Agricultural Equipment Market

Global Agricultural Equipment Market, By Type (Tractors, Plowing and Cultivating Machinery, Planting Machinery, Other Types), By Application (Land Development & Seed Bed Preparation, Sowing & Planting, Weed Cultivation, Other), By Power Output (<30 HP, 31–70 HP, 71–130 HP, 131–250 HP, >250 HP), By Drive Type (Two-Wheel Drive, Four-Wheel Drive), By Equipment Type (Cereal Combines, Non-Cereal Combines, Balers, Sprayers), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: August 2021
  • Report ID: BWC2139
  • Available Format: PDF
  • Page: 200

Report Overview

The global agricultural equipment market is growing because of the positive consequences of the green revolution and the use of modern machinery in the farming activities to expand the agricultural yield along with the increasing population and their soaring demand for food.

The global agricultural equipment market was worth USD 102.3 billion in 2020 and is further projected to reach USD 172.1 billion by the year 2027, growing at a CAGR of 7.9% in the forecast period. Global agricultural equipment market growth is being fueled by the impact of the green revolution and the increased use of modern machinery in farming activities in order to expand agricultural yield. Additionally, the growing population and rising food demand will fuel the growth of the market during the forecast period.

agricultural equipment market

Source: BlueWeave Consulting

Global Agricultural Equipment Market- Overview

Agricultural equipment are mechanical devices and machinery which are mainly used during the farming process and other agricultural activities. The most common agricultural equipment used on the farms are tractors, balers, plows, planters, mowers, sprayers, combines, etc. The use of various types of equipment in agriculture includes harvesting, preparing land, planting and cultivating plants and sowing seeds, among others. Usually, these devices require physical effort, animal, human, or mechanical power to operate properly.

Global Agricultural Equipment Market Forecast and Trends

Growth Drivers

Increasing World’s Population and Food Demand

World population already reached 7.9 billion in 2020, and it is growing at a rate of 1.1% annually. However, it has been estimated that as much as 811 million people go hungry and as much as 2 billion people are malnourished.This hunger index varies from country to country but is much more prevalent in middle and low-income countries. Consequently, to increase agricultural production to mitigate this issue, the countries are implementing various initiatives which are expected to boost the market growth in the forecast period.

Government Initiatives and Support to Farmers

Governments of many countries have been taking various initiatives aimed at supporting farmers and assisting them in using agricultural equipment. Moreover, various government agencies provide loans and subsidies to farmers to encourage them to adopt modern agricultural tools and machinery. This factor is expected to significantly contribute to the growth of the global agricultural equipment market. For instance, in the US, farmers can apply for farm loans to purchase livestock, seeds, and equipment which is covered under operational loans. Such funds fulfill the resource needs of the farmers, resulting in increased food production.

Restraints

High Cost of Agricultural Equipment

Agricultural equipment is becoming more advanced and technology-driven, which, inevitably, increases the price.Although loans and subsidies are available for farmers, not everyone can take advantage of them. Therefore, the high cost of these agricultural equipment acts as a major restraining factor for the growth of the global agricultural equipment market. For instance, compact tractors cost between USD 9,000 and USD 11,000, while large four-wheel tractors cost between USD 50,000 and USD 75,000.

Impact of COVID-19 on Global Agricultural Equipment Market

The COVID-19 pandemic has had disastrous effects on the food and agricultural industry, especially in emerging economies and low-income countries. The entire distribution system collapsed as a result of the global crisis, disrupting regional agricultural value chains, and leading to global food insecurity. The impact of the above situation had adversely impacted the financial capacity of the farmers, causing them to avoid purchasing advanced and costly farm equipment and tools. Consequently, it had negative consequences on the global agricultural equipment market.

Global Agricultural Equipment Market - By Type

Based on types, the global agricultural equipment market is segmented into tractors, plowing and cultivating machinery, planting machinery, harvesting machinery, haying and forage machinery, irrigation machinery, and other types. The demand for tractors is the most prominent in the agricultural sector. This is due to its wide application in a variety of agricultural activities. Tractors are widely used for routine landscape maintenance, lawn care, clearing business activities, spreading fertilizers, and much more. Tractors are also used for pulling various farm equipment like plowing, planting, harvesting, cultivating crops, etc., which is why its market is expanding at such a high rate.

Global Agricultural Equipment Market - By Equipment Type

Based on equipment types, the global agricultural equipment market is segmented into cereal combines, non-cereal combines, balers, and sprayers. The cereal combined segment accounts for the largest market share.The machine is extremely efficient and is widely used to harvest and process large volumes of grain. Balers, on the other hand, are also gaining significant traction. The machine is ideal for farming large plots of land with mass production as it cuts and rakes the seeds into compact bales.

Global Agricultural Equipment Market - Regional Insights

Geographically, the global agricultural equipment market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle-East & Africa. Among these regions, North America holds the largest market share because of the high adoption of advanced and modern technologies and the strong presence of several leading industry players. Furthermore, favorable farm laws and loan grants also favor the market growth of agricultural equipment. These factors also influence thegrowth of the European agricultural market as well. Additionally, the Asia-Pacific region is projected to witness the highest CAGR during the forecast period.

Regional insights

Source: BlueWeave Consulting

Competitive Landscape

The leading 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, Mater Macc 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.

Recent Developments

  1. In July 2021, BASF Digital Farming, a leading German engineering company, announced a joint venture with Bosch to distribute smart farming technologies worldwide. This joint venture is essentially planning on targeting North America, South America, and European regions.
  2. In May 2021, AGCO, a US-based agricultural machinery company, announced the collaboration agreement with Robert Bosch GmbH, BASF Digital Farming, and Raven Industries Inc.., for evaluating targeted spraying technology and the reduction of crop input costs.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia

Product Service/Segmentation

By Type, By Application, By Power Output, By Drive Type, By Equipment Type, By Region

Key Players

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, HorschMaschinen GmbH, J.C. Bamford Excavators Ltd., Kivon RUS, MaschioGaspardo S.P.A., Morris Industries Ltd, T.A.F.E., Valmont Industries, Inc., Vaderstad, MaterMacc S.p.A., and other prominent players.

By Type

  • Tractors
  • Compact Utility Tractors
  • Utility Tractors
  • Row Crop Tractors
  • Plowing and Cultivating Machinery
  • Planting Machinery
  • Row crop planters
  • Air seeders
  • Grain drills
  • Others
  • Harvesting Machinery
  • Haying and Forage Machinery
  • Irrigation Machinery
  • Other Types

By Application

  • Land Development & Seed Bed Preparation
  • Sowing & Planting
  • Weed Cultivation
  • Plant Protection
  • Harvesting & Threshing
  • Post-harvest &Agro Processing

By Power Output

  • <30 HP
  • 31–70 HP
  • 71–130 HP
  • 131–250 HP
  • >250 HP

By Drive Type

  • Two-Wheel Drive
  • Four-Wheel Drive

By Equipment Type

  • Cereal Combines
  • Non-Cereal Combines
  • Balers
  • Sprayers

By Region

  • North America
  • Europe
  • Asia-Pacific (APAC)
  • Latin America (LATAM)
  • Middle-East & Africa (MEA)

FAQs:

1. What is the current size of the global agricultural equipment market?

Answer: The global agricultural equipment market reached USD 102.3 billion in 2020.

2. What are the major factors driving the growth of the global agricultural equipment market?

Answer: The major factors driving the growth of the global agricultural equipment market are; increasing world’s population and food demand and government initiatives and support to farmers.

3. Who are the key players in the global agricultural equipment market?

Answer: The key 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, HorschMaschinen GmbH, J.C. Bamford Excavators Ltd., Kivon RUS, MaschioGaspardo S.P.A., Morris Industries Ltd, T.A.F.E., Valmont Industries, Inc., Vaderstad, MaterMacc S.p.A., and other prominent players.

4. Which power output segment accounted for the largest share in the global agricultural equipment market?

Answer: The>250 segment accounted for the largest share in the global agricultural equipment market.

5. Which region is at the highest growth rate in the global agricultural equipment market?

Answer: North America has the largest share in the global agricultural equipment market.