Global agriculture equipment market is projected to reach US$279.5 billion by 2025, growing at a CAGR of 6.5 percent from 2018 to 2025. The market was valued at US$171 billion in 2018, a Digits N Markets study has estimated.
This market is currently being driven by a number of factors such as easy availability of credit, government incentives, increasing agricultural productivity, emergence of contract farming, increasing rural incomes among other factors. Banks and microfinance institutions have been set all across rural India, this enabled farmers an easy availability of credit to purchase farm machinery contributing to the surge in the market. Incentives in the form of subsidies, low import duties on agricultural machinery and easy financing schemes by the governments is also a stimulant for the farm equipment market. Inflation in fuel prices across some regions is also devaluing sales of agricultural equipment.
Land development and seedbed preparation segment is anticipated to dominate the market and is forecast to observe a growth rate of 1.8 time over the forecast period, closely trailed by harvesting and threshing segment which has contributed around 17.6 percent market share of total agricultural equipment market in 2016 and is expected to foster over the forecast period owing to its capability of easing the crop harvesting procedure in less time. The advancement in tractors such as the introduction of multi-purpose tractors along with various applications of tractors in farming is anticipated to foster the growth of the tractor segment with the dominant market share during the forecast period, the study has said.
According to the Digits N Markets study, the global agriculture equipment market was led by the Asia Pacific region, generating a revenue of US$69 billion, the highest growth Asia Pacific region having a compound annual growth rate (CAGR) of 8.4 percent over the forecast period. This is because of the increasing population in the region and boom of automated harvesting equipment in countries like India and China. The agriculture equipment market is flourishing in the region as a result of the increasing use of advanced farming equipment for more effective, reliable and time-saving production.
Competitive scenario of some of the key players of global agricultural equipment market which includes company profiling: Deere & Company, AGCO Corporation, CNH Industrial, SDF Group, Argo Tractors S.p.A., CLAAS KGaA mbH, The Toro Company, Kubota Corporation, Mahindra & Mahindra and Escorts.