ESOMAR-certified consulting firm Future Market Insights (FMI) in its latest report forecasts that the global agricultural machinery market will register a CAGR of 4.8% between 2021 and 2031, reaching a market volume of around 6.7 Mn units by 2031 end.
Agriculture is the primary source of livelihood for about 58% of India’s population. In order to address the rising food demand and promote use of advanced farm machinery, government of India has introduced various schemes. For instance, Rastriya Krishi Vikas Yojana (RKVY) was introduced to provide 100% subsidy. The scheme was aimed to assist the advancement of the farming sector.
The agriculture industry is under constant pressure to address the food security issue. Farmers across the world are employing various equipment to increase food production. These machines minimize the manual labor and reduce turnaround time.
Growing popularity of precision farming is augmenting the demand for modern agricultural equipment. With the integration of artificial intelligence (AI) and internet of things (IoT), the sales of agriculture equipment are soaring. Smart farming is gaining traction. Introduction of electric agricultural equipment has completely changed the market scenario. These equipment does not only minimize the emissions but also reduce costs and improve efficiency.
New trends of agricultural robotics and driverless machines are attracting large number of farmers to upgrade their equipment systems. As per FMI, the agricultural equipment market will surpass a valuation of US 65 Bn by 2021 end.
Key Takeaways from FMI’s Agricultural Equipment Market Study
· Europe dominates the ground support equipment market as a result of increasing agricultural mechanization and presence of leading manufacturers. The market in the region is set to register steady growth at 4.4% CAGR between 2021 and 2031.
· The U.S. is expected to register a strong CAGR during the forecast period as a result of rapid technological advancements and availability of equipment leasing.
· With implementation of favorable governmental policies, China is anticipated to emerge as the leading market for agricultural equipment.
· Top 5 players operating in agricultural equipment market collectively account for 44% market share.
· By product type, tractors dominate the agricultural equipment market with their multipurpose nature.
Key players operating in agricultural equipment market are investing heavily on research and development activities. They are adopting various organic and inorganic growth strategies such as mergers and acquisitions, advanced product development and collaborations to gain a competitive edge in the market. For instance.
In August 2021, Precision Planting, LLC a subsidiary of AGCO Corporation announced an agreement to acquire the business and assets of Headsight, Inc., a leading precision agriculture harvesting solution company. The acquisition will help the company to offer farmers a range of industry-leading precision ag technologies across the crop cycle that will help them to maximize their value and output while minimizing inputs and impact.
In 2021, XAG Co., Ltd. Launched XAG R150, a jet sprayer system to pollinate fruit trees. A specially mixed solution of pollen is poured into the R150’s liquid tank before it is sent on a predetermined route around an orchard to spray pollen.