India Combine Harvester Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Combine Harvester Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Indian combine harvester market is projected to register a CAGR of 4.9% during the forecast period (2022-2027).

During the COVID-19 outbreak, the farm equipment business saw a sharp dip in sales, and the most affected business was the dealership network due to the disrupted supply chain. Manufacturing units were not 100% active, which resulted in a sharp decrease in sales in 2019-2020. Hence, the global pandemic negatively impacted the Indian combine harvester market.

Combine harvesters in India are majorly used for harvesting grains and cereals compared to other crop types. Farmers prefer self-propelled combine harvesters over tractor-mounted harvesters due to their high efficiency. Hence, the market for combine harvesters in India is dominated by self-propelled combine harvesters, accounting for more than 60.0% of the market share.

The usage of a combine harvester was limited due to the availability of ample labor, low labor costs, and the high cost of machines. However, with rural work programs, such as MGNREGA, the scenario of combine harvesters in India has changed. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides a social safety net by guaranteeing the right to employment. With the declining labor supply and increasing labor costs, it has become more cost-effective for Indian farmers to hire a combine harvester for cutting and thrashing purposes.

Self-propelled combine harvesters hold the largest market share by type. They have the highest efficiency when it comes to the area harvested per hour. However, self-propelled combine harvesters are priced higher. With farmers depending heavily on custom hiring businesses to improve capacity utilization, the need for ensuring business clientele (smaller farmers) before the harvest season becomes essential. Self-propelled combine harvesters are often transported from early harvest areas, such as Punjab and Haryana, to other states, such as Madhya Pradesh and Maharashtra, where the harvests take place later in the season.

The Indian combine harvester market is consolidated, with major players capturing most of the share. According to rough estimates, the annual industry sales are about 7,000-8,000 units across different types of harvesters. The manufacturing of combine harvesters in India is largely concentrated in Punjab's Sangrur and Patiala districts. Companies are competing based on product quality and promotion and focusing on strategic initiatives to account for prominent market shares. Companies are heavily investing in developing new products while collaborating with and acquiring other companies, which may increase their market shares while strengthening their R&D activities.

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