Agriculture Equipment Market

• Increasing Need for Agricultural Productivity

Government Assistance Through Farm Loan Waiver and Credit Financing

The implementation of farm loan waivers scheme incentives farms to invest in agriculture equipment. Government worldwide have introduced various schemes aimed at reliving farms of their debt and promoting farm mechanics. According to Agricultural Policy Monitoring and Evaluation 2019 by the Organization for Economic Co-operative and Development (OECD), farm policies in 53 countries, including EU nations and OECD, along with emerging 12 key economies on average USD 528 billion (EUR 465 billion) per-year of direct support to farmers during the 2016-18 period. 

However, between the year 2019-21 government provided a support of USD 817 billion per year, for the 54 countries a 13% increase over the USD 720 billion reported for 2019-20. Of this total, USD 500 billion per year was paid from public budgets, with the rest being transferred through higher prices. Individual producers received USD 611 billion per year in positive support in 2019-21, representing 17% of gross farm receipts in OECD countries and 13% in the 11 emerging economies.

For instance, in the year 2019, government of Maharashtra, India, introduced the Mahatma Phule Farm Loan Waiver Scheme, followed by the Maharashtra Argo Business Network Project in the March 2021, aimed at assisting a small and marginal fruit and vegetable.

Agriculture Equipment Market

The Global Agriculture Equipment Market Industry is influenced by the rising global population, which necessitates increased food production. With the world population expected to reach approximately 9.7 billion by 2050, the demand for efficient agricultural practices is paramount. This demographic shift compels farmers to invest in modern equipment that can enhance yield and reduce labor costs. Consequently, the market is likely to expand as agricultural stakeholders seek to meet the food demands of a growing populace. The anticipated growth trajectory indicates a market value of 423.8 USD Billion by 2035, underscoring the urgency for innovative agricultural solutions.

The Global Agriculture Equipment Market Industry is experiencing a surge in technological advancements, which significantly enhances productivity and efficiency. Innovations such as precision agriculture, automation, and smart farming technologies are becoming increasingly prevalent. For instance, the integration of GPS and IoT in farming equipment allows for real-time monitoring and data analysis, leading to optimized resource utilization. This trend is likely to contribute to the market's growth, as farmers seek to adopt these technologies to remain competitive. As a result, the market is projected to reach 238.0 USD Billion in 2024, reflecting the growing demand for advanced agricultural solutions.

Government initiatives and support play a crucial role in shaping the Global Agriculture Equipment Market Industry. Various countries are implementing policies aimed at promoting agricultural modernization and sustainability. For example, subsidies for purchasing advanced machinery and grants for research in agricultural technologies are becoming more common. These initiatives not only encourage farmers to adopt new equipment but also stimulate market growth by creating a favorable investment climate. As governments recognize the importance of food security and sustainable practices, the market is expected to flourish, driven by these supportive measures.

Market diversification and global trade are pivotal factors impacting the Global Agriculture Equipment Market Industry. As emerging economies expand their agricultural sectors, there is an increasing demand for diverse agricultural machinery. Countries in Asia and Africa are particularly notable, as they seek to modernize their farming practices. This trend is likely to foster international trade in agricultural equipment, as manufacturers aim to penetrate new markets. The anticipated compound annual growth rate of 5.38% from 2025 to 2035 suggests a robust expansion in the industry, driven by the need for varied and advanced agricultural solutions.

The Global Agriculture Equipment Market Industry is increasingly influenced by sustainability and environmental concerns. As awareness of climate change and resource depletion grows, there is a pressing need for equipment that minimizes environmental impact. Farmers are now more inclined to invest in machinery that promotes sustainable practices, such as reduced emissions and efficient water usage. This shift towards eco-friendly equipment is likely to drive market growth, as consumers and regulatory bodies demand greener solutions. The industry's response to these concerns may lead to innovative products that align with sustainability goals, further enhancing market dynamics.

The Agriculture Equipment Market, based on region, has been divided into North America, Europe, Asia Pacific, Rest of World. North America consists of US, Canada, and Mexico. Europe consists of UK, Germany, France, Italy, and Rest of Europe. Asia-Pacific consists of China, India, Japan, and Rest Of Asia-Pacific. Middle East & Africa consists of Saudi Arabia, South Africa, UAE, and Rest of Middle East & Africa. South America consists of Brazil, Argentina, and Rest of South America. Asia-Pacific is one of the largest markets for agricultural equipment, as many countries in the region are highly dependent on the agricultural sector. 

The increased demand for agricultural tractors in the region can be credited to factors such as the growing harvesting, seed sowing, irrigation, and cultivation activities in farm fields. Asia-Pacific is an abundant source of crops sprayer and vegetables, low labor costs, and favorable government guidelines in countries such as India, China, Japan, and South Korea. These countries also have a strong focus on agriculture, and hence the demand for agricultural equipment in the agriculture sector is also expected to be high.

Europe is one of the prominent regions for the agricultural tractors market. With a rich history in farming tradition, Europe boots a diverse landscape that necessitates a wide range of agricultural equipment tailored to varying climate condition and farming practices. Moreover, in the Europe government authorities are taking numerus action to promote agriculture equipment in the different countries for instance, in the UK, the government authorities are working on its Food 2030 strategy to produce more food without harming natural resources to offer sustainable and healthy food.

The increasing demand for innovative and technologically developed agricultural equipment is expected to increase with the sale in the region.

Figure 2: Agriculture Equipment Market Size By Region 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The rising investments in the agricultural industry are expected to drive the growth of the agricultural equipment market in North America. Furthermore, the rising demand for modern agricultural equipment is expected to offer lucrative opportunities to the agricultural equipment market during the study period. The increase in agricultural activities across the region is also expected to contribute significantly to the growth of the regional market during the forecast period.  Moreover, governments and other organizations in the region are continuously working on increasing developments in the agricultural sector in the region.

The Agriculture Equipment Market is highly competitive, with a number of large, well-established players. The major players are constantly innovating and developing new products to stay ahead of the competition. There is also a growing number of smaller players entering the market, offering specialized equipment or niche products. Some players, such as Deere & Company and Claas, have a strong brand reputation that gives them a competitive advantage. 

Some players, such as Deere & Company, are investing heavily in new technologies, such as precision agriculture and automation. Integrating technology like sensors, GPS, and data analytics into equipment for precision tasks like targeted spraying and variable-rate fertilization, optimizing resource use and yield. 

Developing self-driving tractors, drones, and robots for tasks like planting, weeding, and harvesting, addressing labor shortages and improving efficiency. Focusing on electric and hybrid tractors and equipment to reduce emissions and meet environmental regulations. Some players, such as AGCO, offer a wide range of products, which allows them to cater to a wider range of customer needs. Some players, such as CNH Industrial, have a strong distribution network that gives them access to a large number of customers.

The competitive landscape of the Agriculture Equipment Market is expected to continue to evolve in the coming years, as new technologies emerge and new players enter the market.