Agriculture equipment such as tractors, harvesters, threshers etc. are widely used across modern farms to facilitate mechanized farm operations. These equipments reduces dependency on manual labor and increases productivity and efficiency of farm operations like cultivation, seeding, irrigation, harvesting etc. With rising labor costs and shortage of farm workers, there is an increasing need for agriculture mechanization to sustain crop production.
The global Agriculture Equipment Market is estimated to be valued at US$ 934.08 Mn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity in increased mechanization across farms will drive the growth of the agriculture equipment market during the forecast period. With rapid urbanization, there is declining availability of farm labor in developing countries. At the same time, demand for food is rising with growing population. This widening gap between demand and supply of farm labor presents a major challenge for sustainable agriculture production. Increased mechanization using agriculture equipment is expected to help bridge this gap by reducing dependency on manual labor. It allows timely and efficient completion of various farm activities with minimal labor. This will significantly enhance productivity of farms and boost overall crop production. Rising awareness regarding benefits of mechanization and support from governments in the form of favorable policies and subsidies is expected to further fuel adoption of agriculture equipment, thereby providing impetus to market growth.
Porter's Analysis
Threat of new entrants: The agriculture equipment market requires high R&D investment and capital to manufacture agriculture machinery. Established players enjoy advantages of economies of scale further making it difficult for new players to enter.
Bargaining power of buyers: The bargaining power of buyers is moderate. The presence of many established agriculture equipment manufacturers provides options to buyers. However, customized solutions and relationships increase switching costs.
Bargaining power of suppliers: The agriculture equipment market has a complex global supply chain with materials sourced globally. This limits the bargaining power of individual suppliers.
Threat of new substitutes: There exists limited threat from substitutes as agriculture equipment has few alternatives for farm mechanization and automation.
Competitive rivalry: The global agriculture equipment market is highly fragmented with the top players accounting for around half the share. Fierce competition exists around pricing, product innovations.
SWOT Analysis
Strengths: Growing mechanization in agriculture, supportive government policies and initiatives driving adoption.
Weaknesses: High initial costs of agriculture machinery, lack of flexibility for small land holding farmers.
Opportunities: Rapid growth in global food demand, scope for precision farming and smart agriculture technologies.
Threats: Trade wars and policies impacting export-import, climate change leading to uncertain crop yields.
Key Takeaways
The Global Agriculture Equipment Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2024 is estimated to be US$ 934.08 Mn representing strong demand for farm automation and mechanization solutions globally.
North America dominates currently with over 30% market share led by developed agriculture sector and large farming land holdings in countries like the U.S. and Canada. However, Asia Pacific is projected to be the fastest growing region owing to population growth, government initiatives and rapid infrastructure development in major countries like India and China.
Key players operating in the agriculture equipment market are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, and Claas. These established brands are investing heavily in R&D to develop autonomous, precision farming and digitally integrated solutions. Strategic acquisitions and partnerships have also helped top players expand their geographical presence and product portfolios.
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https://www.trendingwebwire.com/agriculture-equipment-market-size-share-growth-outlook-2023/
