Agriculture Equipment Industry Explores Growth Potential with Rising Trends for Drones and AI - Grand View Research, Inc.
SAN FRANCISCO, May 10, 2023 /PRNewswire/ -- The global agriculture equipment industry size stood at USD 286.03 billion in 2021 and will exhibit a robust CAGR of 6.2% from 2022 to 2030, according to the "Agriculture Equipment Industry Data Book, 2022-2030," published by Grand View Research. State-of-the-art developments in farm equipment have ramped up speed, scale and productivity, providing efficient cultivation. The emergence of telematics has leveraged farmers with automation and process monitoring, gaining traction as a lucrative option. Investments in smart farming to enhance production and operational efficiency will expedite innovation and foster the application of IoT solutions in agriculture.
Farm managers have sought bespoke solutions, including GPS tracking and smart farming, to know and assess the location of their tools and vehicles and provide real-time data. Farmers have leveraged geofence to emphasize harvesting, fertilizing and soil cultivation. Notably, optimization of the use of vehicles, including tractors, can be instrumental in propelling sustainable farming.
Agricultural machinery manufacturers and suppliers have depicted an inclination towards sustainable tractors with zero emission, low noise levels and low maintenance costs. Farmers will likely explore opportunities in sustainable mechanization and driverless tractors to reduce the environmental footprint of agriculture, boost land productivity and negate the burden of labor shortages. Driverless tractors will enable farmers to take control of the vehicle via an app, including positioning the tractor, maneuvering around obstacles, turning around and driving the length of the field.
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The agriculture tractor market size was valued at USD 88.5 billion in 2021 and will observe an 8.3% CAGR during the forecast period. An exponential rise in the demand for food will expedite the need for autonomous tractors that can use weather station data to optimize irrigation plans. Besides, demand for low-engine power equipment will be pronounced for better flexibility and compact size.
Farmers have furthered their focus on agriculture implements to enhance crop yields and minimize human labor. These machines will likely be sought for harvesting, irrigation, threshing, planting, field preparation and sowing in organic and commercial farming. Implements have become a vital cog in augmenting mechanization and improving fuel efficiency. Emerging economies, such as China and India, are banking on threshers, power tillers, rice transplanters, pumping sets and tractors for tremendous maneuverability, augmenting the growth of the agriculture industry and saving money & time. The agriculture implements market size garnered USD 28.6 billion in 2021 and could witness a robust CAGR of 5% over the forecast period.
As stakeholders grapple with seeking tools and equipment to get higher yields in a shorter period, the following dynamics are expected to hold prominence over the next few years:
- Precision agriculture has emerged as a lucrative option to boost produce with sustainability, quality and productivity. The applications of robotics, drones and automation will help optimize resources and bolster crop health monitoring.
- The trend for farming-as-a-service (FAAS), IoT- and big data-based technologies, along with the penetration of artificial intelligence, will hold the key to the modernization of agriculture.
- Europe will account for a considerable share of the global market with the growing commercialization of autonomous farming techniques.
The agriculture equipment industry in Asia Pacific will remain a happy hunting ground on the back of subsidies and the rising footprint of AI, autonomous electric tractors and drones. According to the Press Information Bureau of the Government of India, the number of machines and equipment provided to farmers on subsidy was pegged at 1,388,314 in December 2022, up from 1,378,755 till January 2022.
The Indian government is offering financial assistance at 100% cost of the drone, along with the contingent expenditure to make the technology affordable for farmers and other stakeholders under the Sub-Mission on Agricultural Mechanization (SMAM). In essence, farmers across China and partly in India are cashing in on drones to extract soil samples to check moisture, elevation and temperature. Moreover, artificial intelligence can be used to differentiate between weeds and cultivated plants, thereby helping contain the use of pesticides.
The competitive landscape alludes to the infusion of funds into organic and inorganic strategies to tap into the global landscape. Forward-looking companies are expected to emphasize technological advancements, product offerings, innovation, geographical expansion, R&D activities and mergers & acquisitions. For instance, in September 2022, Deere & Co announced the launch of self-driving tractors and sprayers that can plow fields and distinguish crops from weeds, respectively. In January 2022, John Deere introduced a fully autonomous tractor at CES 2022.
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