|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The global agricultural machinery market was valued at USD 138.59 billion in 2020, and it is anticipated to reach USD 194.94 billion by 2026, registering a CAGR of 5.4% during the forecast period. 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 43.6% of the market share in the global agricultural machinery market in 2020.
The Asia-Pacific region is expected to grow rapidly due to the high demand for agricultural products, mainly 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.
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).
Key Market Trends
Growing Demand for Farm Mechanization in Developing Countries
The market is driven by increasing rates of mechanization in developing countries. The shrinking land, water resources, and labor force have increased the need for farm mechanization in developing countries. Farm mechanization in developing countries such as India and China accounts for 45-55%, whereas it accounted for 95% in developed nations such as the United States in 2018. The farm mechanization level in India was recorded at 40-45% in 2017. The penetration of farm equipment is slow since almost 80% of small and marginal farmers own less than five hectares of land. The market for farm machinery, including the combines in African countries, is anticipated to grow. This is because African farmers demand access to the latest farm technologies to enhance their farm operations and cut production costs. Developing nations still have a low penetration level. Hence, the farm mechanization market has a lot of potential for increasing farm equipment penetration, and therefore, increasing the market size during the forecast period.
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Asia-Pacific is the Fastest Growing Region
Asia-Pacific is considered one of the fastest-growing markets because the companies located in the region have been launching new agricultural machinery, thereby dominating the market with faster innovations and product launches. The Chinese government is enhancing farm mechanization for various crops, including rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane. According to the Ministry of Agriculture in China, around 95.5% of the 80.0% of wheatland is harvested using the combine harvesters. The increasing focus on farm mechanization and the government’s urge to make the corn, wheat, and rice farms fully automated in the next 10 years may boost the sale and lead to innovations, such as driverless machinery, is driving the market growth during the forecast period.
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The global agricultural machinery market is consolidated,The global agricultural machinery market is consolidated, with key players accounting for majority of the market share. The top players in the market are Deere and Co, CNH Industrial, AGCO Corporation, Kubota, Mahindra and Mahindra Limited, Iseki & Co. Ltd, JC Bamford Excavators Limited, and Lindsay Corporation. The companies were involved in various strategic activities such as product innovation, expansion, partnership, and merger and acquisition. For instance, in Aug 2021, John Deere introduced the new 6155MH Tractor, which delivers all the field-proven performance and reliability of other M Series.
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
18.104.22.168.1 Less than 40 HP
22.214.171.124.2 40 HP to 99 HP
126.96.36.199.3 Greater than 100 HP
188.8.131.52 By Type
184.108.40.206.1 Compact Utility Tractors
220.127.116.11.2 Utility Tractors
18.104.22.168.3 Row Crop Tractors
5.1.2 Plowing and Cultivating Machinery
22.214.171.124 Cultivators and Tillers
126.96.36.199 Other Plowing and Cultivating Machinery
5.1.3 Planting Machinery
188.8.131.52 Seed Drills
184.108.40.206 Other Planting Machinery
5.1.4 Harvesting Machinery
220.127.116.11 Combine Harvesters-Threshers
18.104.22.168 Forage Harvesters
22.214.171.124 Other Harvesting Machinery
5.1.5 Haying and Forage Machinery
126.96.36.199 Other Haying and Forage Machinery
5.1.6 Irrigation Machinery
188.8.131.52 Sprinkler Irrigation
184.108.40.206 Drip Irrigation
220.127.116.11 Other Irrigation Machinery
5.1.7 Other Types
5.2.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.2.4 South America
220.127.116.11 Rest of Latin America
18.104.22.168 South Africa
22.214.171.124 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 Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026) market is studied from 2016 - 2026.
What is the growth rate of Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)?
The Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026) is growing at a CAGR of 5.4% over the next 5 years.
Which region has highest growth rate in Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)?
Asia Pacific holds highest share in 2020.
Who are the key players in Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)?
Deere & Company, CNH Industrial N.V., AGCO Corporation, Mahindra and Mahindra Limited, Kubota Corporation are the major companies operating in Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026).