According to Precedence research, the global agriculture equipment market was valued at US$ 108.4 billion in 2020 and is expected to reach over US$ 170.3 billion by 2030, poised to grow at a noteworthy CAGR of 4.6% from 2021 to 2030.
The agriculture equipment is a significant tool used in the cultivation of crops to obtain higher yield by applying minimum efforts in farms. The growing population in developing and developed economies is a major factor building a pressure on the food supply chain due to the increasing demand for the agricultural food. The agriculture equipment such as tractors, harvesters, and crop processing equipment are increasing used in the agricultural activities across the globe to gain higher volume of yields faster and with minimal efforts. This is a primary driver of the global agricultural equipment market. Further, this agriculture equipment helps to reduce labor cost. Especially, the semi-automatic and automatic agriculture equipment helps to provide work efficiency and eliminate the use of excess labor, thereby propelling the demand for the agriculture equipment across the globe.
The technological advancements in the field of agriculture equipment and rising mechanization of different agricultural activities have fostered the development of various modern and automatic agriculture equipments. Further, the rising awareness regarding the benefits of using modern mechanized agriculture equipment has fostered the demand for the agriculture equipment among the farmers, all over the globe. The increasing demand for agricultural food from the food and beverage industry coupled with the rising population and increased demand for food has significantly propelled the demand for the agriculture equipment in order to produce higher yields in a short time period.
Product Type Insights
By product type, the tractors segment led the market with notable revenue share of more than 25% in 2020 and is expected to retain its dominance throughout the forecast period. This is attributed to the increased use of tractors in the primary and basic agriculture activities such as ploughing, harvesting, sowing, harrowing, and transporting.
On the other hand, the harvesting segment is expected to hit fastest CAGR during the forecast period. The increasing trend of mechanization is expected to propel the growth of the harvesters segment. Harvesters help in higher yields with limited dependency of the labors.
By application, the land development segment dominated largest revenue share of more than 20% in 2020 and is expected to retain its dominance over the forecast period. The higher dependency on the labor as agriculture is a time taking process and labor-intensive sector is major factor behind the growth of this segment. The increasing cost of labor coupled with the lack of labor is fostering the growth of this segment.
On the other hand, the plant protection segment is estimated to witness highest CAGR during the forecast period. This is due to the growing importance of plant protection. The increasing demand for food and the higher yields are obtained by implanting proper modern mechanized equipment for protecting the plants.
By automation, the manual segment led the market with largest revenue share in 2020 and is anticipated to retain its dominance throughout the forecast period. This is attributed to the extensive use of labor in the major agriculture based developing and underdeveloped economies. Agriculture is a labor-intensive industry and hence the higher usage of labor in agricultural activities from the ancient times had resulted in its higher market share.
On the other hand, the automatic segment is expanding with a fastest growth rate in the market over the forecast period. The rising awareness regarding the benefits of using automatic agriculture equipment such as less labor, cost saving, and higher yields are the major factors that is expected to boost the adoption of the automatic agriculture equipment during the forecast period.
Based on the region, the Asia Pacific accounted the largest revenue share in 2020 and is estimated to sustain its dominance during the forecast period. Asia Pacific is also forecasted to be the fastest-growing market during the forecast period. This is attributed to the strong and growing economy of the major countries such as China, India, and Indonesia. China itself holds a major market share of over 30%. Further, the rising awareness, higher population, increased dependency of the majority of the population on agriculture, and growing government initiatives to boost the agricultural development are the major factors that made Asia Pacific the dominant and the fastest-growing market for the agriculture equipment in the global market.
On the other hand, North America was the second largest agriculture equipment market and is expected to grow at a considerable growth rate during the forecast period. This is attributed to the increased penetration of automatic equipment in agriculture and higher and faster adoption rate of latest technologies in the region. The increased focus of the government by introducing technological advancements in the agriculture sector has fostered the growth of the agriculture sector in the countries like the US and Canada. Therefore, North America is expected to sustain its position during the forecast period.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improvedproducts. Moreover, they are also focusing on maintaining competitive pricing.
In September 2019, CNH Industrial opened its service center in China. This development was focused on the expansion of the business in China and to deliver the products and services at less time to the customers.
This type of strategical developments adopted by the key players operating in the global agriculture equipment market will open new avenues and opportunities of growth during the forecast period.
Some of the prominent players in the agriculture equipment market include:
Scope of the Agriculture Equipment Market Report
|Market Size||USD 170.3 Billion by 2030|
|Growth Rate||CAGR of 4.6% from 2021 to 2030|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2021 to 2030|
|Segments Covered||Product, Application, Automation, Geography|
|Companies Mentioned||CNH Industrial N V, Mahindra and Mahindra Ltd., Deere & Company, Kubota Corporation, AGCO Corporation, EXEL Industries, SDF S.p.a., Bucher Industries AG, Tractor and Farm Equipment Ltd., CLAAS KGaAmbH, ISEKI & Co. Ltd.|
Segments Covered in the Report
By Product Type
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