April 24, 2024
Agriculture Equipment Market

Agriculture Equipment Market is Estimated to Witness High Growth Owing to Increasing Mechanization in Farming Activities

The agriculture equipment market comprises various machinery and tools that aid farming activities such as harvesting, crop processing, and maintenance of farm equipments. Some key product segments include tractors, harvesters, irrigation & crop processing equipment, soil preparation & cultivation equipment and others. The growing population has increased the demand for food globally which has led to increased pressure on the agriculture industry to boost productivity and yield through mechanization. Agriculture equipment assist farmers to carry out various crop cultivation and harvesting activities effectively and efficiently.

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.

The key opportunities in the agriculture equipment market include development of autonomous and self-driving equipment to reduce labor requirements, use of latest technologies like IoT, AI and data analytics to increase yield and optimize operations. There is also growing demand for rental and custom hiring services for agriculture machinery.

Major players in the market are focusing on expanding their global footprint by enhancing their distribution networks worldwide especially in emerging countries in Asia Pacific, Latin America, Middle East and Africa. They are also investing in development of innovative products catering to local soil and crop conditions in different geographies.

Market drivers

One of the key driver for the Agriculture Equipment Market Size is increasing mechanization in farming activities worldwide. With growing labor shortages and rising wages, mechanization of tasks like planting, harvesting has become essential. This has boosted demand for tractors, harvesters and other machinery. Furthermore, supportive government policies and subsidies for farm mechanization in various countries is also fueling market growth.

PEST Analysis

Political: Agriculture being an important sector for the economy of most countries, governments implement various supportive policies and subsidies for farmers helping them purchase agricultural equipment to increase farm productivity and output. This promotes growth of the agriculture equipment market.

Economic: With rising farm incomes and good economic conditions in developed nations as well as emerging economies, the purchasing power of farmers has increased enabling higher investmnets in agricultural machineries to maximize crop yields. This drives demand in the market.

Social: Adoption of modern technologies among younger generation of farmers along with growing overseas agricultural business venture propels the agriculture market. In addtion food security concerns pushes demand.

Technological: Precision farming techniques deploying automation, telematics, IoT and Robotics help optimize farm resource usage reducing wastage. Advanced lithium-ion powered electric tractors are gaining popularity addressing environmental concerns.

The North American region accounts for the largest share of the global agriculture equipment market in terms of value. This can be attributed to increased adoption of advanced machinery driven by large farm sizes and growers’ need to optimize productivity. The Asia Pacific region is projected to grow the fastest during the forecast period led by growing agricultural sector, government initiatives to boost mechanization and rising income levels in nations such as India and China.

Concentration in terms of value:

The agriculture equipment market in North America holds the largest share globally dominated by the US supported by favorable farm conditions and policy support for mechanization in the region.

Fastest growing region:

The Asia Pacific region is anticipated to witness the fastest growth in the agriculture equipment market during the forecast period led by efforts to increase food production, farm mechanization drives by governments in major countries like India and infrastructure growth in agricultural sector of developing economies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it