Growing adoption of mechanization to improve farm efficiency and increasing government subsidies & incentives are expected to fuel the demand for the farm equipment market
The farm equipment market is projected to grow at a CAGR of 4.04% during the forecast period, to reach a market size of USD 135.2 billion by 2025 from USD 102.5 billion in 2018. Factors such as rising global population, increased mechanization owing to shortage of skilled labor and increasing labor wages, increasing government support/subsidies and other financial aid, and rising demand for improved operational efficiency are the key drivers for the farm equipment market. Alternatively, the high cost of farm equipment such as balers and sprayers and the growing presence of unorganized players are a few concerns of this market.
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Four-wheel drive is projected to grow at the highest rate in the farm tractors market during the forecast period
Four-wheel drive is anticipated to be the fastest growing market for farm tractors during the forecast period. The growth of this segment can be attributed to the increased use of high powered farm tractors in regions such as Europe owing to considerably large farmland and changing farmers’ investment capabilities. The four-wheel drive farm tractors offer better traction, power, maneuverability, and performance as compared to two-wheel drive farm tractors. Additionally, as four-wheel drive farm tractors have better pulling capacity than conventional two-wheel drive farm tractors, they are the better option for pulling larger load implements. India, China, and Russia have witnessed increased usage of four-wheel drive tractors. Initially, the four-wheel drive was offered in tractors with 100 hp to 120 hp power output. However, some suppliers in the Asia Oceania region have now started offering a four-wheel drive option in 30–70 hp tractors. For instance, Mahindra and Mahindra launched four-wheel drive Novo tractors in 50–60 hp range that can be used for more than 40 different farming applications. Similarly, Kubota offers four-wheel drive option in smaller tractors. Leading global players such as John Deere, AGCO, and CNH Industrial offer four-wheel drive tractors worldwide. Thus, the market of four-wheel drive tractors is expected to show immense growth in coming years.
Cereal combines is projected to lead the combines market during the forecast period
The cereal combine is anticipated to be the largest and fastest growing market from 2018 to 2025. The demand for cereals crops such as rice, wheat, pulses, and corn has shown significant growth and is expected to grow further in coming years. For instance, the Food and Agriculture Organization (FAO) of the United Nations anticipated an increase in rice production by 1.3% to 506 million tons in the year 2017–2018. Also, according to the statistics of the United States Department of Agriculture (USDA), the global wheat crop production accounted for approximately 30% of all types of grains during 2016–2017. Increasing demand for crops at the global level has accentuated the need for combines to expedite the whole process. Further, Asia Oceania leads the cereal combines market. Countries such as China and India have the highest demand (almost 85%–90%) in the region. Europe is estimated to be the second largest market. Due to the large sizes of farmland, large size combines are preferred in the region. Russia, Germany, and France are prominent markets for cereal combines that almost hold 70-75% of the total market share in the region. As per “Russian Association of Specialized Machinery and Equipment Manufacturers publication”, the Russian combines market had shown exponential growth of about 16.64% from 2015 to 2017. A similar trend is anticipated to continue that augurs well for the growth of the market in this region.
Asia Oceania: The largest and fastest growing farm tractors market
The Asia Oceania region is estimated to be the largest and fastest growing market for farm tractors during the forecast period. The growth of the farm tractors market in Asia Oceania can be attributed to rising population, noticeable government initiatives at the country level, and shift toward modern farm practices to meet the growing demand for food. According to the United Nations Department of Economic and Social Affairs (UN DESA) report, China and India contributed 19% and 18% to the global population, respectively while overall Asia accounted for around 59% of the global population in 2015. As per UN DESA, India is expected to surpass China and will have the largest population by 2022. Additionally, considering the small hectare of agricultural land per farmer, the farmers are under immense pressure to cope with the increased demand for food. There is a substantial need to enhance the productivity of available land that has resulted in the rapid growth of mechanization. All these factors are expected to drive the farm tractors market in this region.
BREAKDOWN OF PRIMARIES
The study contains insights provided by various industry experts, ranging from equipment manufacturers, OEMs, and Tier-1 suppliers to regional associations members.
The break-up of the primaries is as follows:
- By Company Type – OEM–72%, Tier-1–28%
- By Designation: C level–48%, D Level–36%, Others–16%
- By Region: Europe–43%, North America–32%, and Asia Oceania–25%
The report provides detailed profiles of the following companies:
- John Deere (US)
- AGCO Corporation (US)
- CNH Industrial (UK)
- CLAAS (Germany)
- Kubota (Japan)
- Mahindra & Mahindra (India)
- SDF Group (Italy)
- J C Bamford Excavators (UK)
- Iseki (Japan)
- The primary objective of the study is to define, describe, and forecast the farm equipment market, by value and volume.
- The study covers the farm equipment market, by power output (<30 HP, 31–70 HP, 71–130HP, 131–250HP, >250 HP), drive type (two-wheel drive, four-wheel drive), autonomous farm tractor by power output (<30 HP, 31–100 HP, and >100 HP), equipment type (combines, balers, and sprayers), and implements market, by function (plowing & cultivating, sowing & planting, plant protection & fertilizing, harvesting & threshing, and others).
- It analyzes the opportunities offered by various segments of the market to the stakeholders. It tracks and analyzes competitive developments such as market ranking analysis, expansions, joint ventures, acquisitions, and other industry activities carried out by key industry participants.
Reasons for buying the report
- The study provides qualitative and quantitative analysis of farm tractors market (by power output and drive type), in terms of volume (’000 units), and value (USD million), at country and regional level.
- The study provides qualitative and quantitative analysis of autonomous tractors, by power output, in terms of volume (’000 units) and value (USD million), at regional level. The study analyzes the farm equipment market, by equipment type, in terms of volume (’000 units) and value (USD million), at regional level.
- The study also provides qualitative and quantitative analysis of implements market, by function, represented in terms of value (USD million) at regional level.
- The study also provides qualitative and quantitative analysis of farm equipment market, by equipment type, represented in terms of value (USD million) at regional level.
- The study includes the profiles of the key ten companies, which have a significant impact on the market, along with their financial structure, recent developments, and product portfolio.
- The report covers the competitive landscape, which reflects the market ranking analysis of leading players along with the dominant strategy adopted by these stakeholders to retain their position.