About Farm Mechanization
The global farm mechanization market is largely dependent on agricultural land and farm output. Global agricultural production affects the market substantially as it grows in tandem with the demand for food. However, in various phases, the global agricultural production has slowed down in recent years as the demand for agricultural products has decreased. Recent environmental changes are also significantly affecting global agricultural production
Technavio’s analysts forecast the farm mechanization market in India to grow at a CAGR of 7.53% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the farm mechanization market in India for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of tractors, harvesters, power tillers, rice transplanters, and laser land levelers. The market is divided into the following segments based on product:
Technavio Announces the Publication of its Research Report – Farm Mechanization Market in India 2016-2020
Technavio recognizes the following companies as the key players in the farm mechanization market in india: John Deere, Mahindra, TAFE, and International Tractors.
Other Prominent Vendors in the market are: AGCO, Beri Udyog, CLAAS, CNH Industrial, Daedong Industrial, Escorts Group, Fotol Lovol, Kubota Tractors, KUHN Group, LEMKEN India, McCormick, Pöttinger, and SDF Group.
Commenting on the report, an analyst from Technavio’s team said: “Growing adoption of tractors using alternative fuels will be a key trend for market growth. Fuel and tractor technologies have evolved over the years, and tractors now utilize liquefied natural gas, compressed natural gas, kerosene, vegetable oil, diesel, and propane. Due to the rise in the price of conventional fuels and rising concerns over environmental pollution, farmers are shifting to alternative fuels to power farm machinery. Although bio-diesel tractors are expensive as bio-fuels are high priced, farmers are increasingly preferring them as they provide lower operating costs due to longer life span of fuel engines and low maintenance. Vendors are extensively investing in R&D to manufacture tractors that can run on alternative fuels. New Holland, for instance, presented a hydrogen-powered model, NH2 that emits oxygen and water.”
According to the report, growing demand-supply gap in agricultural sector will be a key driver for market growth. Population growth is one of the major drivers of the food demand in India. The population of India has increased from 930 million in 1996 to about 1.29 billion in 2015. According to the research conducted by the Australian Department of Agriculture, the real value of agri-food demand in India will rise by 136% in 2009-2050. The demand for food has increased with the increase in population. However, the area of arable land has not increased in proportion to the rise in the demand for food. So, farmers are trying to increase efficiency and accelerate production by adopting advanced agricultural machinery and efficient farm cultivation techniques to meet the increased demand for food.
Further, the report states that the high costs of equipment will be a challenge against the market growth. Farm equipment, especially the energy-efficient equipment, is capital intensive and constitutes a major investment for farmers in India. The majority of the farmers in India belong to the low-income bracket, and more than 80% of the farmers own marginal to small farm. These farmers do not have the financial capability to buy heavy and technologically advanced machines or to buy them by loaning capital. So, around 90% of the tractors sold in India are bought via the assistance of various financial institutions.
John Deere, Mahindra, TAFE, International Tractors, AGCO, Beri Udyog, CLAAS, CNH Industrial, Daedong Industrial, Escorts Group, Fotol Lovol, Kubota Tractors, KUHN Group, LEMKEN India, McCormick, Pöttinger, SDF Group.
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