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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.
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.
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.
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.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Global agricultural sector: An overview
PART 06: Market landscape
PART 07: Market segmentation by product
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Appendix
PART 15: Explore Technavio
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