Agriculture equipment includes tractors, harvesters, irrigation equipment, soil preparation & cultivation equipment, planting equipment and other tools & equipment that are used in agricultural farms, greenhouses and other areas. Agriculture equipment offers advantages like higher productivity, time saving, cost reduction and ease of operations for farming activities. With growing food demand and shortage of farm labor, adoption of agricultural mechanization through modern agriculture equipment has become essential.
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 5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Increased mechanization of agriculture is expected to drive the growth of agriculture equipment market. With growing labor costs and shortage of farm workers, mechanization of agriculture operations has become important which is increasing the demand for agriculture tractors and harvesting equipment. Agriculture machinery allows timely operations and increases productivity which is important to meet the rising global food demand. Governments in developing countries are also promoting mechanization through subsidies on agriculture equipment purchase. This growing need for agricultural mechanization and incentives by governments presents a major market opportunity for manufacturers of agriculture tractors and harvesting equipment in the forecast period.
Porter's Analysis
Threat of new entrants: The agriculture equipment market has moderate threat of new entrants due to high investment requirements for R&D and manufacturing. Bargaining power of buyers: Individual buyers have low bargaining power due to availability of various product options, whereas large agro companies have moderate bargaining power. Bargaining power of suppliers: A few large suppliers exist for components increasing their bargaining power versus many small equipment manufacturers. Threat of new substitutes: Limited threat as agriculture equipment has no close substitutes for farming tasks. Competitive rivalry: Intense competition exists among major players to target diverse crop types and geographies resulting in product innovations.
SWOT Analysis
Strengths: Growing mechanization in agriculture boosts demand. Wide product portfolio and geographic reach of key players. Weaknesses: Seasonal nature of demand affects profitability. High R&D and manufacturing costs limit small players. Opportunities: Rise in demand in developing markets of Asia and Africa due to conducive policies. Growth in precision farming and digitization of equipment. Threats: Trade policies and fluctuating commodity prices impact investments. Rising raw material prices squeeze margins.
Key Takeaways
The Global Agriculture Equipment Market Size is expected to witness high growth driven by growing mechanization in major crops cultivation worldwide. The Asia Pacific region dominates the market currently owing to large farmland areas and supportive government initiatives for farm mechanization in countries such as India and China. The market in North America is mature while growing at a steady pace on the backdrop of advanced agricultural practices.
Regional analysis: Asia Pacific dominates the global agriculture equipment market currently holding around 40% share, led by India and China. These countries are focusing on farm mechanization through budgetary allocations and financing schemes to boost agricultural productivity. Farm equipment sales in China and India are projected to increase 5-7% annually over the forecast period.
Key players: Key players operating in the agriculture equipment market are AGCO Corporation, FlieglAgro-Center GmbH, Agromaster, Amazone Inc., APV GmbH, Bellota Agrisolutions, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, Escorts Limited, HORSCH Maschinen GmbH, ISEKI & Co., Ltd., J C Bamford Excavators Ltd, Quivogne CEE GmbH (Kiwon RUS LLC), Rostselmash, KRUKOWIAK, KUBOTA Corporation, KUHN SAS, LEMKEN GmbH & Co. KG, Mahindra & Mahindra Ltd., MaschioGaspardo S.p.A, MaterMacc S.p.A, Morris Equipment Ltd, SDF S.p.A., Tractors and Farm Equipment Limited (TAFE), Väderstad AB, Valmont Industries, Inc.
For More Insights, Read: https://www.newswirestats.com/agriculture-equipment-market-demand-growth-and-regional-outlook-by-2030/
