The global Agriculture Equipment Market Growth Accelerated by Rising Mechanization in Agriculture

 

Agriculture Equipment Market

Agriculture equipment consist of machinery used in farming activities or agriculture processes. This includes tractors, harvesters, plows, cultivators and other machinery used in various farming activities like tilling, seeding, weeding, planting, spraying, harvesting and more. Agriculture equipment help improve productivity and efficiency of farming processes. The global trend of decline in workforce availability in agriculture sector is driving increased mechanization using agriculture equipment to cope with demand.

 

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 Dynamics:

Growing mechanization in agriculture owing to declining agricultural workforce is a major driver of growth for agriculture equipment market. There is increasing shortage of farm labors and workers especially in developing economies owing to migration towards cities and other industries for better livelihood. This has necessitated increased reliance on agriculture machinery and equipment to undertake various agriculture activities efficiently. Further, supportive government schemes and subsidies for farm mechanization in countries is also boosting adoption of new agriculture equipment. However, high initial costs of agriculture equipment remains a challenge especially for small farmers in restricting widespread adoption.

 

SWOT Analysis

 

Strength:

- The agriculture equipment market has witnessed strong growth over the past few years owing to rising mechanization in the agricultural sector. This demand for farm mechanization is expected to continue over the forecast period as well, presenting a key strength for market players.

- Advanced technologies are being increasingly used in agriculture equipment by manufacturers to improve their productivity and efficiency. Features such as GPS tracking, variable rate technology, auto-steering etc. add advantage and are positively impacting market revenues.

- Strong support from governments across regions in the form of subsidies for agricultural mechanization presents an encouraging regulatory environment for market expansion.

 

Weakness:

- High initial costs of agriculture equipment remains a major constraint limiting wider adoption, especially among small scale and marginal farmers in developing regions.

- Lack of financing options and inadequate access to credit further restricts the affordability of equipment for many end-users.

 

Opportunity:

- Growing trend of rental and custom hiring services for farm machinery provides an opportunity to tackle the affordability challenge and drive broader equipment penetration rates.

- Shifting farmer preferences towards precision farming techniques offer scope for mechanization of labor intensive activities through adoption of advanced agricultural equipment.

- Untapped rural markets in Asia Pacific and South America present significant growth potential for market players to leverage the ongoing farm mechanization wave.

 

Threats:

- Increasing raw material costs, fluctuations in commodity prices and unfavorable currency exchange rates pose threats in terms of rising equipment prices.

- Changes in global trade policies and unfavorable changes in support programs by governments can negatively impact industry revenues.

 

Key Takeaways

 

The Global Agriculture Equipment Market Size is expected to witness high growth over the forecast period of 2023-2030. Supported by increasing farm mechanization globally and widespread availability of mechanized equipment, market revenues are projected to surge considerably. The global Agriculture Equipment Market is estimated to be valued at US$ 934.08 Mn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030.

 

Regional analysis: Asia Pacific region currently dominates the global market and the trend is expected to continue. With large tracts of cultivable land and growing smallholder farming communities, countries like India, China, and Indonesia provide immense opportunities. Government schemes promoting mechanization in India and modernization of agriculture in China are fueling regional market growth. North America and Europe are mature markets though technological advancements will support moderate expansion.

 

Key players: Key players operating in the agriculture equipment market are John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, and Claas. John Deere is the global leader with strong footprint across major markets. CNH Industrial and AGCO Corporation are other major players engaged in manufacturing of tractors, harvesters, planters and various other farming machinery. The industry is concentrated with these players accounting for substantial market share.


Get More Insights Here

https://www.newswirestats.com/agriculture-equipment-market-size-share-growth-outlook-2023/

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