Thursday, 29 October 2015

Global Agriculture and Farm Machinery Market to Expand at 8.7% CAGR between 2015 and 2022

The global agriculture and farm machinery market was worth US$144.10 billion in 2014. Growing at an estimated CAGR of 8.7% from 2015 to 2022, the market will be valued at US$281.61 billion by 2022. The primary reason for this high growth rate will be a growing demand for harvesting machines and farm tractors due to the rapidly increasing global population. Harvesting machinery today is used for a myriad of functions, including planting, harrowing, ploughing, and tilling.

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Basic Machinery and Government Subsidies Boost Global Agriculture and Farm Machinery Market

The global agriculture and farm machinery market in 2014 was dominated by the farm tractor segment in terms of production. The segment held over one-third of the market. This was aided by government subsidies provided for farmers for them to work more efficiently. The list of functionalities a modern albeit basic unit such as a farm tractor provides still holds value for most farmers. The list includes plowing, tilling, disking, harrowing, and planting. Other uses include landscape maintenance, non-farm grading, and excavation activities. Within the global agriculture and farm machinery market, other segments exhibiting strong growth prospects are plowing and cultivating machinery along with planting and fertilizing machinery.

Farm Consolidation Increases Farm Machinery Demand in Top Regional Markets

An increasing rate of farm land consolidation has given the global agriculture and farm machinery market a huge opportunity for growth. Availability of larger portions of land that require efficient machinery to grow crops on will spur the machinery market in the near future. The trend of consolidation is seen in North America, Asia Pacific, and Europe, all top contributors to the cause of agriculture and its related machinery. Growth is especially significant in the Asia Pacific region, where the countries of India and China continue to show heavy demand for agriculture machinery. The demand is in direct relation to the high densities of population in both countries, which consequently require a high amount of food.

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The agriculture and farm machinery market is substantially low-profile in the MEA region. Latin America was a slowly growing region in the past, but is catching up to become a major consumer of farm machinery. Within Latin America, Brazil holds the largest potential for growth in the global agriculture and farm machinery market.

The top players operating in the global agriculture and farm machinery market are CLAAS CGaA mBH, AGCO Corp., Deere & Company, CNH Global N.V., J.C. Bamford Excavators Limited (JCB), Alamo Group, Inc., Yamabiko Corp., Mahindra & Mahindra Limited, Same Deutz-Fahr, and Iseki & Co., Ltd.

Farmers across the world are becoming increasingly tuned to the developments in technology that can improve their method of farming. This increase in awareness is another big boost for the global agriculture and farm machinery market. One of the greater modern implementations in this market is the autopilot feature, which makes use of GPS to drive a farm vehicle. While rapid urbanization does pose a significant threat to the overall volume of arable farmland in the world, better use of machinery could help resolve this instead of being restricted by it.

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