The Global Agricultural and Farm Machinery Market is valued at US$ 1,120.0 Mn in 2022. 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 Agricultural and Farm Machinery Market: Drivers
All over the world, there is a significant increase in the demand for food. This is because there is a growing global population and more money that can be spent. Farmers have been encouraged to adopt modern farming methods in order to boost crop yields and, as a result, raise global demand for agricultural machinery. The overall population is changing in countries like India and China in the Asia Pacific region. Asia Pacific's growing population is driving up the demand for food, which will in turn drive up demand for agricultural machinery used in farm production. As a result, the global agriculture and farm machinery market is expected to expand as a result of these factors during the forecast period.
Global Agricultural and Farm Machinery Market: Opportunities
Numerous government agencies are providing subsidies to encourage the use of this equipment because farmers cannot afford it on their own due to its high cost. For instance, the Government of India's initiative to encourage mechanization in agriculture includes a subsidy of 25 to 50 percent of the cost of machinery and equipment. Under various Department of Agriculture and Cooperation programs like the Rashtriya Krishi Vikas Yojana, National Horticulture Mission, and Macro Management of Agriculture, subsidies are available to all types of farmers.
Global Agricultural and Farm Machinery Market: Restraints
The cost of farming and agricultural machinery is very high. Apparatuses, for example, cultivators, farm trucks, gatherer, crop shower, and trailers require huge capital speculation. Not all ranchers can manage the cost of such weighty hardware because of low buy power, particularly ranchers from arising economies like India, Brazil, Indonesia, and South Africa. Because of this, emerging regions like Latin America and the Middle East have low demand for these machines. As a result, it is anticipated that these factors will stifle market expansion during the forecast period.
Global Agriculture and Farm Machinery Market - Impact of Coronavirus (Covid-19) Pandemic
Due to the Covid-19 pandemic, agricultural industries have witnessed a significant shift in their business. Due to non-availability of labor and issues in the transportation of goods has increased the demand for agriculture equipment’s in the agriculture industry. The agriculture sector mainly depend on migrant laborers for several operations such as harvesting, cultivating, tilling, and many others. For instance, in March 2020, according to coherent market insight, 140 million migrant people are expected to return their native hometown from cities in India. Due to lockdown imposed by many countries, there are restrictions on the movements of people and vehicles that have a negative impact on the farm economy. Thus, due to the shortage of labor, people are shifting to modern farming for more production and increases the demand for agriculture and farm machinery market in the future.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/agriculture-and-farm-machinery-market-4354
Key Takeaways:
The Global Agricultural and Farm Machinery Market was valued at US$ 1,120.0 Mn in 2022 and is forecast to reach a value of US$ 1,580.0 Mn by 2030 at a CAGR of 4.40% between 2023 and 2030.
Global Agricultural and Farm Machinery Market Trends:
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.
Global Agricultural and Farm Machinery Market: Competitive Landscape
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-
- 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.
- 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.
