

Currency

∆ in %

∆ in %

const. curr.

Actual

Currency

∆ in %

∆ in %

const. curr.

Cloud revenue

813

35

32

699

24

20

294

98

92

Segment revenue

5,518

9

6

828

23

18

371

75

69

Segment profit (loss)

2,475

17

13

211

36

31

2

–84

–88

Cloud gross margin (in %)

57.8

9.7pp

10.2pp

78.0

–0.4pp

–0.4pp

76.4

8.8pp

8.7pp

Segment margin (in %)

44.9

3.0pp

2.8pp

25.5

2.5pp

2.4pp

0.5

–5.0pp

–5.1pp

Regional Revenue Performance

SAP had a solid performance in the EMEA region with cloud and software revenue increasing 10% (IFRS) and 9% (non-IFRS at constant currencies). Cloud revenue increased 49% (IFRS) and 46% (non-IFRS at constant currencies) with Germany and the UK being highlights. France and the UK had exceptional quarters in software license revenue.

The Company had a strong performance in the Americas region. Cloud and software revenue increased 16% (IFRS) and 12% (non-IFRS at constant currencies). Cloud revenue increased 31% (IFRS) and 26% (non-IFRS at constant currencies) with CanadaBrazil and Mexico being highlights. In addition, the United States and Brazil had strong quarters in software license revenue.

In the APJ region, SAP had a solid quarter amidst a challenging market environment. Cloud and software revenue was up 9% (IFRS) and 5% (non-IFRS at constant currencies). Cloud revenue increased 40% (IFRS) and 37% (non-IFRS at constant currencies) with Japan and Australia being highlights. For software license revenue, Japan had an exceptional quarter.

Financial Results at a Glance

Third Quarter 2019

IFRS

Non-IFRS1)

€ million, unless otherwise stated

Q3 2019

Q3 2018

∆ in %

Q3 2019

Q3 2018

∆ in %

∆ in % const. curr.

New Cloud Bookings2)

NA

NA

NA

572

411

39

34

Cloud revenue

1,789

1,304

37

1,807

1,315

37

33

Software licenses and support revenue

3,839

3,702

4

3,840

3,702

4

1

Cloud and software revenue

5,629

5,007

12

5,647

5,017

13

10

Total revenue

6,791

6,020

13

6,809

6,031

13

10

Share of more predictable revenue (in %)

69

68

2pp

69

68

2pp

Operating profit (loss)

1,679

1,236

36

2,086

1,742

20

15

Profit (loss) after tax

1,259

972

30

1,564

1,358

15

Basic earnings per share (in €)

1.04

0.81

28

1.30

1.14

14

Number of employees (FTE, September 30)

99,710

94,989

5

NA

NA

NA

NA

Nine months ended September 2019

IFRS

Non-IFRS1)

€ million, unless otherwise stated

Q1–Q3

2019

Q1–Q3

2018

∆ in %

Q1–Q3

2019

Q1–Q3

2018

∆ in %

∆ in % const. curr.

New Cloud Bookings2)

NA

NA

NA

1,389

1,078

29

24

Cloud revenue

5,037

3,588

40

5,106

3,614

41

36

Software licenses and support revenue

11,130

10,714

4

11,130

10,714

4

1

Cloud and software revenue

16,167

14,302

13

16,236

14,328

13

10

Total revenue

19,513

17,280

13

19,583

17,307

13

10

Share of more predictable revenue (in %)

70

68

2pp

70

68

2pp

Operating profit (loss)

2,370

3,304

–28

5,368

4,618

16

12

Profit (loss) after tax

1,733

2,397

–28

3,961

3,397

17

Basic earnings per share (in €)

1.43

2.01

–29

3.29

2.85

16

Number of employees (FTE, September 30)

99,710

94,989

5

NA

NA

NA

NA

1) For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

2) As this is an order entry metric, there is no IFRS equivalent.

Due to rounding, numbers may not add up precisely.

Business Outlook 2019

The Company reiterates its outlook for the full year 2019.

SAP continues to expect:

  • Non-IFRS cloud revenue to be in a range of €6.7 − €7.0 billion at constant currencies (2018: €5.03 billion), up 33% – 39% at constant currencies.
  • Non-IFRS cloud and software revenue to be in a range of €22.4 – €22.7 billion at constant currencies (2018: €20.66 billion), up 8.5% – 10% at constant currencies.
  • Non-IFRS operating profit to be in a range of €7.85 – €8.05 billion at constant currencies (2018: €7.16 billion), up 9.5% – 12.5% at constant currencies (previously: €7.7 – €8.0 billion, up 7.5% – 11.5% at constant currencies)
  • In addition, SAP expects total revenues to increase strongly, at a rate lower than operating profit.

The 2019 numbers include Qualtrics’ revenues and profits only from the acquisition date of January 23rd. The comparative numbers for full year 2018 do not include Qualtrics revenues and profits and include Callidus revenue and profits only from the April 5th, 2018 acquisition date.

While SAP’s full-year 2019 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. See the table below for the Q4 and FY 2019 expected currency impacts.

Expected Currency Impact Based on September 2019 Level for the Rest of the Year

In percentage points

Q4

FY

Cloud revenue

+3pp to +5pp

+4pp to +6pp

Cloud and software revenue

+2pp to +4pp

+2pp to +4pp

Operating profit

+2pp to +4pp

+3pp to +5pp

Ambition 2020 and 2023

Looking beyond 2019, SAP continues to expect the following:

Ambition 2020

SAP continues to expect:

  • €8.6 − €9.1 billion non-IFRS cloud revenue
  • €28.6 − €29.2 billion non-IFRS total revenue
  • The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) in a range of 70% − 75%
  • €8.8 – €9.1 billion non-IFRS operating profit

Ambition 2023

Over the period from 2018 through 2023, SAP continues to expect to:

  • More than triple non-IFRS cloud revenue (2018: €5.03 billion)
  • Grow to more than €35 billion in non-IFRS total revenue (2018: €24.74 billion)
  • Approach a share of more predictable revenue of 80%
  • Reach a Non-IFRS cloud gross margin of 75%
  • Increase the non-IFRS operating margin by one percentage point per year on average, representing a total expansion of approximately 500 basis points

The full Q3 2019 Quarterly Statement can be downloaded from http://www.sap.com/investors/sap-2019-q3-statement 

Additional Information

This Quarterly Statement and all information therein is unaudited.

Definition of key growth metrics

New cloud bookings are the total of all orders received in a given period the revenue from which is expected to be classified as cloud revenue and that result from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included in this metric. The order amount must be committed. Consequently, due to their pay-per-use nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized (annualized contract value ACV).

Share of more predictable revenue is the total of non-IFRS cloud revenue and non-IFRS software support revenue as a percentage of total revenue

New cloud and software license order entry is the total of new cloud order entry and software license order entry. The new cloud order entry metric is identical to the new cloud bookings metric defined above except that it considers the total contract value (TCV) of the orders where the new cloud bookings metric considers the orders’ annualized contract value (ACV). Software license order entry is the total of all orders received in a given period the revenue from which is expected to be classified as software license revenue. The support services commonly sold with the software license are not included in the software license order entry metric.

Global commerce is the total commerce volume transacted on the SAP Ariba, SAP Concur and SAP Fieldglass Networks in the trailing 12 months. SAP Ariba commerce includes procurement and sourcing spend.

For explanations on other key growth metrics please refer the performance management section of SAP’s Integrated Report 2018, which can be found at www.sapintegratedreport.com.

Webcast

SAP senior management will host a financial analyst conference call today at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The call will be webcast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the third quarter results can be found at www.sap.com/investor.

Special Capital Markets Day

SAP will host a Special Capital Markets Day on November 12, 2019 in New York City.

Artificial Intelligence

Companies leading the way in cyber security and critical infrastructure, Terafence and Boulder AI, to attend the largest B2B conference in the cyber industry

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Colorado and Israel, Jan. 17, 2020 (GLOBE NEWSWIRE) — Two companies with leading-edge technologies in the cyber security industry, Terafence and Boulder AI, will be attending the Cybertech Tel Aviv conference in Israel. The conference is recognized as Cybertech’s most renowned international exhibition and is one of the largest B2B networking events in the cyber industry, outside of the United States.

The two companies will be demonstrating the impact of their collective technologies to conference attendees, which includes Boulder AI’s deep learning camera systems and software, and Terafence’s solution which physically isolates IoT devices and networks while maintaining uninterrupted data flow and control.

The founders of the two companies met while working with Innosphere, Colorado’s leading commercialization program for technology-based startup and scaleup companies. “Both Boulder AI and Terafence have significantly differentiated technologies for cyber protection, very experienced management teams, and great outside investors,” said Mike Freeman, Innosphere CEO. “Introducing the two companies has had mutual benefit for both teams and their timely technologies.”

Set to take place on January 28-30, 2020 in Tel Aviv, Cybertech Tel Aviv 2020 this international cyber event features the most trending topics in the realm of cyber and technology, and features talks by leading decision-makers, government officials, and top executives. Every year, the event attracts thousands of attendees, mainly C-level executives, investors, professionals, and government officials from all over the world.

Terafence is based in Israel and has developed a proprietary cyber security solution with an advanced microchip and firmware, called TFence™, which isolates IoT and NoT (network of IoT) devices while maintaining uninterrupted data flow and control. This type of solution for cyber-secure connectivity and protecting IoT devices has become critical as more cyber threats are being launched through poorly protected IoT assets like edge-based IP cameras.

Boulder AI is based in Colorado and provides the most powerful edge-to-cloud visual intelligence solutions with their deep learning products, including computing hardware, AI algorithms and management platform software. Together, these render artificial intelligence technology valuable to a host of markets including intelligent transportation, utilities, infrastructure, physical security and more. Boulder’s engineers and data scientists bring AI to life to solve today’s problems in real time.

“We’re excited to be partnering with Boulder AI’s experienced team at this month’s Cybertech event,” said Pini Huber, Terafence vice president of sales. “This event is where investors can find the next breakthrough in the cyber industry.”

Attachments

Emily Wilson
Innosphere Ventures
970-295-4481 Pini Huber, Vice President of Sales
Terafence Bryan Schmode, CEO
BoulderAI

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AVRA Medical Robotics Attends J.P. Morgan Healthcare Conference

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ORLANDO, Fla., Jan. 17, 2020 (GLOBE NEWSWIRE) — AVRA Medical Robotics, Inc. (the “Company”) (OTCQB: AVMR), a medical software and artificial intelligence company that is in the process of building a fully autonomous medical robotic system through the use of new technologies combining artificial intelligence, machine learning and proprietary software; is attending the 38th J.P. Morgan Healthcare Conference in San Francisco this week. The Company is represented by its CEO, Barry Cohen.

Mr. Cohen has held meetings with various Investment Banking firms and potential strategic partners to update them on the Company’s progress with its medical software procedure program and the development status of its Autonomous Robotics Surgical System, as envisioned by the Company.

As Mr Cohen explains, “The potential of our robotic systems is to perform operations with greater precision than human hands are capable of.”

Contacts: Barry Cohen
  AVRA Medical Robotics, Inc.
  Chairman and CEO
  bcohen@avramedical.com

Note to Editors:

About AVRA Medical Robotics
AVRA Medical Robotics, Inc., (OTCQB: AVMR) is empowering doctors and the practice of surgery through the use of software and artificial intelligence. AVRA, with a research agreement in place with the University of Central Florida known for its advances in robotics and guidance systems, is developing a fully autonomous surgical robotic system that “robotizes” a wide range of surgical procedures currently being performed by human hands using surgical and non-surgical devices and instruments. AVRA is concentrating its research and development efforts to meet rising expectations of patients and practitioners alike for the precision, efficiencies and safety offered by robotics, artificial intelligence and proprietary software when combined with proven medical devices and surgical instruments. AVRA’s current focus is developing a treatment-independent precision guidance system, applicable to a variety of minimally and non-invasive procedures, to leverage the growing demand for practical medical robotic devices, with an initial focus on skin resurfacing aesthetic procedures.
For more information visit the company’s website at www.avramedical.com.

About the J.P. Morgan Healthcare Conference
The annual J.P. Morgan Healthcare Conference is known to be the largest and most informative healthcare investment symposium in the industry, bringing together industry leaders, emerging fast-growth companies, innovative technology creators, and members of the investment community.           

Forward Looking Statements
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “will,” “intend,” “may,” “plan,” “project,” “should,” “could,” “seek,” “designed,” “potential,” “forecast,” “target,” “objective,” “goal,” or the negatives of such terms or other similar expressions to identify such forward-looking statements. These statements relate to future events or AVRA’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

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The global automated turf harvesters market size is expected to reach $155,947.8 thousand in 2026, from $62,151.5 thousand in 2018, growing at a CAGR of 12.6% from 2019 to 2026

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New York, Jan. 17, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Automated Turf Harvester Market by Product Type and Application : Global Opportunity Analysis and Industry Forecast, 2019-2026” – https://www.reportlinker.com/p05828813/?utm_source=GNW

The global automated turf harvesters market size is expected to reach $155,947.8 thousand in 2026, from $62,151.5 thousand in 2018, growing at a CAGR of 12.6% from 2019 to 2026. Automated turf harvesters are used to harvest turf in the form of rolls and slabs from turf cultivation farms. It is an upgrade to the manually operated turf harvesters and provide one-man operation for cutting, rolling, and stacking of turf. The automated turf harvesters have features such as product quality monitoring, which rejects the defective roll or slab by sensing its weight and thickness. Moreover, the automated turf harvesters are provided with remote monitoring and diagnostics features, cellular or wireless communication systems, bilingual interface and many other features. This propels the automated turf harvesters market growth significantly. Furthermore, the implementation of automated turf harvesters on turf cultivation farms increase harvesting speed by 20% and reduce fuel consumption as well. The customers, majorly sod farmers, are switching towards automated equipment in order to increase the overall quality of the harvested turf. In addition, the labor costs are mainly reduced by the implementation of automated turf harvesters on sod farms. Furthermore, the major consumers of automated turf harvesters are from the developed nations like European and North American regions, mainly owing to the better living standards, resulting in improved housing with bigger lawns, participation in luxury sports like golf.
The shift of consumer preferences toward automated agricultural equipment is a major driver for the automated turf harvesters market. The introduction of automation and artificial intelligence (AI) in farming has helped the cultivators to obtain better quality and more yield in less time. Thus, the farmers are inclining toward autonomy for various agricultural processes. Moreover, the lack of labor and high cost associated with labor intensive farming promotes the use of automated equipment for turf farming applications. The stacking of turf pallets is the most tedious task as each pallet weighs around 1,500 to 3,000 pounds, which requires maximum effort which can be eased with the use of automated turf harvesters, which provide automatic stacking. Automation enables high quality turf harvesting and reduces the time required for turf harvesting process. Furthermore, various sports federations are choosing natural turf over artificial turf to conduct various sports such as football, soccer, cricket, and others. The artificial turf use has led to many negative results such as increased field temperature and is expected to contribute to on field injuries including fatigue, shortened career of the players, and negative effect on life after retirement of the players, hence the sports organizations are choosing natural turf over the artificial turf which increase the requirement of turf cultivation and in turn, bolsters the automated turf harvesters market growth. On the contrary, high costs of automated turf harvesters is a major restrain for the growth of automated turf harvesters market. Also, the versatility of artificial grass is increasing its popularity over natural grass in the residential sector. However, the growth in construction of golf courses in countries such as China, creates a demand for turf cultivation and thereby, creates lucrative opportunities for the growth of automated turf harvesters market during the forecast period.
The global automated turf harvesters market is segmented on the basis of product type, application, and region. By product type, it is divided into roll turf harvesters and slab turf harvesters. The slab turf harvesters segment is anticipated to dominate the global automated turf harvesters market in the future, owing to the growth of residential construction activities mainly in the U.S. and the UK. By application, it is classified into residential, commercial, golf courses, and sports/ athletics. The commercial segment is projected to dominate the global automated turf harvesters market during the forecast period. Also, the residential segment holds the highest share in the automated turf harvesters market.
The global automated turf harvesters market is analyzed across North America (the U.S. and Canada), Europe (the Netherlands, the UK, Germany, and rest of Europe), and Asia-Pacific (Australia and rest of Asia-Pacific). According to the automated turf harvesters market analysis, North America is expected to hold the largest automated turf harvesters market share throughout the study period. Europe ranks highest in terms of automated turf harvesters market growth. is expected to grow at the fastest rate. Europe is a major consumer of automated turf harvesters with respect to the golf course segment, owing to the highest number of golf courses, especially in England. These factors together are anticipated to grow the market significantly. Asia-Pacific is expected to exhibit growth during the automated turf harvesters forecast. However, Australia is already a major contributor for the automated turf harvesters market growth.

COMPETITION ANALYSIS
The key market players profiled in the report for tooling market include FireFly Automatix, Inc., Kesmac Inc., KWMI Equipment, MAGNUM ENP, Trebro Manufacturing, Inc. and Turf Tick Products B.V.
The companies are adopting product development strategy to expand their product features according the growing demands from the market. For instance, the company FireFly Automatix Inc. developed their automated turf harvester ProSlab 155 Turf Harvester by introducing new feature of GPS Auto-Steer. The guidance system enables operators to harvest a field in straight lines, on different terrains such as slopes, rolling terrains, or rough grounds. Moreover, the company FireFly Automatix, Inc. utilizes depth control system to adjust the thickness of turf which is cut according to the user’s requirement and thereby, improve the end product quality. Furthermore, these players have been operating using various representatives and distributors to provide better sales and services. For instance, the company TurfTick Products B.V. offers automated turf harvester product sales and services in the European Union under the company name Nannings van Vuuren Sales.

KEY BENEFITS FOR STAKEHOLDERS
? The report provides an extensive analysis of the current and emerging global automated turf harvesters market trends and dynamics.
? In-depth analysis of the market is conducted by constructing market estimations for the key market segments between 2018 and 2026.
? Extensive analysis of the market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
? A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
? The global automated turf harvesters market forecast analysis from 2019 to 2026 in the report.
? The key market players within the market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the industry.
GLOBAL AUTOMATED TURF HARVESTERS MARKET SEGMENTS

By Product Type
• Roll Turf Harvesters
• Slab Turf Harvesters

By Application
• Residential
• Commercial
• Golf Courses
• Sports/Athletics

By Region
• North America
o U.S.
o Canada
• Europe
o Netherlands
o The UK
o Germany
o Rest of Europe
• Asia-Pacific
o Australia
o Rest of Asia-Pacific

Key Players
• FireFly Automatix, Inc.
• Kesmac Inc.
• KWMI Equipment
• MAGNUM ENP
• Trebro Manufacturing, Inc.
• Turf Tick Products B.V.
Read the full report: https://www.reportlinker.com/p05828813/?utm_source=GNW

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