A Global CAGR of 6.5% increase is predicted in the Powered Agriculture Equipment Machinery. The increase is predicted after the industry rapidly recovers from the destruction caused by covid. Surprisingly, not much damage was reported to the industry due to the increasing demand for agri-machinery. This was possible due to a sudden rise in demand for agricultural products like vegetables, fruits, and cereals forcing farmers globally to consider moving towards powered agricultural machinery for their daily farming activities.
The powered agriculture equipment market is projected to grow from 2,238,127 units in the year 2018 to 2,714,433 units by 2023, at a CAGR of 3.93% from 2018 to 2023. High growth in the market is expected to be driven by the increasing need for increasing agriculture production and reducing the requirement for manual labour. Moreover, the global powered agriculture equipment market has been strongly motivated by the substantial support of the government in terms of investments, favourable initiatives, and trade policies.
The powered agriculture equipment market includes tractors, combines, planters, sprayers, and other equipment such as tilling equipment, haymaking equipment and balers. Farm tractors have always accounted for the largest share of the market, followed by combine harvesters, planters and sprayers. Farmers all around the world are increasingly adopting powered agriculture equipment to improve yield, soil fertility, operational efficiency, and profitability.
Drones, Harvesting Robots and driverless tractors are the major next-generation agriculture equipment penetrating the market. These pieces of equipment are witnessing a gradual adoption by the farmers, especially in the U.S., Australia and Germany. Some other emerging agriculture equipment is robotic sprayers and weeding robots. Key players innovating in this field are Deere and Company, AGCO Corporation, Autonomous Tractor Corporation, CNH Industrial, Yanmar Co. Ltd., Kinze Manufacturing Inc., Lovol Heavy Industry Co. Ltd., and Mahindra and Mahindra Ltd., among others.
The key players in the global powered agriculture equipment market are from countries such as the US, UK, Japan, Germany, India, and Italy. The top five players have acquired a global leadership position in terms of market share, production, innovation and positive impact. The list of these Key players are as follows:
- AGCO Corporation (US)
- John Deere & Co. (US)
- Mahindra & Mahindra Ltd. (India)
- CNH Industrial (U.K)
- Kubota Corporation (Japan)
AGCO Corporation (US): AGCO is a global leader in the design, manufacture and distribution of smart solutions for sustainable agriculture. They are considered the most comprehensive in the agriculture industry as they include a full line of tractors, combine harvesters, hay and forage equipment, seeding and tillage implements, grain storage and protein production systems. With a presence in over 35 countries and a passion for progress, they have been dominating the market since 1980.
The company sells a full range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. They are marketed under a number of well-known brands, including Challenger, Fendt, GSI, Massey Ferguson, and Valtra. The company’s Net sales for 2019 were approximately USD 9,041.4 million, or 3.3% lower than in 2018.
John Deere & Co. (US): John Deere is a world leader in providing advanced products, technology and services for customers whose work is cagriculture and construction — those who cultivate, harvest, transform, enrich and build upon the land to meet the world’s increasing need for food, fuel, shelter and infrastructure. Over the years, the company has gained a tremendous amount of expertise in terms of manufacturing heavy equipment, forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. It is considered one of the oldest companies, providing invaluable customer experience since 1837.
Deere & Company and its subsidiaries (collectively, John Deere) have operations that are segmented into three major business categories. Revenue in FY 2019 was USD 24.1 billion.
Mahindra & Mahindra Ltd. (India): Mahindra possesses the title of the World’s first and only tractor, agriculture and farming equipment manufacturer to win the prestigious Japan Quality Medal and Deming Application Award. It is also considered the world’s largest selling tractor brand, by volume and has topped the list of the best tractor makers in India for over three decades. With perks like unparalleled quality, state of the art R&D, and world-class manufacturing, Mahindra has acquired enormous market share within the past seven decades of operation.
CNH Industrial (U.K): This is a global capital goods company that specialises in equipment and services for Agriculture and Construction. The company operates commercially through its brand portfolio which includes Case IH, New Holland Agriculture, STEYR, CASE and New Holland Construction Equipment. Its mission includes sustainably advancing the noble work of agriculture and construction workers. With the tagline Feeding and building the world, they have emerged as an Iconic brand in the powered agricultural equipment market.
Agriculture designs, manufactures, and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors (Quadtrac), combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation, and cultivation implements and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture and Case IH brands, as well as the STEYR, Kongskilde, and Överum brands in Europe and the Miller brand, primarily in North America and Australia.
Kubota Corporation (Japan): It is a Japanese multinational corporation based in Osaka. It was established in 1890. As its slogan, “For earth, For Life.” suggests, the company works toward providing solutions within the agriculture industry. The company has a wide range of
. The company is well known for its tractors, which follow Made in Japan and has been a leading product globally since its launch in 1960.
There are also a few other noteworthy mentions who have acquired a large portion of the market. They are CLAAS Group (Germany), Alamo Group Inc. (US), Escorts Group (India), Iseki & Co. Ltd. (Japan) and SDF S.P.A. (Italy).