The global agricultural equipment market size is estimated to be valued at US$ 132.49 billion in 2023 and is expected to exhibit a CAGR of 4.7% between 2023 and 2030. The global agricultural equipment market refers to industries engaged in the production, distribution, and sales of various types of machinery and equipment used in agriculture. It includes a wide range of products designed to help farmers and farm workers improve efficiency, productivity, and overall farm operations. The global agricultural equipment market is driven by the growing need to meet the increasing demand for food and other agricultural products associated with the world's growing population. Farmers and agricultural businesses rely on advanced machinery and equipment to streamline operations, reduce labor costs, and increase overall yields.
Market Statistics:
The global agricultural equipment market is estimated to be valued at US$ 132.49 billion in 2023.
The leading product segment of the global agricultural equipment market is tractors, a major component segment of the global agricultural equipment market is the tractor. Tractors are the most versatile and widely used agricultural equipment.
Global Agricultural Equipment Market: Drivers
Mechanization agricultural equipment and labor efficiency in farm management:
Agricultural equipment reduces the need for manual labor and increases efficiency and productivity. As labor availability becomes more limited and expensive in certain regions, the use of mechanized equipment becomes essential for farm management, increasing the demand for agricultural equipment. As labor availability becomes increasingly limited and costly in certain regions, the utilization of mechanized agricultural equipment becomes indispensable for effective farm management. The adoption of such equipment becomes essential to reduce the reliance on manual labor, leading to improved efficiency and enhanced productivity in agricultural operations. Consequently, there is a significant increase in the demand for agricultural equipment to meet the growing needs of the industry.
Emerging markets for agriculture equipment and modernization in agricultural equipment:
Developing regions, such as Asia Pacific, Latin America, and Africa, are undergoing rapid agricultural modernization. Aiming to increase agricultural productivity, improve rural livelihoods, and meet the growing food demand in these regions, the increasing use of advanced machinery and equipment is driving the growth of the market. These regions strive to increase agricultural productivity, improve rural livelihood, and meet the growing food demand. To achieve these goals, the adoption of advanced machinery and equipment in agriculture has increased significantly. The increasing use of this advanced agricultural technology is a key driver for the expansion of the global agricultural equipment market.
Global Agricultural Equipment Opportunities
The expansion of sustainable agriculture is crucial to address the challenges of food security, climate change, resource depletion, and environmental degradation
There is a global drive towards sustainable agricultural practices to reduce environmental impact and conserve resources. There is a growing demand for agricultural equipment that enables the precise application of inputs such as fertilizers and pesticides, minimizes waste, and optimizes resource usage. Manufacturers focused on sustainable agricultural equipment, energy efficient equipment, and green technology are likely to find promising opportunities in the market.
COVID-19 Impact Analysis:
Farmers are facing financial insecurity due to market disruptions and reduced incomes during the pandemic. This has led to prudent spending, with many farmers postponing or canceling the purchase of equipment, especially non-essential or expensive machinery. The COVID-19 pandemic has hampered the demand behavior in the agricultural sector. The demand for non-food crops, such as biofuels and ornamental plants, is declining while the focus on essential food crops is increasing. This shift affected the types of farm equipment in demand, with a focus on machinery for staple food production.
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Key Takeaways:
The global agricultural equipment market size is estimated to reach USD 132.49 billion in 2023 and is projected to be valued at USD 182.81 billion by 2030, growing at a CAGR of 4.7% during the forecast period (2023 to 2030).
A major product segment of the global agricultural equipment market is the tractor segment. Tractors are widely used in agriculture for various tasks such as plowing, tilling, planting, and harvesting. It provides power and traction to efficiently perform these tasks and is essential for mechanized agricultural operations.
Global Agricultural Equipment Market Trends:
Precision farming is projected to enhance efficiency, productivity, and sustainability in agricultural operations:
Precision farming technology is becoming increasingly important as farmers seek greater efficiency and lower costs. Technologies such as GPS guidance systems, remote sensing, and variable speed technology enable the precise application of inputs such as seeds, fertilizers and pesticides. This trend increases productivity, reduces environmental impact, and improves resource management. Precision agriculture uses a variety of technologies such as sensors, drones, satellites, and GPS to collect data about soil conditions, crop health, weather patterns, and more. This data is analyzed using advanced analytics and machine learning algorithms to make informed decisions about irrigation, fertilization, pest control, and harvesting.
Global Agricultural Equipment Market: Restraints
Lack of infrastructure in agricultural equipment:
The lack of adequate infrastructure, such as reliable power sources, irrigation systems, and transportation networks, in some regions can hamper the introduction and efficient use of agricultural equipment. Poor infrastructure limits the productivity gains modern machines can provide.
Global Agricultural Equipment Market: Competitive Landscape
AGCO Corporation, Bucher Industries AG, CLAAS KGaA mbH, CNH Industrial N.V., KUBOTA Corporation, ISEKI & CO.,LTD., Tractors and Farm Equipment Limited, SDF Group, Deere & Company., EXEL Industries, Mahindra&Mahindra Ltd., YTO Group, Kioti Tractor, Massey Ferguson. Minsk Tractor Works.
Global Agricultural Equipment Market: Recent Developments
In February 2023, Massey Ferguson Limited, a U.S.-based agricultural equipment manufacturer. TAFE Tractors and Farm Equipment Limited is an Indian agricultural equipment manufacturer, has launched its brand-new DYNATRACK Series, an innovative line of tractors that combine potent power with dynamic performance, smart technology, unrivalled usefulness, and versatility.
In June 2023, Mahindra&Mahindra Ltd., launched India's new Sarpanch Plus Tractor series. This tractor comes with a 6-year warranty from Mahindra&Mahindra Ltd. and has 2 HP (1.49 kW) more power, a higher maximum torque, and back-up torque to quickly cover more ground.
