Caterpillar is reported to have bought out Monarch Tractor, the US start-up company that was developing battery-electric and autonomous tractors. This move brings Caterpillar into autonomous and electrified agricultural equipment business. For Monarch, this news follows a period of operational difficulties where the company cut jobs and adjusted its strategy.
Monarch was established in 2018 with the aim of modernizing the agricultural equipment industry by working to be a leader in electric and autonomous tractors. The company had received some support funding from CNH, the owners of the Case IH, New Holland and Steyr tractor brands.
More recently, Monarch had announced its intention to move away from producing complete vehicles and instead focus on licensing its technology for use in tractors and other construction equipment.
The purchase of Monarch is expected to enhance Caterpillar’s skills in automation and digital integration, two areas that are seen to be more crucial in future agricultural operations. Caterpillar will now has access to Monarch’s technology, intellectual property, and the product development team. The agreement also reflects a trend in the agtech sector toward consolidation, with bigger firms acquiring new technology from smaller start-ups as they seek to speed up development and large-scale implementation.
To date there has been poor adoption of electric equipment in agriculture. Many in the agricultural machinery sector are more concerned about the slow return on investment in development expenses and the cost effectiveness rather than by value of being the primary innovators.
