Agricultural machinery: Key market research findings
- Growing investment opportunities in agricultural sector
- Use of alternative fuels
- Leading vendors include AGCO, CLAAS, CNH Industrial, John Deere, and Kubota
Technavio has released a new market research report on the global agricultural machinery market, which is expected to grow at a CAGR of more than 7% between 2016 and 2020. Of late, the farmers are shifting towards the mechanization of agricultural equipment through the use of agricultural machinery, to gain efficiency and effectiveness in farming and crop production. Several governments across the globe are encouraging farmers by providing easy credit availability and various loans to buy agricultural machinery. Vendors in the market have introduced agricultural machinery integrated with robotic systems and GPS. GPS, real-time kinematic, and Google Earth navigation systems help farmers to control the direction of tractors and other equipment. APAC accounts for 36% of the overall market share and will continue to dominate the market during the forecast period. Factors such as rise in population and subsequent demand for food are driving the market growth in the region.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Owing to the high costs of conventional fuels and increasing concerns toward sustainable development, farmers are increasingly using alternative fuels. They are replacing petroleum-based lubricants 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. Several vendors in the market are investing in R&D (research and development) on the manufacturing of such agricultural machinery that can run on alternative fuel,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
Tractors dominated the market in 2015 and accounted for more than 44% of the overall market revenue. The primary reason for this segment’s growth is due to the shift toward mechanization and a reduction in the number of people in agriculture sectors which has augmented the adoption of tractors. Also, tractors have broad applications across different agricultural activities, such as such as tilling, plowing, and planting, which will contribute to this segment’s growth over the forecast period.
The global agricultural machinery market is highly fragmented owing to the presence of numerous well-established players. Most of these players are technologically advanced and use innovative methods to develop products. As a result, many local vendors are finding it increasingly challenging to compete with the bigger players in terms of quality, technology, and price. The level of vendor competition is anticipated to intensify with an increase in product line extensions, technological innovations, and M&As.
A more detailed analysis is available in the Technavio report, Global Agricultural Machinery Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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