The global agricultural machinery market to grow at a CAGR of 7.29% during the period 2016-2020.
Global Agricultural Machinery Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Growing global population and increase in per capita income in emerging economies lead to a rise in the demand for food products. The world population is estimated to reach 9.48 billion by 2050 from 7.4 billion in 2016. As a result, farmers are shifting toward mechanization through the use of agricultural machinery, to gain efficiency and effectiveness in farming and crop production. Globally, most governments are encouraging farmers by providing easy credit availability and various loans to buy agricultural machinery.
A trend that will positively impact the market is the use of alternative fuels. Agricultural machinery uses various options as fuel such as diesel or gasoline. With the rising prices of conventional fuels and increasing concern toward sustainable development, alternative fuels are considered by farmers. For example, petroleum-based lubricants are substituted with oil-based bio-lubricants.
Bio-lubricant is preferred by farmers in spite of its high price because it provides large benefits in terms of longevity of fuel engine as well as low operating cost with less maintenance. In addition, vendors are investing in R&D (research and development) on the manufacturing of agricultural machinery that can run on alternative fuel.
According to the report, a key growth driver is the increasing government initiatives. The global agricultural machinery market is expected to gain high growth rate with the shortage of agricultural labor due to mechanization and governments' focus on implementing agricultural machinery. Governments across the world offer subsidies on agricultural machinery to improve farm production.
They provide credit from banking and non-banking financial corporations for farmers to buy machinery on credit. The Indian government allocated $127.9 billion for farmer credit, and $3.76 billion was targeted for rural infrastructure development bank in its budget 2015.
Further, the report states that one challenge that could restrict market growth is the decline in agriculture commodity prices.
To calculate the market size, the report considers the revenue generated from the sales of following agricultural machinery:
- Tractors - Haying machinery - Harvesting machinery - Planting and fertilizing machinery - Plowing and cultivating machinery - Parts and attachments
- Iseki - Krone Group - Kuhn Group - Kverneland Group - Mahindra & Mahindra - Same Deutz-Fahr Deutschland - Tractors and Farm Equipment
Key questions answered in this report
- What will the market size be in 2020 and what will the growth rate be? - What are the key market trends? - What is driving this market? - What are the challenges to market growth? - Who are the key vendors in this market space? - What are the market opportunities and threats faced by the key vendors? - What are the strengths and weaknesses of the key vendors?