Report Ocean has recently added a new research report on the global farm equipment market to its vast base of market studies. The report is titled “Global Farm Equipment Market Size study, by Product (Tractors, Harvesters and Others), by Application (Harvesting & Threshing, Sowing & Planting and Others) and Regional Forecasts 2020-2027.” This report has been produced after analyzing the whole market thoroughly. It aims to offer a deep insight into this market to its readers.
Farm equipment finds extensive application in various stages of farming, such as land preparation, sowing, planting and cultivation, harvesting, and threshing. This results in their high demand in the agriculture industry, which reflects on the progress of the global farm equipment market greatly. According to the research report the total valuation of this market in 2019 was US$103.3 bn. Researchers project this market to report a healthy rise at a CAGR of 3.90% during the forecast period from 2020 to 2027. The increasing usage of automatic and semiautomatic equipment, thanks to the operational cost-efficiency they offer due to less requirement of manpower in farms, is expected to support the growth of this market significantly in the years to come.
The increasing support by governments in terms of farm loan waivers and credit finance and OEM/sales incentives, to aid dealer services, is also anticipated to prove to be rewarding for the market over the next few years. For instance, the U.S. Department of Agriculture (USDA) has begun to offer direct and guaranteed farm ownership and operating loans to family-size ranchers and farmers, who are unable to gain commercial credit from a bank, other lenders, or farm credit system institutions. This has encouraged individuals to take up farming as a source of income, which, in turn, is fuelling the demand for far equipment significantly.
Apart from these, the rise in contract farming, increase in farm mechanization, and technological advancements in the agricultural sector are projected to boost the global market for farm equipment over the forthcoming years. However, the high cost of farm equipment and increasing rental market may limit the growth of this market to some extent in the near future, states the research study.
Impact of Covid 19 on Global Farm Equipment Market
The global agriculture industry is one of the worst-hit industries by Covid 19 across the world. The stoppage of work in the farm disrupted the overall ecosystem of the agriculture industry. The related markets, including the farm equipment market, are also facing severe disturbance due to the pandemic. With the threat of a second wave of the outbreak looming round the corner, the impact is likely to remain for some more time.
Asia Pacific Occupies Topmost Position
The report also offers a geographical evaluation of the global farm equipment market. As per the research study, the market is spread across Asia Pacific, North America, Europe, Latin America, and the Rest of the World. Asia Pacific has acquired the lead over the global market, thanks to the high uptake rate of new technologies among consumers. The rising demand for high-powered tractors and the ongoing expansion in the horticulture industry, supported by government funding, are expected to continue supporting the Asia Pacific market for farm equipment in the years to come.
- Asia Pacific has acquired the lead over the global market, thanks to the high uptake rate of new technologies among consumers.
- The increasing support by governments in terms of farm loan waivers and credit finance is anticipated to prove to be rewarding for the market over the next few years.
The global farm equipment market is segmented into:
- Harvesting & Threshing
- Sowing & Planting
- North America
- Asia Pacific
- Latin America
- Rest of the World
Companies Mentioned in the Report
- John Deere
- CNH Industrial N.V.
- Mahindra & Mahindra Limited
- AGCO Corporation
- Kubota Corporation
- CLAAS KGAA
- Iseki & Co., Ltd.
- SDF Group
- Yanmar Co. Ltd.
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