About the Agricultural Machinery Market
Growing global population and increase in per capita income in emerging economies lead to a rise in the demand for food products. The world population is estimated to reach 9.48 billion by 2050 from 7.4 billion in 2016. As a result, farmers are shifting toward mechanization through the use of agricultural machinery, to gain efficiency and effectiveness in farming and crop production. Globally, most governments are encouraging farmers by providing easy credit availability and various loans to buy agricultural machinery.
Technavio’s analysts forecast the global agricultural machinery market to grow at a CAGR of 7.29% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global agricultural machinery market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of following agricultural machinery:
Technavio Announces the Publication of its Research Report – Global Agricultural Machinery Market 2016-2020
Technavio recognizes the following companies as the key players in the global agricultural machinery market: AGCO, CLAAS, CNH Industrial, Deere & Company, and Kubota Corp.
Other Prominent Vendors in the market are: Iseki, Krone Group, Kuhn Group, Kverneland Group, Mahindra & Mahindra, Same Deutz-Fahr Deutschland, and Tractors and Farm Equipment.
Commenting on the report, an analyst from Technavio’s team said: “A trend that will positively impact the market is the use of alternative fuels. Agricultural machinery uses various options as fuel such as diesel or gasoline. With the rising prices of conventional fuels and increasing concern toward sustainable development, alternative fuels are considered by farmers. For example, petroleum-based lubricants are substituted with oil-based bio-lubricants. Bio-lubricant is preferred by farmers in spite of its high price because it provides large benefits in terms of longevity of fuel engine as well as low operating cost with less maintenance. In addition, vendors are investing in R&D (research and development) on the manufacturing of agricultural machinery that can run on alternative fuel.”
According to the report, a key growth driver is the increasing government initiatives. The global agricultural machinery market is expected to gain high growth rate with the shortage of agricultural labor due to mechanization and governments' focus on implementing agricultural machinery. Governments across the world offer subsidies on agricultural machinery to improve farm production. They provide credit from banking and non-banking financial corporations for farmers to buy machinery on credit. The Indian government allocated $127.9 billion for farmer credit, and $3.76 billion was targeted for rural infrastructure development bank in its budget 2015.
Further, the report states that one challenge that could restrict market growth is the decline in agriculture commodity prices.
AGCO, CLAAS, CNH Industrial, Deere & Company, Kubota Corp, Iseki, Krone Group, Kuhn Group, Kverneland Group, Mahindra & Mahindra, Same Deutz-Fahr Deutschland, and Tractors, Farm Equipment.
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