Agricultural Harvester Market by Product , Type, and Geography - Forecast and Analysis 2023-2027

Agricultural Harvester Market Forecast 2023-2027

The agricultural harvester market size is forecast to increase by USD 22.51 billion at a CAGR of 8.05% between 2022 and 2027. The market is propelled 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.

What will be the Size of the Agricultural Harvester Market During the Forecast Period?

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The market faces a blend of challenges and opportunities influenced by various factors. Government-backed subsidy policies aim to incentivize agricultural mechanization, driving market growth. Traditional plowing methods, while rooted in heritage, pose constraints, prompting the need for efficient harvesting solutions to meet quality harvest demands. Additionally, factors such as labor scarcity drive the adoption of mechanical means and agriculture machinery, contributing to increased yield and improved quality of produce, shaping the trajectory of the market.

Market Segmentation 

This report extensively covers market segmentation by product (combine-harvesters and forage-harvesters), type (four-wheel drive-harvesters and two-wheel-drive harvesters), and geography (Europe, North America, APAC, South America, and Middle East and Africa). The market plays a significant role in the global agricultural industry. This market consists of various types of harvesters used for reaping crops, including grain harvesters, fruit harvesters, and sugarcane harvesters. The market is driven by several factors, such as the increasing demand for food due to population growth and the need for efficient farming methods. Moreover, technological advancements in agricultural machinery have led to the production of more sophisticated harvesters, such as those with yield monitors and automated steering systems.

These innovations have increased productivity and reduced labor costs, making harvesters an essential tool for modern farming. The market is also influenced by factors such as government policies, subsidies, and regulations. For instance, in some countries, subsidies are provided to farmers to purchase modern agricultural equipment, including harvesters. Furthermore, the market is expected to grow in the coming years due to the increasing trend towards mechanized farming and the need to increase agricultural productivity to meet the growing demand for food. Overall, the market is a critical component of the global agricultural industry, providing farmers with the tools they need to efficiently and effectively harvest their crops.

Product Analysis

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 29.52 billion in 2017 and continued to grow until 2021. 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.

Regional Analysis

Europe is estimated to contribute 33% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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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.

Market Dynamics and Customer Landscape

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 laborsaving 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 2022 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. 

Key Market Driver

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.

Significant Market Trends

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.

Major Market Challenge

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.

Who are the Major Market Companies?

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.

AGCO Corp: The company is involved in manufacturing and selling different agricultural machinery equipment. 

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 18 market companies, including:

• 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.
• Yanmar Holdings Co. Ltd.

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Market Analyst Overview

The market is experiencing significant growth due to the increasing demand for mechanized farming solutions. Farmers are constantly seeking ways to increase productivity and reduce labor costs, leading to a surge in the adoption. These machines play a crucial role in the farming process, particularly in the harvesting of crops such as grains, sugarcane, and fruits. The Farmers and Agricultural Workers are the primary consumers of Agricultural Harvesters. The machines come in various types, including Combine Harvesters, Sugar Cane Harvesters, and Rice Harvesters. The Producers and Distributors of these machines form an essential part of the ecosystem.

Factors driving the growth include the increasing agricultural population, the need for labor-saving technologies, and government initiatives to promote mechanized farming. Additionally, the ongoing trend towards precision farming and the adoption of IoT technologies in Agriculture are expected to provide further impetus to the market. The Market for Agricultural Harvesters is highly competitive, with major players including Deere & Company, CNH Industrial, and AGCO Corporation. These companies are investing heavily in Research and Development to bring innovative products to the market and expand their market share. Overall, the market is poised for strong growth in the coming years.

The market faces a myriad of challenges and opportunities. Government backed subsidy policies aim to incentivize farmers to invest in modern agricultural machinery, yet the market is hindered by factors such as labour scarcity and the persistence of traditional plowing methods. However, there is a growing recognition of the need for quality harvest and yield, driving demand for advanced harvesting technologies. Agricultural labour is increasingly scarce, emphasizing the importance of efficient harvesters. To address these challenges, manufacturers are innovating to enhance the quality of yield and optimize labour efficiency. Despite factors restraining market growth, the global market holds promise for growth, spurred by the imperative for modernization and improved productivity in farming practices.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Combine-harvesters
  • Forage-harvesters

• Type Outlook 
  • Four-wheel drive-harvesters
  • Two-wheel drive-harvesters

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.05%
Market growth 2023-2027	USD 22.51 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.46
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 33%
Key countries	US, Canada, China, Germany, and UK
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 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 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting 
  between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across Europe, North America, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

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