Global Agricultural Equipment Market is Poised to Grow at a CAGR of 7.9% in the Forecast Period
Published | 17 August 2021
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global agricultural equipment market was worth USD 102.3 billion in the year 2020. According to the study, the market is estimated to grow at the CAGR of 7.9%, earning revenue of around USD 172.1 billion by the end of 2027. A high rate of market growth can be attributed to factors such as the increasing population and rising food demand, which have led to mass production. Furthermore, rapid urbanization and the growing demand for processed food are also significantly fueling the growth of the overall agricultural equipment market. However, high cost of agricultural equipment may act as a barrier especially in the emerging economies.
Use of Agricultural Equipment for Land Development & Seed Bed Preparation Favoring the Global Agricultural Equipment Market
Based on applications, the global agricultural equipment 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 &seed bed preparation segment accounts for most of the market share. However, the harvesting & threshing segment is also expected to have a high growth rate during the forecast period. This is due to the gradual shift from labor-intensive to capital-intensive work to expand the amount of final production.
Rising Demand For >250 HP Tractors Is Projected to Fuel the Global Agricultural Equipment Market Growth
Based on power outputs, the global agricultural equipment market is segmented into <30 HP, 31–70 HP, 71–130 HP, 131–250 HP, >250 HP. The >250 HP tractors holds the largest market share and are also expected to witness the highest CAGR during the forecast period. This is because of the high adoption of high-pulling power sources especially in the developed regions like North America and Europe. Furthermore, the government provides loans and subsidies that encourage farmers to invest in larger tractors, which in turn is favoring the growth of the >250 HP segment.
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Global Agricultural Equipment Market - By Drive Type
Based on drive types, the global agricultural equipment market is segmented into two-wheel drive, and four-wheel drive. Due to its popularity, two-wheel drive tractors account for the most market share. The system is widely used for farming and transportation in dry and upland areas. Additionally, its lower price is also a factor bolstering its market growth as compared to four-wheel drive tractors. Moreover, due to the cost benefit, it is gaining significant traction in emerging economies like India, China, Japan, etc.
Global Agricultural Equipment Market - Regional Insights
Geographically, the global agricultural equipment market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these regions, North America holds the largest market share. The Asia-Pacific region, particularly India, China, Japan, and South Korea, will experience the highest CAGR during the forecast period due to their farming-intensive economies. Governments in these countries are taking various initiatives to promote the use of modern agricultural technologies, such as low-interest loans. These factors are expected to propel the growth of the agricultural equipment market in the Asia-Pacific region.
Impact of COVID-19 on Global Agricultural Equipment Market
The COVID-19 pandemic have had disastrous effects on the food and agricultural industry, especially in emerging economies and low-income countries. The entire distribution system dipped, disrupting the regional agricultural value chains, and resulting in global food insecurity. In all of this, farmers' financial capacity had been damaged, which discouraged them from purchasing advanced farming tools and equipment, which also adversely affected the global agricultural equipment market.
The leading market players in the global agricultural equipment market are Kubota Corporation, J C Bamford Excavators Ltd., China National Machinery Industry Corporation Ltd., AGCO Corporation, SDF S.p.A., Deere & Company, CNH Industrial N.V., Escorts Limited, Mahindra & Mahindra Ltd., Bellota, CLAAS KGaA MBH, Horsch Maschinen GmbH, J.C. Bamford Excavators Ltd., Kivon RUS, Maschio Gaspardo S.P.A., Morris Industries Ltd, TAFE, Valmont Industries, Inc., Vaderstad, MaterMacc S.p.A., and other prominent players.
The market is highly competitive and consolidated with the presence of several leading industry players. These companies extensively engage in competitive strategies like partnerships, mergers& acquisitions, collaborations, joint ventures, etc., to expand their product portfolio and market presence. They are also working on strengthening their distribution channels, especially in the emerging economies to establish themselves as leading players.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global agricultural equipment market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global agricultural equipment market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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