Agricultural Equipment Market: Overview
Lower inventory levels for OEMs and their dealers in H2/2021 were a result of the rapid spike in demand for tractors, harvesters, and planters in H1 /2021. Additionally, OEMs around the world are currently dealing with a shortage of semiconductors as well as high commodity prices for raw materials like steel and aluminium.
OEMs may be able to raise their product prices by 4% to 22% in the upcoming quarters of 2022 as a result of their inability to balance supply and demand. This trend is anticipated to last until 2023. However, the market is anticipated to rise as a result of robust crop production in Asian nations, particularly in China and India, as well as the need to replace old machinery.
One of the barriers to the adoption of agricultural equipment, particularly for low-income farmers, is expected to be the high initial cost of such equipment. One of the new revenue sources for market growth to overcome such obstacles is anticipated to be the rental industry.
Additionally, a number of startups are already working on creating tools that would facilitate communication among farmers. The farmers will be able to connect with local rental businesses with the aid of these applications. During the projection period, favourable government initiatives are likely to fuel market expansion. For instance, the Russian government has proposed a number of subsidies for many strategically important sub-sectors, such as the production of meat and milk, in an effort to spur investment in capital acquisitions.
Due to the labour shortage and rising population to fulfil the world’s food needs, tractors have become essential for boosting productivity in the agricultural sector, accounting for the greatest revenue share of over 30%. The rise has also been boosted by the promotion of farm mechanisation and the expanding use of precision farming in areas like Asia Pacific and Latin America.
For market players, the advent of electric tractors is expected to represent a considerable growth opportunity. The growth is attributed to the electric tractors’ cost-effectiveness as well as their great efficiency and environmental friendliness. However, it is anticipated that their adoption will be hampered over the predicted period due to a lack of energy density to support big field operations.
Farm loan waiver programmes encourage farmers to purchase agricultural machinery. Governments around the world introduced a number of programmes to free farmers from debt and promote farm mechanisation. According to the Organization for Economic Co-operation and Development’s (OECD) 2019 Agricultural Policy Monitoring and Evaluation, farm policies in 53 countries—all OECD, EU countries, and 12 important emerging economies—provided direct support to farmers worth an average of USD 728 billion annually from 2018 to 2020. For instance, the Mahatma Phule Farm Loan Waiver Scheme was introduced by the Maharashtra (India) government in December 2019. A programme called the Maharashtra Agro Business Network Project (Magnet) for small and marginal fruit and vegetable growers was also announced in March 2021.
Global Agricultural Equipment Market: Major Players
- Greavers Cotton Limited
- Force Motor Limited
- VST Tillers Tractors Limited
- Shivagrico Implements Limited
- CNH Industries India Private Limited
- International Tractor Limited
- Tractor and Farm Equipment Limited
- John Deere India Private Limited
- Escorts Limited
Global Agricultural Equipment Market: Types
- Less than 50 HP
- 50 to 75 HP
- 76 to 100 HP
- 101 to 150 HP
- Greater than 150 HP
Global Agricultural Equipment Market: Applications
- Rotovators & Cultivators
- Seed & Fertilizer Drills
- Other Equipment
Global Agricultural Equipment Market: Regional Analysis
All the regional segmentation has been studied based on recent and future trends, and the market is forecasted throughout the prediction period. The countries covered in the regional analysis of the Global Agricultural Equipment market report are U.S., Canada, and Mexico in North America, Germany, France, U.K., Russia, Italy, Spain, Turkey, Netherlands, Switzerland, Belgium, and Rest of Europe in Europe, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, China, Japan, India, South Korea, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), and Argentina, Brazil, and Rest of South America as part of South America.
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