According to a new report published by Allied Market Research, titled, “Agriculture Equipment Market by Type, Automation, and Business: Opportunity Analysis and Industry Forecast, 2020–2027,” the global agriculture equipment market size is expected to reach $166,491.6million in 2027, from $105,000.0 million in 2019, growing at a CAGR of 6.0% from 2020 to 2027. In 2019, Asia-Pacificdominated the market, in terms of revenue, accounting for 38.6% share of the globalagriculture equipmentindustry.
Agricultural equipment aid in increasing agricultural productivity with less time consumption. In addition, agricultural equipment require lower effort inputs, thereby reducing the demand for human labor on farms. This not only saves time of operations but also saves costs incurred on manpower. Furthermore, advancements in machine technologies promote the growth of the agricultural equipment market. This is attributed to the fact that implementation of automatic and semi-automatic machinery increases the crop production, owing to lower downtimes and highly precise operations.
Various countries in Asia-Pacific and LAMEA generate most of their revenue from the agricultural industry. The countries such as India, China, Indonesia, Brazil, and Ghana are anticipated to exhibit rapid growth, owing to surge in adoption of agricultural equipment. Farmers in these regions are adopting agricultural equipment even on small sized farms, due to the provision of government incentives to motivate the use of agricultural equipment. Various agricultural equipment manufacturers are focusing on product launches and product developments to assist in other agricultural activities such as fruit picking, irrigation, and crop processing.
Depending on type, the tractor segment holds maximum of the agriculture equipment market share, during the year 2019, however, the harvesters segment exhibits fastest growth rate during the forecast period. Considering the business segment, the original equipment manufacturers (OEMs) segment generated the highest revenue during 2019, owing to surge in adoption of agricultural equipment across various regions. In addition, automation in manufacturing processes assists in production of high-quality equipment. This benefits the OEMs by cutting down operational costs as well as production times, simultaneously maintaining the product quality. In addition, OEMs collaborate with technology providers to update their agricultural machinery with latest technologies. For instance, the company CNH Industrial N.V., operating in the UK, signed an agreement through its brand CASE IH with Farmers Edge Inc., a Canadian agricultural technology provider, in January 2019. The agreement aims at development of digital agricultural solutions such as connectivity and agronomic solutions for its various agricultural equipment products. Moreover, it plans to offer unique technology platforms, which feature execution, planning, analysis, and decision-making capabilities to improve the agricultural processes using various agriculture equipment. This influences the agriculture equipment market growth globally.
The global agriculture equipment market is divided on the basis of type, automation, business, and region. By type, the market is segmented into tractors, harvesters, soil preparation & cultivation, irrigation & crop processing, agriculture spraying equipment, hay & forage machines, and other agriculture equipment.Depending onautomation, the market is classified into manual, semi-automatic, and automatic equipment. By business, the market is classified into original equipment manufacturers (OEMs) and aftersales.
The agriculture equipmentmarket analysis is conducted across four regions that include North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
Key Findings Of The Study
By type, the tractorssegment dominated the global agriculture equipment market in 2019, in terms of revenue.
On the basis of automation, the manualsegment is expected to generate significant revenue in the agriculture equipmentmarket globally.
Considering business, the OEM segment accounted for the highest market share of the global agriculture equipment market in 2019.
Region wise, Asia-Pacificis projected to be one of the most dominant regions, and LAMEA is expected to witness a high growth rate during the forecast period.
The major players operating in the agriculture equipment market include Mahindra & Mahindra Ltd., Escorts Limited, CNH Industrial N.V., Deere & Company, AGCO Corporation, SDF S.p.A., AGROSTROJ Pelhřimov, a.s., China National Machinery Industry Corporation Ltd. (Sinomach), J C Bamford Excavators Ltd., and Kubota Corporation.