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Powered Agriculture Equipment Market Trends

ID: MRFR//1806-CR | 97 Pages | Author: Varsha More| January 2018

Powered Agriculture Equipment Market Overview

Powered Agriculture Equipment Market Size was valued at USD 57,390.0 Billion in 2023. The Powered Agriculture Equipment Market industry is projected to grow from USD 61,303.7 Billion in 2024 to USD 1,01,666.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.53% during the forecast period (2024 - 2032). The demand for farm mechanization has also increased in the recent past, which is expected to pick momentum further as the population rises. Asia-Pacific remains the critical market for powered agriculture equipment, though the demand also increases in Europe and North America.

Powered Agriculture Equipment Market Overview

The Powered agricultural machinery and equipement market is witnessing the rise of government subsidies play an essential role in the agriculture sector of a country. For instance, the US Farm Service Agency (FSA) is known to have provided guarantees and direct farm ownership and operating loans to family-size farmers who cannot obtain commercial credit from a bank, farm credit system institution, or other lenders. FSA loans can also help to purchase land, livestock, equipment, feed, seed, and supplies. The US department of agriculture has also announced various loan programs, including direct farm ownership down payment program. The maximum loan amount has increased from USD 250,000 to USD 300,000, and the guaranteed amount on conservation loans increased from 75 to 80%, which stands correct for the continuous period. It has helped the powered agriculture equipment market to grow significantly during the ongoing period ending in 2027.

Powered Agriculture Equipment Market COVID 19 Analysis

Although the COVID-19 outbreak has disrupted the whole supply chain, the agricultural equipement industry seemed to have been impacted the least among all the industries. It was primarily due to the steps taken by the government to consider agricultural activities under essential services. Nevertheless, the agricultural machinary industry faced 4 significant challenges amidst COVID-19—limited supply of powered agriculture equipment parts, a drop in the first half of new tractor sales, the shutdown of production facilities, and a decline in working capital. Nevertheless, despite the impact of COVID-19 on the powered agriculture equipment market, the market is expected to revive by the end of 2021.

The Association of Equipment Manufacturers (AEM) released the data last week showing that the total farm tractor sales in the US rose 0.3% in December 2021 compared to December 2020, while combined sales for the month saw a gain of 25.3%. Those gains contributed 10.3% to the total gain for tractors for 2021 and 24.7 % for combines. The powered agriculture equipment market is estimated to witness a slight downturn in 2020, owing to COVID-19 and the reluctance of farmers to purchase expensive high-powered agriculture equipment.

Agriculture Equipment Market Dynamics

  • Drivers

Farm loan waiver schemes encourage farmers to buy powered agriculture machinery and equipement. According to the Agricultural Policy Monitoring and Evaluation, 2019, conducted by the Organisation for Economic Co-operation and Development (OECD), farm policies in 53 countries–all OECD, EU countries, and 12 critical emerging economies – provided an average of USD 728 billion per year direct support to farmers from 2018-2020.

  • Restraints

The purchase of powered agriculture machinery and equipement such as tractors and harvesters is a significant investment in agricultural activities and accounts for the maximum share of the global agri machinery and equipement market. All the functional steps involved in designing, producing, and distributing the equipment require huge investments, which is reflected in the cost of the machinery and tools made available to the farmers that are indulged in agricultural activities. The inability of small farmers to invest a high amount results in the low penetration of powered agriculture equipment market in emerging countries.

  • Technology Analysis

The agriculture tools industry is under constant pressure to produce agricultural products to cater to the growing population, forcing farmers to focus on efficiency and productivity to drive business growth. Precision farming, as an alarming Powered Agriculture Equipment market concept is becoming common among farmers who want to produce more with limited resources. This is a prominent farming technique belonging to the powered agriculture equipment market could effectively tackle the issue of high demand for food across geographies. It allows farmers to improve their operational efficiency and increase production, thereby minimizing the gap between the supply and consumption of agricultural products. Several companies' increasing R&D activities and launches of hybrid & electric tractors are expected to create growth opportunities for the agriculture sector.

Powered Agriculture Machinary & Equipment Market Segment Overview

The powered agriculture equipment market has the understated market segments:

Powered Agriculture Equipment Market By Power Output:

  • <30 HP

  • 31–70 HP

  • 71–130 HP

  • 131–250 HP

  • >250 HP

Powered Agriculture Equipment Market By drive type.

  • Two-wheel

  • Four-wheel

Powered Agriculture Equipment Market By function.

  • Plowing & Cultivating

  • Sowing & Planting

  • Plant Protection & Fertilizing

  • Harvesting & Threshing

  • Others

By equipment type

  • Tractors

  • Combines

  • Sprayers

  • Balers

  • Others

By propulsion

  • Battery Electric

  • Hybrid Electric

By Region

  • Asia Oceania

  • North Americ

  • Europe

  • Rest of the World [RoW]

Powered Agriculture Equipment Market Regional Analysis

The Asia Oceania region includes China, India, Japan, South Korea, Australia, and the rest of Asia Oceania for the market analysis.

Adding to the high containerized transportation, the global market factors such as increasing Gross Domestic Product (GDP), infrastructure investments, rising per capita income, growing inclination toward mechanization, and government initiatives for FDI have created more opportunities for the farming business, in turn driving the farm tractor market in the Asia Oceania region. As a result, Asia Oceania is expected to lead the farm tractor market during the forecast period. Countries falling under the Asian Oceania region are India, Japan, China, South Korea, Australia, and the Rest of Asia Oceania. There has been an increase in the farm mechanization driven by government efforts and subsidies or loan waivers is expected to drive farm tractor sales in India. However, the Chinese region has witnessed a decline in tractor sales in 2020 and 2019, owing to delays in powered agriculture equipment subsidies in the Chinese provinces and the upgradation of emission regulations. The Rest of Asia Oceania region covers countries like Vietnam, Australia, Malaysia, Singapore, Indonesia, and the Philippines.

Agriculture Equipment & Tools Market Competitive Landscape

The powered agriculture equipment market is witnessing the rise of global market competition owing to the steps undertaken by the following market players:

Recent Developments

  • Governments across countries have taken several reliable measures to tackle the pandemic and boost the growth of the agriculture sector. For instance, the US government, as a part of the North American region had announced a USD 19 billion relief program to farmers, including USD 16 billion in direct payments to producers. The US government had also announced that it would make monthly purchases of USD 100 million in freshly produced dairy and meat products. The European Union has further, approved new rural development measures. According to the European Commission, this is a new and temporary measure would allow countries in the EU with remaining rural development funds to pay farmers and small agri-food businesses in 2020.

  • In November 2021, one of the prominent market companies - John Deere developed new material collection systems and mechanical grappleS for compact utility tractors. The New Frontier MG20F Mechanical Grapple, as a new member of the global powered agriculture equipment market offers a quick-attach solution for fast installation and features a 1,200-pound (544 kg) lift capacity.

  • In December 2021, another prominent market player - New Holland Agriculture designed a Straddle Tractor to meet the demanding requirements of the narrow vineyards typical of the premium wine-growing regions such as Champagne, Médoc, and Burgundy.

  • In August 20201, AGCO Corporation brand Massey Ferguson took to the international scale and launched VE Series planters. The series launched consists of rigid and folding-frame planters to narrow transport and track planters that offer straightforward, dependable, durable planters to deliver consistent, accurate seed placement for optimum yields.In November 2021, one of the reliable market companies - CLAAS developed new flagship TORINO 1913 and TORINO 2014 models. They feature more engine power, and other features like higher lift capacity, and an even greater loading height.

Powered Agriculture Equipment Market Report Overview

The mobile-powered agriculture equipment market report helps in providing first-hand information related to the market dynamics like drivers and restraints that might impact the growth rate of the market positively and negatively and further laid down the details of the market valuation during the ongoing forecast period 2021-2027. Furthermore, the key market players in various market regions and segments are taking care of the market operations that help push the market towards the predicted growth figures for the period in 2027. In addition, the global market report helps in discussing the recent developments during the period, which will impact the investor's decisions to invest in the market or not.

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