Agriculture Equipment Market Is Projected To Grow Robustly By 2030

Agriculture Equipment Industry

The global agriculture equipment market size is expected to reach USD 236.04 billion by 2030, registering a CAGR of 5.3% during the forecast period, according to a new report by Grand View Research, Inc. Shortage of labor worldwide particularly in Western Europe and the U.S. will play a key role in driving the adoption of agriculture equipment over the forecast period. Furthermore, shortage of labor in the field of agriculture equipment and telematics to monitor tractor performance and improve farm yield is also anticipated to propel the growth of the market. Apart from advancements in the agriculture equipment space and shortage of labor shortage, the growing population to meet the global food requirements will also be a major factor, increasing demand in the long term.

Favorable government initiatives to reduce the financial burden on farmers or incentivize agriculture equipment purchase will also be a major factor driving the growth of the market. For instance, the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and Pradhan Mantri Kisan Samman Nidhi (PMKSN) schemes in India aimed at offering financial assistance to low-income farmers. Apart from schemes supporting agricultural activities in the emerging economies, COVID-19 pandemic assistance from developed countries/regions, such as the United States and European Union in 2020 eased the financial burden of farmers in 2020. For instance, the announcement of the Pandemic Assistance for Producers initiative in the U.S (2020) and negotiations on European Union Common Agricultural Policy in Europe (2021).

The COVID-19pandemic hampered the growth of the market for agriculture equipment in H1 2020. A government-imposed lockdown and stringent regulations impeded business activities worldwide, including the agriculture equipment industry, consequently impacting sales. Several key players in the market, including AGCO Corporation, Deere & Company, and KUBOTA Corporation reported a dip in sales from Q1 2020 to Q2 2020. Although the year 2020 witnessed a slight dip, it was offset by the economic revival post-Q2 2020.

In 2021, the market recorded double-digit growth owing to the pent-up demand and backlog orders resulting from the pandemic. This trend will continue over the short term to meet backlogs from 2020 and replace aging equipment over the forecast period. Although, the overall market statistics paint a rosy picture over the short-term, supply chain disruptions could still pose a threat due to low inventory levels at an OEM level.

Gather more insights about the market drivers, restrains and growth of the Global Agriculture Equipment market

Agriculture Equipment Market Segments Highlights:

Tractors captured a sizeable portion of the overall market in 2022. Tractors are essentially high-cost equipment, thus contributing to their high market share
Harvesting and threshing are important farming processes, anticipated to record a CAGR of over 7.2% over the forecast period. This trend is expected to continue over the forecast period
OEMs in this space are expected to witness short-term challenges owing to supply chain disruption and shortage of semiconductors in agriculture equipment which may lead to production delays.

Agriculture Equipment Market Report Segmentation

Grand View Research has segmented the global agriculture equipment market based on product, application, and region:

Agriculture Equipment Product Outlook (Revenue, USD Million, 2018 - 2030)

Tractors
- Less than 40 HP
- 41 to 100 HP
- More than 100 HP
Harvesters Machinery
Planting Equipment
- Row Crop Planters
- Air Seeders
- Grain Drills
- Others
Irrigation & Crop Processing Equipment
Spraying Equipment
Hay & Forage Equipment
Others

Agriculture Equipment Application Outlook (Revenue, USD Million, 2018 - 2030)

Land Development & Seed Bed Preparation
Sowing & Planting
Weed Cultivation
Plant Protection
Harvesting & Threshing
Post-harvest &Agro-processing

Agriculture Equipment Regional Outlook (Revenue, USD Million, 2018 - 2030)

North America
- US
- Canada
Europe
- UK
- Germany
- France
- Italy
- Netherlands
- Spain
- Denmark
- Russia
Asia Pacific
- China
- India
- Japan
- Singapore
- South Korea
- Taiwan
- Australia
Latin America
- Brazil
- Mexico
- Argentina
Middle East & Africa
- UAE
- Saudi Arabia
- South Africa