Agriculture equipment are machinery used on a farm to help with farming tasks like planting, tending to, and harvesting crops, as well as maintenance of the farm itself. Key types of agriculture equipment include tractors, harvesters, crop processing equipment, irrigation system, soil preparation & cultivation equipment. Agriculture equipment helps increase farm productivity by improving efficiency and reducing the requirement of manual labor. With depleting farm labor and rising labor costs, mechanization has become significant for increased agricultural output.
Key Takeaways
Key players operating in the Agriculture Equipment are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, and Claas. John Deere and AGCO Corporation are market leaders with diverse product portfolio and strong global presence. CNH Industrial also has significant market share with its Case IH and New Holland brand offerings.
Rising farm mechanization and government initiatives to modernize agricultural sector have opened new growth opportunities for agriculture machinery manufacturers. Spread of contract farming in developing nations have also increased procurement of high capacity equipment. Countries like India and China are major markets and manufacturers are expanding their footprint to tap rising demand.
Global players are focusing on emerging markets through joint ventures, acquisitions and by developing products suitable for small land holdings. Countries in Asia Pacific, Latin America and Africa offer significant headroom for growth. Manufacturers are localizing production and offering customized products and financing options to boost sales volumes in these regions.
Market drivers - Increased mechanization to cope with shortage of farm labor and boost productivity. Rising government expenditure on agriculture infrastructure and subsidies for farm equipment. Growing contract farming and corporate farming.
Market restrain - High initial purchase and maintenance cost of agriculture equipment. Fragmented land holdings in developing nations limiting adoption of large equipment. Lack of financing options and skilled labor in rural areas. Unfavorable weather conditions affecting investment decisions of farmers.
Segment Analysis
The Agriculture Equipment Market Growth is divided into sub-segments like tractors, harvesters, planting equipment, irrigation & crop processing equipment and others. Within tractors, 4WD tractors account for the largest market share due to their higher productivity in performing various agricultural tasks such as plowing, planting and harvesting. 4WD tractors allow intensive mechanisation of agricultural processes and handling heavy farm implements with ease.
Global Analysis
North America dominates the global agriculture equipment market due to large scale mechanised farming and rising adoption of advanced agricultural machinery for livestock management and crop production. The US and Canada are major revenue generating countries in this region. Asia Pacific exhibits the fastest growth owing to rapid economic development, increasing disposable incomes, and rising population driving demand for food grains and livestock products. China, India, Indonesia and Japan are experiencing rapid equipmentization of their agricultural sectors which is boosting the regional market.
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