Farm Equipment Market: Demand Analysis and Growth Forecast
As per the World Bank, growth in the agriculture sector is two to four times more effective in raising incomes amongst the poorest compared to the other sectors and to feed a projected 9.7 billion people by 2050. This is leading to rapid development with a lot of companies and governments investing in the farm equipment market. As per the findings of a newly published market research report by IndustryARC titled “Farm Equipment Market: By Type (Tractors, Fertilizing, Plant Protection Equipment, Harvesting Equipment, Irrigation Equipment, Hay and Forage Equipment, Crop processing Equipment, Seeding Equipment, Grain Handling Equipment, Cutters and Shredders, Sprayers ); By Phase (Land Development, Sowing, Planting, Cultivation, Harvesting, Threshing, Others); By Application (Agri Equipment, Construction Equipment, Chemical Applications, Financing Equipment, Material Handling Equipment, Snow Removal Equipment, Property Maintenance Equipment); By Geography – Forecast (2019-2025)”, the global market size was estimated to be $170 to $175 billion as of 2018, with a CAGR of approximately 6%. Equipment such as tractors, plow, and harrow are the few basic tools that are often carried out on fields for cultivating across the globe.
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Farm Equipment Market: Leading Segment
APAC is leading the region in the global farm equipment market, at a share of 40% to 45% as of 2018 due to irrigation development in the region. Furthermore, the application CAGR in the farm equipment market will be nearly 10% during the forecast period of 2019-2025 as estimated by IndustryARC’s market analyst. As per India Brand Equity Foundation, in India, the Gross Value Added in the agriculture industry across the country was around INR 20,266 billion in 2017. The tractor market is also among the biggest segments in the category of farm equipment in the country, with annual sales of 600,000-700,000 units. However, there are major initiatives to elevate China’s agriculture industry. Moreover, there are an enormous number of farm equipment manufacturers in China which is aiding to the farm equipment market growth in the region
Farm Equipment Market: Market Trends
China is a rapidly changing country with a quickly evolving farm equipment market following Agrievolution Summits strategies.
In India, mission MITra is initiated to enable double digit growth in the agriculture sector through scaling up developments and adopting innovations in ICT, advanced big data analytics, and biotechnology. Nowadays, the farmers can rent or purchase machinery as per demand. They can leverage the tech-driven innovations such as Oxen using IoT, GPS enabled Tractors, Trringo, CropIn and many more.
As per the Association of Equipment Manufacturers, in the next 25 years, the latest wave of technology will provide substantial improvements in farming practices. The environment will create opportunities for new players to enter the farm equipment market, and there will be shifts in the positioning amongst the current players. The government has started investing in Ag Tech Investments such as biotechnology, Robotics, Mechanization, and IoT.
China has decided to boost mechanized farming and upgrade the agriculture machinery. Now, this has significantly increased the farmer’s income and helped them to expand their domestic market. The farmers engaged in mechanized farming are being subsidized equally no matter the machinery purchased are Chinese or foreign brands. The innovation in the farm equipment market has doubled their efforts to develop complete sets of equipment and improve the quality of farming for major cash crops.
Farm Equipment Market: Competitive Landscape
Some of the key companies identified in the report that are currently holding majority global farm equipment market share are AGCO, John Deere, CLAAS, Mahindra and Mahindra, Lindsay Corp, Toro Corp, Jain Irrigation, Bucher Industries, CNH Industrial, Kvernerland Group, SDF Group, and Kubota.
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