The Agricultural Equipment Market has many advanced technologies nowadays such as flying drones, autonomous tractors, ground-based sensors and it produces food at a cheap cost to fulfill growing food demand. Adoption of GPS and tech-savvy software products and equipped tractors with telematics have anticipated the agricultural machinery over the years. Furthermore, the usage of growing machinery using cost-cutting strategies. Several suppliers in escalating coupled with several subsidies of the government are offering avenues for growth for the expansion of the market.
Emerged tractors had the leading product category and it contributed to achieving 25.0% of total revenue in 2018. These essential vehicles are used for several activities, both as tandem and standalone equipment with other implements. Additionally, tractor sales are expected to continue over many periods to increase mechanization rate as well as population, thereby resulting in a pressure increase in the production of food and productivity.
Harvesters are planned to account for over 21.0% of agricultural equipment by 2025 and registering a CAGR of 10.0% within the forecast period. This growth is attributed to the fact farmers are preferring harvesters to increase production and dependency limit on farm labor. Furthermore, harvesters are ready to offer high productivity and economy fuel which is anticipated to product drive demand through the year 2025.
The development of land and preparation of the seed segment accounted for 23.0% in 2018. Threshing and harvesting applications are anticipated to increase the CAGR OF 10.0% over the period. The primary factor increasing the farm products demand across many applications such as plant protection, planting, sowing, harvesting is the shortage of labor farm. Since agriculture is a time-consuming and labor-intensive process. This is aggravated by the fact and scarcity of labor supply to shift towards other jobs.
prominent players in the agriculture equipment market include:
- John Deere
- Mahindra & Mahindra
- CNH Industrial N.V.
- Iseki & Co., Ltd.
Product Outlook (Revenue, USD Billion, 2014 – 2025)
- Planting Equipment
- Row Crop Planters
- Air Seeders
- Grain Drills
- Irrigation & Crop Processing Equipment
- Spraying Equipment
- Hay & Forage Equipment
Application Outlook (Revenue, USD Billion, 2014 – 2025)
- Land Development & Seed Bed Preparation
- Sowing & Planting
- Weed Cultivation
- Plant Protection
- Harvesting & Threshing
- Post-harvest & Agro-Processing
Read More: Breaking the Digital Frontier in Agriculture With Mobile App
Strong growth of the economy in developing countries such as India, China, and Middle Eastern countries was projected to drive the machinery industry. The Asia Pacific is the emerging largest market within the forecast period. China alone achieved 30.0% of regional revenue in the year 2018. Regional growth ascribed to agricultural land and low-level mechanization. However, the mechanization of agricultural processes is evolving progressively in the Asia Pacific, which is estimated to meet the demand for the machinery in the forecast period. North America held the highest share over 22.0% in the year 2018. And they planned to achieve maximum growth in 2025.