Agricultural equipments are all kinds of machinery used in the production process of crop planting and animal husbandry, as well as the initial processing and processing of agricultural and livestock products. Agricultural machinery includes agricultural power machinery, farmland construction machinery, soil tillage machinery, planting and fertilizing machinery, plant protection machinery, farmland irrigation and drainage machinery, crop harvesting machinery, agricultural product processing machinery, animal husbandry machinery and agricultural transportation machinery.
Agricultural equipment in a broad sense also includes forestry machinery, fishery machinery and mulberry, beekeeping, edible fungus cultivation, and other rural sideline machinery.
Global agricultural equipment market size valued at USD 132.64 billion in 2019 and expected to grow at a CAGR of over 7.12% during the forecast period, 2020–2027. The primary factors are shifting agricultural activities from manual or animal-based to automated, which is expected to drive the demand over the forecast period. Additionally, the growing use of various advanced equipment that can improve crop quality is expected to propel the growth in the coming years. Moreover, the rising population across some nations has escalated the demand for food and pressurized the agriculture sector to work efficiently and be productive. Additionally, a rise in demand for agricultural products increased automation and mechanization in the agriculture sector, and the need for operational efficiency and profitability are some factors that are anticipated to drive the global agricultural machinery/equipment market over the forecast period.
Furthermore, the surge in mechanization level in the agriculture industry, scarcity of skilled labor, rising labor cost, and growing need for efficiency and profitability is projected to foster the growth of the agricultural equipment industry in the next few years. Also, the growing adoption of modern technologies by farmers to increase farm yield and meet the soaring demand for food will accelerate the market growth in the forecast span. Furthermore, the rising applications of agriculture equipment to reduce production time, enhance product quality, and improve production efficiency for farmers are vital factors estimated to escalate the growth of the agriculture equipment market share. Moreover, the increasing demand for agriculture equipment to obtaining high yield in less time & minimum efforts and increasing the cultivation efficiencies on farms are expected to boost market growth.
Growing government initiatives across developing countries, especially India and China, is expected to enhance agricultural productivity, which is expected to spur the sale of agricultural machinery/equipment over the forecast period. The population across these countries is rising exponentially and contributing to the rising need for food, which results in increasing demand for agricultural machinery/equipment. Further, in many countries, the government is providing extensive support so that farmers can purchase agricultural equipment and work efficiently, simultaneously bolstering the demand across the globe.
In India, the government under Rashtriya Krishi Vikas Yojana is supporting farmers so that they can purchase modernized agricultural equipment at subsidized rates, and the government is educating farmers so that they can get benefit from using the equipment.
Agricultural mechanization and agricultural machinery and equipment are important foundations for transforming agricultural development methods and improving rural productivity, as well as important supports for implementing rural revitalization strategies. Without agricultural mechanization, there will be no agricultural and rural modernization. The development of agricultural mechanization has supported the process of agricultural modernization, the industrialization of the country, and urbanization, and has supported the overall socio-economic development.
The most noteworthy technology in agriculture is the global positioning system GPS. GPS has practical functions such as navigation equipment, automatic navigation, and equipment data retrieval. There is also a specific GPS, which is a differential Global Positioning System. Through technology, farmers’ fields can be finely divided into small pieces, so that they can be managed separately to ensure the best production of crops.
Based on product, the global agricultural equipment market classified into Tractors, Harvesters, Planting Equipment, Irrigation & Crop Processing, Spraying Equipment, Hay & Forage Equipment, and Others (Seeding Equipment, Cutters, Shredders, etc.). The Tractors segment held maximum revenue share in 2019 and expected to grow with a higher CAGR in the forecast period. It is attributable to it is essential agriculture machinery, which can be used for several activities, can act as standalone equipment, and also in tandem with other implements, thus anticipated to dominate the market during the forecast period.
Harvesters will grow at a significant rate in the forecast period. It is owing to the growing demand for harvesters to increase production and limit dependency on farm labor.
Based on engine capacity, the global agricultural equipment market segregated into 22 HP, 22.1 to 100 HP, 100 to 200 HP, 201 to 300 HP, 301 to 400 HP, and Above 400 HP. The 301 to 400 HP segment accounted for a higher revenue share in 2019 and projected to dominate the agricultural equipment Market by 2027. It is primarily attributed to these are used in tractors that are involved in planting, plowing, and tilling in fields.
22.1 to 100 HP segment will grow at a significant rate due to the high demand for small and mid-range tractors.
Based on crop, the global agricultural equipment market classified into Grains, Oil Seeds, Fruit & Vegetables, and Others. Fruit & Vegetable segment will hold higher market potential by 2027. It is owing to the growing population around the world, leading to the rising demand for food and vegetable production along with agricultural equipment.
Grain held a significant market share in 2019. It is due to the growing, rising demand for food and increasing food security worldwide.
Based on application, the global agricultural equipment market segregated into Post-harvest & Agro-Processing, Land Development & Seed Bed Preparation, Plant Protection, Sowing & Planting, Harvesting & Threshing, Weed Cultivation and Others (Snow Removal Equipment & Material Handling Equipment, etc.)). Land Development & Seed Bed Preparation segment captured a higher market share in 2019 and will hold a lucrative market share by 2027. It is on account of the shortage of farm laborers as labor employment has become expensive, and agriculture is labor and capital intensive along with and time-consuming process.
Harvesting & threshing anticipated to largest CAGR during the forecast period. The key factors are tractors equipped with technologies such as GPS help in harvesting and thrashing.
Based on geography, the global Agricultural Equipment Market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Asia Pacific dominates the global agricultural equipment market with a higher CAGR over the forecast period owing to its rising population base across China and India, along with falling crop prices and small arable land per farmer. Further, farmers have increased the use of modern practices and agricultural equipment as the government is providing proper support and incentives.
North America is projected to provide significant growth opportunities due to the huge utilization of machines with better fuel efficiency and improved features along with the shortage of farm labor.
Companies such as AGCO Corporation, Alamo Group Incorporated, Amazonen-Werke H. Dreyer GmbH & Company KG, ARGO SpA, Bucher Industries AG, Changzhou Dongfeng Agricultural Machinery Group Company Limited, China National Machinery Industry Corporation, CLAAS KGaA mbH, CNH Industrial NV, Deere & Company, Escorts Ltd., Iseki & Co. Ltd., J C Bamford Excavators Ltd. (JCB), Kubota Corporation, Mahindra & Mahindra Limited, Same Deutz-Fahr Group S.p.A. (SDF), Valmont Industries, Inc., Yanmar Co. Ltd., Zetor Tractors A.S. are the key players in the Global Agricultural Equipment Market.
By Engine Capacity