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The agricultural harvester market size is forecast to increase by USD 25.37 billion at a CAGR of 8.39% between 2023 and 2028. The market is driven by a convergence of factors. A critical farm labor shortage in the agriculture sector underscores the urgent need for mechanization. Government initiatives aimed at supporting harvesting mechanization further drive market growth. Moreover, the integration of technological advancements in agricultural harvesters enhances efficiency, productivity, and yield, positioning the market for significant expansion. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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The market plays a significant role in the global agricultural industry, particularly in developed and developing countries. Farmers rely on these machines to efficiently and effectively harvest various crops, such as grains, fruits, and vegetables. Farmers use a variety of harvesters, including combine harvesters, forage harvesters, and fruit harvesters. These machines utilize advanced technologies like sensors, GPS, and automation to optimize yield and reduce waste. The labor-saving benefits make them indispensable in modern agriculture. The market is driven by factors like increasing agricultural productivity, growing demand for food, and technological advancements. Economies of scale and government subsidies also contribute to the growth of this market. The market is expected to continue its robust growth in the coming years. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The farm labor shortage in the agriculture sector is the key factor driving the global market growth. The agriculture sector is experiencing a significant labor shortage in key producing countries, including the US, UK, and India. This issue is driving the demand for modern farm equipment, particularly agricultural harvesters, in these nations. In the US, California, a major food producer accounting for over 14.3% of the country's agricultural value, is grappling with a severe labor shortage, according to the California Farm Bureau Federation. Farmers are turning to farm mechanization to mitigate this challenge. Self-propelled and hydraulic segment harvesters are popular choices for threshing, reaping, and winnowing cereals and grains.
The Agriculture Department and Agriculture Infra Fund are investing in manufacturing costs to produce larger grain tank size harvesters, such as those used for wheat harvesting. Modern farm equipment, including self-propelled harvesters with high horsepower diesel engines, like those from Massey Ferguson, and hydraulic agricultural machinery, are essential for farm labor cost reduction. Wheeled extractors and hydraulic agricultural machinery are also crucial components of the farm mechanization process.
Growth in the popularity of self-propelled forage harvesters with 3D cameras will fuel the global market growth. Harvesting is a critical agricultural operation that requires timely execution to maximize yield and produce quality. Traditional methods like manual reaping and threshing have given way to more efficient mechanical harvesters, such as combine harvesters and forage harvesters. These modern farm equipment pieces streamline the process of threshing, winnowing, and harvesting cereals and grains. The self-propelled segment and hydraulic segment are popular choices due to their versatility and efficiency.
Key factors driving the market include the Agriculture Department's push for farm mechanization, the Agriculture Infra Fund's investments in manufacturing costs, and the labor shortage leading to increased farm labor costs. Self-propelled harvesters with large grain tank sizes, hydraulic agricultural machinery, and diesel engines with high horsepower (e.g., Massey Ferguson) are popular choices. Wheeled extractors are also gaining traction due to their adaptability and fuel efficiency. Overall, the market is evolving to meet the demands of modern farming practices.
High initial and operating costs of agricultural harvesters can majorly impede the growth of the market. The agriculture sector is experiencing significant growth, with various governments, including the US, India, Brazil, and China, investing in modern farm equipment to boost crop production. The USDA, through its Farm Service Agency, offers farm operating loans to support farmers in acquiring self-propelled and hydraulic agricultural machinery for threshing, reaping, and winnowing cereals and grains. Modern farm equipment is essential for efficient production and higher-quality crops and silages.
The Agriculture Department and Agriculture Infrastructure Fund provide financial assistance to farmers to purchase these machines, addressing manufacturing costs and labor shortages. Self-propelled harvesters, with hydraulic segments and large grain tanks, are popular choices for wheat production. Manufacturers like Massey Ferguson produce hydraulic agricultural machinery with high horsepower diesel engines to meet farmers' needs. Wheeled extractors are also utilized for efficient harvesting. Farm mechanization and the use of modern farm equipment are crucial to addressing labor shortages and reducing farm labor costs.
The combine harvesters segment will contribute a major share of the market, as it has a larger fuel capacity and can provide good productivity with minimal losses. The combine harvesters segment showed a gradual increase in the market share with USD 31.63 billion in 2018. A combine harvester can combine the three operations, namely harvesting, threshing, and screening, into one process. Combines are classified into self-propelled combines, track-type combines, and tractor-type combines according to the type of product. The self-propelled combine has a large capacity diesel tank to minimize grain breakage, improve grain cleanliness and improve maneuverability in wet, soft soil fields. Self-propelled combines are ideal for harvesting crops such as wheat, rice, soybeans, mustard, and sunflowers.
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The global agricultural market features major players such as AGCO, Deere, CLAAS, and CNH Industrial, who manufacture combine harvesters for cereals and grains production. These machines perform three functions - reaping, threshing, and winnowing - in a single process. Self-propelled segment harvesters, with large hydraulic grain tanks and powerful diesel engines, offer advantages like minimal grain breakage, higher cleanliness, and maneuverability in challenging soil conditions. Modern farm equipment, including self-propelled harvesters, is a crucial aspect of farm mechanization, funded by entities like the Agriculture Department and Agriculture Infra Fund. Manufacturing costs and labor shortages, leading to increased farm labor costs, drive the demand for efficient, hydraulic agricultural machinery like self-propelled harvesters and wheeled extractors, which feature high horsepower diesel engines. Massey Ferguson is another key player in the hydraulic agricultural machinery sector.
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Europe is estimated to contribute 32% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
In Europe, the market is expanding due to labor scarcity and government initiatives promoting farm mechanization. Farmers prefer self-propelled forage harvesters for increased productivity and yield. Developing economies also prioritize agricultural machinery equipment for higher process speed and product quality. Key players in the global market include New Holland Fiat, Sampo-Rosenlew from Finland, and combine harvester manufacturers like Trimble and their S-series. Government initiatives, such as farm mechanization programs and subsidies, support this trend. Traditional plowing methods give way to electronic sensing and cloud-based processing for optimal yield and quality. Developing countries like India also invest in mechanization through programs like Precision Planting and Harvest Automation. The total import value of agricultural machinery continues to rise, with combine harvesters being a significant component. Wheat sowing and paddy fields in various regions benefit from these advancements.
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.
Bernard KRONE Holding SE and Co. KG: The company is involved in manufacturing and selling advanced farming equipment across the world.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AGCO Corp., Bucher Industries AG, CHANGFA, Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., China National Machinery Industry Corp. Ltd., CLAAS KGaA mBH, CNH Industrial NV, Daedong Corp., Deere and Co., HORSCH Maschinen GmbH, ISEKI and Co. Ltd., J C Bamford Excavators Ltd., Kubota Corp., Mahindra and Mahindra Ltd., SDF SpA, Sonalika International Tractors Ltd., Tractors and Farm Equipment Ltd., Weichei Lovol Heavy Industry Co. Ltd., and Yanmar Holdings Co. Ltd.
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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Agriculture sector in India receives significant support from the Government through various subsidy policies, including the Rashtriya Krishi Vikas Yojna (RKVY) and the National Food Security Mission (NFSM). Traditional plowing methods are being replaced by mechanisation to enhance farming efficiency and productivity. Factors such as labor scarcity and the need for quality harvest necessitate the adoption of advanced farming technologies.
Moreover, the Global harvesters market is witnessing a surge due to the increasing demand for mechanical means to address labor scarcity and improve yield. The Indian market is particularly active, with leading manufacturers showcasing their offerings at agricultural trade shows like Agritechnica. For instance, S-series combine harvesters and Hybrid Double Rotary Combine Harvesters are popular choices. These harvesters are equipped with diesel engines and are designed with tailored features to cater to the specific needs of farmers.
Furthermore, the Indian Government's subsidy policies, such as the provision of subsidies on agriculture machinery, play a crucial role in making these advanced technologies accessible to farmers. The focus on enhancing the quality of yield and addressing labor scarcity through mechanical means is a significant trend shaping the Agriculture sector in India.
Industry Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.39% |
Market growth 2024-2028 |
USD 25.37 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.74 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 32% |
Key countries |
US, Germany, China, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGCO Corp., Bernard KRONE Holding SE and Co. KG, Bucher Industries AG, CHANGFA, Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., China National Machinery Industry Corp. Ltd., CLAAS KGaA mBH, CNH Industrial NV, Daedong Corp., Deere and Co., HORSCH Maschinen GmbH, ISEKI and Co. Ltd., J C Bamford Excavators Ltd., Kubota Corp., Mahindra and Mahindra Ltd., SDF SpA, Sonalika International Tractors Ltd., Tractors and Farm Equipment Ltd., Weichei Lovol Heavy Industry Co. Ltd., and Yanmar Holdings Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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