ID: MRFR/IA - E/1621-HCR | February 2021 | Region: Global | 111 pages
Agriculture equipment market is expected to reach around USD 115 Billion by 2027, growing at a CAGR of 4% over the assessment period.
The agriculture equipment market is divided into four main geographies such as Asia-Pacific, Europe, North America, and the rest of the world. Asia- Pacific holds the largest market share among other regions because this region includes high population countries like India and China which need high production of food and cereals. Apart from, rise in government support and incentives on agriculture equipment, growing sales of tractors, lack of labor, and contract farming in India are increasing the growth rate in this region.
During the assessment period, North America is also expected to grow at a substantial rate for their region including the growth of wine industries and rise in demand for tractors from the US and Canada. Due to the shortage of farm labor and the productivity is improved through mechanization, Europe is the other important market for global market trends.
The prominent key players in the agriculture equipment market are the following:
Escorts Limited (India) is one of the reputed organizations in the agriculture equipment market which introduces various advanced technologies. Advanced technologies like artificial intelligence, Google Earth, robotics, and a rise in government support are the key drivers of the demand for agricultural machinery.
Generally, agriculture needs many types of equipment like tractors, harvester, seeding, hay and forage, cutters and shredders, and land leveler. Using these types of equipment, various agricultural tasks such as plowing, tilling, planting, disking, harrowing, spraying the pesticide application are performed.
The agriculture equipment benefits are gaining a high crop yield in comparatively less time with minimum efforts. Apart, some equipment like automatic and semiautomatic equipment reduces the necessity of manpower and hence the money incurred on them will be saved. Further, crop production increases by decreasing the downtimes and allows highly precise operations. This increases the production of food which is helpful for the growing population. Some of the key drivers are developing the agricultural infrastructure in developing and developed regions, increasing production and sales of farm equipment.
Before the pandemic situation, the agriculture equipment market was in better condition. But after the COVID-19 pandemic has occurred in the world, the agriculture machinery industry faces many problems due to disrupted global supply chains. For the government regulations, the manufactured industries are closed down to prevent the spread of the coronavirus and hence the agriculture machinery market has slowed down.
This pandemic not only affected the agriculture machinery but also affected various business sectors like automobiles, healthcare, semiconductor & electronics, construction, and many more. In 2020, tractors accounted for over 50% of the market share in the global market. Slowly, the pandemic situation changes, and the industries are reopened. The growing population needs additional food production and it needs various agricultural equipment which increases the demand for the market. During the forecast period (2021-2026), it is expected to register a market value of 8.0% CAGR.
The advanced technologies in the agriculture production system, deployment of mechanical power, increase in the online and offline food services centers globally, by increasing the demand for tractors designed with cutting edge technology are some of the driving factors of the global market. By using the different types of agriculture machinery, farming becomes easy like gaining high crop yields in very little time with fewer efforts, reduces the need for manpower, and hence increases the production of food for a growing population. The precision farming implementation gives sustainability in farming activities, protects land resources, increases profit, and thus results in improved agriculture production. The growing global population needs more production of food and thus it increases the demand for the agriculture machinery market. The use of mechanization by custom hiring service also increases the productivity and adoption of farming by a group of marginal farmers.
Still in some countries, farmers are lack awareness regarding the benefits of agricultural equipment. Illiteracy and unavailability of proper resources along with monetary measures are the major restraints of the agriculture machinery market.
Government support is also needed for the growth of the agriculture equipment market in a way of subsidies for acquiring fertilizers, seeds, and other agriculture equipment. The deployment of advanced technologies like IoT, AI, and big data in agricultural equipment are opportunities for the growth of the market.
By raising awareness regarding the benefits of agricultural machinery to the farmers and the government support towards the agriculture equipment are the major challenges of the market.
Study Objectives -
The global market research has been segmented based on the product type, function, sales channel, and region.
Based on Product Type
Based on the product type, the global market has been segmented into harvester, tractors, cultivation, and soil separation equipment, and others. During the forecast period, the tractors are growing at a substantial rate for their demand for autonomous tractors and low-weight tractors which are used for several cash-rich plants.
Based on Function
The global market based on the function is segmented into harvesting, planting & fertilizing, plowing & cultivation, haying and others. During the assessment period, the plowing & cultivation segment accounts for the largest market share for their growing need of improving the soil fertility level, maintaining the nutrients, and enhance productivity.
Based on Sales Channel
The global market trends based on the sales channel are segmented into OEM and aftermarket. Due to the increasing number of agriculture equipment aftermarket centers in emerging countries like India, China, Brazil, and Argentina for its presence of a large agricultural base, the aftermarket segment is projected the highest growth rate in the forecast period.
Based on Region
Geographically, the global market is segmented into Asia-Pacific, Europe, North America, and the Rest of the world. As the growing population is increasing in India and China, they need additional food and growing export of cereals, hence the Asia- Pacific region leads the highest market share during the review period.
This global agricultural machinery research includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent Developments, Segmentation Table and FAQs. The market dynamics include the agriculture equipment market drivers, restraints, challenges, and opportunities. The global market segments are product type, sales channel, function, and region.
The agriculture equipment market outlook is segmented into product type, function, sales channel, and region.
By Product Type
By Sales Channel
|Market Size||2027: USD 115 Billion|
|CAGR||4% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Sales Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||AGCO Corp. (US), JC Bamford Excavators Limited (UK), Deere & Company (US), CNH Industrial NV (UK), Kubota Corporation (Japan), Daedong Industrial Co., Ltd (US), Iseki & Co., Ltd (Japan), CLAAS KGaA mbH (Germany), Mahindra & Mahindra Limited (India), and Escorts Limited (India)|
|Key Market Opportunities||Government support towards farm mechanization and subsidies|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The agriculture equipment market can thrive at 6.2% CAGR by 2027.
The agriculture equipment market can value at USD 172 Bn by 2027.
Mahindra & Mahindra Limited (India), CLAAS KGaA mbH (Germany), and Escorts Limited (India) are some reputed organizations in the agriculture equipment market.
Adoption of modern agriculture practices can boost the growth of the global agriculture equipment market.
APAC is rich in agricultural resources. The adoption of advanced agriculture equipment for effective farming can prompt the regional market.