Agriculture Equipment Market Size To Hit $236.04 Billion By 2030, Due To Rising Mechanization in Agriculture Sector Coupled With The Surge in Farmers’ Income | Grand View Research, Inc.

May 03 05:25 2022
Agriculture Equipment Market Size To Hit $236.04 Billion By 2030, Due To Rising Mechanization in Agriculture Sector Coupled With The Surge in Farmers’ Income | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting
According to new report available with Grand View Research, the global agriculture equipment Industry is expected to be driven by shortage of labor worldwide particularly in Western Europe and the U.S. over the forecast period.

Agriculture Equipment Industry Overview

The global agriculture equipment market size was evaluated at USD 155.68 billion in 2021 is projected to reach USD 236.04 billion by 2030, registering a CAGR of 5.0% during the forecast period.

Increasing mechanization in the agriculture sector coupled with the surge in farmers’ income is expected to be a primary factor driving the growth. Favorable climatic conditions for food production and government support with loan waiver schemes for farmers of all income categories are also presumed to favor the market growth. Technologically advanced agricultural robotics, such as autonomous tractors and flying drones to help farmers produce food at low costs to fulfill the growing demand for food, are anticipated to be better prospects for market growth over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Global Agriculture Equipment Market

The COVID-19 outbreak caused a slight slump in the agricultural equipment market in 2020. The restrictions imposed by governments to curb the novel coronavirus led to the temporary shutdown of manufacturing facilities, leading to production delays. As a result, the industry was negatively impacted in the first half of 2020. Several players such as AGCO Industries, Deere & Company, and Kubota Corporation witnessed a decline in agriculture equipment sales in H1/2020. However, as governments opened up economies in H2/2020, the demand for agriculture equipment bounced back and witnessed double-digit growth, a trend that continued till H1/2021.

Asia Pacific agriculture equipment market Size, by product, 2020 - 2030 (USD Billion)

The sudden increase in demand for tractors, harvesters, and planters in H1 /2021 led to lower inventory levels for OEMs and their dealers in H2/2021. In addition, OEMs worldwide are currently experiencing a shortage of semiconductors and high commodity prices of steel, aluminum, and other raw materials. As a result, OEMs are unable to balance supply and demand, which may allow OEMs to increase their product prices ranging from 4% to 22% in the next few quarters of 2022, a trend that is expected to continue till 2023. However, strong crop production in Asian economies, notably in China and India, along with the need to replace aging equipment are expected to drive the growth of the market.

The high initial cost of agricultural equipment is anticipated to be one of the bottlenecks for adopting agriculture equipment, notably for small income farmers. The rental business is expected to be one of the new revenue streams for market growth to overcome such challenges. Companies such as KwippedInc.; JFarm Services (TAFE Corporate Communications); Mahindra & Mahindra Ltd. (TRRINGO.com); and MACALLISTER RENTALS are established players in the agriculture equipment rental business. Moreover, several start-ups are now engaged in developing applications that will help farmers connect among themselves. These applications will also help the farmers connect with rental companies in their vicinity.

Favorable government initiatives are anticipated to drive the growth of the market during the forecast period. For instance, the Russian government is attempting to trigger investment in capital purchases by proposing several subsidies for strategically significant sub-sectors including meat and milk production. The Ministry of Agriculture sanctioned 464 projects worth USD 4 billion, expected to receive government support food security and reduce the livestock imports. Moreover, factors such as lack of human resources and the availability of easy credit and funds are projected to spur the demand for tractors and other farm equipment in other emerging countries over the forecast period.

Agriculture Equipment Market Segmentation

Based on the Product Insights, the market is segmented into Tractors, Harvesters, Planting Equipment, Irrigation & Crop Processing Equipment, Spraying Equipment, Hay & Forage Equipment and Others.

  • The tractor segment accounted for the largest revenue share of over 30% in 2021, attributed to the labor shortage and the growing population to meet the global food requirements, which has made tractors a prerequisite for increasing productivity in the agriculture industry.   
  • The harvester segment is anticipated to reach around USD 58.0 billion by 2030, recording a CAGR of over 6.0% over the forecast period. Innovations in harvesting equipment are anticipated to favor the growth of the segment over the next few years.

Based on the Application Insights, the market is segmented into Land Development & Seed Bed Preparation, Sowing & Planting, Weed Cultivation, Plant Protection, Harvesting & Threshing, Post-harvest & Agro-processing.

  • The land development and seedbed preparation segment accounted for over 20% of the revenue share in 2021 and is expected to expand at a significant CAGR of over 5.0% during the forecast period. The segment is inclusive of tractors, levelers, and agriculture implements. The demand for agricultural tractors is gaining traction owing to numerous factors such as the increasing need for food propelling the need to mechanize farm work, availability of technologically advanced tractors, and increased urbanization causing a shortage in labor, forcing farmers to adopt machinery.

Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

  • North America was valued at USD 35.1 billion in 2021 and is expected to register a CAGR of over 5.0% during the forecast period. The growth is primarily driven by the abundance of large farmland, which has led to high demand for farm mechanization.
  • The Middle East and Africa region was valued at USD 10.1billion in 2021 and is expected to record a CAGR of 2.0% over the forecast period. 

Market Share Insights

  • May 2021: CLAAS KGaAmbH acquired a minority stake in Dutch start-up AgXeed B.V. The acquisition was intended for the development and commercialization of autonomous agriculture machines.
  • September 2019: CNH Industries N.V. opened new parts and service centers in Shanghai, China which helped reduce the product delivery time to the customers for New Holland Agriculture and Case IH agricultural equipment brands.

Key Companies Profile:

The market is highly competitive due to the presence of a few prominent players and several medium or small-scale players worldwide.

Some prominent players in the global agriculture equipment market include

  • AGCO Corporation
  • FlieglAgro-Center GmbH
  • Agromaster
  • Amazone Inc.
  • APV GmbH
  • Bellota Agrisolutions
  • CLAAS KGaAmbH
  • CNH Industrial N.V.
  • Deere & Company
  • Escorts Limited
  • HORSCH Maschinen GmbH
  • ISEKI & Co., Ltd.
  • J C Bamford Excavators Ltd
  • Quivogne CEE GmbH (Kiwon RUS LLC)
  • Rostselmash
  • KRUKOWIAK
  • KUBOTA Corporation
  • KUHN SAS
  • LEMKEN GmbH & Co. KG
  • Mahindra & Mahindra Ltd.
  • MascarSpA
  • MaschioGaspardo S.p.A
  • MaterMacc S.p.A
  • Morris Equipment Ltd
  • SDF S.p.A.
  • Tractors and Farm Equipment Limited (TAFE)
  • Väderstad AB
  • Valmont Industries, Inc.

Order a free sample PDF of the Agriculture Equipment Market Intelligence Study, published by Grand View Research.

About Grand View Research

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