Australia Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Australian agricultural machinery market is projected to register a CAGR of 4.3% during the forecast period (2021-2026). The global COVID-19 pandemic has caused a significant impact on the Australian agricultural machinery market. The supply chains were disrupted, and manufacturing industries were closed due to restrictions aimed at containing coronavirus, which, in turn, affected the availability of agricultural inputs and operations of hiring agricultural machinery service providers. The shortage of labor and scarce availability of raw materials resulted in the decreased production efficiency for the manufacturing of agricultural machinery. In Australia, around 4% of the country’s GDP is generated from agriculture. The mechanization of agricultural processes has been advancing steadily in the country. The demand for these machinery has largely been due to the need to improve the quality of productivity and the decline in the population involved in farming in the region. Large swathes of land availability enable the country to cover its needs and export products to other countries. Going forward, high economic growth is projected in the country over the forecast period, which is further expected to drive the agricultural machinery market. However, a spike in the price of agricultural commodities has posed a threat to the adoption of farming equipment by the farmers over the past few years. The Australian market is fragmented, with a wide range of companies lowering the bargaining power of manufacturers. Four of the leading operators, together, occupy less than 10.0% of the value share in equipment manufacturing. Companies like John Deere, CNH, etc., have a perceptible presence in Australia but do not have manufacturing units in the country.

Key Market TrendsGrowing Preference for Farm Mechanization

The growing population, the rise in labor cost, and increasing investments by leading agricultural machinery manufacturers, such as Agco, Escort Group, Mahindra & Mahindra, John Deere, and Kubota, in their tractor product lines are expected to influence the tractor market in Australia during the forecast period, which, in turn, may boost the Australian agriculture machinery market. Anticipated growth in the tractor market can also be attributed to the growing government support, increasing demand for various HP types of tractors, and easy availability of financing.

Rise in Technological Advancements

Farmers in the region are looking for tractors with tailored features, which can fulfill their needs for effective farming. So, in order to meet consumer demand, many international and domestic agriculture machinery manufacturers are coming up with new technologically advanced tractors that can handle various farming applications. For instance, in 2017, Kubota launched several new products for mid-size farms, like the M7-1 tractor with 170 horsepower for Australia Farmland. The premium M7-1 features continuously variable transmission (CVT) and integrated touch screen terminals and emission technologies.

Competitive Landscape

The market is highly competitive, owing to the presence of a few prominent players, accounting for more than half of the market. The key players in the market include Deere and Company, AGCO Corporation, CNH Industrial NV, Iseki & Co. Ltd, and Kubota Corporation. The main strategy adopted by the key players is to invest in R&D to encourage innovation and maintain a strong market base.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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Companies Mentioned

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Packet Inc. (An Equinix Inc. Company)
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LightEdge Solutions, Inc

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