AGRICULTURE AND FARM MACHINERY MARKET ANALYSIS

The Global Agriculture and Farm Machinery Market size was valued at US$ 1,120.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.40% from 2023 to 2030. Agriculture and farm machinery is comprised of tools and machinery required by farmers in agricultural farmlands to increase the productivity of corps. These types of machinery include harvesting machinery, tractors, cultivators, etc. that are used for numerous applications such as tilling, plowing, disking, and harvesting. These machineries vary on the basis of the type of farming, i.e. organic farming and non-organic farming. Over the years, agriculture machinery has evolved significantly with the incorporation of advanced technologies such as GPS tracking and enhanced fuel efficiency.

Global Agriculture and Farm Machinery Market: Regional Insights

Europe held dominant position in the global agriculture and farm machinery market in 2022, accounting for 35.3% share in terms of value, followed by North America, Asia Pacific, and RoW respectively.

Figure 1. Global Agriculture and Farm Machinery Market Share (%), By Region, 2022

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Global Agriculture and Farm Machinery Market Drivers:

Increasing demand for food worldwide is expected to drive growth of the Global Agriculture and Farm Machinery Market during the forecast period

The demand for food is increasing across the globe significantly. This is due to rising global population and growing disposable income. Increased demand for food has encouraged farmers to adopt modern farming practices, in order to increase crop yields thereby boosting the demand for agriculture machinery globally. In Asia Pacific, countries such as India and China are witnessing the shift in overall population. Growing population is responsible for increasing food demand in Asia Pacific, which in turn will fuel the demand for agricultural machinery for farm production in this region. Thus, these factors are expected to drive growth of the Global Agriculture and Farm Machinery Market during the forecast period.

Growing mechanization of farming operations is expected to propel to Global Agriculture and Farm Machinery Market growth over the forecast period

Many farmers across the globe are adopting advanced machinery for farming operations. The mechanization of farming operations results in increased production and profitability by achieving timelines in farming operations. Farm mechanization also helps to preserve the farm produce thereby increasing profitability and cost-effectiveness by reducing post-harvest losses. These processes reduce wastage, increases shelf-life, and results in value addition and higher-income transfer to the farmers from different classes of consumers. According to Agrievolution VDMA, the sales of new tractors in Asia Pacific for India and China collectively in 2011 were 840,000 units. Hence, these factors are expected to propel the market growth in the near future.

Global Agriculture and Farm Machinery Market Opportunities:

Availability of subsidies to by government to promote adoption of farm machinery can present business opportunities

Since these equipment are substantially expensive and farmers alone cannot afford it, many government authorities are offering subsidies to encourage its adoption. For instance, the Government of India initiative for promotion of agriculture mechanization includes a subsidy of 25% to 50% of the cost of equipment/machine. The subsidies are available to all categories of farmers under various schemes of Department of Agriculture and Cooperation such as the Rashtriya Krishi Vikas Yojana, National Horticulture Mission, and Macro Management of Agriculture.

Innovations in the field of autonomous tractors can provide lucrative growth opportunities

Many manufacturers are focused on technological advancements. Advanced technologies are being incorporated in tractors and harvesters. Advent of autonomous tractors has provided numerous opportunities. Autonomous tractors are GPS-directed and hence can perform extensive applications with improved accuracy.

Global Agriculture and Farm Machinery Market Trends:

Growing focus on emerging economies

Until recently, farming in emerging was performed using traditional methods. Major agricultural machinery manufacturers, including CLAAS KGaA mbH and J.C. Bamford Excavators Limited (JCB), are focusing majorly on developing economies including India, China, and Brazil to overcome the knowledge gap about farming practices and promote modernized agricultural practices. Various large multinational companies are also capitalizing on flourishing markets by expanding their operations. Governments of various countries such as India, Brazil, Germany, among others are focusing on expanding the reach of subsidies on agricultural machinery in order to promote farm mechanization.  Furthermore, certain companies manufacture lower power tractors at cheaper rates for small-sized farmers. For instance, Mahindra & Mahindra offers affordable and low-power tractors suited for small-size farmers.

Growing demand for agriculture machinery due to rising agricultural practices

Rising demand for food owing to the growing global population has led to the innovation in agricultural practices worldwide. The growing agricultural practice is directly affecting the agricultural and farm machinery market. Agricultural machinery such as tractors, combines, and harvesters are used in plowing and harvesting, which in turn, increases the productivity of farmlands. The success of agricultural practice is thus, directly dependent on the use of agricultural machinery.

Global Agriculture and Farm Machinery Market Restraints:

High cost and low purchasing power is expected to restrain growth of the global agriculture and farm machinery market during the forecast period

Farming and agriculture machinery is significantly expensive. Machineries such as cultivators, tractors, harvester, crop spray, and trailers require significant capital investment. Not all farmers can afford such heavy equipment due to low purchase power, especially farmers from emerging economies such as India, Brazil, Indonesia, and South Africa. As a result of this, the demand for these machineries is low in emerging regions such as Latin America and Middle East. Thus, these factors are expected to restrain growth of the market during the forecast period.

Rising urbanization and decreasing farmlands is expected to hinder the global agriculture farm machinery market growth over the forecast period

Over the years, farmlands have been turned into commercial properties due to rising urbanization across the globe. These farmlands are being used for business investments such as housing, hotels, and shopping centers. This has an indirect impact on the use of agriculture and farm machinery. It has become challenging for individual farmers to own heavy equipment due to diminutive size of farmlands since return on investment takes a considerable amount of time. Hence these factors are expected to hinder the Global Agriculture and Farm Machinery Market growth in the near future.

Figure 2. Global Agriculture and Farm Machinery Market, By Product

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Global Agriculture and Farm Machinery Market Segmentation:

Machinery used in agriculture includes tools for harvesting, haying and foraging, and irrigation. The market for agricultural machinery is divided into categories based on kind (tractors, ploughs and cultivating equipment, planting equipment, irrigation equipment, harvesting equipment, haying and forage equipment, and other types), as well as geography (North America, Europe, Asia Pacific, Latin America, and Africa). For each of the aforementioned market segments, the research provides market size and projections in US dollars per thousand.

The Global Agriculture and Farm Machinery Market report is segmented into By Product, by region.

• By Product - Farm Tractors, Harvesting Machinery, Plowing and Harvesting Machinery, Planting and Fertilizing Machinery, Haying Machinery, Other Agriculture Machinery, Parts and Attachment
• By Region: North America, Europe, Asia Pacific, Africa and Middle East.

Global Agriculture and Farm Machinery Market: Key Companies Insights

The Global Agriculture and Farm Machinery Market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the Global Agriculture and Farm Machinery Market are CNH Global NV., Yamabiko Corporation, Deere and Company, Mahindra & Mahindra Limited, CLAAS KGaA mbH, Same Deutz-Fahr, Bucher Industries AG., AGCO Corporation, Iseki & Co., Ltd, J.C. Bamford Excavators Limited (JCB), Kubota Corporation and Alamo Group, Inc.

Key Developments-

1. In March 2022, with the manufacturer of irrigation injection equipment, sprayed tendering systems, and liquid fertiliser application equipment, SurePointAg Systems, John Deere formed a joint venture. In order to increase production across a variety of goods, SurePoint will have access to Deere technologies.
2. In April 2021, The Agricultural Division of the Alamo Group, a leading supplier of implements and accessories compatible with the lineup of New Holland compact and mid-range tractors, and New Holland Agriculture have partnered strategically.

*Definition: Agriculture and farm machinery tractor use and other mechanical farming equipment are utilized to reduce labor costs. Farm equipment ranges in complexity from the simplest hand-held instruments used since ancient times to the sophisticated harvesters of contemporary automated agriculture