Agriculture Equipment Market | Contrive Datum Insights

The Global Agriculture Equipment Market Size Was Valued At USD 157.89 Billion In 2021. The Market Is Projected To Grow From USD 168.30 Billion In 2022 To USD 272.36 Billion By 2029, Exhibiting A CAGR Of 7.1% During The Forecast Period.

Agriculture Equipment Market Overview:

Based on our research, the global market grew by an average of 6.2% between 2019 and 2020.

Over the next few years, there will be a lot of pressure to make agricultural land more productive, which will make farmers and land owners more likely to use automation technologies in their farming equipment. Also, there are fewer people to hire and it costs a lot to keep cattle healthy on the job site in many countries. This has led customers to take advantage of the benefits of modernized equipment in farming.

Market Dynamics:

Latest Trends:

In the next few years, the agriculture business will be more important than ever before. The UN says that by 2050, the world's population will reach 9.7 billion people, which will cause agricultural production to grow by about 69% between 2010 and 2050. To meet this need, agricultural manufacturers and farmers are turning to the Internet of Things (IoT) for analytics and more ways to produce and make things.

Farmers have also started to use some of the most important high-tech farming and agricultural methods and tools to improve their efficiency and output. For example, a lot of farmers are putting sensors in their fields to get detailed maps of the area's resources, topography, and other things like the temperature and acidity of the soil. They can also predict weather patterns and figure out what the weather will be like in the coming days and weeks. Farmers can also use their smartphones to keep an eye on their crops, animals, and equipment from afar, as well as to get information and statistics about what their animals eat and how much they produce. This technology could be used to run a statistical estimate for their crops and animals.

Driving Factors:

Due to a growing population and the need to increase food production to feed everyone, the market is growing in a big way around the world. The market outlook for the next few years is also brightened by the fact that people have more money to spend, that industrialization is happening quickly, and that people want high-quality packaged foods.

Most of the demand for planting and fertilising equipment instead of planting and fertilising by hand is caused by the growing demand for agricultural products. Also, the segment of planting and fertiliser equipment is expected to grow very quickly. Sprayers and self-propelled spreaders make work easier and faster, and they can cover a large area every day. These machines make sure that nutrients and protectants are spread out evenly, which helps to lower costs and increase crop yields. There are many different kinds of sprayers that can be run by machines and come with low-pressure, high-pressure, fogger, and air-carrying options. There are hand-held, tractor-mounted, and airborne versions of these sprayers. Also, sprayers that can be pulled behind a vehicle or mounted on a vehicle have a lot of benefits for modern farmers and give them more operational flexibility.

Also, government agencies in many countries around the world are working on projects to help speed up the use of agricultural machinery. In the coming years, this factor is likely to make more people want to buy agricultural tractors and harvesters. Also, more and more farm equipment is being used in the forestry industry to move finished products, like freshly cut wood. So, the forestry industry is likely to bring the market a lot of sales opportunities in the coming years.

Restraining Factors:

The cost of buying and setting up this equipment is high at the start. Also, using this kind of machinery has high operational costs, which reduces the profit that can be made from farming. When multiple machines are used in a process, it makes the process more complicated and difficult to understand. It also takes a very skilled operator to manage and oversee these processes.

The use of agriculture equipment also leads to more heavy machinery moving across the farmland. This causes the soil to become compacted and can sometimes hurt the crops or food products. When farmers use modern farming tools, they are sometimes more likely to use too much fertiliser and mechanized fertilizer spreaders. This causes them to use too much chemical fertiliser, which hurts the crops. Repairs and maintenance of the equipment take too long and aren't always available, which adds to the downtime and makes it harder to do things right on the farm. Some of the heavy-duty machines have high maintenance costs, and fixing them costs a lot of money. This upsets the financial ecosystem of farming operations.

Segmentation Analysis:

By Equipment Type:

When it comes to the type of equipment, agriculture tractors are expected to make up a big part of the global market. One of the most important reasons for the growth of the market is the introduction of new, more efficient, and environmentally friendly tractors that can work faster and cost less to use. Since there has been a lot of progress in terms of operational speed, farmland operators can now do their jobs better and faster. Also, using products that are made by machines makes the operations run more smoothly and consistently, which increases yield.

Forage harvesters are expected to sell a lot more due to how well they work and how much less they cost to run. Companies come up with new products to increase their sales footprints all over the market. Major players like John Deere made forage harvesters with rotary pickers that were made to be strong and reliable. For example, the HarvestLab 3000 sensor is put together at the top of the discharge nozzle. As the harvested ingredients and dried-out waste move down to the nozzle through the sapphire crystal lens, accurate readings are taken. In the same way, Claas KGaA GmbH's CLAAS JAGUAR 25 helps cut corn evenly and break kernels while making high-quality silage.

By Application:

The constant increment in the requirements of farmlands across multiple regions is the critical factor behind the increment of the land development segment on the global landscape. The development and subsequent introduction of the products integrated with innovative technologies are exponentially transforming the utilization of the lands. Better distribution of fertilizers, the ability to have plantations across farmland boundaries, and field contours are also spurring sales of equipment in the global market.

In terms of market growth, the land development segment is still registering a noteworthy growth pace. Substantial focus on farmland conservation and uplifting soil qualities to increase the farm yield and land fertility is a vital factor substantiating the market growth prospects.

Regional Insights:

In 2021, the Asia-Pacific market was worth USD 59.23 billion, and it is expected to grow at an impressive 8.3% CAGR over the next five years. China, India, and many other countries in the ASEAN region have had quick and smooth economic growth, which has led to growth in the market and in the Asia-Pacific region as a whole. Another important factor in the growth is that customers in developing countries in the region are becoming more and more dependent on machines.

By 2029, the Asia-Pacific market is expected to be worth USD 111.87 billion. This is because equipment and machinery use a lot of electrical drives, digitalization, computer sensing, and control. China is thought to have the biggest share of the agricultural equipment market because there are so many opportunities for manufacturers there. Many established and well-known market players are using both organic and inorganic business strategies to keep up their performance in Japan's mature market and take advantage of opportunities in India, South Korea, Taiwan, and ASEAN countries. Companies are trying to add new products and technologies to their product lines in order to get more customers.

India's government is giving subsidies and other benefits to encourage more people to buy and use modern equipment. The commitment of governments to mechanising agriculture is expected to help growth in the region as a whole. The fact that agriculture makes up a big part of the country's GDP shows how important it is to update farming practises all over the country.

For example, the central government of India decided in 2022 to help farmers by giving them a 50% to 80% subsidy on the cost of farming equipment. The government has also said that using new machines and tools is very important if they want to increase crop yield and double farmer income.

The fact that big companies like AGCO Corporation, Alamo Group Inc., Deere & Company, and Valmont Industries are all over the U.S. helps the agricultural equipment market in North America grow. Also, the unspoken efforts of these companies to improve technology through strong investments in R&D, strategic partnerships, acquisitions, collaborations, and joint ventures are seen as key factors that boost the development potential of North America.

The GCC has the biggest share of the market in the Middle East and Africa region. This is because the government helps farmers improve their operations and use modern farming methods. Farmers are getting financial help from the Kingdom of Saudi Arabia, and the UAE government is also giving them money. This is the main thing that is driving market growth across the GCC, which is good for the sales of imported farm equipment.

For example, the Ministry of Agriculture and the Saudi Arabian Agricultural Bank (SAAB), which has the power to give and give out loans and subsidies to farmers in the country, started giving out interest-free loans, technical services, and making it easier to bring in advanced farming equipment and machinery without having to pay duties.

Also, Brazil is expected to have the largest share of the market. Brazil is expected to have a CAGR of 4.2% in terms of how its market changes. Mexico's market is growing because of the government's flagship programs that make it easy for small farmers to lease and get loans.

For example, Verónica Santillán, who works as a representative for Ecuador's Ministry of Agriculture, Livestock, Aquaculture, and Fisheries, just announced a new programme. Under this programme, the government will stop taxing farm equipment, making it more affordable for farmers and making it easier for them to use machines. Also, many farmer groups in the country will help farm owners get loans that are easy, flexible, and don't cause a lot of trouble.

After the COVID-19 outbreak and the possibility that Europe's food system would break down, the European Commission recently came up with the Farm to Fork and Biodiversity Strategies to make the food system in the region more resilient and less likely to break down. According to a research report from the USDA's Economic Research Service (ERS), these strategies are likely to limit the amount of agricultural inputs. So, in order to meet the standards set by the strategies and make enough money, farmers will probably have to change the way they farm and rely on automated and innovative products on the regional market.

Also, the above-mentioned strategy gives instructions for reducing the amount of farmland that can be used for farming by about 10% by the end of 2030, based on the levels in 2020. So, in order to keep up with production, farmland owners are likely to hire more people to work in the fields. To increase inputs without having to pay a lot more for overhead costs, farmland owners are likely to use agriculture equipment over the next few years.

Scope Analysis

Recent Development:

• In May 2022: AGCO Corporation, a leading global distributor and manufacturer of agriculture equipment, machinery, and precision agriculture technology, acquired JCA Industries, Inc., which is a leading provider of autonomous software for agriculture equipment and electronic system. This acquisition will allow AGCO Corporation to utilize JCA technologies precision agriculture software in its agriculture machinery, which will improve the experience of customers of AGCO Corporation.
• In January 2022: New Holland Tractors, a leading provider of heavy-duty tractors, partnered with Alamo Group. This will allow New Holland to provide a pre-dispatched package of agricultural auxiliary equipment of Alamo Group along with New Holland Tractors. Moreover, through this partnership, New Holland Tractors can expand to offer solutions in a variety of applications with complimentary tractors in one packaged deal.
• In February 2022: CNH Industrial, a leading provider of agriculture technology, formed its strategic investment arm that is CNH Industrial Ventures. The new CNH Industrial Ventures will play a pioneering role in the company to accelerate its market for valuable innovations, which will boost customer experience and productivity. CNH industrial Ventures will focus on the areas such as digitization, autonomous vehicle, robotics, and other upcoming technologies.
• In May 2021: AGCO Corporation, a leading provider of agriculture technology and precision technology, launched its online virtual product showroom in North America for its local customers at AGCOvirtualshowroom.com. This new operation functionality will provide better learning opportunities and engagement for its dealers and customers. The virtual store provides visitors the ability to explore AGCO’s wide brand offerings via 360-degree views of equipment, product videos, specification sheets, and brochures.
• In December 2021: AGCO Corporation signs an agreement for the acquisition of Appareo Systems, LLC, which is a leading provider of software, and hardware in electronic manufacturing. With this acquisition, AGCO Corporation will be able to utilize advanced innovation of artificial intelligence, mechatronics, and automated vehicle achieved by Appareo systems for the betterment of its product portfolio.

Market Segmentation

By Equipment Type:

• Agriculture Tractors
• Harvesting Equipment
• Irrigation & Crop Processing Equipment
• Agriculture Spraying & Handling Equipment
• Soil Preparation & Cultivation Equipment
• Others

By Application:

• Land Development
• Threshing and Harvesting
• Plant Protection
• After Agro Processing
• Other

By Companies:

• AGCO Corporation (U.S.)
• Alamo Group Inc. (U.S.)
• China National Machinery Industry Corporation (China)
• CNH Industrial N.V. (U.K.)
• CLAAS KGaA GmbH (Japan)
• Deere & Company (U.S.)
• Kubota Corporation (Japan)
• Mahindra & Mahindra (India)
• SDF S.p.A. (Italy)
• Valmont Industries Inc. (U.S.)
• Others