AGRICULTURE EQUIPMENT MARKET ANALYSIS

Small land holdings fragmentation is significantly limiting the scope for mechanization in the global agriculture sector. When agricultural land holdings are small and fragmented into several non-contiguous plots, it is difficult for farmers to efficiently utilize large agricultural machinery. Most modern agricultural equipment such as large tractors, harvesters, and tillage machines require adequate space to maneuver. With small and scattered land holdings, their deployment and effective use becomes a major challenge. This hampers the adoption of mechanized practices and use of modern equipment in agriculture.

Further, when land plots are small and divided, the cost of transporting machinery from one land parcel to other increases vastly. It also makes other mechanical operations such as irrigation, sowing, fertilizing and spraying of chemicals an arduous task. With small and divided land holdings, these operations have to be done manually which increases the turnaround time and production costs for farmers. The lack of adequate scale due to land fragmentation poses operational and cost hurdles for widespread deployment of machinery. This is a key factor restraining the scope for mechanization and growth of the agricultural equipment market globally.

Market Opportunities: Precision farming technologies

Precision farming through the use of latest technologies has a huge potential to significantly impact the global agriculture equipment market in a positive way. Precision farming relies on gathering data through satellite imagery and sensor technology to optimize crop production. It allows farmers to vary the rate of fertilizer application, watering, and other inputs based on soil conditions and crop needs within single fields. This precision application helps maximize yields while minimizing costs and environmental impact.

For example, precision soil sampling can produce detailed digital soil maps at sub-meter resolution to help optimize nutrient and lime application across fields. Sensor technology is also helping farmers implement variable rate seeding based on soil quality. Drones and robots equipped with cameras, LiDAR and other sensors can regularly monitor crop health and detect issues like weeds, pests or diseases early on when treatment costs are lower. Analytics tools then use this spatial data to produce prescription maps for targeted application of inputs. All of this precision enables more efficient farm management practices and higher productivity.