Agriculture Equipment Market Product Driving Factors, Capacity and Growth Rate Analysis to 2030

Posted on 2023-02-27 by researchinsights in Agriculture // 0 Comments

San Francisco, California , USA, Feb 27, 2023 — /EPR Network/ —

Agriculture Equipment Industry Overview

The global agriculture equipment market size was evaluated at USD 155.68 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.0% from 2022 to 2030. 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.

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.

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

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.

Browse through Grand View Research’s HVAC & Construction Industry Related Reports

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Agriculture Equipment Market Segmentation

Grand View Research has segmented the global agriculture equipment market based on product, application, and region:

Agriculture Equipment Product Outlook (Revenue, USD Million, 2018 – 2030)

Tractors
Harvesters
Planting Equipment
Irrigation & Crop Processing Equipment
Spraying Equipment
Hay & Forage Equipment
Others

Agriculture Equipment Application Outlook (Revenue, USD Million, 2018 – 2030)

Land Development & Seed Bed Preparation
Sowing & Planting
Weed Cultivation
Plant Protection
Harvesting & Threshing
Post-harvest &Agro-processing

Agriculture Equipment Regional Outlook (Revenue, USD Million, 2018 – 2030)

North America
Europe
Asia Pacific
Latin America
MEA

Key Companies profiled:

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

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

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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