Agriculture equipment such as tractors, harvesters, irrigation systems and milking systems are heavily utilized in agriculture operations worldwide for various agricultural processes ranging from land development, planting, irrigation, pest and weed control to harvesting and post-harvest activities. Tractors help in carrying out agricultural activities such as ploughing, cultivation and harvesting, while harvesters aids in reaping crops efficiently. Irrigation systems including sprinklers and drip irrigation helps in supplying water in required quantity to crops. Milking systems help dairy farmers in hassle-free milking of dairy animals.
The global agriculture equipment market is estimated to be valued at US$ 934.08 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Integration of advanced technologies and focus on precision farming are expected to drive the global agriculture equipment market during the forecast period. Precision farming utilizes various technologies such as GPS, GIS, smartphones and IoT to gather field data and gain insights to improve farm efficiency and productivity. Adoption of precision farming aids farmers in optimizing usage of inputs such as seed, fertilizers and water. Technologies such as remote sensing, GPS and GIS are integrated in agriculture equipment to guide farmers for site-specific field operations. This helps achieve resource utilization efficiency, sustainability and profitability. Supportive government policies and subsidies especially in developing regions promote adoption of such advanced agriculture equipment and implements use of precision farming. Rising concerns towards sustainability of agriculture is prompting increased use of automation in farming.
Segment Analysis
The global agriculture equipment market is dominated by the tractors sub segment. Tractors account for over 60% of the agriculture equipment market owing to their versatile usage for tilling, harvesting and other agriculture activities. They are essential equipment for large scale farming as well as small scale farming across various regions. Growing mechanization of agriculture activities especially in developing nations is driving demand for tractors.
PEST Analysis
Political: Governments across various countries are supporting farmers through subsidies and incentives for purchasing agriculture equipment which is boosting market growth. Some countries have also implemented import duties on certain agriculture equipment to encourage local manufacturing.
Economic: Rising farm incomes especially in Asia Pacific and South America is enabling higher investments in agriculture machinery for improving productivity. The agriculture sector is a significant contributor to GDP in many countries.
Social: With younger generation migrating to urban areas for jobs, there is a growing shortage of farm labor. This is propelling mechanization of agriculture activities and demand for equipment.
Technological: Advancements in engines, electronics and automation are making new equipment more productive and efficient. Features such as GPS, telemetry and auto steering are gaining popularity.
Key Takeaways
The Global Agriculture Equipment Market Size is expected to witness high growth over the forecast period supported by various government initiatives for farm mechanization especially across Asia and Africa. The global agriculture equipment market is estimated to be valued at US$ 934.08 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030.
The Asia Pacific region is emerging as the fastest growing regional market for agriculture equipment owing to large cultivable areas and growing adoption of mechanization in countries such as India and China. The Asia Pacific region dominates the global market with over 40% share led by major markets of India and China. Both countries are proactively supporting farm mechanization which is driving equipment demand. Governments have announced attractive subsidy and loan schemes to encourage farm mechanization. Rising farmers income is enabling higher investments.
Key players:
Key players operating in the agriculture equipment market are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra. John Deere is the global market leader known for its wide product range of tractors, harvesters and other equipment. CNH Industrial and AGCO Corporation are other major players with strong global presence.