FEATURED COMPANIES
- AGCO Corporation
- CNH Industrial NV
- Deere & Company
- Escorts Limited
- Iseki & Co. Ltd
- Kubota Corporation
The agricultural machinery market is projected to register a CAGR of 5.4% during the forecast period( 2022-2027).
With a significant COVID-19 impact, the agriculture machinery industry requested some flexibility for machines to be fitted with transition engines already manufactured and procured before the crisis. As global supply chains were disrupted and manufacturing industries were shut down following government measures to prevent the spread of the virus, the market slowed during the pandemic.
The market is driven by increasing mechanization rates in developing countries, which may have a long-term impact. The shrinking land, water resources, and labor force increase the need for farm mechanization in developing countries. In 2018, farm mechanization in developing countries such as India and China accounts for 45-55%, whereas it accounted for 95% in developed countries such as the United States. Tractors accounted for over 43.6% of the market share in the agricultural machinery market in 2020.
The Asia-Pacific region is expected to grow rapidly due to the high demand for agricultural products, mainly from India and China, over the forecast period. Within Asia, China dominates the production and sale of agriculture equipment. At the same time, India, Japan, and Australia are expected to contribute a significant share of the global market in the coming years, surpassing Europe as the largest market. The population in the region is rising, driving the need for the mechanization of agriculture.
The market is driven by increasing rates of mechanization in developing countries. The shrinking land, water resources, and the labor force increased the need for farm mechanization in developing countries. In 2018, farm mechanization in developing countries such as India and China accounts for 45-55%, whereas it accounted for 95% in developed nations such as the United States. The farm mechanization level in India was recorded at 40-45% in 2017. The penetration of farm equipment is slow since almost 80% of small and marginal farmers own less than five hectares of land.
The market for farm machinery, including the combines in African countries, is anticipated to grow as African farmers demand access to the latest farm technologies to enhance their farm operations and cut production costs.As stated in the sustainable development goals indicated in Agenda 2063, the African Union Commission (AUC) and the Food and Agriculture Organization of the United Nations (FAO) view agricultural mechanization as an immediate indispensable action for attaining the “Zero Hunger” vision by 2025.
Developing nations have a low penetration level. Hence, the farm mechanization market has a lot of potential for increasing the penetration of farm equipment and the market size during the forecast period.
Asia-Pacific is considered one of the fastest-growing markets because the companies located in the region have been launching new agricultural machinery, thereby dominating the market with faster innovations and product launches. The Chinese government is enhancing farm mechanization for various crops, including rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane. In 2020, the Ministry of Finance of China issued more than CNY 20 billion as the central government subsidies to purchase agricultural machinery. China plans to make the comprehensive mechanization rate of crop plowing, planting, and harvesting reach 75% by 2025.
According to the tractor and machinery association of Australia (TMA), there was an increase in the sales of the small tractor segment in the country due to the support of the Instant Asset Write-off scheme. In 2020, the tractor under 40 horsepower (30 kilowatts) range was up by 72% for the month and ended by 36% ahead for the whole year.
The increasing focus on farm mechanization and governments’ urge toward mechanization may boost sales and lead to innovations, such as driverless machinery, which may drive the market during the forecast period.
The agricultural machinery market is consolidated, with key players accounting for the majority of the market share. The top players in the market are Deere and Co., CNH Industrial, AGCO Corporation, Kubota, Mahindra and Mahindra Limited, Iseki & Co. Ltd, JC Bamford Excavators Limited, and Lindsay Corporation.
The companies were involved in various strategic activities such as product innovation, expansion, partnership, and merger and acquisition. For instance, in August 2021, John Deere introduced the new 6155MH Tractor, which delivers all the field-proven performance and reliability of other M Series.
This product will be delivered within 2 business days.
With a significant COVID-19 impact, the agriculture machinery industry requested some flexibility for machines to be fitted with transition engines already manufactured and procured before the crisis. As global supply chains were disrupted and manufacturing industries were shut down following government measures to prevent the spread of the virus, the market slowed during the pandemic.
The market is driven by increasing mechanization rates in developing countries, which may have a long-term impact. The shrinking land, water resources, and labor force increase the need for farm mechanization in developing countries. In 2018, farm mechanization in developing countries such as India and China accounts for 45-55%, whereas it accounted for 95% in developed countries such as the United States. Tractors accounted for over 43.6% of the market share in the agricultural machinery market in 2020.
The Asia-Pacific region is expected to grow rapidly due to the high demand for agricultural products, mainly from India and China, over the forecast period. Within Asia, China dominates the production and sale of agriculture equipment. At the same time, India, Japan, and Australia are expected to contribute a significant share of the global market in the coming years, surpassing Europe as the largest market. The population in the region is rising, driving the need for the mechanization of agriculture.
Key Market Trends
Growing Demand for Farm Mechanization in Developing Countries
The market is driven by increasing rates of mechanization in developing countries. The shrinking land, water resources, and the labor force increased the need for farm mechanization in developing countries. In 2018, farm mechanization in developing countries such as India and China accounts for 45-55%, whereas it accounted for 95% in developed nations such as the United States. The farm mechanization level in India was recorded at 40-45% in 2017. The penetration of farm equipment is slow since almost 80% of small and marginal farmers own less than five hectares of land.
The market for farm machinery, including the combines in African countries, is anticipated to grow as African farmers demand access to the latest farm technologies to enhance their farm operations and cut production costs.As stated in the sustainable development goals indicated in Agenda 2063, the African Union Commission (AUC) and the Food and Agriculture Organization of the United Nations (FAO) view agricultural mechanization as an immediate indispensable action for attaining the “Zero Hunger” vision by 2025.
Developing nations have a low penetration level. Hence, the farm mechanization market has a lot of potential for increasing the penetration of farm equipment and the market size during the forecast period.
Asia-Pacific is the Fastest-growing Region
Asia-Pacific is considered one of the fastest-growing markets because the companies located in the region have been launching new agricultural machinery, thereby dominating the market with faster innovations and product launches. The Chinese government is enhancing farm mechanization for various crops, including rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane. In 2020, the Ministry of Finance of China issued more than CNY 20 billion as the central government subsidies to purchase agricultural machinery. China plans to make the comprehensive mechanization rate of crop plowing, planting, and harvesting reach 75% by 2025.
According to the tractor and machinery association of Australia (TMA), there was an increase in the sales of the small tractor segment in the country due to the support of the Instant Asset Write-off scheme. In 2020, the tractor under 40 horsepower (30 kilowatts) range was up by 72% for the month and ended by 36% ahead for the whole year.
The increasing focus on farm mechanization and governments’ urge toward mechanization may boost sales and lead to innovations, such as driverless machinery, which may drive the market during the forecast period.
Competitive Landscape
The agricultural machinery market is consolidated, with key players accounting for the majority of the market share. The top players in the market are Deere and Co., CNH Industrial, AGCO Corporation, Kubota, Mahindra and Mahindra Limited, Iseki & Co. Ltd, JC Bamford Excavators Limited, and Lindsay Corporation.
The companies were involved in various strategic activities such as product innovation, expansion, partnership, and merger and acquisition. For instance, in August 2021, John Deere introduced the new 6155MH Tractor, which delivers all the field-proven performance and reliability of other M Series.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Note: Product cover images may vary from those shown
FEATURED COMPANIES
- AGCO Corporation
- CNH Industrial NV
- Deere & Company
- Escorts Limited
- Iseki & Co. Ltd
- Kubota Corporation
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Note: Product cover images may vary from those shown
A selection of companies mentioned in this report includes:
- Deere & Company
- CNH Industrial NV
- AGCO Corporation
- Mahindra & Mahindra Limited
- Kubota Corporation
- Iseki & Co. Ltd
- Escorts Limited
- Daedong Industrial Co. Ltd
- JC Bamford Excavators Limited
- Lindsay Corporation
Note: Product cover images may vary from those shown
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