Report Ocean has added a new research report on the global agricultural equipment market to its repository. The report, titled “Global Agricultural Equipment Market Size study, by Type (Tractors, Harvesters, Soil Preparation & Cultivation, Irrigation & Crop Processing, Agriculture Spraying Equipment, Hay & Forage Machines, and Others), Automation (Manual, Semi-Automatic, and Automatic Equipment) and Regional Forecasts 2020-2027,” presents a thorough assessment of this market.
According to the research report, the global agricultural equipment market stood at US4106.53 bn in 2019 and is expected to rise at a CAGR of more than 4.15 % over the forecast period of 2020-2027. Agricultural equipment involves the usage of machinery for performing farm activities. The equipment includes the usage of cultivators, tractors, plows, and harvesters. The increasing use of these machines supports in increasing crop yield with comparatively less time and minimum efforts.
The increasing demand for modernization and mechanization in the agricultural sector, together with the shortage of skilled labor, and rising labor cost, is driving the global market for agricultural equipment. With domestic tractor sales reaching 23,503 units, Farm equipment by Mahindra & Mahindra witnessed a growth of 69% in August 2020. The company had sold 13,871 units of tractors a year ago. International Tractors Ltd. also witnessed a rise in the sale of tractor sales in the month of August 2020, with sales reaching 8205 units, which is an increase of 80% from August 2019.
Going forward, the increased demand for crop production, due to the surge in food consumption across the world, led by the rising population, is likely to further support the market’s growth in the years to come. Further, supportive government initiatives will also add to the rise of this market in the near future. However, high costs of equipment may impede the market over the forecast period of 2020-2027. Nonetheless, increasing R&D and innovation in the agriculture sector, owing to automation, is expected to present a lucrative opportunity for market players over the coming years.
The report also offers a regional analysis of the global agricultural equipment market. According to it, the market is spread across Asia Pacific, North America, Europe, Latin America and the Rest of the World. North America is the dominant regional market for agricultural equipment. The increasing usage of advanced machineries in the farms and the increased innovation in the field of agriculture is likely to add to the market’s growth in the near future. Asia Pacific is also anticipated to demonstrate the highest growth rate during the forecast period. Factors, such as increasing disposable income, rising population, and high dependency on agricultural sector are boosting this regional market over the next few years.
Impact of Covid 19 on Agricultural Equipment Market
The lockdown imposed on several economies, owing to the spread of Coronavirus, has impacted the global agricultural equipment market significantly. The economic slowdown resulted in capital loss of manufacturers and suppliers, affecting the entire market. Agricultural activities were also stopped during the lockdown period, which also added to the woes of market players. However, with gradual lifting up of restrictions, the market is likely to begin operating normally soon.
The global agricultural equipment market is segmented into:
- Soil Preparation & Cultivation
- Irrigation & Crop Processing
- Agriculture Spraying Equipment
- Hay & Forage Machines
- Automatic Equipment
- North America
- Asia Pacific
- Latin America
- Rest of the World
Companies Mentioned in the Report
- John Deere
- AGCO Corporation
- CNH Industrial
- Mahindra & Mahindra
- SPF Group
- J C Bamford Excavators
- Iseki Co., Ltd.
- Deutz-Fahr Group S.p.A
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