|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The agriculture machinery market is estimated to register a CAGR of 8.0% during the forecast period, 2021-2026. With such a drastic COVID-19 impact, the agriculture machinery industry requested some flexibility for machines to be fitted with transition engines already manufactured and procured before the crisis. As global supply chains were disrupted and manufacturing industries closed down in accordance with government measures to prevent the spread of the virus, the market has slowed down during the pandemic. Tractors accounted for over 50.0% of the market share in the global agricultural machinery market in 2020.
High demand for agricultural products and increasing farm mechanization rates in developing countries are driving the growth in the industry. The Asia-Pacific region is expected to grow rapidly over the forecast period due to the increase in population in countries, particularly India and China, followed by Europe and North America. The market concentration for agricultural machinery is consolidated with the presence of a few large players, like AGCO Corporation, Deere and Company, Iseki Co. Ltd, and CNH Industrial NV, which are dominating the market.
Scope of the Report
Agricultural machinery includes machines used on fields like harvesting machinery, haying and forage machinery, irrigation machinery, and other types, which are considered in the research scope. The market is segmented by type (tractors, plowing and cultivating machinery, planting machinery, irrigation machinery, harvesting machinery, and other types) and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers the market sizes and forecasts in value (USD) for all the above segments.
Key Market Trends
Growing Demand for Farm Mechanization in India
The global market for agricultural machinery is driven by the increasing rates of mechanization in developing countries. Tractors accounted for over half of the market share in the agricultural machinery market in 2020. The main reason behind the increase in farm mechanization is the decreased percentage of agricultural labor across the globe. Farm mechanization emerges as an important technological intervention for giving the desired productivity push to the country’s agricultural sector. Moreover, leveraging mechanization by means of custom hiring services (CHSs) not only helps in increasing agricultural productivity but also in identifying ways of increasing the and adoption of mechanized farming by a larger group of small and marginal farmers.
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Asia-Pacific is the Fastest Growing Region
The Asia-Pacific region is expected to grow rapidly due to the high demand for agricultural products, particularly from India and China, over the forecast period. Within Asia, China dominates in terms of production and sale of agriculture equipment, while India, Japan, and Australia are expected to contribute a significant share in the global market in the coming years, surpassing Europe as the largest market. The population in the region is rising, driving the need for the mechanization of agriculture. Owing to the high demand and increasing labor costs, the tractor market in the region is estimated to register a CAGR of 6.1% during the forecast period. According to the World Bank database, the total population in the Asia-Pacific region is set to reach 4.17 billion in 2030. This further signifies that the demand for food and other agricultural products will continue to grow, thereby surging the demand for agricultural machinery to achieve optimal efficiency in production.
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The market is highly competitive, owing to the presence of few prominent players accounting for more than half of the market. The key players in the market include Deere and Company, AGCO Corporation, CNH Industrial NV, Iseki & Co. Ltd, and Kubota Corporation. The main strategy adopted by the key players is to invest in R&D to encourage innovation and maintain a strong market base. The advent of advanced technologies, like artificial intelligence, robotics, Google Earth, and the growing number of government initiatives are driving the demand for agricultural machinery.
In September 2019, CNH Industrial expanded its business in China by opening a new parts and service center in Shanghai, China. The new facility helps in significantly reducing the delivery time to its customers for New Holland Agriculture and Case IH agricultural equipment brands.
In September 2018, Massey Ferguson extended its hay and forage range with new baler models MF RB 3130F fixed chamber round baler, MF RB 3130F Protec, and MF RB 4160V Protec fixed and variable chamber baler.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
126.96.36.199.1 Less than 40 HP
188.8.131.52.2 40 HP to 99 HP
184.108.40.206.3 Greater than 100 HP
220.127.116.11 By Type
18.104.22.168.1 Compact Utility Tractors
22.214.171.124.2 Utility Tractors
126.96.36.199.3 Row Crop Tractors
5.1.2 Plowing and Cultivating Machinery
188.8.131.52 Cultivators and Tillers
184.108.40.206 Other Plowing and Cultivating Machinery
5.1.3 Planting Machinery
220.127.116.11 Seed Drills
18.104.22.168 Other Planting Machinery
5.1.4 Harvesting Machinery
22.214.171.124 Combine Harvesters-Threshers
126.96.36.199 Forage Harvesters
188.8.131.52 Other Harvesting Machinery
5.1.5 Haying and Forage Machinery
184.108.40.206 Other Haying and Forage Machinery
5.1.6 Irrigation Machinery
220.127.116.11 Sprinkler Irrigation
18.104.22.168 Drip Irrigation
22.214.171.124 Other Irrigation Machinery
5.1.7 Other Types
5.2.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.2.4 South America
22.214.171.124 Rest of Latin America
126.96.36.199 South Africa
188.8.131.52 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere & Company
6.3.2 CNH Industrial NV
6.3.3 AGCO Corporation
6.3.4 Mahindra & Mahindra Limited
6.3.5 Kubota Corporation
6.3.6 Iseki & Co. Ltd
6.3.7 Escorts Limited
6.3.8 Daedong Industrial Co. Ltd
6.3.9 JC Bamford Excavators Limited
6.3.10 Lindsay Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Agricultural Machinery Market market is studied from 2016 - 2026.
What is the growth rate of Agricultural Machinery Market?
The Agricultural Machinery Market is growing at a CAGR of 8% over the next 5 years.
Which region has highest growth rate in Agricultural Machinery Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Agricultural Machinery Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Agricultural Machinery Market?
Deere & Company, CNH Industrial N.V., AGCO Corporation, Mahindra and Mahindra Limited, Kubota Corporation are the major companies operating in Agricultural Machinery Market.