The global agriculture equipment market size is expected to reach USD 244.2 billion by 2025, expanding at a CAGR of 8.9% from 2019 to 2025, according to a study conducted by Grand View Research, Inc. Rising population has escalated demand for food and has pressurized the agriculture sector to be increasingly efficient and productive. Additionally, increased mechanization in the agriculture sector, rise in demand for agricultural products, and need for profitability and operational efficiency are some of the factors anticipated to drive the agricultural machinery market demand over the forecast period.
Rise in adoption of technology-driven equipment and machinery such as robotics is also anticipated to drive the farm machinery market demand over the forecast years. Farmers in developed regions are adopting modern technologies such as drones, moisture sensors, GPS enabled devices, self-driving tractors, smart irrigation, and terrain contour mapping to increase farm yield and address soaring food demand. Such technological advancements are fuelling the espousal of farm equipment across the globe.
The farm machinery market is also estimated to be driven by increasing sales in developing nations such as India, China, and Brazil, as these countries continue to mechanize their agricultural sectors. Furthermore, strong economic growth and population expansion are expected to impose pressure on the agriculture sectors to be more competent, thus increasing sales.On the down side, high cost of agricultural machinery and financial crisis faced by farmers are some of the major challenges hindering market growth.
The agriculture equipment market is highly competitive and fragmented owing to the presence of few prominent players, along with several medium- and small-scale players accounting for the market share. The key players in the market include John Deere, AGCO, Mahindra & Mahindra, CNH Industrial N.V., Iseki & Co., Ltd., and Kubota.
Several leading vendors are investing in R&D in order to develop innovative equipment and maintain a strong foothold in the market. For instance, in April 2017, Mahindra & Mahindra Limited launched its 24hp 4WD small tractor. It has been available in the Indian market since April 2017. The tractor caters to row cropping and horticulture applications, is capable of lifting up to 750 kg, and is equipped with automatic depth & draft control (ADDC) features.
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- The global agricultural equipment market is expected to register a CAGR of 8.9% from 2019 to 2025, due to technological advancements in agriculture automation and robotics as well as ever-increasing population
- Growing number of government initiatives in developing countries, especially China and India, to enhance agricultural productivity is expected to further spur sale of farm equipment over the forecast period
- By product, the tractors segment held the dominant share of over 25.0% in 2018, which is accredited to the fact that farmers are increasingly preferring tractors to increase production and restrict dependency on farm labor
- On the basis of application, the harvesting and threshing segment is anticipated to witness significant growth over the forecast period and is expected to exceed a CAGR of 10.0% from 2019 to 2025
- The Asia Pacific market is projected to expand at a CAGR of over 9.0%, owing to its existing and improving infrastructure levels, alternative sales channels, and government support
- Key players in the market include John Deere, AGCO, Mahindra & Mahindra, CNH Industrial N.V., Iseki & Co., Ltd., and Kubota.