Agriculture Equipment Market

Agriculture Equipment Market Research, 2032

The global agriculture equipment market size was valued at $121.2 billion in 2022, and is projected to reach $192.5 billion by 2032, growing at a CAGR of 4.6% from 2023 to 2032. A device, component of a device, or attachment to a device that is primarily intended to be used for agricultural purposes is referred to as agricultural equipment. "Agricultural equipment" can refer to anything used in the production of crops, animals, horticulture, or floriculture.

The agricultural equipment market was severely hampered during the lockdown period owing to the outbreak of COVID-19. The agriculture and food & beverage industries were most affected. However, the market recovered by the end of 2021.

Market dynamics

Agriculture is becoming more mechanized, which reduces the drudgery that labor-intensive farming methods contribute. Thus, the use of sustainable mechanization can boost land productivity by enhancing crop quality and decreasing operating times. During agricultural operations, mechanization techniques can be used to address issues such a lack of labor. In addition, according to the Food and Agriculture Organization (FAO), 60% more food must be produced by 2050 to feed a population of 9.3 billion people worldwide. Normal farming practices would place too much pressure on our natural resources to accomplish that. Increase agricultural output sustainably by using a variety of ecosystem-friendly methods, reducing the use of outside inputs, and helping farmers adapt to the more frequent weather extremes that occur with climate change to increase their resilience and lower greenhouse gas emissions. Thus, the increase in mechanization of agricultural activities is driving the adoption of agriculture equipment, thereby surging the agriculture equipment industry growth.

In a report released in 2019, the United Nations Department of Economic and Social Affairs predicted that the world's population would increase to 8.5 billion by 2030 and 9.7 billion by 2050. This raises questions about the future viability of food and nutrition. More than 820 million people were undernourished in 2018, according to data from the Food and Agriculture Organization of the United Nations (FAO). This puts pressure on the agriculture sector to produce enough food for the expanding population and to close the global undernourishment gap. The ability of the soil to produce high-quality crops is also diminished as a result of the degradation of environmental resources brought on by a growth in agricultural production, which has a detrimental effect on the entire agricultural value chain. The implementation of automatic and semi-automatic agricultural equipment thus motivates sustainable mechanization of agricultural activities, by increasing the cultivation efficiencies. Agricultural equipment not only reduces the operational time of different farming activities but also helps to propel crop production causing minimum environmental degradation. Hence, increase in population is driving the agriculture equipment market growth.

However, agricultural activities are most widely conducted in rural regions of various developing countries. Farmers in these countries are majorly illiterate and unaware of the benefits of employing agriculture equipment for improving crop production. Illiteracy causes continuation of traditional farming practices, which are unsustainable and degrade the soil quality, thereby reducing the crop bearing efficiency of soil. Furthermore, rural areas do not have digital facilities such as resources, skills, and networks, which limits the penetration of advanced agricultural equipment in these areas. Thus, all these factors together restrain the agriculture equipment market growth.

The demand for agricultural equipment decreased in 2020 owing to low demand from different regions due to lockdown imposed by the government of many countries. The COVID-19 pandemic had shut down the production of agricultural equipment for the end-user, mainly owing to prolonged lockdowns in major global countries. This hampered the growth of the agriculture equipment market share significantly during the pandemic. The major demand for agricultural equipment was previously noticed from giant manufacturing countries including China, U.S., Germany, India, and the UK, which was severely affected by the spread of coronavirus, thereby halting demand for agricultural equipment. This led to the re-initiation of the manufacturing industry at its full-scale capacities, which helped the agriculture equipment market recover.

Governments from many countries help with the growth of agricultural industries, including financial aid for the purchase of machinery and seeds. The subsidies help to ensure enough food production, lower the inflation rate for food commodities, protect farmer incomes, and strengthen the agricultural industry. To increase agricultural production, developing countries like India offer a variety of subsidies, debt waiver programs, and other such services. For instance, the Government of India provides several programs for agricultural equipment, including Central Farm Machinery Training & Testing, online farm machinery monitoring, loan-cum-subsidy for the purchase of tractors, pump sets, and power tillers, as well as engineering training services for the use of innovative agricultural equipment. As a result, it is predicted that all these factors working together will present profitable prospects for the advancement of the global agriculture equipment market throughout the forecast period.

Segmental Overview

The agriculture equipment market is segmented into type, automation, business, and region. Depending on type, the market is categorized into tractors, harvesters, soil preparation & cultivation, irrigation & crop processing, agriculture spraying equipment, hay & forage machines, and others. By automation, it is segregated into manual, semi-automatic, and automatic equipment. On the basis of business, it is bifurcated into original equipment manufacturers (OEM) and aftersales.

Region wise, the agriculture equipment market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (the UK, France, Germany, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

By type: The agriculture equipment market forecast analysis is categorized into tractors, harvesters, soil preparation & cultivation, irrigation & crop processing, agriculture spraying equipment, hay & forage machines, and others. Tractors are used as agricultural vehicles to provide power for a variety of agricultural tasks like harrowing, tilling, ploughing, and planting. In addition, Soil preparation equipment are mainly utilized to prepare the soil before conducting actual agricultural activities. Equipment such as disc harrows, tillers, rotavators, weeders and other. Furthermore, Mechanized irrigation systems allow proper nourishment of crops with minimum effort and wastage, of both water and soil. Moreover, Sprayers are majorly utilized to apply fertilizers, pesticides, and herbicides to crops. Self-propelled sprayers are used for professional spraying operations on large farms and reduce the time of spraying fertilizers to a large extent. In addition, Hay & forage equipment majorly includes square & round balers, disc mowers, rakes, mower conditioners, and moisture sensors. And other agriculture equipment includes poultry, livestock feeding, and milking equipment. This equipment assists farmers in managing and feeding the cattle to achieve high productivity from the poultry and livestock businesses. Tractors are expected to be the largest revenue contributor during the forecast period. Agriculture spraying equipment is expected to exhibit the highest CAGR share in the type of segment in the agriculture equipment market during the forecast period.

By automation: The agriculture equipment market is classified into manual, semi-automatic, and automatic equipment. Manual equipment includes tractors, sprayers, tillers, and weeders, which are majorly operated manually without the involvement of any automation technologies. In addition, Automatic agriculture equipment includes utilization of automation technologies, which allow remote operations of equipment. It includes driverless tractors, autonomous harvesters, and other automated farm equipment. Furthermore, Semi-automatic agriculture equipment includes few technologies, which require manual operator. Semi-automatic equipment is suitable for farmers having moderate farm income, as fully automated equipment requires high investment costs, and the return of investment (ROI) is risky. The manual segment is expected to be the largest revenue contributor during the forecast period, and the Semi-automatic segment is expected to exhibit the highest CAGR share in the automation segment in the agricultural equipment market during the forecast period.

By business: The agriculture equipment market is divided into original equipment manufacturers (OEM) and aftersales. OEM companies mostly manufacture and develop various parts and accessories of equipment that are marketed under other brand names. However, major original equipment manufacturers (OEMs) may utilize engines and other equipment parts provided by other specialized manufacturing companies. Moreover, After-sales services include repairing, maintenance, and replacement of parts & accessories. The after-sales agriculture market is not only majorly operated by the equipment providers but may also include local workshops. The original equipment manufacturers (OEMS) segment is expected to exhibit the largest revenue share in the business segment in the agricultural equipment market during the forecast period. The After-sales segment is expected to exhibit the largest CAGR during the forecast period.

By region: The agriculture equipment market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2022, Asia-Pacific held the highest revenue in agricultural equipment market share. And LAMEA is expected to exhibit the highest CAGR during the forecast period.

COMPETITION ANALYSIS

The major players profiled in the agriculture equipment market include Mahindra & Mahindra Ltd., Escorts Limited, CNH Industrial N.V., Deere & Company, AGCO Corporation, SDF S.p.A., AGROSTROJ PelhÅ™imov, a.s., China National Machinery Industry Corporation Ltd. (Sinomach), J C Bamford Excavators Ltd., and Kubota Corporation.

Major companies in the market have adopted acquisition, partnership and product launch as their key developmental strategies to offer better products and services to customers in the agriculture equipment market.

Some examples of acquisition, Investment and expansion in the market

In December 2021, AGCO Corporation has acquired Appareo Systems, LLC, through this acquisition, AGCO Corporation will be able to use innovative innovation in mechatronics, automated vehicles, and artificial intelligence produced by Appareo systems for the improvement of its product line.

In January 2020, AGCO announced its plans for the establishment of a state-of-the-art manufacturing facility in France. The manufacturing facility is designed as an Industry 4.0 site to sustain the demand for agricultural equipment in the region.

In November 2022, Mahindra & Mahindra in Pithampur, MP, expanded its first Greenfield Farm Machinery Plant. The largest farm equipment facility outside of Punjab is a 23-acre complex. The facility will assist Indian farmers in mechanizing their farming practices and in fulfilling their aspirations.

The product launch in the market

In august 2021, John Deere launched the new 6155MH Tractor, which delivers all-around performance and dependability that have been demonstrated in the field to be useful for cultivating, harrowing, or towing harvester trailers.

In November 2022, New Holland launched its first driverless grain cart harvest machine T8 tractor with Raven Autonomy, for harvesting application. It makes use of OMNiDRIVE, the first driverless farming technology in the world for harvesting grain carts. Thanks to a cutting-edge technological stack, the farmer may operate, synchronize, and monitor an autonomous tractor from the harvester's cab.

In February 2023, TAFE, manufacturer of Massey Ferguson tractors, has launched TAFE, manufacturer of Massey Ferguson tractors, has launched its brand-new DYNATRACK Series, an innovative line of tractors that combine potent power with dynamic performance, smart technology, unrivalled usefulness, and versatility.

In June 2023, Mahindra & Mahindra ltd has launched India's new Sarpanch Plus Tractor series. This tractor comes with a 6-year warranty from Mahindra and has 2 HP (1.49 kW) more power, a higher maximum torque, and back-up torque to quickly cover more ground.

In December 2023. Sonalika Tractors has launched its field-ready electric tractor for the domestic market called Tiger Electric.

In January 2020, CASE IH launched a new suspended front axle for its CASE IH Quantum V, N, and F model tractors. The new suspended axle offers front suspension option, which allows manual setting of the suspension height from the cab to provide comfort during operations.

In February 2020, Fendt, a brand of AGCO, The Momentum planter has been launched into the North American row crop producing sector. The product is made to help with difficult planting circumstances. In addition, it has Smart Frame technology, which may be utilized for automatic, intelligent, and configurable vertical contour toolbars.

In January 2020, Fendt, a brand of AGCO, has introduced Australia's broadest selection of hay tools. Slicer TLX mower, Former 2 and 4 rotor rakes, and Rotana round balers are the models that are featured. There are two different cutting widths for the Fendt Slicer TLX: 3.1 meters and 3.6 meters.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the agriculture equipment market analysis from 2022 to 2032 to identify the prevailing agriculture equipment market opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the agriculture equipment market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global agriculture equipment market trends, key players, market segments, application areas, and market growth strategies.

 Agriculture Equipment Market Report Highlights