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The India - Agricultural Machinery Market size is forecast to increase by USD 6.76 billion, at a CAGR of 8.69% between 2023 and 2028. The growth rate of the market depends on several factors, such as the increasing government initiatives to support sustainable agricultural practices, the increasing availability of financing options for agriculture, and the increasing adoption of contract farming. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
AGCO Corp provides a range of agricultural machinery products, including items like belt conveyors, chain conveyors, drum dryers, DELTA screen cleaners, gravity separators, and more through its subsidiary brand, Cimbria. Meanwhile, the Amalgamations Group presents agricultural machinery products such as the TAFE 9502 with 90 hp, TAFE 9515 with 90 hp, TAFE 8502 with 80 hp, and TAFE 8515 with 80 hp under its subsidiary brand, Tractors and Farm Equipment Ltd.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The Government of India is aiming to integrate farmers with agro-industries to ensure that they get better prices for their produce, which, in turn, is fuelling the adoption of contract farming. In addition, contract farming is a seasonal pre-production agreement between farmers and marketing firms that enables the production and supply of agricultural products under forward agreements at predetermined prices.
Moreover, such contracts between farmers and buyers insulate farmers from price fluctuations in agricultural produce, help them to develop new skills and explore new markets. In addition, some of the advantages that farmers avail of in contract farming include hassle-free production along with a steady source of income. Furthermore, this practice is especially beneficial for small and marginal farmers, who, thereby, get to enjoy the additional advantage of operational efficiency. Hence, such factors are driving the regional market growth during the forecast period.
In India, a majority of farmers have small landholdings. Besides this, the number of private farms and orchards is also increasing in the country. Therefore, both these factors are leading to increasing demand for small tractors (less than 30 HP) as they can maneuver through the tight spaces that are typically encountered in small private farms and orchards.
Moreover, small tractors are considered easy to maintain as they offer easy access to engine components and have simple and practical maintenance points. In addition, on account of their small size, these tractors provide enhanced performance and efficiency. Furthermore, they also allow the user to maintain traction, turn tightly, choose the best speed, and run smooth hydraulics. Hence, such factors are regional driving the market growth during the forecast period.
Arable land is referred to as the land that can be plowed to plant and grow crops. Over the last few decades, the amount of arable land available for crop cultivation in India has been decreasing rapidly. For example, the arable land in India was around 51% in 2021, and it is expected to shrink further in the coming years.
Moreover, factors such as the rise in industrialization, urbanization, and demand for energy in India have led to a decline in arable land and its diversion to other purposes, such as construction. In addition, soil erosion and land pollution in the past decades have reduced the quality and capability of agricultural land in the country to grow crops, which has also contributed to the decline in the amount of arable land. Hence, such factors are hindering the regional market growth during the forecast period.
The tractor segment is estimated to witness significant growth during the forecast period. The integration of precision farming techniques using advanced tractors in agricultural operations will help to improve the agricultural output and aid it in growing further, and therefore, these tractors are expected to become popular among farmers in the coming years. In addition, tractors are classified based on their horsepower (HP). Small tractors with a capacity of less than 35 HP are used in small farms.
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The tractor segment was the largest segment and was valued at USD 7.53 billion in 2018. Moreover, medium tractors with a capacity of 35-50 HP and big tractors with a capacity of more than 50 HP are used on large farms. In addition, factors such as the growing shift toward mechanization in the Indian agriculture industry are driving the adoption of tractors. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the application, the market has been segmented into land development, harvesting, sowing and planting, and others. The land development segment will account for the largest share of this segment. The land development segment is considered one of the complicated processes that comprise evaluations, planning, designing, and constructing modifications on a plot of land by the municipal and government norms and regulations. In addition, some of the essential and most commonly used agriculture machinery for land development include rotavators or rotary tillers, plows, tractor-trailers, power harrows, levelers, and disc hallows. Moreover, the advancements in the agricultural machinery used in land development drive the growth of the land development segment. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Argo Tractors SpA: The company offers agricultural machinery products such as Valpadana 3000F, Valpadana 1500, McCORMICK X8 VT drive, McCORMICK X7.6 VT drive, McCORMICK X7.6 P6 drive.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Beri Udyog Pvt Ltd, Bucher Industries AG, CLAAS KGaA mBH, CNH Industrial NV, Daedong Corp., Deccan Farm Equipments Pvt. Ltd., Deere and Co., Escorts Ltd., ISEKI and Co. Ltd., JCBLGroup, Mahindra and Mahindra Ltd., POTTINGER Landtechnik GmbH, SDF SpA, Solis, Weichai Lewo Intelligent Agriculture Technology Co., Ltd., and LEMKEN GmbH and Co. KG
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The regional market is significantly influenced by government policies, aimed at improving farm incomes and addressing issues like the unavailability of labor and high labor wages. To enhance productivity, there's a shift towards modern techniques and advanced farm machinery. Farm mechanization is becoming crucial in a changing workforce preference scenario, where labor shortages are impacting traditional labor-intensive agricultural operations.
The adoption of automation, including engines, vehicles, and wagons, is on the rise, contributing to increased agricultural productivity. Business models like tractor hiring services for rental purposes are gaining traction, supported by investments and tractor exports. Significant players in the market, along with the Indian government, play key roles in shaping tractor sales and overall market dynamics. The focus is on optimizing farm-oriented activities, minimizing wastage, and improving yields of grains like wheat, barley, millet, and ragi.
India Agricultural Machinery Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.69% |
Market Growth 2024-2028 |
USD 6.76 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.35 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGCO Corp., Amalgamations Group, Argo Tractors SpA, Beri Udyog Pvt Ltd, Bucher Industries AG, CLAAS KGaA mBH, CNH Industrial NV, Daedong Corp., Deccan Farm Equipments Pvt. Ltd., Deere and Co., Escorts Ltd., ISEKI and Co. Ltd., JCBLGroup, Mahindra and Mahindra Ltd., POTTINGER Landtechnik GmbH, SDF SpA, Solis, Weichai Lewo Intelligent Agriculture Technology Co., Ltd., and LEMKEN GmbH and Co. KG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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