COMBINE HARVESTERS MARKET ANALYSIS

Market Challenges And Opportunities

Global Combine Harvesters Market Drivers:

Growing farm mechanization rates in developing countries is driving growth of the market. According to China Rural Statistics, the number of combine harvesters being sold across the country was 1,902 units in 2016, which increased by 8.2% and reached 2,059 units in 2018.

Increasing farm labor cost is again expected to drive growth of the combine harvesters market. According to United States Department of Agriculture, the daily wages of non-supervisory farm workers increased from US$ 12.0 to US$ in 13.2, an increase of 10.4% in the period of four years (2014 – 2018). However, the daily wages of non-supervisory labor in other industries has just increased by 3.5% during the same period.

Global Combine Harvesters Market Opportunities:

Escalating demand for agricultural commodities, increasing awareness about better technology, and government support are projected to hold potential growth opportunities for the global market. Rapid economic growth and increasing demand for large and powerful combine harvesters are again driving the market growth. Moreover, rising fuel prices are further expected to boost expenditure on agricultural equipment.

The rise of government subsidies is boosting the market in India. Rising agricultural production is also expected to drive the market in this country. Besides, the country is likely to move toward autonomous farms. Moreover, the demand for combine harvesters has also increased in countries like Russia and China. All these factors is likely provide significant growth opportunities.

Global Combine Harvesters Market Restraints:

Fragmentation of land holdings restrict the market growth.  Fragmentation of land holdings restrict the physical movement of combine harvesters. In regions, such as Middle East, Southeast Asia, and Africa, the practice of equal inheritance among farm household has led to fragmentation of farmland, leads to the low average farm acreage limiting the usage of combine harvesters.

Volatile price of commodity is expected to hamper the market growth. According to the United States Equipment Manufacturers Association, the sale of combine harvesters in United States decreased by 2%, from the beginning of 2020 to July 2020. This is majorly due to the historical low prices of corn and soybeans, which have affected the farm incomes. Thus, the commodity prices has a direct impact on the sales of combine harvester’s.