The farming or agriculture market has a variety of equipment that is used by farmers for harvesting, irrigation and crop processing, spraying, soil preparation and cultivation, and others. These pieces of equipment include ploughs, combine harvesters, trailer sprayers, cultivators, roto seed drillers, power harrows, levelers, disc harrows, and more.
Market Forecast and Drivers
According to OMR Research, the global farming machine market is projected to grow at a CAGR of 7.1% during the forecast period (2023-2029). The key factors attributed to this growth include-
Growing Population
Population growth is a significant driver of the market. According to the United Nations, the world population is expected to reach 9.7 billion by 2050, resulting in the agriculture industry’s growth of 69% between 2010 and 2050. As the population grows, food consumption will increase, resulting in a high demand for agricultural activities and equipment.
Increasing Technological Advancements
High-tech farming equipment improves farmer efficiency while also increasing agricultural production capacity. Farmers are utilizing sensors to obtain maps and topography of the area and check the soil's health. Besides, the autopilot system is a significant technical improvement in agricultural machinery. Tractors, sprayers, and combines are outfitted with GPS kits and can drive themselves through fields under this system. The tracking system is linked to tractor steering, saving the operator from driving through the field. As a result of these reasons, the worldwide agricultural and farm machinery market is predicted to increase over the forecast period.
Government Supports
Various governments globally are providing funds, subsidiaries, and other benefits to farmers to increase their agricultural activities while utilizing modern equipment. For instance, in 2022, the central government of India announced its plans to support Indian farmers by giving them a 50–80% subsidy for the procurement of farming equipment. Moreover, in 2020, new guidelines were released by the Chinese Ministry of Commerce, the Ministry of Finance, and the Ministry of Agriculture and Rural Affairs. Under the new policy, tractors, paddy transplanters, feed and grass shredders, motorized sprayers and threshers, and combine harvesters across the country are eligible for government subsidies to be replaced. Besides, the Chinese Ministry of Finance provided more than CNY 20 billion (USD 2.87 billion) in central government subsidies for the purchase of agricultural machinery in 2020. China plans to fully automate agriculture plowing, planting, and harvesting by 2025. Such supporting regulations aid in market growth.
Recent Developments
AGCO Corp., Alamo Group Inc., China National Machinery Industry Corp. (China), CNH Industrial N.V., CLAAS KGaA GmbH, Deere & Co., Kubota Corp. (Japan), Mahindra & Mahindra (India), SDF S.p.A. (Italy), and others are key players operating in the market. These companies are assisting the farming equipment market’s growth through various new product launches, market expansions, mergers, and investment activities. Some of the recent developments in the market include-
• In November 2022, The Mahindra Group's Farm Equipment Sector (FES) launched its first dedicated farm machinery facility (non-tractor) in Pithampur, Madhya Pradesh, India. The new factory, which spans 23 acres, has the capacity to manufacture 1,200 combine harvesters and 3,300 rice transplanters every year.
• In October 2022, John Deere launched a new line of strip-till machinery, which will available to order in February 2023. The John Deere ST12 and ST16 Integral and ST12, ST16, and ST18 Drawn models are available to farmers, and each is factory-prepared to operate in a variety of soil and field situations. To allow the farmer to tailor the implement to their specific field conditions and fertilizer application requirements, all models come with a selection of shanks, coulters, and row spacings.
• In September 2022, a renowned provider of agritech, AgNext Technologies, unveiled the e-sprayer, an electrostatic-based pesticide sprayer for 360-degree crop coverage with no pesticide waste or excessive pesticide dripping. The e-sprayer releases electrostatically charged liquid spray that has been atomized in a way that attracts and coils around the leaf or crop while simultaneously tracking the user's position.
• In September 2022, Kubota Corporation announced its plans to release its electric tractor, the LXe-261, in Europe in 2023. Local authorities in Europe will be able to rent the LXe-261 for an extended period of time beginning in April 2023. The LXe-261 comes with a large-capacity battery that can deliver quick charging in only one hour and typically 3–4 hours of continuous use.
• In April 2022, Krone and Lemken showcased their partner project, Combined Powers, which is a diesel-electric autonomous tractor design concept. The maximum power of this vehicle is 230 hp (170 kw), and it is useful in cultivating, plowing, tedding, raking, and mowing.