Agricultural machinery refers to the machinery used at various stages in farming and other agricultural production activities. Increasing demand for food and supplies to support the rapidly increasing worldwide population is driving the need for agricultural equipment on a global level. Favourable government policies such as the promotion of FDI in the agriculture sector in the developing countries is further adding to the demand for agricultural machinery. Moreover, government subsidy, spread, and adoption of microfinance and low- interest loans facilitate the use of agricultural machinery by providing additional capital to farmers to ensure an increase in productivity by effective utilisation of all factors of production, making the process cost-effective.
Competitive Landscape of the agricultural machinery is promoting investment in the agricultural machinery market. By the use of agriculture machinery, processes like manual seeding, irrigation, crop scouting and other activities can be done by the help of agricultural machinery saving time and resources of the farmers. However, an increase in the cost of raw materials, such as rubber, steel, and iron has increased the cost of production for the manufacturers. Furthermore, continuous fluctuations in the prices of raw materials make it difficult for manufacturers to deliver quality goods at reasonable prices, which restrain the growth of agricultural machinery market. Despite the restraint, the global agricultural machinery market will grow at a substantial rate during the forecast period.
The global agricultural machinery market is highly competitive due to ahuge consumer base and presence of well-diversified international, regional, and local players. There is a growing need for adoption of existing technology and further investment on technological upgrades to increase yield per hectare, which is attracting more players in the market. Intense competition in the agricultural machinery market is paving the way for mergers & acquisitions and other strategies to augment their market share. Competitive landscape details products, strategies, and investments being done by key companies to boost their market presence.
Some of the major players discussed in this report are AGCO Corporation, CLAAS Agricultural Machinery Pvt. Ltd., CNH Industrial, Kubota Corporation, and Mahindra & Mahindra Ltd., among others.