"Catapult Your Business to Fore, Gain Competitive Advantage "
The global agriculture equipment market size was USD 148.41 billion in 2020. The market is projected to grow from USD 157.89 billion in 2021 to USD 253.28 billion in 2028 at a CAGR of 7.0% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with agriculture equipment witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 6.2% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Agriculture equipment refers to the tools that farmers utilize to perform a particular agricultural operation. The adoption of automation in these tools is a growing trend. Agriculture machinery is equipped with IoT applications, GPS solutions, and others utilized in every vertical including, land development, threshing, harvesting, and soil preparation.
In addition to this, demand for agriculture tools is growing year on year. The governmental bodies provide the appropriate interest schemes to farmers by investing in their farm tools business. Moreover, the materialization of contract farming has also boosted market growth. Key players are concerned about endorsing gears approved by international standards such as ISO 25119 Series. It was developed by ISO technical committee ‘ISO/TC 23, Tractors and Machinery for agriculture and forestry, subcommittee SC19. These standards are acknowledged by a run for a longer time period and do not need any recovery time.
COVID-19 Impact: Moderate Impact to Boost Equipment Modernization
In March 2020, the world health organization (WHO) declared the COVID-19 as a pandemic and forced most countries to bring an abrupt and unplanned shutdown of the economic activities due to the lockdown norms, social distancing practices, and pessimistic approach in the market. The pandemic has moderately affected the global agriculture equipment market share.
The extensive awareness regarding the application and benefit of these apparatuses over the recent past seems to have minimized the adverse effects of the COVD-19 outbreak. Additionally, the governmental bodies across the developing and developed countries have made hefty investments to strengthen the agro-economy thus, boosting the exports and imports businesses and modernization across the equipment types. Despite factory shutdowns and slowdown, the agriculture equipment witnessed strong growth attributed to strong crop production, good weather, and the need for equipment replacement.
On a long-term basis, the COVID-19 pandemic is estimated to have a positive effect on the global market. As per the multiple secondary sources, from the 2nd quarter of 2020, the demand for technologically advanced farm tractors and harvesters continued to grow and is further anticipated to witness strong growth. Moreover, innovation of digitally advanced products i.e., modernization and research & development operations, is holding the key to safeguarding dominant long-term growth of the market.
Request a Free sample to learn more about this report.
Accelerated Adoption of Précised Technologies is Laying Foundation for Future Success
The adoption of technologies including mechanized IoT implementation, AI-based equipment, GPS-enabled equipment, flying drones is aiding the market growth opportunities. Modern agriculture equipment is influencing the manufacturers to develop products that could meet the end-users demand. The mechanized equipment are controlled by remote devices through the integration of IoT, which helps to reduce the operational cost and relative operational time.
Additionally, A.I. technology has advent robotics by implementing agriculture robotics, including autonomous tractors, ground-based sensors, and others that help produce food at reasonable costs. This technology has immensely boosted digitalization in the agriculture sector.
As a result, the adoption of these technologies is bolstering market growth.
Ease of Financing and Increased Government Initiatives to Fuel Market Growth
In recent years, governmental bodies across the globe have been offering low import duties, low-interest rates, and various initiatives to make the soil preparation and cultivation process efficient and faster. For instance, the India Brand Equity Foundation (IBEF) stated that, in FY2020, agriculture and allied sectors’ shares in gross value added (GVA) of India at present prices stood at 17.8 %. Moreover, a number of microfinance institutions and banks have been set up across all the regions for ease of availability of credit to procure agriculture machinery. A rise in income has enabled farmers to spend more on agriculture machinery.
These factors are ultimately boosting the agriculture equipment market growth across the globe.
Rapid Urbanization across the Globe is Impeding the Market Growth
Rapid urbanization across developed and developing countries has resulted in the loss of land that could be applied to grow crops or land lost that is efficient of being plowed. The declining farming area with the high cost of labor retention has slowed down the growth of this market.
Additionally, the growing demand in the construction sector in countries such as Singapore, the United States, Kuwait, Malta, Japan, China, Hong Kong, and others has resulted in shifting the focus of people towards a job and hence, lack of labor force to operate agriculture tools and gears.
Maximum Food Production in Short Time to Portray Strong Growth for Agriculture Tractor Segment
The equipment type segment is classified into agriculture tractors, soil preparation & cultivation, harvesting, crop processing & irrigation, spraying & handling equipment, and others.
The agriculture tractor is a major contributor in the market with the highest CAGR. It is attributed to the constant product development that is complimenting the maximum food production in a short time. Additionally, autonomous farm tractors and combines, i.e., tractors with harvesting machinery and tractors with plant protection machinery, are mostly utilized in preparing more land for farming, even in hilly areas.
The harvesting equipment segment is expected to witness a substantial growth rate, owing to the increased preference of harvesters by the farmers to increase agricultural production. Additionally, harvesters have a high fuel economy that is driving their demand in the forecast period.
Forage equipment, agriculture spraying and handling equipment, and others, are expected to witness steady growth, owing to the business establishments provided to farmers, especially in countries including Oman, Mexico, Uganda, Uruguay, Ethiopia, and others.
To know how our report can help streamline your business, Speak to Analyst
Utilization of Modern Machinery to Depict Higher CAGR for Land Development Segment
The application segment is categorized into land development, threshing and harvesting, plant protection, and after agro-processing.
The land development segment is anticipated to witness strong growth, owing to the shortage of farm laborers. Most of the land is developed by apparatuses such as tractors and combined tractors. It leads to land development in a short time with more efficiency. The threshing and harvesting category is expected to witness moderate growth in the forecast period, owing to the developments in irrigation and harvesting tools.
Plant protection and after agro-processing application segment is expected to grow steadily, owing to the constant development in agriculture solutions provided by key manufacturers.
Asia Pacific Agriculture Equipment Market Size, 2020 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
The scope of the global agriculture equipment market is characterized into five regions, namely North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
The Asia Pacific is in the best position to lead the global market, owing to strong economic growth in the countries including China, India, Taiwan, etc. This opens up the investment plans for the prominent players. Additionally, the mechanization of farm equipment is evolving progressively, spurring the demand for farm gears over the forecast period.
India to Witness Fastest Growth Attributed to Modern Tool Adoption and Contract Farming Services
India is considered one of the biggest markets for agriculture tractors across the globe. As per Central Intelligence Agency (CIA), India utilized ~60.5% of agricultural land in 2018. This opens up the opportunity for small and marginal farmers to improve farming operations, including crop yielding and harvesting through the adoption of the latest agricultural technologies thus, boosting the mechanization across applications. Additionally, the acceptance of contract farming and the rise in farm gears and tools renting service have provided farmers with a great opportunity to expand their land development options and manufacturers to introduce industry-leading equipment across the country.
North America is expected to witness strong growth despite being acceptance of mechanization of farming equipment for nearly 20 years. It is ascribed to equipment utilization with improved fuel efficiency and additional features, including robotic systems and GPS.
Europe is experiencing steady growth with an increase in product output by optimizing the supply chain process. Factors such as labor shortage and utilization of machines for farming will further boost the growth of the market in the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Latin America and the Middle East and Africa are expected to witness substantial growth, owing to the acceptance of business establishments in countries such as Uganda, South Africa, and Oman. The farmers in this region are focused on developing more land for farming and, subsequently, on crop yielding and plant protection.
Prominent Players Emphasizes Strategies to Improve Overall Market Presence
Prominent players have adopted strategies including mergers and acquisitions, advanced product launches, investment in research & development, and others to sustain intense market competition. Moreover, these players continuously focus on technological advancements such as agriculture robots, flying drones, and others and are following apparatus-manufacturing standards to remain in a possible leading position in the market. For instance, AGCO Corporation launched Massey Fergusson tractors, expanding the MF5700 tractor global series.
CNH Industrial N.V. Focuses on Providing Specialized Agriculture Machinery for End-users
New Holland, a brand of CNH Industrial N.V., is offering a specialized range of tool products for hay & forage, small seed crops, harvesting, and other farm-related operations that would help farmers to manage their farms efficiently. Additionally, with a strong franchise network, the company provides business solutions for every possible farmer across the globe. For instance, in June 2019, New Holland inaugurated a new tractor dealership in Karnataka, India, to cater to sales & after-sales requirements in the nearby areas.
An Infographic Representation of Agriculture Equipment Market
To get information on various segments, share your queries with us
The global agriculture equipment market report focuses on leading regions across the globe to offer a better understanding to end-users. Moreover, the report offers insights into the industry dynamics and analyzes technologies utilized at a rapid pace across the world. It also displays some of the key factors and restraints to help the readers gain in-depth knowledge about the market.
ATTRIBUTE | DETAILS |
Study Period | 2017 – 2028 |
Base Year | 2020 |
Estimated Year | 2021 |
Forecast Period | 2021 – 2028 |
Historical Period | 2017 – 2019 |
Unit | Value (USD billion) |
Segmentation | Equipment Type, Application, and Region |
By Equipment Type |
|
By Application |
|
By Region |
|
Fortune Business Insights says that the market stood at USD 148.41 billion in 2020.
Fortune Business Insights says that the market will reach USD 253.28 billion in 2028.
Registering a CAGR of 7.0%, the market will exhibit strong growth during the forecast period.
Increased government initiatives coupled with attractive financing are expected to drive market growth.
Deere & Company, CNH Industrial N.V. (New Holland), AGCO Corporation, Kubota Corporation and Mahindra & Mahindra Ltd. are the top companies in the global market.
The agriculture tractors segment is expected to capture the highest CAGR in the market.
The land development segment is expected to capture the highest CAGR in the market.
Asia Pacific is expected to capture the highest CAGR in the market
Growing urbanization activities across the globe are restraining the growth of the market