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In many countries, more and more people are being born, and this is causing a greater need for food. To make more food and make it faster, we have to find ways to speed up the process of farming. One way to do this is by using special tools and machines for farming, which is called agricultural equipment. Also, by adopting mechanization techniques on the farm, we can make the whole farming process quicker and more efficient. But as the way people eat is changing, and they want more food, this is putting a lot of stress on the land we use for farming. As the number of people living in different countries keeps increasing, so does the need for more food. This growing demand for food requires us to find ways to produce it faster and in larger quantities. The solution lies in enhancing the efficiency of agriculture, and one effective approach is the use of agricultural equipment and mechanization techniques on farms. These tools and methods can significantly speed up the farming process, helping us meet the rising demand for food.
Agricultural equipment refers to special tools and machines designed to assist in various farming activities. These tools range from tractors and plows to harvesters and irrigation systems. By employing these machines, farmers can perform tasks more quickly and efficiently than traditional manual methods. For instance, a tractor can plow a field much faster than a team of horses, making the planting process more efficient. In addition to using advanced equipment, adopting mechanization techniques is crucial for improving agricultural productivity. Mechanization involves replacing manual labor with machines to perform tasks such as planting, harvesting, and processing crops. This not only speeds up the farming process but also reduces the need for human labor, making it more cost-effective.
However, the increasing demand for food is not the only challenge we face. The way people eat is also changing, putting significant pressure on the land we use for farming. As individuals and communities shift their consumption patterns, the demand for different types of food increases. This change in dietary habits is causing stress on our land resources, as we need more space to grow a diverse range of crops to meet varying food preferences. The pressure on land resources is further intensified by factors such as urbanization and industrialization. As cities expand and industries grow, they encroach upon arable land, limiting the available space for farming. This competition for land resources poses a challenge to maintaining a balance between meeting the food demand and preserving the environment. To address these challenges, a holistic approach is necessary. Enhancing agricultural productivity through the use of modern equipment and mechanization is vital to meet the growing demand for food. Additionally, sustainable land management practices must be implemented to ensure the long-term health and productivity of our agricultural resources. Countries and communities need to invest in research and development to create and promote technologies that make farming more efficient and environmentally friendly. This includes precision farming techniques, where technology is used to optimize the use of resources such as water and fertilizers, minimizing waste and environmental impact.
Covered Aspects:
| Report Attribute/Metric | Details |
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| Segment Outlook | Product Type |
Powered Agriculture Equipment Market Highlights:
Powered Agriculture Equipment Market Overview
Powered Agriculture Equipment Market Size was valued at USD 57,390.0 Billion in 2023. The Powered Agriculture Equipment Market industry is projected to grow from USD 61,303.7 Billion in 2024 to USD 1,01,666.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.53% during the forecast period (2024 - 2032). The demand for farm mechanization has also increased in the recent past, which is expected to pick momentum further as the population rises. Asia-Pacific remains the critical market for powered agriculture equipment, though the demand also increases in Europe and North America.
The Powered agricultural machinery and equipement market is witnessing the rise of government subsidies play an essential role in the agriculture sector of a country. For instance, the US Farm Service Agency (FSA) is known to have provided guarantees and direct farm ownership and operating loans to family-size farmers who cannot obtain commercial credit from a bank, farm credit system institution, or other lenders. FSA loans can also help to purchase land, livestock, equipment, feed, seed, and supplies. The US department of agriculture has also announced various loan programs, including direct farm ownership down payment program. The maximum loan amount has increased from USD 250,000 to USD 300,000, and the guaranteed amount on conservation loans increased from 75 to 80%, which stands correct for the continuous period. It has helped the powered agriculture equipment market to grow significantly during the ongoing period ending in 2027.
Powered Agriculture Equipment Market COVID 19 Analysis
Although the COVID-19 outbreak has disrupted the whole supply chain, the agricultural equipement industry seemed to have been impacted the least among all the industries. It was primarily due to the steps taken by the government to consider agricultural activities under essential services. Nevertheless, the agricultural machinary industry faced 4 significant challenges amidst COVID-19—limited supply of powered agriculture equipment parts, a drop in the first half of new tractor sales, the shutdown of production facilities, and a decline in working capital. Nevertheless, despite the impact of COVID-19 on the powered agriculture equipment market, the market is expected to revive by the end of 2021.
The Association of Equipment Manufacturers (AEM) released the data last week showing that the total farm tractor sales in the US rose 0.3% in December 2021 compared to December 2020, while combined sales for the month saw a gain of 25.3%. Those gains contributed 10.3% to the total gain for tractors for 2021 and 24.7 % for combines. The powered agriculture equipment market is estimated to witness a slight downturn in 2020, owing to COVID-19 and the reluctance of farmers to purchase expensive high-powered agriculture equipment.
Agriculture Equipment Market Dynamics
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Drivers
Farm loan waiver schemes encourage farmers to buy powered agriculture machinery and equipement. According to the Agricultural Policy Monitoring and Evaluation, 2019, conducted by the Organisation for Economic Co-operation and Development (OECD), farm policies in 53 countries–all OECD, EU countries, and 12 critical emerging economies – provided an average of USD 728 billion per year direct support to farmers from 2018-2020.
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Restraints
The purchase of powered agriculture machinery and equipement such as tractors and harvesters is a significant investment in agricultural activities and accounts for the maximum share of the global agri machinery and equipement market. All the functional steps involved in designing, producing, and distributing the equipment require huge investments, which is reflected in the cost of the machinery and tools made available to the farmers that are indulged in agricultural activities. The inability of small farmers to invest a high amount results in the low penetration of powered agriculture equipment market in emerging countries.
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Technology Analysis
The agriculture tools industry is under constant pressure to produce agricultural products to cater to the growing population, forcing farmers to focus on efficiency and productivity to drive business growth. Precision farming, as an alarming Powered Agriculture Equipment market concept is becoming common among farmers who want to produce more with limited resources. This is a prominent farming technique belonging to the powered agriculture equipment market could effectively tackle the issue of high demand for food across geographies. It allows farmers to improve their operational efficiency and increase production, thereby minimizing the gap between the supply and consumption of agricultural products. Several companies' increasing R&D activities and launches of hybrid & electric tractors are expected to create growth opportunities for the agriculture sector.
Powered Agriculture Machinary & Equipment Market Segment Overview
The powered agriculture equipment market has the understated market segments:
Powered Agriculture Equipment Market By Power Output:
- <30 HP
- 31–70 HP
- 71–130 HP
- 131–250 HP
- >250 HP
Powered Agriculture Equipment Market By drive type.
- Two-wheel
- Four-wheel
Powered Agriculture Equipment Market By function.
- Plowing & Cultivating
- Sowing & Planting
- Plant Protection & Fertilizing
- Harvesting & Threshing
- Others
By equipment type
- Tractors
- Combines
- Sprayers
- Balers
- Others
By propulsion
- Battery Electric
- Hybrid Electric
By Region
- Asia Oceania
- North Americ
- Europe
- Rest of the World [RoW]
Powered Agriculture Equipment Market Regional Analysis
The Asia Oceania region includes China, India, Japan, South Korea, Australia, and the rest of Asia Oceania for the market analysis.
Adding to the high containerized transportation, the global market factors such as increasing Gross Domestic Product (GDP), infrastructure investments, rising per capita income, growing inclination toward mechanization, and government initiatives for FDI have created more opportunities for the farming business, in turn driving the farm tractor market in the Asia Oceania region. As a result, Asia Oceania is expected to lead the farm tractor market during the forecast period. Countries falling under the Asian Oceania region are India, Japan, China, South Korea, Australia, and the Rest of Asia Oceania. There has been an increase in the farm mechanization driven by government efforts and subsidies or loan waivers is expected to drive farm tractor sales in India. However, the Chinese region has witnessed a decline in tractor sales in 2020 and 2019, owing to delays in powered agriculture equipment subsidies in the Chinese provinces and the upgradation of emission regulations. The Rest of Asia Oceania region covers countries like Vietnam, Australia, Malaysia, Singapore, Indonesia, and the Philippines.
Agriculture Equipment & Tools Market Competitive Landscape
The powered agriculture equipment market is witnessing the rise of global market competition owing to the steps undertaken by the following market players:
- John Deere (US)
- CNH Industrial (Netherlands)
- CLAAS (Germany)
- Kubota Corporation (Japan)
- AGCO Corporation (US)
Recent Developments
- Governments across countries have taken several reliable measures to tackle the pandemic and boost the growth of the agriculture sector. For instance, the US government, as a part of the North American region had announced a USD 19 billion relief program to farmers, including USD 16 billion in direct payments to producers. The US government had also announced that it would make monthly purchases of USD 100 million in freshly produced dairy and meat products. The European Union has further, approved new rural development measures. According to the European Commission, this is a new and temporary measure would allow countries in the EU with remaining rural development funds to pay farmers and small agri-food businesses in 2020.
- In November 2021, one of the prominent market companies - John Deere developed new material collection systems and mechanical grappleS for compact utility tractors. The New Frontier MG20F Mechanical Grapple, as a new member of the global powered agriculture equipment market offers a quick-attach solution for fast installation and features a 1,200-pound (544 kg) lift capacity.
- In December 2021, another prominent market player - New Holland Agriculture designed a Straddle Tractor to meet the demanding requirements of the narrow vineyards typical of the premium wine-growing regions such as Champagne, Médoc, and Burgundy.
- In August 20201, AGCO Corporation brand Massey Ferguson took to the international scale and launched VE Series planters. The series launched consists of rigid and folding-frame planters to narrow transport and track planters that offer straightforward, dependable, durable planters to deliver consistent, accurate seed placement for optimum yields.In November 2021, one of the reliable market companies - CLAAS developed new flagship TORINO 1913 and TORINO 2014 models. They feature more engine power, and other features like higher lift capacity, and an even greater loading height.
Powered Agriculture Equipment Market Report Overview
The mobile-powered agriculture equipment market report helps in providing first-hand information related to the market dynamics like drivers and restraints that might impact the growth rate of the market positively and negatively and further laid down the details of the market valuation during the ongoing forecast period 2021-2027. Furthermore, the key market players in various market regions and segments are taking care of the market operations that help push the market towards the predicted growth figures for the period in 2027. In addition, the global market report helps in discussing the recent developments during the period, which will impact the investor's decisions to invest in the market or not.
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