DUBLIN--(BUSINESS WIRE)--The "Global Agricultural Equipment Market 2024" report has been added to ResearchAndMarkets.com's offering.
Global demand for agricultural equipment is projected to advance 3.6% per year to $216 billion in 2028. In unit terms, the market for farm machinery is expected to expand 1.5% per year to 8.2 million.
In the near term, growth in real terms will be restrained by the large amount of farm machinery sold globally since 2020 and elevated equipment prices. However, market conditions are expected to improve during the latter part of the forecast period, supported by:
- rising agricultural output and an increase in international trade
- the large replacement needs of mature markets and their high levels of attachment and replacement part sales
- the growing use of more advanced, machinery-intensive farming techniques in developing areas (supported by the adoption of new regulations, industry and government initiatives, and intensifying workforce issues)
- the expansion of the world food and beverage industries, which will promote better farming practices and generate demand for farm products
Additionally, market value will be supported by the introduction of new, sophisticated farming equipment that costs more than predecessors and features a wide range of new technologies.
Varying Outlooks for the Dominant US & Chinese Agricultural Equipment Markets
- The US and China represent the two largest markets for agricultural equipment, accounting for a combined 37% of global demand in 2023. Going forward, the forecasts for these countries are expected to differ:
- China is expected to see demand accelerate following its relatively poor performance during the 2018-2023 period, when cyclicality, the impact of the country's Zero-COVID policy on its economy, and a reduction in agricultural subsidies negatively affected demand at various points in time. Gains will arise from increased agricultural output and the increasing use of higher value, more technologically advanced equipment.
- Demand growth in the US is expected to decelerate following rapid increases during the previous five-year period, when agricultural output and commodity prices increased in the wake of the initial phase of the pandemic. Although the large amount of equipment sold recently will restrain greater gains, continued issues with labor supply and ongoing replacement sales will support demand.
Advanced Farm Tractors are Being Developed by Manufacturers around the World
- The introduction of the next generation of tractors - which feature a variety of new technologies that make them much more capable and efficient than predecessors - will spur both new and replacement sales around the world. Fuel efficiency is especially important, with prototypes powered by liquefied natural gas and hydrogen power debuting since 2022, while hybrid and electric-powered models are being introduced to the market. Additionally, autonomous and specialty models are being offered as a means to assuage the intensifying workforce issues in a number of countries.
Historical Market Trends
The global agricultural equipment industry is large and exhibits cyclical growth patterns. Demand in general is impacted by a number of key factors such as:
- The agricultural sector is a critical component of every country's economy and among the first to develop.
- The bulk of global farm machinery demand is concentrated in 20 nations, the majority of which are at later stages of economic development.
- Replacement product sales are the primary driver of growth in most mature markets, and they play a key role in large developing markets (e.g., China).
- Agricultural equipment have long lifespans, but are often replaced prematurely because of performance considerations.
- Consequently, periods of strong growth that allows farmers to replace aging agricultural equipment and invest in new technologies are frequently followed by significant market moderation.
- This is particularly true in mature markets - like North America, Europe, and certain Asian nations (such as Japan and Australia) - where replacement product sales play a greater role in driving growth.
Other factors can positively or negatively impact the global agricultural equipment market's growth cycles, including:
- economic conditions, levels of international trade and foreign investment, and fixed investment spending trends
- changes in the value of a country's currency
- farming activity trends
- extent of government support for the agricultural sector
- agricultural commodity pricing trends, which significantly affect farm incomes
- increasing or decreasing availability of farm machinery, as well as changes in the cost thereof and access to financing options
- the introduction of new agricultural technologies, which can spur both new and replacement machinery sales and encourage the use of more advanced attachments and spare parts
- emissions regulations, technical and safety standards, and/or worker protections that affect the agricultural sector
Typical growth cycles last three to seven years in mature markets, although that range can vary. Developing nations frequently see prolonged periods of growth as operators begin to use agricultural equipment more intensively and shift toward more capable, higher-priced models. Replacement sales are a smaller driver of gains in these markets because the corresponding stocks of equipment are quite small and relatively new. At the same time, many of these nations have above average growth prospects and benefit from large inflows of foreign capital, both of which can sustain long periods of market growth.
Report Details
This study analyzes global supply of and demand for agricultural equipment by major world region.
Products covered include:
- farm tractors, including pedestrian-controlled (also referred to as two-wheel or walking), wheeled (also called four-wheel), and crawler (or tracked) tractors
- harvesting machinery, including combine harvesters
- planting and fertilizing machinery
- haying machinery
- plowing and cultivating machinery
- livestock machinery
- other agricultural equipment (e.g., irrigation equipment, sprayers)
- separately sold parts and attachments (including aftermarket engines)
Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are provided for production, demand, and net exports of agricultural equipment in current US dollars at the manufacturers' level. Annual data from 2020 to 2027 are also presented. Product demand at the global level is also provided in unit terms.
Key Topics Covered:
1. Executive Summary
2. Short-Term Analysis
- Global Economic Forecast
- Short-Term Agricultural Equipment Industry Trends
3. Overview
- Historical Market Trends
- Agricultural Equipment Demand Overview
- Demand by Region
- Demand by Equipment Type
- Real Growth Trends
- Production by Region
- International Trade
- Trade Balance
- Major Net Importers
- Major Net Exporters
- Equipment Pricing Patterns
4. Factors Impacting Agricultural Equipment Demand
- Global Agricultural Outlook
- Agricultural Commodity Pricing
- Labor Force Productivity in Agriculture
- Government Subsidies & Regulations
- Crop Subsidies
- Emissions Regulations
- Safety Regulations
- Technical Standards
- Technology Trends
- Current Agricultural Equipment Technology
- Technological Outlook: Automation & Other Advanced Technologies
- Functional Competition (Used & Rebuilt Equipment)
5. Farm Tractors
6. Harvesting Machinery
7. Planting & Fertilizing Machinery
8. Haying Machinery
9. Livestock Machinery
10. Plowing & Cultivating Machinery
11. Other Agricultural Equipment
12. Parts & Attachments
13. North America
14. Central & South America
15. Western Europe
16. Eastern Europe
17. Asia/Pacific
18. Africa/Mideast
19. Industry Structure
- Key Findings & Industry Composition
- Global Agricultural Equipment
- Market Share
- Mergers & Acquisitions
- List of Industry Participants
For more information about this report visit https://www.researchandmarkets.com/r/vi6qv8
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