Market Insight- Global Agricultural Equipment Market

Overview

Agricultural machinery or equipment is machinery used in agriculture and farming applications. Different types of tools and equipment are used in agricultural applications such as hand tools, power tools, tractors, and more. Moreover, equipment varies according to the type of farming, i.e. organic farming and inorganic farming. Tractors, seed drill, thresher, combine harvesters, rotavators, power weeder, mowers, rakes, and balers are some of the commonly used agricultural equipment. Technological revolution and constant research & development have introduced high-functioning equipment that performs extensive amount of work efficiently.

The global agricultural equipment market is estimated to account for US$ 110.7 Bn in terms of by the end of 2019

Market Dynamics- Driver

  1. Increasing demand for food across the world due to rapidly growing population is expected to drive growth of the global agricultural equipment market during the forecast period

Global population is increasing rapidly, which is expected to increase the demand for food. According to Coherent Market Insights’ analysis, the world population is expected to increase at a rate of 30% by 2050. According to the World Bank, in 2018, the global population was around 7.59 billion, increasing from 6.75 billion in 2008. Moreover, the global population is expected to reach 8.5 billion by 2030. This is rising the need for food thereby boosting the demand for agricultural machinery and equipment.

  1. Proactive initiatives taken by government agencies such as subsidies and incentives are expected to propel the global agricultural equipment market growth over the forecast period

In many countries, the Governments offer supporting policies to farmers to purchase agricultural equipment, in order to work more efficiently. The government offer subsidies, credit schemes, subsidized interest rates, in order to boost the market growth. For instance, in July 2016, the German Government associated Agricultural Rentenbank offered an effective 10-year fixed rate of 1.0% on a 30-year loan for its most preferred customers. Moreover, in India, Rashtriya Krishi Vikas Yojana supports the farmers to purchase agricultural equipment at subsidized rates.

Asia Pacific region dominated the global agricultural equipment market in 2019, accounting for 49.2% share in terms of value, followed by North America and Europe, respectively

Agricultural Equipment  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraint

  1. Hefty interest rates in certain countries and environmental policies are expected to restrain the global agricultural equipment market growth during the forecast period

Certain countries such as Brazil, have high interest rates, which restricts farmers’ capabilities to purchase agricultural equipment. Moreover, products sold/imported in European Union (EU) countries must observe the extensive EU regulatory policies. These products are expected to comply with EU regulations such as Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), Waste Electrical and Electronic Equipment Directive (WEE), and the Restrictions of Hazardous Substances Directive (RoHS). Such stringent regulatory policies are expected to hinder the adoption of these equipment and thereby restrain the market growth over the forecast period.

  1. Overdependence on rain for irrigation and low replacement market are expected to hinder growth of the global agricultural equipment market during the forecast period

Many emerging economies such as India and Brazil depend upon monsoon for irrigation. Such high dependence is expected to hinder the market growth in the near future. Inadequate monsoon leads to low agricultural crop and income, resulting in low demand for agricultural equipment. Moreover, the costs of these machinery are substantially high, which in turn, is expected to hamper the demand aforementioned countries. Therefore, these factors are expected to hinder the market growth in the near future significantly.

Market Opportunities

  1. Advent of autonomous tractors is expected to offer lucrative growth opportunities for market players

Key companies in the market are actively focused on research and development activities, in order to offer novel and high-end products to consumers. There are certain companies are introducing next-gen autonomous tractors, in order to capitalize growing market. For instance, in September 2018, Escorts Group launched its autonomous concept tractor at the Exclusive 2018 in Delhi, India. The company collaborated with Reliance Jio, Trimble, Microsoft, Bosch, WABCO, AVL, and Samvardhana Motherson Group for this project.

  1. Leasing of agricultural equipment is expected to pose significant business opportunities

The agricultural equipment are highly expensive in most of the countries, thus people choose to lease them. Various agricultural equipment can be leased such as tractors, storage facilities, and processing equipment. Moreover, leasing offers excellent opportunity for farmers to avail the equipment with custom changes according to their requirements. It can also offer high level technical advice and support for farmers in case of any malfunction in the equipment. For instance, John-Deere provides equipment leasing and agricultural financing facilities to farmers.

Agricultural Equipment  | Coherent Market Insights

 Source: Coherent Market Insights

Market Trends

  1. Growing trend of contract farming and committed sourcing with corporate partnership

Contract farming has emerged as a significant trend in various countries, in order to reduce migration from rural to urban areas, generate stable source of income, and get seasonal rotation of crops. In this type of farming, the farmers are contracted to plant the contractor’s crop on his land and then harvest & deliver the crop to the contractor at a pre-agreed price. According to Coherent Market Insights’ analysis, in Brazil, 75% of poultry production are under contract farming. Moreover, emerging economies such as Vietnam, India, Morocco, and more have developed policies for endorsing contract farming. In the U.S. and European countries, contract farming has witnessed significant growth.

  1. Mechanized equipment

Key players in the market are involved in developing smart tractors that are equipped with advanced technologies such as GPS antenna, different attachments such as thresher, hauler, and fertilizer distributors, and better hydraulic systems. Such equipment are expected to offer more efficient performance that its contemporaries. In March 2017, AGCO introduced new Visioline Roof for their Global Series tractors, launched at SIMA Paris show.

Value Chain Analysis

Agricultural Equipment  | Coherent Market Insights

Competitive Section

Key players operating in the global agricultural equipment market are AGCO Corp, Bucher Industries AG, CLAAS KGaA mbH, CNH Industrial N.V., Kubota Corporation, ISEKI & CO. LTD., Tractor and Farm Equipment Limited, SDF S.p.A., Deere & Company, EXEL Industries, and Mahindra & Mahindra Ltd.

Key Developments

  1. Key players in the market are focused on forming joint venture with other market players, in order to gain competitive edge in the market. For instance, in December 2018, Escorts, an engineering and farm equipment manufacturers, formed a joint venture with Kubota, a Japan-based tractor manufacturer, to produce high-end tractors for domestic and export geographies.
  2. Major companies in the market are involved in signing an agreement with other market players, in order to enhance their market presence. For instance, in November 2018, Tractors and Farm equipment Ltd. (TAFE) entered into agreement with ISEKI & Co. to manufacture compact tractors in India.  

Agriculture is a labor-intensive process, in which a number of tools and machines are getting used to carrying out various agricultural processes. These are known as agricultural tools or agricultural equipment. The agricultural equipment are get used for the number of processes such as seeding, and other corollary agricultural activities such as hay-making, loading, shredding, etc. Moreover, agricultural equipment is getting changed due to the adoption of new technologies such as GPS, and automation, which in turn is improving the efficiency and working capacity of the agricultural equipment.

Market Dynamics

The demand for agricultural equipment is expected to get attributed due to corollary agricultural activities. Furthermore, the rising usage of advanced technologies in agricultural equipment is expected to further boost the market growth over the forecast period.

In addition, rising government initiatives for increasing the income of the farmers is expected to boost the adoption of the agricultural equipment market. In this government of many major economies are offering subsidies, credit schemes for the purchasing of agricultural equipment, which will further increase the working efficiency of the farmers. For instance, according to the U.S. Department of Agriculture, the U.S. government offers farm loans for a wide range of farmer needs such as securing land, purchase equipment.

Key features of the study:

  • This report provides in-depth analysis of agricultural equipment market size (US$ Billion, and Thousand Units), and Compound Annual Growth Rate (CAGR %) for the forecast period (2019– 2027), considering 2018 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global agricultural equipment market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, Agricultural equipment market capital, key developments, strategies, and future plans
  • Companies covered as part of this study include AGCO Corp, Bucher Industries AG, CLAAS KGaA mbH, CNH Industrial N.V., Kubota Corporation, ISEKI & CO. LTD., Tractor and Farm Equipment Limited, SDF S.p.A., Deere & Company, EXEL Industries, and Mahindra & Mahindra Ltd.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The Global Agricultural equipment market report caters to various stakeholders in this industry including investors, suppliers, manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the Global Agricultural equipment market.

Detailed Segmentation:

  • Global Agricultural equipment Market, By Product Type:
    • Tractors
    • Combine Harvesters
    • Rotavator
    • Power Tillers
    • Seed Drill
    • Thresher
    • Power Weeder
    • Others
  • Global Agricultural equipment Market, By Region:
    • North America
      • By Product Type:
        • Tractors
        • Combine Harvesters
        • Rotavator
        • Power Tillers
        • Seed Drill
        • Thresher
        • Power Weeder
        • Others
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Product Type:
        • Tractors
        • Combine Harvesters
        • Rotavator
        • Power Tillers
        • Seed Drill
        • Thresher
        • Power Weeder
        • Others
      • By Country:
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Product Type:
        • Tractors
        • Combine Harvesters
        • Rotavator
        • Power Tillers
        • Seed Drill
        • Thresher
        • Power Weeder
        • Others
      • By Country:
        • China
        • India
        • Japan
        • Australia & New Zealand
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • By Product Type:
        • Tractors
        • Combine Harvesters
        • Rotavator
        • Power Tillers
        • Seed Drill
        • Thresher
        • Power Weeder
        • Others
      • By Country
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East & Africa
      • By Product Type:
        • Tractors
        • Combine Harvesters
        • Rotavator
        • Power Tillers
        • Seed Drill
        • Thresher
        • Power Weeder
        • Others
      • By Country
        • GCC Countries
        • South Africa
        • Rest of Middle East & Africa
  • Company Profiles
    • AGCO Corp*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments/ Updates
    • Bucher Industries AG
    • CLAAS KGaA mbH
    • CNH Industrial N.V.
    • Kubota Corporation
    • ISEKI & CO. LTD.
    • Tractor and Farm Equipment Limited
    • SDF S.p.A., Deere & Company
    • EXEL Industries
    • Mahindra & Mahindra Ltd.

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Product Type
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New system Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Agricultural Equipment Market, By Product Type, 2017-2027  (US$ Million, and Thousand Units)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Tractors
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Combine Harvesters
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Rotavators
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Power Tillers
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Seed Drill
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Thresher
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Power Weeder
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Agricultural Equipment Market, By Region, 2017-2027  (US$ Million, and Thousand Units)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  6. Competitive Landscape
    • Company Profiles
      • AGCO Corp
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Bucher Industries AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • CLAAS KGaA mbH
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • CNH Industrial N.V
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Kubota Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • ISEKI & CO. LTD
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Tractor and Farm Equipment Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SDF S.p.A
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Deere & Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • EXEL Industries
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Mahindra & Mahindra Ltd
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  7. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on "Agricultural Equipment Market - Global forecast to 2027”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users