Farm Equipment Market- By Type; By Phase ; By Application; By Geography - Forecast (2024-2030)
Farm Equipment Market Overview:
The global Farm Equipment market size is $227.5 billion as of 2023 and is forecast to grow at a CAGR of around 6.1% going through 2024-2030. The Farm Equipment market is experiencing a transformative evolution driven by technological advancements, sustainability concerns, and a growing global population. As per the Food and Agriculture Organization of the United Nations, the global population will mark an astonishing 9.1 billion figure by 2050 witnessing a surge of 34%, and to feed these 9 billion mouths global agricultural expenses in developing countries would amount to $83 billion per annum. To enhance efficiency and productivity in agriculture, the industry is witnessing a surge in the adoption of smart and precision farming technologies. Automation and data-driven solutions are becoming integral to modern farming practices, optimizing resource utilization and reducing environmental impact. To counterpart such unprecedented food production demand coupled with depleting arable land, efficient and mechanized agriculture is the main objective, and Farm Equipment is the tool to meet the objectives. Moreover, Sustainability is a key driver in shaping the future of Farm Equipment. There is a growing emphasis on developing eco-friendly equipment with reduced carbon footprints. Electric and hybrid tractors, powered by renewable energy sources, are becoming increasingly popular, aligning with global efforts to address climate change. Furthermore, the Farm Equipment market is witnessing a shift towards integrated farming systems. This involves combining various agricultural activities, such as crop cultivation and livestock management, to create synergies that enhance overall farm productivity, these are the factors propelling the Farm Equipment market growth in the forecast year.
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Market Snapshot:
Report Coverage
The report: “Farm Equipment Market Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Active Wheelchair Market.
By Automation- Fully automatic, Semi-automatic, and Manual.
By Machinery Type- Tractor, Soil Cultivation, Planting, Irrigation, Fertilization, Harvesting, Hay Making, Loader and Agriculture Robots.
By Geography: North America (U.S, Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Rest of South America) and Rest of The World (Middle East, Africa).
Key Takeaways
Farm Equipment Market Segment Analysis – By Automation:
Manual Segment dominated the Farm Equipment Market with a value share of approximately 43% in 2023. The manual segment of the Farm Equipment market plays a crucial role, driven by factors such as the utilization of natural forces, availability of cost-effective labor, and enhanced precision in tasks. In sub-continent countries like China and India, where manual labor is abundant, the demand for manual Farm Equipment is expected to surge. The reliance on natural forces and cost-efficient labor aligns with the economic landscape of these regions, fostering market growth. Moreover, the emphasis on precision in agricultural operations contributes to the increasing adoption of manual machinery, especially in tasks that require a delicate touch or intricate handling. As these factors converge, the manual segment is poised to witness substantial demand, reflecting the symbiosis between traditional practices, economic considerations, and the quest for operational accuracy in the Farm Equipment market.
Farm Equipment Market Segment Analysis – By Machinery Type:
Based on Machinery Type, the tractor segment has the largest revenue market share of 29% in 2023. This surge is primarily fuelled by the imperative need to address labor shortages and meet the escalating global food demand due to a burgeoning population. Tractors have emerged as a vital tool for enhancing agricultural productivity in response to these challenges. Moreover, in 2022, Europe registered approximately 215,000 tractors, with 59,300 falling below 37kW (50 hp) and 155,700 at 38kW and above. The European Farm Equipment Association (CEMA) estimates 165,200 of these to be agricultural tractors, while the remainder comprises diverse vehicles like quad bikes, side-by-sides, telehandlers, and other equipment. This data underscores a thriving market, fuelled by a dynamic agricultural landscape and a substantial demand for tractor production in the Machinery Market. Moreover, the emergence of electric tractors presents a promising growth opportunity for market participants. Electric tractors offer a range of benefits, including cost-effectiveness, eco-friendliness, and high efficiency. These attributes make electric tractors an attractive option for farmers looking to reduce their environmental impact while boosting productivity. As the demand for Farm Equipment continues to surge, the tractors segment is poised to maintain its dominance in the market. With ongoing advancements in technology and a focus on sustainable farming practices, tractors are expected to play a crucial role in meeting the growing global food requirements.
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Farm Equipment Market Segment Analysis – By Geography
Based on Geography, the APAC Farm Equipment accounted for the dominant revenue share of 43% in 2023. The Farm Equipment Market in the Asia-Pacific (APAC) region is poised for significant growth, driven primarily by the substantial agricultural activities in countries like India and China. With a large portion of their population engaged in agriculture, there is a heightened demand for advanced machinery to enhance productivity and efficiency in the sector. China, with its vast agricultural landscape, also exhibits a robust demand for Farm Equipment. The rapid industrialization in the country has led to a shift in labor dynamics, making the deployment of mechanized solutions imperative for maintaining agricultural output. For instance, according to the National Bureau of Statistics of China In 2022, China's agriculture and related industries contributed 16.24% to the GDP, totaling $ 2724.91 billion an annual increase of 0.19 percentage points. In India, where agriculture plays a pivotal role in the economy, the demand for Farm Equipment has surged due to the increasing need to modernize farming practices. Factors such as rising population, shrinking arable land, and the government's focus on agricultural mechanization contribute to the heightened demand. The adoption of advanced technologies like precision farming and smart agriculture practices further propels the need for innovative machinery. Also, Indian fiscal policy projects a 3.5% growth for the agriculture sector in FY 2022-23, indicating positive economic prospects for the country's farming industry, as per Invest India. Additionally, the increasing adoption of modern farming techniques and the shift towards larger-scale commercial agriculture contribute to the demand for technologically advanced machinery in the forecast year.
Farm Equipment Market Growth Drivers:
Government Support and Subsidies driving the market growth
Government support and subsidies have become pivotal factors propelling the growth of the Farm Equipment Market. Initiatives such as financial aid, tax incentives, and technology adoption programs incentivize farmers to invest in advanced equipment, enhancing productivity and sustainability. This support fosters a conducive environment for market expansion, driving demand for modern Farm Equipment as farmers seek to capitalize on these benefits to optimize their operations and meet the increasing global food demand. Some of the other factors indirectly but positively influencing the market are agriculture finance and agriculture insurance initiated by The World Bank to aid the financially fragile agriculture production sector participants. The World Bank Group is a leading financier of agriculture, In FY 2023, approved IBRD/IDA commitments for agriculture and related sectors reached $5.9 billion, with $3 billion dedicated to climate action within new agriculture and food projects, reinforcing sustainable development and resilience. Moreover, according to the Indian Directorate of Economics and Statistics, the Ministry of Agriculture's number of subsidized machines and equipment given to farmers rose from 1,378,755 in January 2022 to 1,388,314 by December 2022, indicating increased support for agriculture. Other prominent factors equipped with a tendency to support the agriculture machinery market for exponential growth are a rise in research and development by various economies sponsored by various organizations such as The World Bank Group, rise in disposable income of the urban population creating demand for higher quality and organic agricultural products, and reduction in global farmland, which require advanced Farm Equipment to meet copious loads of vigorous production.
Rising Agriculture Mechanization Rates in Developing Countries
The rising trend of agriculture mechanization in developing countries is significantly impacting the demand for Farm Equipment. Faced with challenges such as diminishing land availability, water scarcity, and a shrinking labor force, these nations are increasingly adopting mechanized solutions to enhance productivity and efficiency in agriculture. This shift is fuelling a robust demand for various Farm Equipment, including tractors, harvesters, irrigation systems, and precision agriculture tools. Farmers in developing countries are recognizing the need for modern technology to overcome traditional constraints and optimize resource utilization. The demand for tractors is surging as they become essential for plowing, planting, and cultivating large expanses of land swiftly. For instance, Sonalika International Tractors unveiled 5 new series, including an e-model, at the Global Partners Summit 200 in Gurugram, featuring compact designs and advanced emission control systems for global exports. With compact designs and advanced emission control systems, these innovations cater to rising agriculture mechanization rates in developing countries, driving increased demand in the market. Additionally, there is a growing interest in precision agriculture tools and irrigation systems, reflecting a desire for optimized resource management and sustainable farming practices. As these nations embrace mechanization, the Farm Equipment market is witnessing a substantial upswing, driven by the imperative to secure food production in the face of resource constraints.
Farm Equipment Market Challenges:
High Cost of Agriculture Machinery Limit the Market Expansion
The high cost of Farm Equipment stands as a formidable impediment to the growth of the agriculture machinery market. This cost factor encompasses the initial purchase price, maintenance expenses, and the overall financial burden on farmers. Small and medium-sized farmers, in particular, find it challenging to invest in modern, technologically advanced equipment due to their limited financial resources. Additionally, the evolving nature of agricultural technology necessitates constant upgrades, exacerbating the economic strain on farmers. High capital requirements for machinery contribute to a digital divide, limiting access to innovative tools that could enhance productivity and sustainability. Addressing this challenge requires concerted efforts from policymakers, industry stakeholders, and financial institutions to develop cost-effective solutions, subsidies, or financing options that can alleviate the financial burden on farmers, promoting the widespread adoption of modern Farm Equipment.
Farm Equipment Market Key Players Perspective:
Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Farm Equipment market. Major players in the Farm Equipment Market are Deere & Company, Kubota Corporation, Mahindra and Mahindra Limited, AGCO Corporation., Iseki & Co. Ltd, Escorts Limited Source, Daedong Industrial Co. Ltd, JCB, Tractors and Farm Equipment Limited, Sonalika, among others
Recent Developments