Agricultural Machinery Market - Forecast (2024 - 2030)
Agricultural Machinery Market Overview:
The global agricultural machinery market size is $227.5 billion as of 2023 and is forecast to grow at a CAGR of around 6.1% going through 2024-2030. The agricultural machinery market is experiencing a transformative evolution driven by technological advancements, sustainability concerns, and a growing global population. As per the Food and Agriculture Organization of the United Nations, the global population will mark an astonishing 9.1 billion figure by 2050 witnessing a surge of 34%, and to feed these 9 billion mouths global agricultural expenses in developing countries would amount to $83 billion per annum.? To enhance efficiency and productivity in agriculture, the industry is witnessing a surge in the adoption of smart and precision farming technologies. Automation and data-driven solutions are becoming integral to modern farming practices, optimizing resource utilization and reducing environmental impact. To counterpart such unprecedented food production demand coupled with depleting arable land, efficient and mechanized agriculture is the main objective, and agricultural machinery is the tool to meet the objectives. Moreover, Sustainability is a key driver in shaping the future of agricultural machinery. There is a growing emphasis on developing eco-friendly equipment with reduced carbon footprints. Electric and hybrid tractors, powered by renewable energy sources, are becoming increasingly popular, aligning with global efforts to address climate change. Furthermore, the agricultural machinery market is witnessing a shift towards integrated farming systems. This involves combining various agricultural activities, such as crop cultivation and livestock management, to create synergies that enhance overall farm productivity, these are the factors propelling the agricultural machinery market growth in the forecast year.
Report Coverage
The report: “Agricultural Machinery Market Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Active Wheelchair Market.
By Automation- Fully automatic, Semi-automatic, and Manual.
By Machinery Type- Tractor, Soil Cultivation, Planting, Irrigation, Fertilization, Harvesting, Hay Making, Loader and Agriculture Robots.
By Material Type- Structured steel, Alloyed Steel, Cast Materials, Light Alloy, Wearing Materials, Structured Material, Aluminum, Iron and Glass.
By Geography: North America (U.S, Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Rest of South America) and Rest of The World (Middle East, Africa).
Key Takeaways
In 2023, APAC's Agricultural Machinery sector dominated with 43% revenue share, driven by robust demand in India and China due to modernization needs, population growth, fostering innovation and economic growth.
The global agricultural machinery market has been witnessing steady growth due to the increasing demand for food and the need for efficient and modern farming practices.
Tractors and harvesters remain pivotal in the agricultural machinery market. Technological advancements, such as autonomous tractors and smart harvesters, are gaining traction.
Government initiatives and subsidies for farmers to adopt modern machinery play a crucial role in the market. Policies promoting farm mechanization and modernization contribute to market growth.
Precision farming technologies, including GPS-guided tractors, drones, and sensors, continue to gain prominence. These technologies help farmers optimize crop yields, reduce waste, and enhance overall efficiency.
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Agricultural Machinery Market Growth Drivers:
Government Support and Subsidies driving the market growth
Government support and subsidies have become pivotal factors propelling the growth of the Agricultural Machinery Market. Initiatives such as financial aid, tax incentives, and technology adoption programs incentivize farmers to invest in advanced equipment, enhancing productivity and sustainability. This support fosters a conducive environment for market expansion, driving demand for modern agricultural machinery as farmers seek to capitalize on these benefits to optimize their operations and meet the increasing global food demand. Some of the other factors indirectly but positively influencing the market are agriculture finance and agriculture insurance initiated by The World Bank to aid the financially fragile agriculture production sector participants. The World Bank Group is a leading financier of agriculture, In FY 2023, approved IBRD/IDA commitments for agriculture and related sectors reached $5.9 billion, with $3 billion dedicated to climate action within new agriculture and food projects, reinforcing sustainable development and resilience. Moreover, according to the Indian Directorate of Economics and Statistics, the Ministry of Agriculture's number of subsidized machines and equipment given to farmers rose from 1,378,755 in January 2022 to 1,388,314 by December 2022, indicating increased support for agriculture. Other prominent factors equipped with a tendency to support the agriculture machinery market for exponential growth are a rise in research and development by various economies sponsored by various organizations such as The World Bank Group, rise in disposable income of the urban population creating demand for higher quality and organic agricultural products, and reduction in global farmland, which require advanced agricultural machinery to meet copious loads of vigorous production.
Rising Agriculture Mechanization Rates in Developing Countries
The rising trend of agriculture mechanization in developing countries is significantly impacting the demand for agricultural machinery. Faced with challenges such as diminishing land availability, water scarcity, and a shrinking labor force, these nations are increasingly adopting mechanized solutions to enhance productivity and efficiency in agriculture. This shift is fuelling a robust demand for various agricultural machinery, including tractors, harvesters, irrigation systems, and precision agriculture tools. Farmers in developing countries are recognizing the need for modern technology to overcome traditional constraints and optimize resource utilization. The demand for tractors is surging as they become essential for plowing, planting, and cultivating large expanses of land swiftly. For instance, Sonalika International Tractors unveiled 5 new series, including an e-model, at the Global Partners Summit 200 in Gurugram, featuring compact designs and advanced emission control systems for global exports. With compact designs and advanced emission control systems, these innovations cater to rising agriculture mechanization rates in developing countries, driving increased demand in the market. Additionally, there is a growing interest in precision agriculture tools and irrigation systems, reflecting a desire for optimized resource management and sustainable farming practices. As these nations embrace mechanization, the agricultural machinery market is witnessing a substantial upswing, driven by the imperative to secure food production in the face of resource constraints.
Agricultural Machinery Market Challenges:
High Cost of Agriculture Machinery Limit the Market Expansion
The high cost of agricultural machinery stands as a formidable impediment to the growth of the agriculture machinery market. This cost factor encompasses the initial purchase price, maintenance expenses, and the overall financial burden on farmers. Small and medium-sized farmers, in particular, find it challenging to invest in modern, technologically advanced equipment due to their limited financial resources. Additionally, the evolving nature of agricultural technology necessitates constant upgrades, exacerbating the economic strain on farmers. High capital requirements for machinery contribute to a digital divide, limiting access to innovative tools that could enhance productivity and sustainability. Addressing this challenge requires concerted efforts from policymakers, industry stakeholders, and financial institutions to develop cost-effective solutions, subsidies, or financing options that can alleviate the financial burden on farmers, promoting the widespread adoption of modern agricultural machinery.
Agricultural Machinery Market Key Players Perspective:
Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Agricultural Machinery market. Major players in the Agricultural Machinery Market are Deere & Company, Kubota Corporation, Mahindra and Mahindra Limited, AGCO Corporation., Iseki & Co. Ltd, Escorts Limited Source, Daedong Industrial Co. Ltd, JCB, Tractors and Farm Equipment Limited, Sonalika, among others
Recent Developments
In January 2023, John Deere commemorates its 25th anniversary in the industry by unveiling 7 new tractors and 3 implements in India, showcasing the latest Power and Technology 4.0 edition. The celebratory launch includes a special limited-edition tractor, the John Deere 5045 D Power Pro 4WD V3, alongside tailored solutions for specific crops, promising Indian farmers enhanced efficiency and productivity.
In August 2023, Mahindra and Mahindra unveiled 7 lightweight tractors under the OJA platform in Cape Town, South Africa, in partnership with Mitsubishi Mahindra Agriculture Machinery, Japan. Ranging from 20 hp to 40 hp, these models will soon be introduced in India, with larger utility tractors expected next year
In September 2022, AGCO Corporation introduced the latest Fendt 300 Vario tractors to North American farmers in early 2022, enhancing agricultural efficiency with advanced technology and performance.
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