Farm Mechanization Market in India 2016-2020

Farm mechanization market outlook in India

Technavio’s market research analysts have envisaged that the farm mechanization market in India will grow at a rapid pace and will post an impressive CAGR of more than 7% over the forecast period. Farm mechanization provides various economic and social benefits to farmers like a significant improvement in crop yield, as there is a direct relationship between farm power and productivity.

Moreover, farm mechanization also helps in increasing the efficiency of agricultural labor and reducing labor and workloads. It also aids in improving the harvest and reducing post-harvest losses. Such benefits help the farmers to reduce production costs and earn extra income. Furthermore, with the predicted water scarcity in the future, along with the increasing need to ensure food security in the country, the benefits of farm mechanization will be a vital component in shaping the future of the Indian agriculture sector.

Farm mechanization market trends

The increasing adoption of tractors using alternative fuels is one of the significant trends propelling the growth prospects of this market in the coming years. As fuel and tractor technologies have evolved considerably over the years, most tractors now run on liquefied natural gas, CNG, kerosene, vegetable oil, diesel, and propane. Due to the rise in the price of conventional fuels and growing concerns over environmental pollution, farmers are shifting to alternative fuels to power farm machinery. Although bio-diesel tractors are expensive, most farmers prefer them as they provide lower operating costs than conventional tractors.

Farm mechanization market share: Competitive landscape and key vendors

The farm mechanization market in India is highly fragmented owing to the presence of diversified global and regional vendors. However, as the international vendors are striving to increase their footprint in the market, the local vendors are finding it increasingly difficult to compete with them in terms of quality, technology, and pricing. The market has the presence of many vendors that provide plowing and cultivation machinery at lower costs. John Deere, Mahindra, International Tractors, and TAFE are some of the important players in the market. The competitive environment in this market will intensify further with an increase in product and service extensions, technological innovations, and M&A.

Key vendors in the farm mechanization market

• John Deere
• Mahindra
• TAFE
• International tractors

Farm mechanization market product segmentation

• Tractor
• Harvester
• Power tiller
• Rice transplanter
• Laser and leveler

The tractor segment is one of the highest revenue generating sectors in the farm mechanization market and is expected to reach close to USD 8 billion by 2020. Factors such as the increasing rate of farm mechanization and the low availability of manual labor are likely to boost this segment’s growth in the future. Moreover, the growth of the rural sector supported by government subsidies for food, fertilizers, agricultural equipment, and programs to waive farm loans have helped the tractor market in India grow robustly.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the farm mechanization market in India?
• What are the key market trends impacting the growth of the farm mechanization market in India?
• What are the challenges to market growth?
• Who are the key vendors in the farm mechanization market in India?
• What are the market opportunities and threats faced by the vendors in the farm mechanization market in India?
• What are the trending factors influencing the market shares of India?
• What are the key outcomes of the five forces analysis of the farm mechanization market in India?

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