Agriculture Equipment Market is Expected to Reach $166.5 billion by 2027

The size of the global agricultural equipment market is expected to grow from $105 billion in 2019 to nearly $166.5 billion by 2027.

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The global agricultural equipment market is segmented on the basis of type, automation, business and region.

 

By type, the market is segmented into tractors, harvesters, tillage & cultivators, irrigation & crop processing, agricultural spraying equipment, fodder & hay making machines, and automatic equipment.

 

By business, the market is segmented into original equipment manufacturers (OEMs) and aftermarket sales.

 

Agricultural equipment market analysis is done across four regions including North America, Europe, Asia-Pacific and LAMEA

 

According to the report published by Allied Market Research, titled “Agriculture Equipment Market by Type, Automation, and Business: Opportunity Analysis and Industry Forecast, 2020–2027”, the size of the global agricultural equipment market is expected to grow from $105 billion in 2019 to nearly $166.5 billion by 2027; growth at a compound annual rate (CAGR) is expected to reach 6.0% in the period 2020-2027

 

In 2019, Asia-Pacific dominated the market in terms of revenue, accounting for 38.6% market share of the global agricultural equipment industry.

 

Farm equipment aids in increasing agricultural productivity in less time. In addition, agricultural equipment reduces effort, thereby reducing the need for human labor on the farms. This not only saves operation time, but also saves costs incurred in terms of manpower.

 

Furthermore, advancements in machinery technology drive the growth of the agricultural equipment market.

 

This is attributed to the adoption of automatic and semi-automatic machines that increase crop yields, due to lower downtime and high precision operations.

 

Many countries in Asia-Pacific and LAMEA (Latin America, Middle East and Africa) derive most of their revenue from the agricultural sector.

 

Countries such as India, China, Indonesia, Brazil and Ghana are expected to experience rapid growth, due to a sharp increase in the amount of agricultural equipment used.

 

Farmers in these regions are using agricultural equipment even on small-scale farms, as the government provides incentives to promote the use of farm equipment.

 

Various agricultural equipment manufacturers are focusing on product launches and product development to support other agricultural activities such as fruit picking, irrigation and crop processing.

 

Depending on the type, the tractor segment accounts for the maximum share of the agricultural equipment market, however, in 2019, the harvester segment has the fastest growth during the forecast period.

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Considering the business segment, the original equipment manufacturers (OEMs) segment generated the highest revenue in 2019, thanks to the adoption of agricultural equipment across different regions.

 

In addition, automation in the production process supports the production of high-quality equipment. This benefits OEMs by cutting operating costs and lead times, while maintaining product quality.

 

Furthermore, OEMs partner with technology suppliers to update their agricultural machinery with the latest technology.

 

For example, CNH Industrial NV, which operates in the United Kingdom, entered into an agreement to adopt the CASE IH trademark with Farmers Edge Inc., a Canadian agricultural technology supplier, in January/ 2019.

 

The agreement aims to develop digital farming solutions such as connectivity and agronomic solutions for the company's various agricultural equipment products. Furthermore, the company plans to provide unique technology platforms that are capable of executing, planning, analyzing and making decisions to improve agricultural processes using agricultural equipment. different.

 

Source: nongnghiep.vn