Global farm machinery market will bring in more than US$ 131.6 billion revenues by the end of 2024, but is likely to reach there at a sluggish pace. Persistence Market Research’s report, titled “Agricultural Equipment Market: Global Industry Analysis and Forecast, 2016-2024,” estimates the market’s present value at a little over US$ 100 billion, anticipating it to incur a sluggish growth a 3.5 percent compound annual growth rate (CAGR).
During this forecast period, the global farm machinery market is also likely to witness slower growth in terms of volume. After recording an estimated global sales of over 55,96,500 units of agricultural equipment in 2016, the market is expected to close in on sales of nearly 70,00,000 units across the globe by the end of 2024.
The report further reveals that more than three-fourth of the global farm equipment market is dominated by sales of tractors. Tractors, being the top-selling agricultural equipment across the globe, netted nearly US$ 80 billion in revenues in 2016. On the other hand, revenues arising from global sales of seed drills and power weeders are expected to exhibit growth at 4.1 percent CAGR. A regional analysis of the global agricultural equipment market, compiled in the report, projects dominance of North America.
With more than one-third share of global revenues throughout the forecast period, North America will remain the most lucrative agricultural equipment market. Meanwhile, the agricultural equipment market in Middle East & Africa (MEA) is expected to showcase a value CAGR of 4.3 percent. Latin America, Europe and Asia-Pacific are also expected to be observed as leading regions for overall expansion of global agricultural equipment market. The report has also profiled leading manufacturers of agricultural equipment, which include, AGCO Corp, CLAAS KGaA mbH, Kubota Corporation, Tractor and Farm Equipment Limited (TAFE), Deere & Company, Mahindra & Mahindra, EXEL Industries, SDF S.p.A, ISEKI & CO. LTD., CNH Industrial N.V., and Bucher Industries AG.
The dependency of agricultural activities on equipment has intensified as conventional methods of obtaining better farm produce are being rendered as useless. Taking the growing global population into account, demand for effective agricultural equipment continues to grow in parallel with the rising global consumption of food & beverages.
However, high interest rates levied for purchase of agricultural equipment are becoming a major stumbling block for farmers from several parts of the world. With that, the report also signifies the favourable impact of government incentives and investment schemes on sales of agricultural equipment in other parts of the world. Moreover, farmers being provided with qualitative education on farming techniques and optimum use of these equipment is also serving as a key driver for the market’s growth.
Inflation in fuel prices across some regions is also impeding the sales of agricultural equipment, while farmers from other regions, despite having enough equipment, are at the mercy of rain for carrying out agricultural activities such as irrigation.