Global Farming Equipment Market Poised for Moderate Growth: Projected to Grow at a CAGR of 4.5% by 2027
Published | 20 September 2021
Global farming equipment market is growing at a high CAGR because of the growing application of mechanized tools, increasing adoption of precision farming, and government subsidies for machinery...
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that global farming equipment market was worth USD 92.5 billion in 2020. It is estimated to grow at a CAGR of 4.5%, earning revenue of around USD 125.5 billion by the end of 2027. Globally, the farming equipment market is booming due to factors such as the increasing use of mechanized tools for a wide range of agricultural activities such as planting, tilling, harvesting, etc., as well as the shift from labor-intensive to capital-intensive farming practices. Furthermore, the increasing adoption of precision farming to promote sustainable farming in developed regions is also significantly propelling the growth of the global farming equipment market. The availability of a wide range of products and constant launches by manufacturers to increase agricultural yield also influences the market growth. However, the high cost of farming equipment may restrict the development of the market in emerging regions.
Government Concession and Subsidies Is Estimated to Boost the Global Farming Equipment Market
The government of developing countries offers subsidies and low interest rates to boost the penetration of farming equipment in agriculture. This is emerging as one of the major growth factors for the global farming equipment market. For instance, in India, under the Rashtriya Krishi Vikas Yojana (RKVY), the government offers a 100% subsidy that aims to assist the advancements of the farming sector and agriculture mechanization. Such initiatives aim to increase the agricultural yield for consumption and production. Efforts of this kind will boost the growth of the global farming equipment market in the forecast period
Increasing Adoption of Precision Farming Is Projected To Boost The Global Farming Equipment Market
The increasing shift towards precision farming to promote sustainability in the agricultural industry significantly propels the demand for mechanized agricultural tools. Precision farming uses advanced farming equipment such as irrigation, variable rate seeding, robotics, etc. In countries with limited resources, like Israel, this technique is very popular because it increases operational efficiency while increasing production. It is because of the high demand for this equipment that the farming equipment market is booming.
Global Farming Equipment Market - By Application
Based on applications, the global farming equipment market is segmented into land development &seedbed preparation, sowing & planting, weed cultivation, plant protection, harvesting and threshing, and post-harvest &agro-processing. Due to the rapid shift from labor-intensive to capital-intensive activities, the land development and seedbed preparation segment holds the largest market share. Global agriculture equipment market growth is also influenced by the agricultural products of developed regions, who devote a large amount of resources to purchasing farming equipment for land development applications in order to decrease their production costs and expand their product lines.
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Global Farming Equipment Market - Regional Insights
Geographically, the global farming equipment market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Asia-Pacific dominates the market among these regions because of the flourishing farming sector in emerging economies such as China, India, etc. The limited use of mechanization in agriculture in certain regions provides lucrative growth opportunities in the Asia-Pacific region. The government is also offering subsidies for the purchase of farming equipment and low interest rates to farmers, which is likely to drive the farming equipment market in the region.
Impact of COVID-19 on Global Farming Equipment Market
The global farming equipment market was tremendously affected by the unprecedented outbreak of the COVID-19 pandemic. As a result of nationwide lockdowns imposed by different countries, labor and logistical constraints affected farming products' production and marketing. At the same time, Negative income stocks also restricted access to the market. This resulted in a sharp decline in farming equipment, incurring huge losses to the global market. In addition, halted distribution channels and reduced purchasing power of farmers negatively affected the global farming equipment market.
The leading players in the global farming equipment market are John Deere, Case IH, New Holland Agriculture, Massey Ferguson, AGCO, Kubota, Fendt, Claas, Valtra, Mahindra & Mahindra, Fahr, SDF Group, KUHN, Allis-Chalmers, Iseki, McCormick Tractors, Sonalika Group, JCB, Farmall, and other prominent players.
The market is highly consolidated with the presence of global giants who have a better grip and penetration in the market. The companies are mainly involved in product launches and approvals and offer a variety of products to suit different farming activities. In addition, the market players invest heavily in technological advancements to improve the quality of their products. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global farming equipment market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global farming equipment market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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