Agriculture And Farm Equipment/Machinery Market Analysis By Product (Tractors, Harvesters, Planting Equipment), By Application (Land Development, Sowing & Planting, Weed Cultivation, Plant Protection), And Segment Forecasts, 2018 - 2025

Industry Insights

The global Agriculture and Farm Equipment/Machinery market size was valued at 124.2 USD billion in 2015. The adoption of modern technologies by farmers to increase farm yields and meet the growing demand for food supply is expected to be a key factor expected to drive market growth.

Agricultural equipment comprises a wide range of machinery and tools that are used in various processes of farming to improve output and enhance the overall crop quality. Traditional tools are now being replaced with various new agricultural equipment, which mainly include crop processing equipment and drip irrigation equipment.

Global agriculture equipment market by product, 2014 - 2025 (USD Billion)

The agriculture machinery market is growing with the introduction of innovative technologies in the field of agriculture. Farm machinery manufacturers are concentrating on integrating technologies such as Google Earth, GPS, and robotic systems into the present equipment for improving productivity. Another key reason for the predicted growth is the government subsidies and low rates offered to farmers in emerging countries to adopt agricultural machinery.

Product Insights

Tractors emerged as the leading product category and contributed to over 20% of the total revenue in 2015. They are an essential farm equipment used for several activities, both as a standalone equipment and with other implements. The sale of tractors has been witnessing growth owing to the increasing rate of mechanization as well as the growing population, thereby resulting in increased pressure on food production and productivity. Over the years, the technology and design of farm tractors has evolved as manufacturers continue to develop tractors that fulfill several requirements of farmers.

Harvesters emerged as the second largest segment in 2015 and are expected to witness the healthy growth at a CAGR of over 5% by 2025. This growth is attributed to the fact that farmers are increasingly preferring harvesters so as to increase production and limit the dependency on farm labors. Furthermore, harvesters offer high productivity and efficient fuel economy, which are anticipated to drive the product demand over the coming years.

Application Insights

Land development & seed bed preparation accounted for over 15% in the global revenue in 2015. However, harvesting & threshing equipment is anticipated to witness the fastest growth at a CAGR of more than 6% over the forecast period.

Global agriculture equipment/machinery market by application, 2015 (%)

The key growth driver behind the increasing demand for farm equipment across several applications, such as land development, plant protection, harvesting, and sowing & planting, is the shortage of farm labor. Agriculture is a labor-intensive and time-consuming process. Labor employment has become expensive since, there is a scarcity of localized labor supply across the globe owing to shift of focus among people toward other jobs.

Regional Insights

North America dominated the market in 2015. This is ascribed to the advent of machines with better fuel efficiency and improved features in this region that have encouraged farmers to purchase new machinery for agriculture.Another major factor driving the demand for agriculture equipment in North America is the shortage of farm labor.

The strong economic growth in developing nations such as China, India, and the Middle Eastern countries is projected to further drive the farm machinery industry. Asia Pacific is expected to witness the fastest growth over the forecast period. China alone held over 20% of the regional revenue share in 2015.

The agricultural equipment market in the region is largely driven by India and China, which is ascribed to their low level of mechanization and large area of agricultural land. However, agricultural process mechanization is evolving progressively in Asia Pacific, which is estimated to spur the demand for agriculture machinery over next few years.

Competitive Insights

The agriculture equipment market is highly competitive and fragmented owing to the presence of few prominent players along with several other medium or small-scale players accounting for the market share. The key industry participants include AGCO Corp., CNH Industrial N.V., Iseki & Co., Ltd., Same Deutz-Fahr Group S.p.A. (SDF), J.C. Bamford Excavators Limited, Kubota Corporation, Mahindra & Mahindra Limited, and Deere & Company.

The key purveyors compete on parameters such as quality and availability of products as well as technological advancements. Furthermore, mergers and acquisitions are being undertaken as an attempt to gain market share and diversify product portfolio.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Agriculture And Farm Equipment/Machinery Market on the basis of products, applications, and regions:

• Product Outlook (Revenue, USD Billion; 2014 - 2025)

  • Tractors

  • Harvesters

  • Planting equipment (Revenue: USD Billion, Volume: Thousand Units, 2014 - 2025)

    • Row crop planters

    • Air seeders

    • Grain drills

    • Others

  • Irrigation & crop processing equipment

  • Spraying equipment

  • Hay & forage equipment

  • Others

• Application Outlook (Revenue, USD Billion; 2014 - 2025)

  • Land development & seed bed preparation

  • Sowing & planting

  • Weed cultivation

  • Plant protection

  • Harvesting & threshing

  • Post-harvest & agro processing

• Regional Outlook (USD Billion, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa