Agricultural efficiency across the globe has been significantly increasing over the last two decades. With the exponential growth of the global population, the subsequent increase in global food demand, shrinking agricultural lands, and depletion of limited natural resources, the need to improve agricultural yield has become critical. The rise in the urban population in developing countries, with the improvement of quality of living due to high-income levels and the demand for fresh farm produce and animal protein, is bolstering the demand for crop production. The finite presence of natural resources, such as arable land and fresh water, along with falling farm yield trends in many crop categories, have encouraged the growers and agricultural companies to introduce innovative and advanced agriculture equipment to boost farm profitability.
Consequently, agriculture equipment and automation manufacturers have seen a positive surge in their sales. Over the past five years, agricultural robots have also been incorporated into farming operations as they treat soil and crops selectively as is required. Powered agriculture is being adopted not only by developed countries but also by developing countries.
Governments of several countries such as India, China, Brazil, and Mexico have realized the need and advantages of powered agriculture equipment and, thus, introduced favorable initiatives to drive the growth of the market. However, such revolutionary changes in farming practices also bring in challenges, restraining the growth of the market. For instance, the lack of proper infrastructure and adequate financing solutions hinder the adoption of these technologies, especially in emerging economies.
The powered agriculture equipment comprises a wide range of solutions such as tractors, sprayers, planters, combines, and other equipment such as balers and tilling equipment. Farm tractors account for the largest share in the market, followed by combine harvesters, planters, and sprayers, in that order in 2021. The adoption of powered agriculture equipment is increasing among farmers to improve yield, operational efficiency, soil fertility, and profitability.
In terms of volume, sowing and planting application is expected to display the fastest growth during the forecast period, reaching a volume of 523.05 thousand units by 2026. Due to COVID-19, the travel restrictions across countries have led to an immediate shortage of seasonal farm work. This trend has led to a heavy impact, especially in the ongoing harvest season and the upcoming planting season across the world.
The global powered agriculture marketwas valued at $57.39 billion in 2021, which is expected to grow with a CAGR of 5.02% and reach $73.32 billion by 2026. Deere Company is one of the world-leading designers, manufacturers, and financers of agricultural, construction, and commercial vehicles and services. The company is widely recognized for delivering innovative solutions of high quality to customers that cultivate, harvest, enrich, transform, and build upon farmlands. The company offers numerous agricultural solutions and services in the form of tractors, harvesters, sprayers, and planters, among others. Apart from these, the company also provides its clients with solutions for precision agriculture, farm management, and the application of AI in agriculture. In March 2021, the company announced the launch of new 9-series tractors and a few additions and updates in the 8-series tractors, which have productivity-enhancing features and are technologically advanced lineup to date with precision technology updates. The leading competitors of the company are AGCO Corporation, CNH Industrial NV, CLAAS Group, and Yanmar Co. Ltd., among others.
Impact of COVID-19 on Global Powered Agriculture Equipment Market:
As the COVID-19 pandemic forces countries to close their borders, the agricultural sectors are facing major challenges. Even in regions and countries that are unlikely to face food crises, such as those in North America and Europe, there is also a lack of labor as new challenges keep unskilled workers out. Also, COVID-19 travel restrictions across countries have led to an immediate shortage of seasonal farm labor due to the COVID-19 pandemic. This has had a heavy impact, especially in the ongoing harvest season and the upcoming planting season across the world. The farmers globally are rapidly adopting advanced powered equipment for harvesting to minimize agricultural waste because, during the COVID-19 era, farmers in a lot of countries especially developing nations such as India are still suffering from outcomes of lockdown caused by the pandemic, leading to delays in their harvest and planting processes. The unavailability of proper farm equipment, such as harvesters, is also aggravating their problems.
Advancements in agriculture equipment and related technologies have been on the rise to meet the growing food demand, and North America has been one of the early adopter regions of the same. Presently, North America has the most technologically advanced agricultural industry, with the US being the heartland of innovative agriculture technologies. Over the last two decades, regional farmers have progressively adopted advanced farming methods. The farmers of the region are being trained to open up to the adoption of technological innovations. Moreover, North America serves as one of the most established powered agriculture equipment markets owing to the presence of many key agricultural original equipment manufacturers (OEMs) generating their largest share of the revenue from this region.
Some of the key players operating in the market Kubota Corporation, AGCO Corporation, Deere Company, CLAAS Group, CNH Industrial NV, ISEKI CO. Ltd., Robert Bosch GmbH, Mahindra Mahindra Ltd., Trimble Inc., SDF Group, Parrot SA, Harvest Automation, PrecisionHawk Inc., Tirth Agro Technology Private Limited, Kinze Manufacturing, Yanmar Holdings Co. Ltd., ZETOR Tractors., among others.
Key Questions Answered in this Report:
What is the estimated global powered equipment market size in terms of agriculture revenue and volume for the forecast period 2022-2026, and what is the expected compound annual growth rate (CAGR) during the forecast period 2022-2026?
What are the key trends, market drivers, and opportunities in the market pertaining to powered agriculture equipment?
What are the major restraints inhibiting the growth of the global powered agriculture equipment market?
What kinds of new strategies are being adopted by the existing market players to expand their market position in the industry?
What is the competitive strength of the key players in the powered agriculture equipment market based on an analysis of their recent developments, product offerings, and regional presence?
How is the competitive benchmarking of the key powered agriculture equipment companies in the agriculture market based on the analysis of their market coverage and market potential?
How much revenue each of the segments is expected to record during the forecast period along with the growth percentage, in the following segments:
o Equipment including tractor, combine harvester, planter, sprayer, other equipment
o Application, including pre/post harvesting, sowing and planting, spraying and fertilizing, other applications
o Region, including North America, the UK, Europe, Asia-Pacific and Japan, China, the Middle East and Africa, and South America
Which type of players and stakeholders are operating in the market ecosystem of powered agriculture equipment, and what is their significance in the global market?
Which are the leading consortiums and associations in the global powered agriculture equipment market, and what are their roles in the market?
How does the regulatory landscape differ in different regions for powered agriculture equipment and equipment?
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