Powered agricultural equipment revolutionizes farming by mechanizing labor-intensive tasks like plowing, planting, and harvesting. These innovative machines enhance efficiency, productivity, and crop yields, reducing the physical demands on farmers while enabling precision agriculture techniques. From tractors to combines, these tools play a vital role in modernizing and sustaining global food production.
The global powered agriculture market was valued at $57.39 billion in 2021, which is expected to grow with a CAGR of 5.02% and reach $73.32 billion by 2026. Powered agriculture equipment have a wider implication across various farming practices that are crucial for a healthy and sustainable crop production process. The various applications include water management, soil management, climate management, and others.
The powered agriculture equipment comprises a wide range of solutions such as tractors, sprayers, planters, combines, and other equipment such as balers and tilling equipment. Farm tractors account for the largest share in the market, followed by combine harvesters, planters, and sprayers, in that order. The adoption of powered agriculture equipment is increasing among farmers to improve yield, operational efficiency, soil fertility, and profitability.
Global Powered Agriculture Equipment Market (by Equipment Type)
Powered agriculture equipment have a wider implication across various farming practices that are crucial for a healthy and sustainable crop production process. The various applications include water management, soil management, climate management, and others. The powered agriculture equipment comprises a wide range of solutions such as tractors, sprayers, planters, combines, and other equipment such as balers and tilling equipment. Farm tractors account for the largest share in the market, followed by combine harvesters, planters, and sprayers, in that order. The adoption of powered agriculture equipment is increasing among farmers to improve yield, operational efficiency, soil fertility, and profitability.
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Global Powered Agriculture Equipment Market (by Application)
In terms of volume, sowing and planting application is expected to display the fastest growth during the forecast period (2022 -2026), reaching a volume of 632.2 thousand units by 2025. Due to COVID-19, the travel restrictions across countries have led to an immediate shortage of seasonal farm labor. This trend has led to a heavy impact, especially in the ongoing harvest season and the upcoming planting season across the world.
Global Powered Agriculture Equipment Market (by Region)
The governing trends of the powered agriculture equipment market vary across different regions. The powered agriculture equipment market holds a significant share in various countries of North America, South America, the U.K., the Middle East and Africa, Asia-Pacific and Japan, and China. In 2019, Asia-Pacific and Japan led the global powered agriculture equipment market, with a large market concentration in India.
Trends such as high population growth, increasing disposable incomes, and booming urbanization in the Asia-Pacific and Japan region have resulted in a robust evolution in the consumption patterns amongst the population of the region. Hence, farmers of the region are focusing on increasing crop yield and having an all-year-round supply of agricultural produce to meet the escalating demand.
Scope of the Study
The global powered agricultural industry has witnessed a massive transformation owing to the increasing demand for efficient powered agriculture equipment. Rising world population and the subsequent rise in global food demand, along with the shrinkage of the agricultural workforce, have resulted in growing concerns to enhance farm yield and increase the demand for farm mechanization across the world. With the rapid implementation of powered agriculture equipment, farmers can enhance production yield by increasing inputs and efficient management of farm enterprises. The advent of innovative equipment has resulted in reduced energy consumption and overall cost-effective operations owing to their more precise and resource-efficient approach. As a result, the powered agriculture equipment industry is anticipated to progress due to the ever-growing affinity for more convenient and smart farming solutions than the traditional methods.
Moreover, extensive research and development activities and appropriate regulatory environments are also a prerequisite for the sustained growth of this market. Various government and private research institutes, and favorable trade policies are putting in substantial efforts to identify the benefits of these advanced farming solutions for augmenting global food production.
Competitive Landscape of Global Powered Agriculture Equipment Market
The competitive landscape of the global powered agriculture market witnessed the companies showing an inclination toward the adoption of strategies such as product launches and developments. Deere Company, AGCO Corporation CLAAS Group, CNH Industrial, ISEKI Group, Kinze Manufacturing Inc., Mahindra Mahindra, and Escorts Group, among others, are the prominent players in the powered agriculture equipment market. This market includes the presence of a large number of small-sized to medium-sized companies that compete with each other as well as with large enterprises.
Key players operating in this market have significantly augmented their product launch activities in recent years in order to generate public awareness about their existing and new products and technologies and compete with competitors’ product portfolios. This growth strategy is a widely adopted strategy by companies in this market. For instance, in October 2019, Deere Company launched 8R wheel tractors, 8RT two-track tractors, and 8RX, which was the industry's first fixed-frame four-track tractor. In 2019, Kubota Corporation launched a new series of tractors featuring high-horsepower models. This launch is expected to accelerate the company’s business in the North American tractor market.
