The global agricultural machinery market is projected to witness significant growth on account of upcoming technologies in the industry coupled with improved economic conditions and rising farm income. These factors are expected to boost industry growth over the next seven years.
Applications that make use of agricultural machinery include soil cultivation, loading, irrigation, traction and power, planting, milking, haymaking, fertilizing, harvesting, and pest control among others. Agricultural machinery includes seeding and harvesting machinery, tractors, and other hardware equipment such as mixers, windmills, wool presses, and grinders among others. Farm tractors are expected to lead the product segment in this market over the next few years.
The rising demand for this market is propelled by increased investment in new agricultural machinery due to the low-interest-rate as well as a rise in research and development expenditure and economies of scale. Additionally, another major factor that is expected to fuel market growth in the rapidly increasing global population which has led to an increase in the demand for food and other similar products. Governments are also providing subsidies to farmers for investing in better equipment to efficiently meet the needs for higher productivity. Rising food demand globally is expected to have a positive impact on the market over the next seven years.
As mentioned above, new technology is also supposed to propel the market during the forecast period. The objective of farmers the world over is to increase agricultural output by planting more crops. Manual seeding has certain disadvantages such as lack of uniformity and producer fatigue among others. These negative factors can be overcome by the mechanization of the seeding process which helps in providing consistency while performing various agricultural tasks. Additionally, automation also helps in applying the proper amounts of fertilizer to ensure that seeds germinate properly.
The costs of raw materials used in the manufacturing of agricultural machinery including rubber, iron, and steel have also increased drastically over the past few years. Manufacturers and vendors have serious concerns over the fluctuating prices of raw materials and are hence under pressure from the numerous competitors in the market to provide products that are not only efficient but also affordable.
This market incorporates innovation opportunities for manufacturers in the field of research and development for new agricultural techniques such as precision farming, to aid in overcoming rapid urbanization and reduction in farmland areas and hence boosts the demand for advanced farming equipment, thereby fuelling growth in the global agricultural machinery market during the forecast period.
Platform designs allowing sharing of merchandise architectures and know-how across multiple sectors offer substantial benefits for farm machinery OEMs. Several benefits presented by these models such as simplification of the component, faster time to market, and supplier management are also projected to propel market growth over the next eight years.
The agricultural machinery market is segmented based on product type into haying, harvesting fertilizing and planting, farm tractors, plowing and cultivation, other types of agricultural machinery and parts and attachments. Of these, high demand from the agricultural tractor segment as well as from the harvesting machinery sector is expected to boost growth in this market over the forecast period.
North America is expected to account for a significant market share, closely followed by Europe in the global market, owing to the already existing extensively implemented mechanization systems in the region. Market segments of planting & fertilizing machinery and plowing & cultivation machinery are also expected to expand at a moderate pace.
Asia Pacific is expected to grow rapidly over the next eight years owing to the increase in population in countries such as India and China among others whose primary population depends on farming to earn their livelihood. Governments of these and other similar countries are focusing on various methods to increase food production to meet the needs of the growing population. In this region, the demand for harvesting machinery is most prominent.
The global agricultural machinery market space is highly fragmented and features a large number of companies vying for a share of the profits. Companies are expected to adopt export-oriented strategies, to sustain competition. The key market players include Same Deutz-Fahr Deutschland Gmbh, Mahindra and Mahindra Ltd., Kubota Tractor Corp., Kverneland Group, Iseki & Co. Ltd., Kuhn Group, CNH Industrial N.V, Escorts Group, Claas KGaA mbH, Deere and Company, AGCO Corp and Tractors and Farm Equipment Ltd.
Manufacturers emphasize on mergers and acquisitions and extensive dealer networks to compete in the market. For instance, within the past five years, CNH Industries underwent two significant additions, the first was in 2010 with Kamaz, which is a Russian manufacturer and the second in 2013 with Fiat Industries. These factors are expected to have a positive impact on the industry over the forecast period.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.
"The quality of research they have done for us has been excellent..."
The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.