The global agriculture equipment market size is projected to reach USD 236.04 billion by 2030, registering a CAGR of 5.0% from 2022 to 2030, according to a new study by Grand View Research Inc. Shortage of labor worldwide particularly in Western Europe and the U.S. will play a key role in driving the adoption of agriculture equipment over the forecast period. Furthermore, shortage of labor in the field of agriculture equipment and telematics to monitor tractor performance and improve farm yield is also anticipated to propel the growth of the market. Apart from advancements in the agriculture equipment space and shortage of labor shortage, the growing population to meet the global food requirements will also be a major factor, increasing demand in the long term.
The COVID-19pandemic hampered the growth of the market for agriculture equipment in H1 2020. A government-imposed lockdown and stringent regulations impeded business activities worldwide, including the agriculture equipment industry, consequently impacting sales. Several key players in the market, including AGCO Corporation, Deere & Company, and KUBOTA Corporation reported a dip in sales from Q1 2020 to Q2 2020. Although the year 2020 witnessed a slight dip, it was offset by the economic revival post-Q2 2020.
In 2021, the market recorded double-digit growth owing to the pent-up demand and backlog orders resulting from the pandemic. This trend will continue over the short term to meet backlogs from 2020 and replace aging equipment over the forecast period. Although, the overall market statistics paint a rosy picture over the short-term, supply chain disruptions could still pose a threat due to low inventory levels at an OEM level.
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Agriculture Equipment Market Report Highlights
- Tractors captured a sizeable portion of the overall market in 2020, with the market size expected to surpass USD 80.0 billion by 2030. Tractors are essentially high-cost equipment, thus contributing to their high market share
- Harvesting and threshing are important farming processes, owing to which the segment captured over 20% revenue share in 2021.This trend is expected to continue over the forecast period
- Asia Pacific led the market in 2021, a trend expected to continue over the mid-term. The regional CAGR is expected to exceed 5% from 2022 to 2030. Policies that favor farmer welfare and modernization of farming techniques particularly in developing countries will drive regional growth
- OEMs in this space are expected to witness short-term challenges owing to supply chain disruption and shortage of semiconductors in agriculture equipment which may lead to production delays
The market is highly competitive due to the presence of a few prominent players and several medium or small-scale players worldwide. OEMs compete on parameters such as technological advancements, availability, price, and quality of products. Furthermore, Mergers and Acquisitions (M&A) are being undertaken as an attempt to improve market presence and to expand the customer base. For instance, in September 2019, CNH Industries N.V. opened new parts and service centers in Shanghai, China which helped reduce the product delivery time to the customers for New Holland Agriculture and Case IH agricultural equipment brands.
Similarly, in May 2021, CLAAS KGaAmbH acquired a minority stake in Dutch start-up AgXeed B.V. The acquisition was intended for the development and commercialization of autonomous agriculture machines. Besides M&A, OEMs also emphasize new product developments that enable them to strengthen their product portfolio, attract new customers, and increase the customer base, strengthening their presence in the market. For instance, in August 2021, John Deere introduced the new 6155MH Tractor, which delivers reliability and all the field-proven performance like the M series, envisage the company to attract a new customer base. Some of the prominent players operating in the global agriculture equipment market are:
AGCO Corporation, FlieglAgro-Center GmbH, Agromaster, Amazone Inc., APV GmbH, Bellota Agrisolutions, CLAAS KGaAmbH, CNH Industrial N.V., Deere & Company, Escorts Limited, HORSCH Maschinen GmbH, ISEKI & Co., Ltd., J C Bamford Excavators Ltd, Quivogne CEE GmbH (Kiwon RUS LLC), Rostselmash, KRUKOWIAK, KUBOTA Corporation, KUHN SAS, LEMKEN GmbH & Co. KG, Mahindra & Mahindra Ltd., MascarSpA, MaschioGaspardo S.p.A, MaterMacc S.p.A, Morris Equipment Ltd, SDF S.p.A., Tractors and Farm Equipment Limited (TAFE), Väderstad AB, Valmont Industries, Inc
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