Agricultural Machinery Market - Forecast(2021 - 2026)

 

Agricultural Machinery Market Overview: 

As per the Food and Agriculture Organization of the United Nations, global population will mark an astonishing 9.1 billion figure by 2050 witnessing a surge of 34% and to feed these 9 billion mouths global agricultural expenses in developing countries would amount to $83 billion per annum[1]. To counterpart such unprecedented food production demand coupled with depleting arable land, efficient and mechanized agriculture are the main objectives and agricultural machineries are the tool to meet the objectives. The global agricultural machinery market size ranges from $170 billion to $175 billion as of 2018, and is forecast to grow at a CAGR of around 6% going through 2025. 

An acute regional analysis of this arcade indicates APAC region to have a major share ranging from 40% to 45% as of 2018. Such dominance can be mainly attributed to the monumental Indian and Chinese population indulged in agriculture and industrialization as well. FICCI (Federation of Indian Chambers of Commerce & Industry) stated that Indian agriculture sector contributes approximately 14% to India’s GDP.

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Agricultural Machinery Market Outlook:

Agricultural machineries cover a wide range of equipment employed at various stages of agriculture. The range varies from simplest tools such as hand trowel to threshing machines, slurry trailer and high-end engineered tractors. Irrigation machinery leads the application segment covering nearly 10% of the entire global agricultural machinery marketplace owing to harsh topography and weather conditions prevailing in majority of developing countries constituting a major chunk of global population. A classic example can be derived from a World Bank data which states that the Peru Sierra Irrigation Subsector Project made a substantial impact in increasing agricultural production and productivity ranging between 118 percent and 170 percent in targeted areas of the Peruvian Sierra[2]. 

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Agricultural Machinery Market Growth Drivers:

• As per the agricultural machinery market outlook foreseen via acute analysis by a recent IndustryARC business intelligence report, the agricultural machinery market is not solely dependent on the agricultural industry. Some of the other factors indirectly but positively influencing the market are agriculture finance and agriculture insurance initiated by The World Bank to aid the financially fragile agriculture production sector participants. The World Bank Group is a leading financier of agriculture, with $ 6.8 billion in new IBRD/IDA commitments in 2018[3]. 
• Other prominent factors equipped with tendency to support the agriculture machinery market for exponential growth are rise in research and development by various economies sponsored by various organizations such as The World Bank Group, rise in disposable income of the urban population creating demand for higher quality and organic agricultural products, and reduction in global farmland, which require advanced agricultural machinery to meet copious loads of vigorous production.

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Agricultural Machinery Market Challenges:

Two of the major challenges surfacing this flourishing and imperative domain are financial aspects such as capital and rate of interest and unskilled agronomic man force. But it is also to be noted that the financial aspects are being slowly countered by various organizations and bodies providing low-interest loans, zero to low-interest credits, and grants to developing countries for agricultural operations. To skill the agronomic man force for utility of agricultural equipment which will automatically consequence in efficient production, various countries have come up with machineries institutes and e-farming portals. A sheer example from the often recalled as land of agriculture, India, is the Central Farm Machinery Training & Testing Institute, Budni (M.P.).

Agricultural Machinery Market Key Players Perspective:

Some of the key players mentioned in the report are AGCO, John Deere, CLAAS, Massey Ferguson, Argo Group, Mahindra and Mahindra, Hunter Industries, Toro Corp., Jain Irrigation, Bucher Industries, CNH Industrial, Kvernerland Group, SDF Group, Kubota, Lindsay Corp.

John Deere, an American giant commemorated the production of its 5,000th Forestry Swing Machine, a 2656G Log Loader in January 2019. The company was among the first to introduce electric drive technology in off-highway equipment and their 644K and 944K Hybrid Wheel Loaders have collectively logged more than 1 million operating hours in the field.

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