Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Global Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • September 2021 •
  • 165 pages •
  • Report ID: 6155622 •
  • Format: PDF
The global agricultural machinery market was valued at USD 138.59 billion in 2020, and it is anticipated to reach USD 194.94 billion by 2026, registering a CAGR of 5.4% during the forecast period. With such a drastic COVID-19 impact, the agriculture machinery industry requested some flexibility for machines to be fitted with transition engines already manufactured and procured before the crisis. As global supply chains were disrupted and manufacturing industries closed down in accordance with government measures to prevent the spread of the virus, the market has slowed down during the pandemic. Tractors accounted for over 43.6% of the market share in the global agricultural machinery market in 2020.

The Asia-Pacific region is expected to grow rapidly due to the high demand for agricultural products, mainly from India and China, over the forecast period. Within Asia, China dominates in terms of production and sale of agriculture equipment, while India, Japan, and Australia are expected to contribute a significant share in the global market in the coming years, surpassing Europe as the largest market. The population in the region is rising, driving the need for the mechanization of agriculture.?

Key Market Trends

Growing Demand for Farm Mechanization in Developing Countries

The market is driven by increasing rates of mechanization in developing countries. The shrinking land, water resources, and labor force have increased the need for farm mechanization in developing countries. Farm mechanization in developing countries such as India and China accounts for 45-55%, whereas it accounted for 95% in developed nations such as the United States in 2018.? The farm mechanization level in India was recorded at 40-45% in 2017. The penetration of farm equipment is slow since almost 80% of small and marginal farmers own less than five hectares of land. ?The market for farm machinery, including the combines in African countries, is anticipated to grow. This is because African farmers demand access to the latest farm technologies to enhance their farm operations and cut production costs.? Developing nations still have a low penetration level. Hence, the farm mechanization market has a lot of potential for increasing farm equipment penetration, and therefore, increasing the market size during the forecast period.?

Asia-Pacific is the Fastest Growing Region

Asia-Pacific is considered one of the fastest-growing markets because the companies located in the region have been launching new agricultural machinery, thereby dominating the market with faster innovations and product launches. The Chinese government is enhancing farm mechanization for various crops, including rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane. According to the Ministry of Agriculture in China, around 95.5% of the 80.0% of wheatland is harvested using the combine harvesters. ?The increasing focus on farm mechanization and the government’s urge to make the corn, wheat, and rice farms fully automated in the next 10 years may boost the sale and lead to innovations, such as driverless machinery, is driving the market growth during the forecast period.?

Competitive Landscape

The global agricultural machinery market is consolidated,The global agricultural machinery market is consolidated, with key players accounting for majority of the market share. The top players in the market are Deere and Co, CNH Industrial, AGCO Corporation, Kubota, Mahindra and Mahindra Limited, Iseki & Co. Ltd, JC Bamford Excavators Limited, and Lindsay Corporation. The companies were involved in various strategic activities such as product innovation, expansion, partnership, and merger and acquisition. For instance, in Aug 2021, John Deere introduced the new 6155MH Tractor, which delivers all the field-proven performance and reliability of other M Series.?

Reasons to Purchase this report:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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