Agriculture Equipment Market Size By Product (Farm Tractor [By Product {Sub-Compact Utility Tractor, Compact Utility Tractor, Specialty Tractor}, By Horsepower {< 30 HP, 31-100 HP, 101-200 HP, > 200 HP}], Harvesting Machinery [Combine Harvester, Forage Harvester, Thresher, Reaper], Plowing & Cultivation Machinery [Ploughs, Harrows, Cultivators & Tillers], Planting & Fertilizing Machinery [Seed Drills, Planters, Spreaders, Sprayers], Haying Machinery [Balers, Mower-Conditioner, Tedders & Rakes]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Mar 2020  |  Report ID: GMI2845  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 400   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Agriculture Equipment Market size exceeded USD 150 billion in 2019 and is projected to grow at over 6% CAGR between 2020 and 2026. The global shipments were over 6 million units in 2019. The market growth is attributed to rise in disposable income and growing demand for processed foods, packaged foods, high energy foods, and meats.
 

The exponential rise in population in recent years is a major contributor to the growing agriculture market industry demand. The sector is facing the challenge of feeding a rapidly expanding worldwide population while preserving the environment & global biodiversity and enhancing & protecting human health.
 

Agriculture Equipment Market

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The agriculture industry is required to operate in a dynamic production environment with variability in several natural and socio-economic factors. Changing consumer demands and evolving government regulations are the other variable factors that will cause demand fluctuations in the agriculture sector.
 

Traditional agriculture techniques that use human & animal labor were time-consuming and lack efficiency. The introduction of innovative agriculture equipment is anticipated to reduce production time, enhance product quality, and improve production efficiency for farmers.
 

Agriculture Equipment Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 150 Billion
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 6% 2026 Value Projection: USD 230 Billion
Pages: 400 Tables, Charts & Figures: 670
Geographies covered (16): U.S., Canada, Germany, UK, France, Italy, Russia, China, India, Japan, South Korea, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Segments covered: Product, Region
Companies covered (19): AGCO Corporation, Alamo Group Incorporated, Amazonen-Werke H. Dreyer GmbH & Company KG, ARGO SpA, Bucher Industries AG, Changzhou Dongfeng Agricultural Machinery Group Company Limited, China National Machinery Industry Corporation, CLAAS KGaA mbH, CNH Industrial NV, Deere & Company, Escorts Ltd., Iseki & Co. Ltd., J C Bamford Excavators Ltd. (JCB), Kubota Corporation, Mahindra & Mahindra Limited, Same Deutz-Fahr Group S.p.A. (SDF), Valmont Industries, Inc., Yanmar Co. Ltd., Zetor Tractors A.S.
Growth Drivers:
  • North America & Europe
    • Increasing labor costs
    • Integration of robotic systems and GPS
    • Growing demand for high-capacity machinery
    • Increasing demand for self-propelled machines
  • APAC & LATAM
    • Focus on productivity to maximize ROI from agriculture
    • Emergence of contract farming and dedicated sourcing with corporate partnership
    • Increased focus on mechanization in agriculture
    • Improved availability of credit
  • MEA
    • Growing trend of drip irrigation techniques
    • Increasing sustainable agricultural practices
Pitfalls & Challenges:
  • Higher prices of agricultural machinery
  • Fluctuating raw material prices
  • Need for high capital investment for setting up plants in developing markets

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Integration of advanced technology in agriculture equipment is propelling the market growth

The incorporation of advanced technology in agriculture equipment has provided growth opportunities for the industry. Sophisticated technologies such as GPS and robotics are improving equipment efficiency to a great extent. The technology enables remote handling of the equipment, increasing the accuracy of farming. Sensors help in providing precise data about the soil conditions and weather, helping farmers to boost the yield.
 

AI-based equipment has also gained popularity in recent years. John Deere, a company known for its green tractors, focuses on implementing machine learning and AI into machinery to enhance functionality. The advent of digitalization and connected technology is further propelling the agriculture equipment market. The incorporation of robotics in agriculture is also helping farmers in enhancing productivity.
 

The integration of IoT with machinery is revolutionizing the agriculture sector. Remote equipment that can be controlled from wireless devices and smartphones are reducing travel time and related costs. For instance, in January 2018, Wipro announced the deployment of IoT for JCB India Ltd. Livelink Telematics system of JCB has connected more than 10,000 construction machinery and equipment for Indian customers.
 

Farm tractors to remain the largest product segment

Global farm tractors market

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A farm tractor mechanizes several agricultural tasks such as planting, plowing, and tilling in fields. The use of farm tractors in agriculture offers several advantages such as ease of operation & transmission and ease of installing gardening & farming elements. Tractors facilitate ease of work on rough terrains. The farm tractor segment in the agriculture equipment market is forecast to exceed USD 3 billion revenue by 2026.
 

Market players are focusing on enhancing their product features to improve strength and durability to work in robust conditions. For instance, in January 2020, Kubota, an agriculture machinery manufacturer, developed a fully electric driverless tractor. Incorporation of advanced technologies in tractors is further propelling the farm tractor industry growth.
 

Telematics has gained importance in the industry. Fleet telematics is a technology that captures data from equipment and vehicles. Tracking agriculture & farm equipment is providing a number of advantages such as ease of maintaining the vehicle’s daily data, reducing the amount of fuel, and facilitating asset monitoring.
 

Prominent market players in the market are focusing on incorporating telematics in their tractors to enhance product portfolio. Development in the sensor domain will further fuel the farm tractor industry growth. This is attributed to the use of state-of-the-art technology by several companies to design sensors for equipment that can work efficiently in robust environments.
 

Fast-growing economies in Asia Pacific will propel market demand

Asia Pacific agriculture equipment market by product

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An exponential increase in population in the Asia Pacific region coupled with presence of fast-growing economies in the region is driving the demand for agricultural products. The agricultural sector in the region is adopting equipment to boost productivity, enhance product quality, and improve supply chain transparency. The regional agriculture equipment market shipments surpassed 3 million units in 2019.
 

Supportive government initiatives and product awareness among farmers are anticipated to drive the market growth. For instance, in the 2016 - 17 twelfth five-year plan, the Indian Government revised the Sub-mission on Agricultural Mechanization (SMAM). According to the scheme, Custom Hiring Centres (CHC), Village Level farm Machinery Bank (VLFMB), and High-Tech Hubs (HTH) are proposed to be established at Village Level. This will facilitate the easy availability of farm implements and machinery.
 

The agriculture sector is a prominent labor-intensive industry with a severe shortage of arable land. Farmers are adopting agriculture equipment to increase production efficiency and product quality. The Government of China is focusing on modernizing and mechanizing farming activities. In December 2018, The State Council released a circular instructing on the upgrade of agriculture machinery. The Cabinet decided to boost the agriculture mechanization in a comprehensive way.
 

The Government of Japan is also taking efforts to focus on the agriculture sector in the country. The sector is witnessing acute labor shortage in the country, in turn, stressing the need for advanced machines. Society 5.0 is an agenda for future technological development put forth by the Japanese government. The initiative will focus on implementing advanced technology such as Artificial Intelligence (AI), big data, and IoT in the agriculture sector to boost agricultural productivity.
 

Strategic product launch remains the key growth strategy for agriculture equipment market players

Key market players include Escorts Group, ARGO SpA, CNH Industrial N.V., JCB Limited, Mahindra & Mahindra Ltd, Yanmar Company Limited, Bucher Industries AG, AGCO Corp., Claas KGaA mbH, Deere & Company, Kubota Tractor Corp, Tractors and Farm Equipment Ltd., Valmont Industries Incorporated, Foton Lovol International Heavy Industries Company Ltd., Alamo Group Incorporated, and Kuhn Group. Market players are focusing on incorporating advanced technologies in their equipment to strengthen their market position.
 

Industry players are also focusing on expanding their distributor network to increase their regional presence. Strategic alliance is a key growth strategy adopted by companies operating in the industry.
 

For instance, in November 2019, CNH Industrial entered into two industry agreements with DKE Agrirouter and DataConnect to provide mixed fleet connectivity to agriculture equipment customers. Competitive pressure from players implementing the latest advanced technologies in machinery will propel the market growth.
 

The agriculture equipment market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and volume in unit shipments from 2015 to 2026, for the following segments:
 

Market by Product

  • Farm tractor
    • By product
      • Sub-compact utility tractor
      • Compact utility tractor
      • Specialty tractor
    • By horsepower
      • < 30 HP
      • 30-100 HP
      • 101-200 HP
      • > 200 HP
  • Harvesting machinery
    • Combine harvester
    • Forage harvester
    • Thresher
    • Reaper
  • Plowing & cultivation machinery
    • Ploughs
    • Harrows
    • Cultivators & tillers
  • Planting & fertilizing machinery
    • Seed Drills
    • Planters
    • Spreaders
    • Sprayers
  • Haying machinery
    • Balers
    • Mowers-Conditioners
    • Tedders & rakes
  • Others

The above market information has been provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa (MEA)
    • Saudi Arabia
    • UAE
    • South Africa
       

Frequently Asked Questions (FAQ) :

The market size of agriculture equipment exceeded USD 150 billion in 2019.
The industry share of agriculture equipment is projected to grow at over 6% CAGR between 2020 and 2026.
According to this research report by GMI, the global industry shipments were over 6 million units in 2019.
The farm tractor segment is set to surpass USD 3 billion by 2026 as use of farm tractors in agriculture offers several advantages such as ease of operation & transmission and ease of installing gardening & farming elements.
The APAC market is witnessing high demand as the agricultural sector in the region is adopting equipment to boost productivity, enhance product quality, and improve supply chain transparency.
Key market players include Escorts Group, ARGO SpA, CNH Industrial N.V., JCB Limited, Mahindra & Mahindra Ltd, Yanmar Company Limited, Bucher Industries AG, AGCO Corp., Claas KGaA mbH, Deere & Company, Kubota Tractor Corp, Tractors and Farm Equipment Ltd., Valmont Industries Incorporated, Foton Lovol International Heavy Industries Company Ltd., Alamo Group Incorporated, and Kuhn Group.

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Premium Report Details

  • Published Date: Mar 2020
  • Pages: 400
  • Tables: 630
  • Charts / Figures: 40
  • Companies covered: 19
  • Countries covered: 16

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