Agriculture Equipment Industry To Rise As Of Growing Demand For Products Worldwide

Agriculture equipment industry data book covers agriculture tractors & tractors implements, agriculture equipment market. agriculture equipment market size was valued at USD 286.03 billion in 2022 and is expected to register a growth of 6.2% throughout the forecast period.

Global agriculture equipment industry data book is a collection of market sizing information & forecasts, competitive benchmarking analyses, macro-environmental analyses, and regulatory & technological framework studies. Within the purview of the database, all such information is systematically analyzed and provided in the form of presentations and detailed outlook reports on individual areas of research.

Agriculture Equipment Market Analysis & Forecast

The global agriculture equipment market size was evaluated at USD 155.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.0% from 2022 to 2030. Increasing mechanization in the agriculture sector coupled with the surge in farmers’ income is expected to be a primary factor driving the growth. Favorable climatic conditions for food production and government support with loan waiver schemes for farmers of all income categories are also presumed to favor the market growth. Technologically advanced agricultural robotics, such as autonomous tractors and flying drones to help farmers produce food at low costs to fulfil the growing demand for food, are anticipated to be better prospects for market growth over the forecast period.

Favourable government initiatives are anticipated to drive the growth of the market during the forecast period. For instance, the Russian government is attempting to trigger investment in capital purchases by proposing several subsidies for strategically significant sub-sectors including meat and milk production. The Ministry of Agriculture sanctioned 464 projects worth USD 4 billion, expected to receive government support food security and reduce the livestock imports. Moreover, factors such as lack of human resources and the availability of easy credit and funds are projected to spur the demand for tractors and other farm equipment in other emerging countries over the forecast period.

North America was valued at USD 35.1 billion in 2021 and is expected to register a CAGR of over 5.0% during the forecast period. The Middle East and Africa region was valued at USD 10.1billion in 2021 and is expected to record a CAGR of 2.0% over the forecast period. South Africa, Saudi Arabia, and UAE are notable markets in the region. The arid and semiarid countries in the Middle East with low and variable rainfall are likely to witness increased demand for irrigated and crop processing equipment over the forecast period. Increasing Chinese investments in African countries are expected to boost the regional agriculture sector. The recent business expansion of New Hope Group, an investment firm, in Egypt is one such instance that suggests the increasing Chinese influence in the region.

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Agriculture Tractor Market Analysis & Forecast

The global agriculture tractor market was valued USD 88.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.3% from 2022 to 2030. The increase in demand for compact tractors on small farms and technical developments such as the integration of telematics with agricultural tractors are expected to drive growth. Furthermore, the quick adoption of mechanization is expected to be favourable for the market's expansion during the following eight years. Additionally, it is anticipated that the market will witness growth due to the migration of farm workers to cities, which would result in a labor shortage. Due to the brief production halt and supply chain disruption caused by the COVID-19 outbreak, product demand was impeded.

Also, OEMs are currently experiencing a shortage of semiconductors coupled with supply chain disruptions and market uncertainty due to the growing COVID-19 cases, which may delay production. Furthermore, a hike in steel and aluminum prices is expected to increase tractor prices, which is further anticipated to hinder market growth over the next few quarters. Favourable government policies are likely to boost market growth over the forecast period. For instance, on September 15, 2022, the U.S. Department of Agriculture (USDA) introduced a Precision Agriculture Loan (PAL) Act to allow farmers and ranchers to avail of loans to purchase precision agriculture equipment.

Asia Pacific led the global market with a volume share of more than 69% in 2022 and is estimated to grow at the fastest CAGR over the forecast period retaining the dominant position. Europe is expected to grow at a moderate CAGR in terms of volume over the next few quarters in 2023. The growth is attributed to the increased demand for large farm tractors, particularly from Italy, Greece, and Lithuania.

Tractor Implements Market Analysis & Forecast

The global tractor implements market size was valued at USD 28.6 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2022 to 2030. Rapid industrialization in the agriculture sector has resulted in increased expenditures on labour-intensive products, such as cultivators, harrows, and tillers, boosting industry growth. Furthermore, the increasing scarcity of skilled labour leads to the adoption of new equipment and tools, supporting industry growth. For instance, according to the data published by the International Labor Organization (ILO), headquartered in Geneva, Switzerland, the percentage of people working in the agriculture sector globally decreased from 44% in 1991 to 26% in 2020.

This is shaping the market and boosting the adoption of various tractor implements to increase crop production.

Several tractors implement manufacturers struggled to remain operational during the COVID-19 lockdowns, resulting in a sharp decline in business. The industry was negatively impacted in the first half of 2020. However, it bounced back and witnessed growth due to various significant global economies opening. In addition, manufacturers started adopting innovative strategies to recover from the pandemic.

The Asia Pacific region dominated the global industry in 2021 and accounted for the maximum share of more than 35.25% of the overall revenue. North America emerged as the second-largest regional market in 2021 and is projected to expand further at a steady growth rate during the forecast period. The countries in the North America region are increasingly adopting automation and smart farming solutions to meet the growing demand.

Go through the table of content of Agriculture Equipment Industry Data Book to get a better understanding of the Coverage & Scope of the study.

Agriculture Equipment Industry Data Book Competitive Landscape

Companies are engaging in several growth strategies, such as partnerships, mergers & acquisitions, and product launches, to stay afloat in the competitive industry. For instance, in May 2021, an agriculture machinery company CLAAS KGaA Mbh from Harsewinkel, Germany, acquired a minority stake in Dutch startup AgXeed B.V. The acquisition was intended to promote the commercialization of autonomous farming machines.

Key players operating in the agriculture equipment industry are –

• AGCO Corp.

• CNH Industrial N.V.

• Deere & Company

• CLAAS KGaAmbH

• Escorts Ltd.

• International Tractors Ltd.

• YanmarCo., Ltd.

• KubotaCorp.

• Mahindra & Mahindra Ltd.

• Tractors and Farm Equipment Ltd.

• Agromaster

• APV GmbH

• Bellota Agrisolutions

• HORSCH Maschinen GmbH

• ISEKI & Co., Ltd.

• J C Bamford Excavators Ltd

• Quivogne CEE GmbH (Kiwon RUS LLC)

• Rostselmash

• KRUKOWIAK

• KUHN SAS

• LEMKEN GmbH & Co. KG

• MascarSpA