Agriculture

Global agri machinery market to grow at 8 over 2015-2020

India and China provide great scope of growth due to continued support from government bodies
Global agri machinery market to grow at 8 over 2015-2020

The practice of incorporating machinery for farming began in the 19th century in Britain and US, and has evolved over time. However, over the last century, farm and agri-equipment has witnessed mostly incremental innovation.

Agricultural machinery manufacturers are at the forefront of change and evolution of the agriculture sector giving rise to modern day integrated farm management approach. Population growth, urbanization, higher productivity demand with a shrinking agricultural land base throughout the globe, are only some of the factors which have led to the growth of total agriculture machinery demand. Apart from developed countries, developing countries exhibit strategies to minimize food insecurities in a world plagued by erratic weather conditions. This has amounted to a slow, but steady adoption of modern agri-machinery and equipment by developing countries as well. Quite clearly, technology advancement for developing more efficient products while keeping in mind the country specific requirements will provide opportunities for future growth of the sector.

Besides a massive scope for development, the major constraints the sector is facing are: environmental constraints, fluctuating prices of farm commodities, erratic weather conditions, labour availability, and more. All these factors affect the growth rate of the agricultural sector. That, in turn, affects the agri-machinery industry.

North American, European and Australian markets are some of the more affluent, urbanized markets with between 700-1850 tractors per 1000 farmers. This number dwindles down to 3-5 tractors per thousand farmers in areas in Asia Pacific (countries like India, China), and Africa (especially sub-Saharan Africa). Regionally India and China provide great scope of growth due to continued support from government bodies. Globally, Agri machinery market is expected to grow at 8 over 2015-2020. 

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