The agriculture equipment market comprises various equipment that assist in farming activities such as harvesting, spraying, and planting. Some of the key agriculture equipment include tractors, harvesters, sprayers, and planters. Tractors are widely used for plowing, tilling, and other lifting operations during farming. Harvesters are used for harvesting crops and fruits, while planters aid in planting seeds. Sprayers are essential for spraying fertilizers and pesticides on crops. The rising need for enhanced agricultural productivity is fueling demand for high-performance farming equipment. The growing population and decreasing arable land have further boosted mechanization in the agriculture sector globally.
The global agriculture equipment market is estimated to be valued at US$ 1076.07 Bn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the agriculture equipment market are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, and Claas. John Deere is a leading manufacturer of tractors and harvesters globally. CNH Industrial offers a wide range of equipment including tractors, harvesters, and loaders.
The increasing demand for food owing to the rising global population has accelerated the adoption of mechanized equipment for boosting agricultural productivity. Countries are promoting farming mechanization through subsidy schemes to increase yields.
Leading agriculture equipment manufacturers are focusing on precision farming technology such as GPS, IoT, and AI to develop smart and autonomous equipment. Precision farming allows optimized use of inputs and reduces wastage, enhancing farm efficiency. Several original equipment manufacturers are integrating robotics and automation to introduce driverless tractors.
Market Trends
One of the key trends in the Agriculture Equipment Market Size is the rising popularity of autonomous and electric equipment. Manufacturers are developing fully autonomous tractors and harvesters integrated with the latest technologies. Some models of electric tractors have also entered the market with higher efficiency than conventional diesel tractors.
Another significant trend is connectivity in farming equipment. Major players offer IoT and telematics solutions to connect farming machinery and leverage data analytics for yield optimization. Connected equipment provides valuable insights into equipment performance and predictive maintenance.
Market Opportunities
The market for used and refurbished agriculture equipment is growing at a steady pace in developing countries due to lower prices. Leading manufacturers are expanding in the used equipment market through certified refurbishing programs.
Growing contract farming and rental services of agriculture machinery offer significant opportunities for original equipment manufacturers and independent service providers. The pay-per-use model is gaining traction among small farmers for affordable access to modern equipment.
Impact of COVID-19 on Agriculture Equipment Market Growth
The COVID-19 pandemic has significantly impacted the growth of the agriculture equipment market. During the initial phase of the pandemic, the market experienced a decline in sales volume owing to lockdown measures imposed across major economies. Manufacturing and supply chain activities were disrupted globally resulting in delays in equipment deliveries. However, post lockdowns were lifted the demand rebounded quickly as agriculture was declared an essential sector. Governments across nations supported the farming community with financial aid packages to boost agricultural output. This augmented the purchase of high-tech agricultural machinery and equipment by farmers.
The pandemic also highlighted the importance of food security and resilience of supply chains. It created awareness about the need for advanced mechanization and technologies in the agriculture sector. This has increased investments in precision farming equipment and technologies like drones, robotics and IoT enabled devices. Manufacturers are focusing on development of autonomous and self-driving tractors, combine harvesters and other machinery equipped with advanced automation, connectivity and artificial intelligence. Adoption of these NextGen technologies and equipment is expected to drive sustainable growth of the market in the coming years.
Geographical Regions with High Market Concentration
In terms of value, North America holds the largest share of the agriculture equipment market globally. High mechanization levels, large farm sizes and advanced irrigation infrastructure have supported market growth. The United States accounts for over 35% of the total market value in the region.
Moving ahead, Asia Pacific is poised to emerge as the fastest growing regional market. Rising mechanization of smallholder farms, government incentives for agricultural modernization and expansion of crop acreage are fueling demand. China is currently the largest agriculture equipment market in Asia Pacific trailed by India. Substantial investments in equipment fleets across crop production, harvesting, planting and turf and ground maintenance are driving the market.
Fastest Growing Regional Market
Asia Pacific is projected to be the fastest growing regional market for agriculture equipment during the forecast period of 2024 to 2031. Factors such as increasing disposable incomes, rapid urbanization and growing population are necessitating higher agricultural yields to meet the rising food demand. This has prompted widespread adoption of mechanized and advanced equipment across emerging economies of India, China, Indonesia and Vietnam. Additionally, supportive government schemes for farm mechanization and financing are augmenting market expansion. Asia Pacific is expected to witness a CAGR of over 25% through 2031 backed by sustained investments in agricultural infrastructure, logistics and technologies.
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