Agriculture Machinery

Agriculture Machinery

Agricultural machinery are various machines and tools that are used in farming and agriculture to increase efficiency and productivity. Machinery can range from small hand tools like shovels and hoes to large tractors and harvesters. Some examples of agricultural machinery equipment include ploughs, cultivators, combines, balers, and sprayers. The increasing disposable income of consumers is one of the major driving factors for the adoption of agricultural machinery globally, especially in developing and developed countries.

The Agricultural Machinery Market is expected to grow at a strong CAGR of 5% during the forecast period owing to the increasing demand for food and the need to produce more efficiently. The global population is continuously growing which is increasing the demand for yields and food in less time. Moreover, the development of new technologies and innovations in agriculture machinery can help farmers work more efficiently and effectively to meet increasing yield demands. For instance, in April 2023, Mahindra & Mahindra Ltd said that its tractor division will bring 40 new models under a new brand OJA, built on a lightweight global platform. The Mahindra OJA tractors will focus on both domestic and international markets including the US, Japan and South-East Asia.

• Based on type, the market is segmented into tractors and power, soil preparation and cultivation, irrigation, crop processing, fertilizers and pesticides dispenser, harvesting, and others. Amongst these, the tractors and power segment dominated the market in 2021. This is because tractors are versatile machines which can be used for a variety of agricultural tasks which include ploughing, planting, cultivating, and harvesting crops, as well as mowing and tilling soil. Moreover, Advancement in technology has led to the development of more efficient and productive tractors which are equipped with features such as improved engine performance, better hydraulic systems, and advanced farming technology.
• By automation, the market is segmented into automatic, semi-automatic, and manual. Among these, the manual segment captured a significant share of the agricultural machinery market in 2021. The significant share of the manual segment is because manual farming methods have been the traditional way of farming for centuries, and still in many developing countries farmers rely on manual labour to cultivate their land. Additionally, manual farming methods are more affordable than automated machinery. This is because they are simple and less expensive to use and manufacture, it requires less maintenance and repairs as compared to modern equipment.
• On the basis of sales channel, the market is bifurcated into OEM and aftermarket. The OEM segment held a major share of the agricultural machinery market in 2021. This is because OEMs offer customized solutions to farmers, which is a key factor in the adoption of agriculture machinery. OEMs can design and manufacture machinery that is tailored to the specific needs of individual farmers, such as their land size, crop type, and farming practices. Additionally, OEMs have a strong distribution network that allows them to reach a wide range of customers. OEMs can sell their machinery through a network of dealers, distributors, and agents, which helps them to expand their market share.
• For a better understanding of the market adoption of the agricultural machinery industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, Netherlands, France, Norway, Switzerland, Denmark, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. Asia Pacific region is dominating the agricultural machinery market. The region has a large and rapidly growing population which is driving the demand for food and agricultural products. This has led to an increase in the demand for agricultural equipment, such as tractors, combines, and harvesters. For instance, in June 2023, Mahindra & Mahindra aims to develop multiple new tractor models under the Swaraj brand in the upcoming quarters to fill the gaps in the agriculture and horticulture market. The entry marks the launch of Target, a lighter and cheaper tractor model dedicated to horticulture applications. Additionally, the region has a large and diverse agricultural sector with a range of crops and livestock being raised in different parts of the region. This diversity has created a need for a range of agricultural equipment, which is driving the demand for the market.
• Some of the major players operating in the market include Deere & Company, AGCO Corporation, Mahindra&Mahindra Ltd., Kubota Corporation, CNH Industrial N.V., China National Machinery Industry Corporation Ltd , CLAAS KGaA mbH, AGROSTROJ, J C Bamford Excavators Ltd. and SDF S.p.A.