The United Nations Department of Economic and Social Affairs (UNDESA) stated that the world population is expected to grow from 7.6 billion in 2017 to 9.8 billion by 2050. The tremendous growth of the world population is further expected to increase the demand for food exponentially. The increase in population, in addition to the shrinkage of agricultural lands, depletion of natural resources, increase in urban population and, the increased demand for fresh crop produce, can propel the need for increased farm productivity and enhanced farm yield.
From the green revolution to the integration of information and communication technologies (ICT) in agricultural practices, the agriculture industry has witnessed numerous evolutions over decades. Introduction of ICT led to various technological advancements and significant cost-reduction in the agriculture equipment market. A change in the global aging demographic in the agricultural workforce, development of contract farming services, and corporate partnerships have further triggered the global powered agriculture equipment market.
According to the latest market intelligence report by BIS Research titled, “Global Powered Agriculture Equipment Market - Analysis and Forecast (2018-2023),” the market was valued at $114.54 billion in 2018 and is projected to grow at a stable CAGR of 5.71% during the forecast period to reach $151.19 billion by 2023. In terms of volume, the powered agriculture equipment market is anticipated to witness a CAGR of 2.39% during the forecast period and reach 2,441,647 units by 2023.
The powered agriculture equipment market is segmented and analyzed in terms of type and region in the report published by BIS Research. Tractors, combine harvesters, other harvesters, planters, and sprayers are the different types of equipment discussed in the study.
Region-wise, the report analyses the market for four prominent regions namely, Asia-Pacific, Americas, Europe, and Rest-of-the-World. Among these, Asia-Pacific dominated the market in 2017. Powered agriculture is being practiced in developed as well as developing countries such as India, China, Brazil, and Mexico.
Next-generation powered agriculture equipment such as drones, driverless tractors, and harvesting robots are also functioning in the market. Equipment such as agricultural robots have been introduced into farming operations including treating the soil and crops selectively as and when required. Similarly, incorporation of auto-guided tractors has considerably reduced multiple trips required to be made manually for farm monitoring, crop damage, and fuel consumption. Overall, the new-age agriculture equipment helps improve the yield, soil fertility, operational efficiency, and profitability of the farming industry.
Key players in the global powered agriculture market have adopted several market strategies such as partnerships, collaborations, and product launches and development to introduce new and innovative technologies and products. For instance, AGCO Corporation launched MF 9130 Plus, a self-propelled sprayer in 2017. Another leading player, Escorts Group under their brand Farmtrac introduced both electric and hydrostatic concept tractor in the same year. Other players venturing in the powered agriculture equipment market include CLAAS Group, ISEKI Group, Mahindra & Mahindra, and The Toro Company.
The powered agriculture equipment industry holds great potential. Owing to the innumerable applications that industries offer, the demand for next-generation agriculture equipment is increasing at a great pace so as to make the processes cost efficient and time saving thus reducing wastage and enhancing productivity.