by Agriculture equipment includes tractors, harvesters, irrigation pumps and other equipments that are used to perform various farming operations efficiently. With growing global population and changing climate conditions, agriculture mechanization is getting increasingly important to boost crop production. Tractors are being widely used for ploughing, sowing, spraying and harvesting crops. Combine harvesters are effectively cutting, threshing and winnowing grains while reducing post-harvest losses. Various cultivation and planting equipment such as tillers, rotavators and seed drills are also commonly used. Additionally, irrigation equipment such as centrifugal pumps are crucial for transporting water from sources to crop fields.
The global Agriculture Equipment Market is estimated to be valued at US$ 934.08 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the agriculture equipment market is growing adoption of autonomous and precision farming equipment. With advancement in technologies such as GPS, sensors and IoT, agriculture equipment manufacturers are integrating them into their products to make farming operations autonomous and precise. For example, tractors can drive pre-programmed routes autonomously with centimeter level precision. Various sensors are able to analyze soil nutrients and moisture content field-wise to optimize usage of inputs such as seeds, fertilizers and water. This is reducing cultivation costs and minimizing wastages. Additionally, autonomous harvesters and milking robots are also gaining popularity among farmers worldwide. Precision farming approach is improving productivity and boosting profitability of agriculture operations globally.
Porter’s Analysis
Threat of new entrants: Low barrier for new entrants to enter the agriculture equipment market. However, existing players have strong brand recognition and distribution network.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products and differentiation in product offerings by different manufacturers.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute components and differentiated offerings from various suppliers.
Threat of new substitutes: Threat of substitution is low as agriculture equipment has limited substitutes. However, technology advancements may lead to new substitutes.
Competitive rivalry: The global agriculture equipment market is highly competitive due to presence of various international and domestic players. Market players focus on new product launches and mergers & acquisitions for business expansion.
Key Takeaways
The Global Agriculture Equipment Market Size is expected to witness high growth over the forecast period. The global Agriculture Equipment Market is estimated to be valued at US$ 934.08 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030.
Asia Pacific is expected to dominate the market during the forecast period. Rapid urbanization and rising population resulting in reduced cultivable land are supporting the demand for agriculture equipment in Asia Pacific countries like China and India. Agriculture being the primary occupation in these countries, government of these nations are undertaking initiatives to support farmers through provision of subsidies. This is expected to drive the growth of agriculture equipment market in Asia Pacific.
Key players
Key players operating in the Agriculture Equipment Market are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, and Claas. Among these, Deere & Company and CNH Industrial account for a major market share. The companies are focusing on new product launches catering to various crop types to strengthen their market position. For instance, in 2022, John Deere launched SP vision guidance systems and CommandCenter displays for tractors and harvesters.
