Enjoy complimentary customisation on priority with our Enterprise License!
The agricultural machinery market share is expected to increase to USD 45.98 billion from 2021 to 2026 at a CAGR of 5.87%.
This agricultural machinery market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers agricultural machinery market segmentation by product (tractors, harvesting machinery, parts and attachments, planting and fertilizing machinery, plowing and cultivating machinery, and haying machinery) and geography (APAC, Europe, North America, South America, and Middle East and Africa)
Download the Free Report Sample to Unlock the Agricultural Machinery Market Size for the Forecast Period and Other Important Statistics
"The China agricultural machinery market generates a major part of its revenue from APAC mainly because of the growing population in this region, which gradually boosts the demand for food."
The agricultural machinery market report also offers information on several market vendors, including AGCO Corp., Agrale SA, Bucher Industries AG, CHANGFA GROUP, Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., CLAAS Group, CNH Industrial NV, Daedong Corp., Deere and Co., Escorts Ltd., HORSCH Maschinen GmbH, ISEKI and Co. Ltd., Kubota Corp., Mahindra and Mahindra Ltd., SDF SpA, Sonalika International Tractors Ltd., Weichei Lovol Heavy Industry Co. Ltd., Yanmar Holdings Co. Ltd., China National Machinery Industry Corp. Ltd., and J C Bamford Excavators Ltd. among others.
Technavio categorizes the global agricultural machinery market as a part of the global agricultural and farm machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the agricultural machinery market during the forecast period.
The global agricultural and farm machinery market covers companies that manufacture agricultural and farm machinery and related parts. This includes agricultural tractors, haying machinery, harvesting machinery, planting machinery, livestock machinery, spraying machinery, tillage machinery, and irrigation systems. Meanwhile, the government initiatives to support sustainable agricultural practices are notably driving the India agricultural machinery market growth. Technavio calculates the global agricultural and farm machinery market size based on the revenues generated by the manufacturers of various types of agricultural and farm machinery.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the agricultural machinery market encompasses successful business strategies deployed by the key vendors. The agricultural machinery market is fragmented and the vendors are deploying growth strategies such as new product launches to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The agricultural machinery market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
The government subsidies to promote the agricultural sector is notably driving the agricultural machinery market growth, although factors such as the availability of agricultural tractors on a rental basis may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the agricultural machinery industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Agricultural Machinery Market Driver
One of the key factors driving the global agricultural machinery market growth is the government subsidies to promote the agricultural sector. For instance, in October 2019, the Brazilian government announced a package of more than USD 244 billion toward the subsidy and insurance given to farmers. In 2020, the government of India provided an 80% subsidy on machinery and equipment to maintain the stubble for farmers. German farmers also receive an annual payment from the European Union for their farm investments, which will drive Germany agricultural machinery market growth. Moreover, according to Researchers behind the OECD's Agricultural Policy Monitoring and Evaluation 2020, which was conducted on 54 countries (all OECD and EU countries, plus 12 key emerging economies), over USD 700 billion a year goes to support the agricultural sector in some form of subsidy by the government. Such government support to improve the agriculture sector globally will drive the demand for agriculture machinery during the forecast period.
Key Agricultural Machinery Market Trend
Increased popularity of small tractors is one of the key agricultural machinery market trends that is expected to impact the industry positively in the forecast period. Most countries that depend on agriculture as a larger portion of the gross domestic product such as US will drive US agricultural machinery market during the forecast period. Here the mechanization of farming is low and is mostly human labor-based practice. The OEMs in these regions generally offer tractors in the low-power range. On account of their small size, these tractors provide enhanced performance and efficiency. Most vendors in the agricultural machinery market in India offer a wide range of small tractors. For instance, Kubota offers a full line-up of small tractors, including the BX Series, B Series, L Series, and M Series. Also, in 2020, Massey Ferguson launched five compact tractors as part of the new 1800E and 2800E series. Such factors will further support the market growth in the coming years.
Key Agricultural Machinery Market Challenge
One of the key challenges to the global agricultural machinery market growth is the availability of agricultural tractors on a rental basis. For instance, the Ministry of Agriculture and Farmers Welfare in India developed a farm equipment rental app, a Custom Hiring Center (CHC) app for Indian farmers, which covers the more than 38,000 CHCs across the country and lets them hire tractors and other agricultural machinery on rent at flexible terms. For instance, firms like Pacific Rental and Sunbelt Rentals are among the many other companies that facilitate farmers with renting, financing, and leasing options for agricultural equipment and tractors. Since the average use of a tractor for a farmer is around 120 days in a year, it is much more feasible for a small-scale farmer to rent the equipment instead of purchasing it, which will negatively impact the market growth in the forecast period.
This agricultural machinery market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
For more insights on the market share of various regions Request for a FREE sample now!
40% of the market's growth will originate from APAC during the forecast period. China, India, and Indonesia are the key markets for agricultural machinery in APAC. Market growth in this region will be faster than the growth of the market in North America and Europe.
The significant increase in the demand for food, owing to the growth in population in countries such as India and China, will facilitate the agricultural machinery market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 had a major impact on the agriculture sector. Lockdowns negatively impacted crop production and distribution in the region. Due to this negative effect of the pandemic, farmers did not prefer investing in agricultural machinery. Thus, reduced sales of agriculture machinery were witnessed in 2020. However, government efforts and policies improved the agriculture sector and will help in market recovery during the forecast period.
Our report provides extensive information on the value chain analysis for the agricultural machinery market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
To gain further insights on the market contribution of various segments Request for a FREE sample
The agricultural machinery market share growth by the tractors segment will be significant during the forecast period. The growth is attributed to the high demand for tractors owing to their application in farming activities such as plowing, tilling, planting, harrowing, leveling, weed control, and others and the availability of different kinds of agricultural tractors such as utility tractors, row crop tractors, orchard type, implement carrier, earth-moving tractors in the market.
This report provides an accurate prediction of the contribution of all the segments to the growth of the agricultural machinery market size and actionable market insights on post COVID-19 impact on each segment.
Farm Equipment market - The market share is expected to increase by USD 33.65 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.96%.
Farm Equipment Rental market - The market share is expected to increase by USD 14.89 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 7.78%.
Agricultural Tractor market - The market size is expected to grow by 147.94 thousand units and record a CAGR of 1.91% during 2021-2025.
US Agricultural Machinery market - Technavio's market research analysts predict that this market will grow at a CAGR of more than 5% by 2021.
|
Agricultural Machinery Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
120 |
|
Base year |
2021 |
|
Forecast period |
2022-2026 |
|
Growth momentum & CAGR |
Decelerate at a CAGR of 5.87% |
|
Market growth 2022-2026 |
$ 45.98 billion |
|
Market structure |
Fragmented |
|
YoY growth (%) |
6.6 |
|
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 40% |
|
Key consumer countries |
US, China, India, Indonesia, and Brazil |
|
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
|
Key companies profiled |
AGCO Corp., Agrale SA, Bucher Industries AG, CHANGFA GROUP, Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., CLAAS Group, CNH Industrial NV, Daedong Corp., Deere and Co., Escorts Ltd., HORSCH Maschinen GmbH, ISEKI and Co. Ltd., Kubota Corp., Mahindra and Mahindra Ltd., SDF SpA, Sonalika International Tractors Ltd., Weichei Lovol Heavy Industry Co. Ltd., Yanmar Holdings Co. Ltd., China National Machinery Industry Corp. Ltd., and J C Bamford Excavators 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 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 report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Product
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
