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The UK agricultural machinery market size is estimated to grow by USD 491.4 million at a CAGR of 3.14% between 2023 and 2028. The market's expansion hinges on several factors, including the increasing popularity of agriculture machinery rentals, the acquisition of local players by global companies, and the integration of AI in agricultural machinery. These elements collectively drive the market's growth, reflecting a shift towards more flexible and cost-effective solutions in the agriculture sector. Moreover, the trend of agriculture machinery rentals allows farmers to access advanced equipment without the burden of ownership, fostering efficiency and productivity. Additionally, strategic acquisitions by global companies enhance their market presence and offerings, while the integration of AI technology brings advanced capabilities to agricultural machinery, further optimizing operations and driving market growth. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
Market Forecast 2024-2028
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The land development and seedbed preparation segment is estimated to witness significant growth during the forecast period. One of the crucial steps in agricultural practices includes land development and seedbed preparation. The main process involved in land development and seedbed preparation includes preparing the soil to create an optimal environment for seed germination, root development, and plant growth.
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The land development and seedbed preparation segment was the largest segment and was valued at USD 1.19 billion in 2018. There is a rising demand to meet the growing food demands of the global population. Some of the applications of these types include clearing vegetation, leveling land, and preparing the soil for planting. Agricultural machinery, such as tractors equipped with various implements, such as plows, harrows, and cultivators, are crucial for seedbed preparation. hence, such applications are expected to drive the growth of this segment which in turn will drive the market during the forecast period.
Based on type, the segment is classified into tractors, harvesting machinery, haying machinery, and planting and fertilizing. Tractors are one of the essential equipment in the agricultural sector which helps the farmers with various tasks such as plowing, tilling, planting, harvesting, and general farm maintenance. One of the key factors that drive the demand for tractors is the need for efficient and mechanized farming operations. Additionally, there is a growing adoption of precision farming techniques and using advanced products among farmers in the UK to improve productivity and efficiency. Some of the advanced features in tractors include GPS guidance, telematics, and precision applications, which enable precise operations, reduce input wastage, and optimize yields, which in turn will drive the growth of this segment during the forecast period.
The market is experiencing significant growth with the introduction of automated agricultural equipment. Companies like AGCO Corporation and John Deere are leading the market with innovative solutions. The market also sees the emergence of new players like GUSS Automation and Electric GUSS, offering advanced technologies to address challenges such as labor shortage and cost-cutting. These technologies include both automatic and semi-automatic equipment that help improve crop yield while reducing reliance on human labor. Events like the Commodity Classic trade show showcase the latest advancements in agricultural mechanization, further driving the adoption of modern tractors and farm equipment. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
One of the key factors driving the market growth is the growing popularity of agriculture machinery rentals. Due to the emergence of several technologies, there is a rapid evolution in the features of certain agricultural machinery. In the UK, leasing has become a cost-effective solution for farmers with limited capital, as it offers farmers access and use of the latest high-tech without a significant investment.
Some of the key advantages of renting include improved efficiency, precision, and productivity offered by modern equipment. it also eliminates the initial costs of purchasing machinery, reduces maintenance and repair expenses, and avoids depreciation costs. Furthermore, renting offers flexibility for farmers in terms of equipment selection. Hence, such factors are expected to drive the market in the UK during the forecast period.
A key factor shaping the market growth is the technological advancements in agricultural machinery. Some of the significant technological developments in the market include improved equipment efficiency, connectivity, automation, and data integration. There is a growing demand for these among farmers due to these advanced technologies as they offer increased productivity, precise application of inputs, data-driven decision-making, and improved overall farm management.
Furthermore, several autonomous and robotic technologies are emerging in the agricultural sector such as self-driving tractors, robotic weeders, and harvesters are developed to perform tasks with precision and reduce labor requirements. These technologies improve operational efficiency, reduce human error, and enable 24/7 operation. Hence, such factors are expected to drive the market during the Market forecasting period.
Cost and maintenance are one of the key challenges hindering the market growth. To innovate and develop new technologies, manufacturers in the UK invest heavily in research and development (R&D). Hence, such costs incurred during the R&D such as testing, prototyping, and refinement are often included in the pricing of these machineries.
Furthermore, there is an increase in the cost of manufacturing as these types of products are becoming sophisticated, incorporating advanced technologies such as GPS, telematics, robotics, and data analytics. Additionally, several high-quality materials such as steel and specialized alloys, are used in production to ensure durability and longevity, which in turn increases the price. Hence, such factors are expected to hinder the market during the forecast period.
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 offers agricultural machinery such as tractors, combines, sprayers, and hay equipment manufactured under brands like Massey Ferguson, Fendt, and Challenger.
Agriweld Ltd: The company offers agricultural machinery such as agricultural equipment including attachments, trailers, and handling solutions designed for enhanced efficiency and productivity.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides 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 Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is transforming with the integration of IoT-based and AI-based equipment. Companies like Sonalika and SMAM are at the forefront, offering advanced mechanized tools that enhance food cultivation practices. The market also sees a rise in drones and equipment with GPS, enabling precision farming and improved plant protection. Factors such as low-interest rates and low import duties further fuel the adoption of modern farm tractors and monitoring tools. With rapid urbanization encroaching on arable land, the need for efficient labor-saving equipment is critical, driving ongoing product innovations and investment plans in the sector.
The market is experiencing significant advancements with the adoption of automatic equipment and IoT-based equipment. Initiatives such as RKVY and NFSM aim to enhance farming practices through digitalization and modern machinery. The market is witnessing a growing interest from private companies, microfinance institutions, and banks in providing financial support and credit to farmers. New technology is driving the development of innovative product types, particularly in areas like harrowing and monitoring tools, aimed at reducing labor costs and increasing efficiency. Collaboration through joint ventures is also playing a key role in introducing cutting-edge solutions to the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
132 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.14% |
Market growth 2024-2028 |
USD 491.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.04 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGCO Corp., Agriweld Ltd., Browns Agricultural, Bucher Industries AG, CLAAS KGaA mBH, Claydon Yield o Meter Ltd., CNH Industrial NV, Deere and Co., Frans Vervaet B.V., J C Bamford Excavators Ltd., K Two Sales Ltd., Kubota Corp., Loglogic, Mahindra and Mahindra Ltd., Manitou BF SA, OPICO Ltd., SDF SpA, Sumo Farm Machinery, Teagle Machinery Ltd., and TECNOMA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
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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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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