Published Date : 26 May 2023
The global agriculture and farm machinery market size was valued at USD 199.09 billion in 2022 and it is projected to be worth around USD 374 billion by 2030 and expanding at a CAGR of 8.2% from 2022 to 2030.
The need for the tractors will grow to a significant level in the coming years. Efforts taken by the government in various regions to increase the amount of mechanization and the loan facilities provided to the farmers for the purchases of tractor will play a significant role in the growth of this market.
Asia Pacific region is expected to have a larger market share especially due to the nations like South Korea, Australia, Japan and India. China will also play a significant role in the growth of the market during the forecast period. Growth in the per capita income, investments made in the infrastructure, increased adoption of mechanization and the initiatives taken by the government will play a significant role in the growth of this market in the Asia Pacific region. Many opportunities are provided for the growth of this market due to the foreign direct investments. In the recent years the levels of farm mechanization had increased to about 40 to 45% in India. This was the case for even China. The level of mechanization in the farming sector was about 95% for the United States. The number of sales generated for these equipments is less in the developing nations as compared to the developed nations. Many opportunities will be provided for the growth of the market in the developing nations during the forecast period.
Agriculture And Farm Machinery Market Report Scope:
|Market Revenue in 2023||USD 215.41 Billion|
|Projected Forecast Revenue in 2030||USD 374 Billion|
|Growth Rate from 2022 to 2030||CAGR of 8.2%|
|Largest Market||Asia Pacific|
|Forecast Period||2022 to 2030|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Integration of the Internet of Things with such mechanized equipment will play a significant role in reducing the operational time as well as the cost of such equipment. These factors will help in the growth of the market during the forecast period. Implementation of agricultural robotics has also increased in recent years and the increased use of artificial intelligence for providing autonomous tractors and sensors that are ground-based will also lead to the growth of the market. All of these factors will help in producing the food products at lesser costs. Digitalization will play a significant role in the growth of this market.
When it comes to making purchases of the agricultural or farm machinery there is a greater need for huge investments. The availability of these equipment on a rental basis will hamper the growth of the market in the coming years. In many developing nations the amount of land owned by the small farmers is less and these farmers may not be able to afford the advanced equipment this also happens to be a restraint in the growth of the market. In order to increase the amount of productivity most of these farmers opt for renting the machinery. It helps in increasing their efficiency as well as the profitability. It happens to be a cost-effective option due to which the need for renting the farm equipment will increase in the coming years. As labor wages have also increased across the world and the scarcity of these labors, will also hamper the growth of the market in the coming years.
The presence of government organizations that are engaged in creating schemes that are of a good help to the farmers and these schemes will aim at providing the farm equipment to the farmers in order to increase their productivity and quality. Contract farming has also materialized in the recent years and this shall provide a boost to the market in the coming years. The pressure for increasing the productivity of agricultural land has increased due to an increase in the population. Most of the farmers are practicing precision farming as it helps in yielding better crops with the limited resources that are available with the farmers. The increasing need for food throughout the world will create a greater demand for precision farming. This type of technology helps the farmers in increasing their efficiency and increasing their production. It also helps in reducing the gap that exists between the demand and the supply of food products or agricultural products.
Various policies are adopted by different nations which are associated with the emissions standards. The need or the demand for these machinery may reduce in the coming years as there is a possibility of new emission regulations which could be implemented in the coming years. Changes made in the existing regulations would hamper the growth of the market. The complexity which is associated with the manufacturing of the engines which are used in this equipment has increased in recent years due to a change in emission norms across the world.
Key Market Players:
Segments Covered in the Report:
By Equipment Type
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