Agriculture Equipment Market to Garner $243.5 Billion, Globally, by 2022
Increased adoption of mechanized equipment in agricultural countries, such as India and China, has supplemented the market growth in Asia-Pacific region, which is expected to dominate the market throughout the analysis period. Southeast Asia is the leading rice exporter in the world, thus fueling the demand for agriculture equipment. North America and Europe are likely to exhibit relatively slow growth in the future, owing to huge mechanization in agriculture industry in the region.
According to a new report by Allied Market Research, titled, “Agriculture Equipment Market — Global Opportunity Analysis and Industry Forecast, 2015–2022”, the global agriculture equipment market is expected to generate revenue of $243.5 billion by 2022, growing at a CAGR of 5.9% during 2016 to 2022. Factors that foster the growth of the market are increased mechanization of agricultural activities, economic stability, and increasing demand for food owing to the growing population, particularly in the developing regions. In the year 2015, Asia-Pacific generated the highest revenue, accounting for around 40% share in the overall agriculture equipment market, followed by North America and Europe.
Agriculture tractors, harvesters, soil preparation and cultivation equipment, irrigation & crop processing equipment, agriculture spraying equipment, hay and forage equipment are the major agriculture equipment considered in the study. Tractors constituted nearly one-third of the overall agriculture equipment market revenue in 2015, and are likely to remain the highest revenue contributors throughout the analysis period. Tractors are indispensable farm equipment, used for various activities, both as a standalone equipment and also with other implements. Harvesters is the second largest product category in terms of revenue generation. The market for harvesters is anticipated to grow with the highest CAGR of 6.9% during the forecast period.
Key findings of the study:
- The global agriculture equipment market is expected to exhibit a notable growth during the forecast period owing to the rising demand for food and increasing mechanization in agriculture.
- In the year 2015, tractors accounted for around 34% share in the overall agriculture equipment market revenue.
- The harvester segment is expected to be the fastest growing segment during the forecast period.
- Asia-Pacific is estimated to witness significant growth, growing at a CAGR of 7.6% from 2016 to 2022.
- China is likely to register a higher growth with a CAGR of 8.5% over the analysis period.
Product launch and acquisition are the key growth strategies adopted by the leading market players to gain a strong foothold in the market and expand their customer base. In the year 2016, John Deere launched new models of G-Series harvesters in the North American market. These harvesters have efficient fuel economy and offer high productivity. The key companies profiled include Deere & Company, Mahindra Group, AGCO Corporation, Agrostroj Pelhrimov A.s, Concern Tractor Plants, Escorts Limited, China National Machinery Industry Corporation, Valmont Industries Incorporated., Weifang Euroking Machinery, and Same Deutz-Fahr Group (SDF).