Agriculture Equipment Market: Space Are Expected To Witness Short-Term Challenges

 Agriculture Equipment Industry Overview

The global agriculture equipment market size is projected to reach USD 236.04 billion by 2030, registering a CAGR of 5.0% from 2022 to 2030, according to a new study by Grand View Research Inc. Shortage of labor worldwide particularly in Western Europe and the U.S. will play a key role in driving the adoption of agriculture equipment over the forecast period. Furthermore, shortage of labor in the field of agriculture equipment and telematics to monitor tractor performance and improve farm yield is also anticipated to propel the growth of the market. Apart from advancements in the agriculture equipment space and shortage of labor shortage, the growing population to meet the global food requirements will also be a major factor, increasing demand in the long term.

Favorable government initiatives to reduce the financial burden on farmers or incentivize agriculture equipment purchase will also be a major factor driving the growth of the market. For instance, the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and Pradhan Mantri Kisan Samman Nidhi (PMKSN) schemes in India aimed at offering financial assistance to low-income farmers. Apart from schemes supporting agricultural activities in the emerging economies, COVID-19 pandemic assistance from developed countries/regions, such as the United States and European Union in 2020 eased the financial burden of farmers in 2020. For instance, the announcement of the Pandemic Assistance for Producers initiative in the U.S (2020) and negotiations on European Union Common Agricultural Policy in Europe (2021).

The COVID-19pandemic hampered the growth of the market for agriculture equipment in H1 2020. A government-imposed lockdown and stringent regulations impeded business activities worldwide, including the agriculture equipment industry, consequently impacting sales. Several key players in the market, including AGCO Corporation, Deere & Company, and KUBOTA Corporation reported a dip in sales from Q1 2020 to Q2 2020. Although the year 2020 witnessed a slight dip, it was offset by the economic revival post-Q2 2020.

In 2021, the market recorded double-digit growth owing to the pent-up demand and backlog orders resulting from the pandemic. This trend will continue over the short term to meet backlogs from 2020 and replace aging equipment over the forecast period. Although, the overall market statistics paint a rosy picture over the short-term, supply chain disruptions could still pose a threat due to low inventory levels at an OEM level.


Agricultural Equipment Market Segmentation

Grand View Research has segmented the global agriculture equipment market based on product, application, and region:

Based on the Product, the market is segmented into Tractors, Harvesters, Planting Equipment, Irrigation & Crop Processing Equipment, Spraying Equipment, Hay & Forage Equipment, and Others.

  • The tractor segment accounted for the largest revenue share of over 30% in 2021, attributed to the labor shortage and the growing population to meet the global food requirements, which has made tractors a prerequisite for increasing productivity in the agriculture industry. The promotion of farm mechanization and the increasing adoption of precision farming in regions such as the Asia Pacific and Latin America have also accelerated the growth.
  • The harvester segment is anticipated to reach around USD 58.0 billion by 2030, recording a CAGR of over 6.0% over the forecast period. Innovations in harvesting equipment are anticipated to favor the growth of the segment over the next few years. The rising popularity of smart combine harvesters and the integration of smart actuators into existing combine harvesters also contribute to market growth.

 

Based on the Application, the market is segmented into Land Development & Seed Bed Preparation, Sowing & Planting, Weed Cultivation, Plant Protection, Harvesting & Threshing, and Post-harvest &Agro-processing.

  • The land development and seedbed preparation segment accounted for over 20% of the revenue share in 2021 and is expected to expand at a significant CAGR of over 5.0% during the forecast period. The segment is inclusive of tractors, levelers, and agriculture implements. The demand for agricultural tractors is gaining traction owing to numerous factors such as the increasing need for food propelling the need to mechanize farm work, availability of technologically advanced tractors, and increased urbanization causing a shortage in labor, forcing farmers to adopt machinery.
  • The adoption of tech-driven agriculture machinery such as robotics is also expected to fuel the demand for the farm machinery market in the forthcoming years. Furthermore, the preference for smart agriculture equipment is gradually picking up pace in countries such as India, Australia, and Southeast Asia, which is currently an emerging market.

 

Key Companies & Market Share Insights

The market is highly competitive due to the presence of a few prominent players and several medium or small-scale players worldwide. OEMs compete on parameters such as technological advancements, availability, price, and quality of products. Furthermore, Mergers and Acquisitions (M&A) are being undertaken as an attempt to improve market presence and to expand the customer base. For instance, in September 2019, CNH Industries N.V. opened new parts and service centers in Shanghai, China which helped reduce the product delivery time to the customers for New Holland Agriculture and Case IH agricultural equipment brands.

Similarly, in May 2021, CLAAS KGaAmbH acquired a minority stake in Dutch start-up AgXeed B.V. The acquisition was intended for the development and commercialization of autonomous agriculture machines. Besides M&A, OEMs also emphasize new product developments that enable them to strengthen their product portfolio, attract new customers, and increase the customer base, strengthening their presence in the market. For instance, in August 2021, John Deere introduced the new 6155MH Tractor, which delivers reliability and all the field-proven performance like the M series, envisage the company to attract a new customer base. Some of the prominent players operating in the global agriculture equipment market are:

  • AGCO Corporation
  • FlieglAgro-Center GmbH
  • Agromaster
  • Amazone Inc.
  • APV GmbH
  • Bellota Agrisolutions
  • CLAAS KGaAmbH
  • CNH Industrial N.V.
  • Deere & Company
  • Escorts Limited
  • HORSCH Maschinen GmbH
  • ISEKI & Co., Ltd.
  • J C Bamford Excavators Ltd
  • Quivogne CEE GmbH (Kiwon RUS LLC)
  • Rostselmash
  • KRUKOWIAK
  • KUBOTA Corporation
  • KUHN SAS
  • LEMKEN GmbH & Co. KG
  • Mahindra & Mahindra Ltd.
  • MascarSpA
  • MaschioGaspardo S.p.A
  • MaterMacc S.p.A
  • Morris Equipment Ltd
  • SDF S.p.A.
  • Tractors and Farm Equipment Limited (TAFE)
  • Väderstad AB
  • Valmont Industries, Inc

 

Order a free sample PDF of the Agriculture Equipment Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Contact:

Sherry James

Corporate Sales Specialist, USA

Grand View Research, Inc.

Phone: 1-415-349-0058

Toll Free: 1-888-202-9519

Email: sales@grandviewresearch.com

Web: https://www.grandviewresearch.com

Follow Us: LinkedIn | Twitter

Comments

Post a Comment

Popular posts from this blog

What Are The Factors Driving The Reusable Water Bottle Market By 2030?

  Reusable Water Bottle Industry Overview The global reusable water bottle market size was valued at USD 8.64 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2022 to 2030. The growing awareness regarding the environmental hazard has motivated people to take on the responsibility of reducing their contribution to the plastic problem. As a result, a large number of consumers across the globe have been replacing single-use plastic bottles with reusable water bottles. Moreover, the COVID-19 home isolation guidelines have, nevertheless, spurred the demand for various kitchen products, including reusable bottles. According to a blog post by Klarna, millennials and Generation X used a large portion of their income on home and garden products during the lockdown. These items included drinkware, kitchenware, as well as other household products. Consumers across the globe are increasingly opting for reusable water bottles at workplaces, colleg...
Read more

Farm Tire Market: Bias Tires Are Expected To Witness The Fastest Growth In Terms Of Revenue From 2021 To 2028

  Farm Tire Industry Overview The global  farm tire market  size is expected to reach USD 11.16 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.1% from 2021 to 2028. The growing demand for tractors and harvesters in farming activities in developed as well as developing economies is anticipated to benefit the growth of the market over the forecast period.   The demand for farm tires in agricultural vehicles is expected to witness significant growth owing to the increasing penetration of vehicles in the agricultural sector. In addition, rising awareness among farmers related to the up-gradation in automotive technology and the use of automated equipment is expected to boost the market growth. Farm Tire Market Segmentation Grand View Research has segmented the global farm tire market on the basis of product, application, distribution, and region: Based on the Product Insights, the market is segmented ...
Read more

North America Tabletop Kitchen Products Market: Flatware Segment Is Projected To Register A Significant CAGR Of 5.1% From 2021 To 2028

  North America Tabletop Kitchen Products Industry Overview The  North America tabletop kitchen products market  size is expected to reach USD 17.03 billion by 2028, registering a CAGR of 4.8% from 2021 to 2028, according to a new report by Grand View Research, Inc. The rising number of eateries and restaurants has driven the need for various  tabletop kitchen products  for the preparation, service, and delivery of various kinds of foods. The rapid growth of the real estate industry and a rise in commercial construction activities in the region are also likely to boost market growth in the coming years.   Rising disposable income, changing lifestyles, and an increasing number of houses are expected to drive the product demand over the forecast period. However, the growing popularity of disposable dinnerware, flatware, and drinkware products is a major factor behind the declining usage of tabletop products in the residential and commercial sectors. Rapid ...
Read more