The Global Agriculture Equipment market is driven by robust fundamentals and strong, long-term demand and growth drivers linked directly to a rapidly growing global population besides growing demand from the bio-fuel industry for agriculture sources based feedstock. The global agricultural output is required to double itself by 2050 as against the present level, in order, to match the rate of global population growth, as per projections, amid diminishing natural resources, thus, highlighting and underscoring the imminent and urgent need for tremendously enhancing efficiency and productivity through precision farming.
The current and near term view of the industry is, however, dominated by continued, significant pressures on farm incomes and profitability emanating from an altered supply side economics with record crop production for 2014 across key geographic regions impacting crop prices and farm incomes directly and significantly which is likely to have a significant bearing on agriculture machinery sales over near term. The multitude of pressures on top line growth have necessitated and rendered competitiveness as crucial to protecting profitability across industry OEMs which have been working towards optimizing and aligning their cost base & industrial footprint with emerging demand scenario.
The global agriculture equipment industry also is in the midst of a technology-driven evolution phase involving incorporation and integration of a host of ICT technologies onto product platforms that has augmented the capabilities of these machines tremendously by delivering enhanced operating efficiency through detailed performance monitoring and assessment, improved operating economics, focus on prognostics and remote machinery tracking as well as diagnostics. Further, new product development efforts underway across key global OEMs have a significant focus as well as emphasis on technological innovations capable of delivering and translating into performance and productivity enhancements.