Agricultural Machinery Market - Segmented by Type (Tractors, Plowing and Cultivating Machinery, Planting Machinery, Harvesting Machinery,Haying And Forage Machinery, Irrigation Machinery), By Geography - Analysis of Growth, Trends and Progress (2019 - 2024)

Agricultural Machinery Market

The factors that are driving this market are population growth, urbanization and higher productivity demand with the shrinking agricultural land throughout the globe, which have led to the growth in demand for agricultural machinery. Technological advancement for developing more efficient products, while keeping in mind the country-specific requirements, will provide opportunities for future growth of the sector.

Macro-Economic factors have a huge influence on Agricultural Machinery Market

The key factors influencing the sale of agricultural equipment are the level of net farm income and, to a lesser extent, interest rates, and general economic conditions, availability of financing and related subsidy programs, farmland prices, and farm debt levels. Net farm income is primarily impacted by the volume of acreage planted, commodity and livestock prices, stock levels, the impacts of ethanol demand, farm operating expenses (which includes fertilizer and fuel costs), crop yields, fluctuations in currency exchange rates, tax incentives, and government subsidies. Farmers tend to postpone the purchase of equipment when the farm economy is declining and increase their purchases when economic conditions improve.

The quality, availability, and cost of used equipment for sale also affect the level of new equipment sales. Weather condition is a major determinant of crop yields, and therefore affects equipment-buying decisions. In addition, geographical variations in weather from season to season may also affect sales volumes differently in different markets. Government policies may influence the market for agricultural equipment by monitoring the levels of acreage planted, with direct subsidies affecting particular commodity prices, or with other payments delivered directly to farmers.

Global organization initiatives, such as those of the World Trade Organization, can also affect the market with demands for differences in governmental policies and practices regarding agricultural tariffs, subsidies, and acceptance of genetically modified organisms, such as feed, seed, and animals.

The increase in crop production for biofuels has also altered the crop pattern and crops cultivated. The most significant change in the US crop production was the replacement of cotton and soybeans with corn. As a result, agricultural producers are faced with new challenges for managing crop residues and have adapted by changing the type of equipment used. Although the demand for new agricultural equipment dependent on macro-economic situation. The aftersales market is historically less volatile than the new equipment market and, therefore, helps limit the impact of declines in new equipment sales on the operating results of full-line manufacturers, such as agricultural equipment.

The Volatility in the Prices of Agricultural Commodities Will Affect the Agricultural Machinery Market

The increasing concern over commodity price volatility affects producers (especially small farmers). Farmers are more disadvantaged in a scenario of low prices, which forces them to reduce investments in farm mechanization. The uncertainty can then be transformed into non-optimal decisions and production levels. In general, volatility becomes a problem when it induces risk-averse behavior, leading to inefficient investment decisions for machinery consumption.

Agricultural Machinery Market Major Players: DEERE & COMPANY, AGCO CORP., CNH INDUSTRIAL N.V, KUHN GROUP, KVERNELAND GROUP, ESCORTS GROUP and KUBOTA TRACTOR CORP.

Agricultural Machinery Market Recent Developments:

November, 2017: New Holland Agriculture has launched a new flagship model the FR920, a forage cruiser with high capacity and enhanced productivity, powered by a new engine, improved feeding, and HydroLoc™ technology.

September, 2017: John Deere acquired Blue River Technology by investing USD 305 million. Blue River Technology has integrated machine learning and computer vision technology in lettuce fields to assist farmers in spraying herbicides exactly on weeds to ensure optimal usage of herbicides. The company is currently testing the technology in cotton fields. The company enables smart machines to detect, identify, and make management decisions about every single plant in the field using computer vision, robotics and machine learning.

Reasons to Purchase Agricultural Machinery Market Report:

The report:

• Provides latest insights into the Global Agricultural Machinery industry.
• Gives a detailed analysis of the competitive landscape in the Agricultural Machinery Market.
• Analyzes the market scenario with the help of Porter’s Five Forces Analysis.
• Forecasts the market value by assessing the impact of the market drivers and constraints.

Agricultural Machinery Market Report Customization and Benefits:

• This report can be customized to meet the desired requirements. Please connect with our analyst, who will ensure you get a report that suits your needs.
• Three months analyst support, along with the Market Estimate Sheet in excel.