Global Agricultural Equipment

Global Agricultural Equipment

Global demand for agricultural equipment is forecast to increase 6.5% per year to $213 billion in 2026. However, growth in market value will be mostly the result of higher prices that have resulted from recent supply chain issues and raw material cost inflation. In unit terms, demand will increase just 1.1% per year off of a relatively healthy 2021 base. Real gains are expected to accelerate in the latter part of the forecast period as the global economy continues to normalize. Growth in this period will be bolstered by:

• rising agricultural activity and higher agricultural commodity prices
  
• farmers replacing aging machinery and investing in newly developed agricultural technologies as they face a variety of workforce issues
  (e.g., shortages of skilled operators, rising wages, new worker protections)
  
• continuing government support for farmers around the world, ranging from direct subsidies to programs promoting advanced farming practices to machinery rental schemes (e.g., India)
  
• government and industry initiatives designed to insulate farmers from the impact of climate change and reduce the environmental impact of farming
  

Rebound in China & Technological Advancement Drives Absolute Gains in Asia/Pacific Region
The Asia/Pacific region is expected to register above average growth and post the largest absolute gains of any region due primarily to a rebound in the Chinese agricultural equipment market. The use of more sophisticated equipment will support gains, as the Chinese government continues to focus on improving agricultural mechanization rates throughout the country. The shift to more advanced and machinery-intensive farming techniques will also drive gains in India, the region’s second largest market. In more mature regional markets such as Australia, Japan, South Korea, ongoing upgrades to state-of-the-art agricultural technologies will support demand.

More than Half of New Product Demand Concentrated in Tractor & Harvesting Equipment
Tractors and harvesting equipment sales are projected to climb nearly 7.0% per year between 2021 and 2026. The introduction of the next generation of machines, which will feature numerous advanced technologies, will drive growth in both segments. Newly developed harvesting equipment, for instance, is considerably more capable and reliable than older examples because of advanced sensors and the automation of key functions. Also, tractors – because of their versatility, compatibility with attachments, and suitability for numerous agricultural applications – will continue to be among the first machines that farmers purchase.

The study provides farm machinery product supply and demand for 2011, 2016, and 2021, and forecasts for 2026 and 2031. We also offer annual data for all countries for the 2018-2025 period. This study also presents agricultural equipment demand by type (tractors, harvesting machinery, planting and fertilizing machinery, haying machinery, livestock machinery, plowing and cultivating machinery, other agricultural equipment, and parts and attachments ) for 20 nations. Finally, it evaluates market share and offers a competitive analysis of the leading industry participants, such as AGCO, Bucher Industries, CLAAS, CNH Industrial, Deere, Kubota, Lovol Heavy Industry, Mahindra & Mahindra, Tetra Laval, and Yanmar.
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