Agricultural harvesters: Key market research findings
- Shrinking labor force to boost market growth
- Combine harvesters to account for a majority of the market’s revenue
- Key vendors – AGCO, Bernard Krone Holding, CLAAS, CNH Industrial, and Deere and Co
Technavio’s market research analysts predict the global agricultural harvester market to grow at a CAGR of more than 7% between 2016 and 2020. The demand for agricultural harvesters stems from the dearth of labor force across the globe. Several countries across the globe are witnessing a shift in its labor force from the agricultural sector to other labor-intensive sectors such as healthcare, education, and retail sales. As a result, farmers are investing in harvesters, which allow for highly efficient farming. At present, North America dominates the global agricultural harvester market with a market share of more than 32%. High labor cost, labor scarcity mainly at the time of harvesting, and the replacement of old machinery are some of the factors that will propel growth in the agricultural harvester market in North America during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the agricultural harvester segments based the product.
“Recently, there has been an increase in the level of mechanization. Factors such as shortage of labor, especially at the time of sowing and harvesting, and need for better cultivation and yield as a result of an increase in population are triggering an increase in the demand for mechanization. As a result, many countries are increasingly opting for mechanization to improve the production,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
During 2015, the combine harvester segment dominated the global agricultural harvester market by accounting for 90% of the market’s revenue. Agricultural combine harvesters are machines that combine the three separate tasks of harvesting — reaping, threshing, and winnowing of a cereal crops in a single process. Further classified as tangential and axial on the basis of the direction of material flow through the threshing mechanism, these harvesters are used in the harvest of crops such as wheat, corn (maize), barley, rye, oats, sunflower, and soybeans.
The key vendors in the market include AGCO, Bernard Krone Holding, CLAAS, CNH Industrial, and Deere and Co. The level of competition in the agricultural harvester market is highly fragmented due to the presence of limited players and the constant acquisitions of small harvester manufacturers by large companies. The competition will, further, intensify due to reasons like technological innovations and strategic alliances such as mergers and acquisitions. Since the availability of capital funds is restricted, it acts as an obstacle for new vendors to enter the market. Vendors in this market compete on factors such as price, power, and features to gain a competitive edge over their peers.
A more detailed analysis is available in the Technavio report, Global Agricultural Harvester Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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