Shortage of Labor in the Field to Propel the Demand for Agriculture Equipment
INVC NEWS
New Delhi ,
The demand for agriculture equipment is projected to expand at a CAGR of 4% in terms of value during the period of assessment. Moreover, the report estimates that the market for agriculture equipment is likely to surpass US$ 237.08 Bn by end of 2032.
From 2015 to 2021, agriculture equipment sales flourished at a CAGR of 4.9%, with market reaching a value of US$ 154 Bn. During the COVID-19 pandemic, prospects somewhat declined, as curbs on manufacturing activity due to lockdowns disrupted the demand-supply equation. Eventually, the recession was overcome, thanks to lifting of restrictions amid reducing infection intensity.
Shortage of labor worldwide particularly in Western Europe and the U.S. will play a key role in driving the adoption of agriculture equipment over the forecast period. Apart from advancements in the agriculture equipment space and shortage of labor shortage, the growing population to meet the global food requirements will also be a major factor, increasing demand in the long term.
Key Takeaways from the Market Study
- Tractors captured a sizeable portion of the overall market in 2020, with the market size expected to surpass US$ 80 Bn by 2032.
- Harvesting and threshing are important farming processes, owing to which the segment holds over 20% revenue share.
- U.S to flourish at a CAGR of 5% with respect to agriculture equipment sales through 2032
- MEA to accrue a value of over US$ 10 Bn in 2022 and beyond, surging at a CAGR of 2%
- Global market value of agriculture equipment to reach US$ 160.16 Bn by 2022-end
“Government schemes supporting agricultural activities in the emerging economies are projected to drive the market through 2032”, opines a Senior Research Analyst
Competitive Landscape
Some prominent manufacturers of agriculture equipment are AGCO Corporation, Agrocenter Ltd., Agromaster, AMAZONE Ltd., AMAZONE Ltd., APV– Technische Produkte GmbH, CLAAS KGaA mbH, CNH Industrial N.V, Escorts Group, Horsch Maschinen GmbH, and ISEKI & Co., Ltd. Frontrunners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. Some notable developments are as follows:
- In May 2021, CLAAS KGaAmbH acquired a minority stake in Dutch start-up AgXeed B.V. The acquisition was intended for the development and commercialization of autonomous agriculture machines.
- In August 2021, John Deere introduced the new 6155MH Tractor, which delivers reliability and all the field-proven performance like the M series, envisaging the company to attract a new customer base.
These insights are based on a report on Agriculture Equipment Market by Fact.MR.
