The “Global Agricultural Equipment Market, by Product Type (Tractors, Combine Harvesters, Rotavator, Power Tillers, Seed Drill, Thresher, Power Weeder, and Others), and by Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 131.6 billion by 2027, witnessing a CAGR of 3.5% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Agricultural equipment is a type of machinery used to perform different agricultural activities cultivation, sowing, applying fertilizers, and harvesting. There are major two types of tools used in agriculture namely hand tools and powered tools. Moreover, these equipment vary 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. Over the years, agricultural equipment has changed significantly with introduction novel technologies such as automation and GPS. These additional features have made the equipment more efficient and productive.
The global Agricultural Equipment Market market is estimated to account for US$ 110.7 Bn in terms of value by the end of 2019
Initiatives taken by government agencies to educate farmers regarding agricultural equipment is expected to drive the global agricultural equipment market during the forecast period
Many government authorities around the world, especially in emerging economies, are taking proactive initiatives to educate farmers about the benefits of agricultural equipment. Moreover, companies are taking initiatives to offer lucrative and affordable financing options, loan policies, and contract farming to farmers, which in turn, is expected to boost the demand for agricultural equipment in the near future. For instance, in India, the “Krishi Mela” (Farmer’s Fair) is being organized where farmers, agriculture scientists, agriculture equipment manufacturers, and others from different parts of the world participate to meet, share and exchange their ideas. Similarly, in Europe and the American countries, respective governments are taking initiatives to educate farmers and guide them about the benefits if agricultural equipment.
Adoption of advanced technologies in agriculture is expected to offer lucrative business opportunities for market players
Advanced technologies such as the Internet of Things, big data, and artificial intelligence can be integrated with agricultural equipment. For instance, UC Davis Smart Farm has manufactured an automated cultivator, which is towed behind the tractor and is equipped with imaging systems that can identify fluorescent dye that the seeds are coated with when planted. Moreover, Deepfield Robotics’ Boniron, a car-sized robot can navigate autonomously through the field of crops with the help of satellite GPS, video, and LiDAR. Such technologies are expected to offer lucrative growth opportunities for market players in the near future.
Overproduction of commodities in different parts of the world is expected to restrain the global agricultural equipment market growth during the forecast period
In several European countries, overproduction of milk has forced prices to go far below the cost of milk production and has hinder businesses of thousands of producers. This, in turn, has hindered the demand for dairy farm equipment. For instance, according to the Natural Resource Defense Council (NRDC), around 40% of the total U.S. food supply is wasted due to overproduction. Moreover, in 2016, the European Union offered US$ 530 billion to help dairy farmers to recover the loss caused by overproduction. Therefore, these factors are expected to hinder the market growth over the forecast period.
Farmers and agricultural equipment manufacturers are involved in contracted farming, in order to generate steady source of income, reduce migration from rural areas to urban areas, and encourage seasonal rotation of crops. Many emerging economies such as Brazil, Morocco, Vietnam, and India have started adopting contracted farming. Moreover, developed regions such as North America and Europe have witnessed significant rise in contracted farming.
Key companies in the market are focused on introducing smart tractors, in order to gain competitive edge in the market. For instance, in February 2017, John Deere introduced its new 5R Series tractor. This tractor helps customers who work in areas such as barns and helps increase productivity.
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.
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.