Agriculture equipment refers to the machinery that is designed and manufactured specifically for agricultural purposes. These include tractors, harvesters, plows, planters, irrigation systems, crop dusting equipment, and others. Agriculture equipment helps farmers in clearing and loosening soil, planting seeds and saplings, weeding and applying fertilizers and pesticides, monitoring crop growth, harvesting and post-harvest activities like grading and packing. With limited arable land and growing population across the globe, the demand for maximizing yield from available agricultural land is increasing. This is promoting adoption of modern equipment and technologies among farmers globally.
The Global Agriculture Equipment Market is estimated to be valued at US$ 1076.07 Bn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Agriculture Equipment are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, and Claas. John Deere is one of the global leaders in agriculture equipment manufacturing with wide product portfolio offering tractors, harvesters, sprayers among others.
The demand for agriculture equipment is growing due to shrinking arable land and rising global population. Farmers are adopting modern equipment to increase yield and optimize agriculture production. Various governments globally are also promoting use of farm mechanization through subsidies to enhance farm output.
The agriculture equipment manufacturers are expanding globally to cater to rising demand. For instance, several China and India based manufactures have set up production facilities in African and Asian countries. John Deere has manufacturing plants across North America, Europe, Asia Pacific and South America. This global footprint helps players address markets efficiently.
Market key trends
Precision farming technique is gaining popularity among farmers to maximize output. This technique uses latest technologies like GPS, GIS, IoT sensors and cloud along with agricultural equipment. It helps farmers in yield mapping, variable rate application of inputs, auto-steering of equipment and remote farm monitoring. John Deere, AGCO and CNH Industrial are integrating these precision farming technologies in their equipment. This is a major trend driving growth of smart and connected Agriculture Equipment Market Demand.
Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale in manufacturing and distribution pose barriers for new entrants.
Bargaining power of buyers: Large buyers like cooperatives have some bargaining power owing to their consolidated purchasing.
Bargaining power of suppliers: Suppliers like manufacturers of parts and components have moderate bargaining power due to availability of close substitutes and slightly differentiated components.
Threat of new substitutes: Technology shifts can introduce new substitutes, but switching costs create barriers.
Competitive rivalry: Intense competition exists among large multinational firms to gain market share and maintain pricing through continuous product innovation.
Geographical Regions
Value wise, the market is concentrated in Asia Pacific region led by India and China due to large agriculture dependent population and governments’ support for farm mechanization.
Asia Pacific region is expected to witness the fastest growth in agriculture equipment market during the forecast period driven by rising farm wages, reduction in agricultural land, and initiatives by governments to promote mechanization.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it