Increasing Government Initiatives to Drive the Global Agricultural Machinery Market Through 2020, Says Technavio

LONDON--()--The global agricultural machinery market is expected to grow at a CAGR of over 7% during the period 2016-2020, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global agricultural machinery market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top eight vendors operating in the market. In addition, the report discusses the major drivers influencing market growth and the challenges faced by vendors and the market as a whole. It also examines key emerging trends and their influence on current and future market scenarios.

“The global agricultural machinery market is expected to grow due to growing urbanization, and different initiatives from governments worldwide regarding agricultural activities. Many governments especially in developing countries are offering credit facilities and subsidies to farmers, which help them in purchasing advanced machinery,” says Brijesh Kumar Choubey, a lead analyst for retail goods and services at Technavio.

Technavio’s research study segments the global agricultural machinery market into the following regions:

  • APAC
  • Europe
  • North America
  • ROW

APAC: largest market for agricultural machinery

The agricultural machinery market in APAC is expected to reach USD 74 billion by 2020, growing at a CAGR of over 8%. The global agricultural machinery market generates the major part of its revenue from APAC. APAC has a larger share of the market mainly because of the growing population in this region, which gradually boosts the demand for food.

Developing countries such as India and China are the major contributors to the rapid growth of the market in APAC. Growing demand for mechanization and different initiatives by governments across the world, such as subsidies for agriculture and credit availability, are the major factors supporting the growth. As a result, farmers are investing heavily in purchasing agricultural machinery. In Japan, the level of mechanization is high, whereas the market in Vietnam is expected to grow due to the expected target for investments in the agriculture sector.

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Europe: Common Agricultural Policy (CAP) to promote mechanization in agriculture

The agricultural machinery market in Europe is expected to exceed USD 52 billion by 2020, growing at a CAGR of approximately 5%. The agricultural machinery market in Europe will grow at a slow pace during the forecast period due to certain challenges the vendors might face, such as low commodity prices and cyclical factors. Also, there is an increase in subsidy under new EU subsidy payment under Common Agricultural Policy (CAP) to promote mechanization in agriculture.

North America: the US and Canada are major contributors to the agricultural machinery market

The agricultural machinery market in North America is expected to exceed USD 46 billion by 2020, growing at a CAGR of approximately 8%. The agricultural machinery market in North America has reached maturity and is expected to witness slow growth during the forecast period due to a decline in the price of commodities and a weak economic cycle in North America. These factors lead to low income of farmers and affect the demand for agricultural machinery.

However, factors such as latest development in technologies and contribution toward precision farming are driving the market. High capacity (HP) tractors are used in this region due to the existence of large farms. The US and Canada are the major contributors to the agricultural machinery market in North America.

ROW: demand for mechanization and government support to boost growth

The agricultural machinery market in ROW is expected to reach approximately USD 20 billion by 2020, growing at a CAGR of close to 8%. “The agricultural machinery market in Latin America is expected to grow at a rapid rate, owing to the demand for mechanized products. Brazil is the key market in this region,” says Brijesh.

Other markets for agricultural machinery include Saudi Arabia and South Africa. The major factors driving the market are growing demand for mechanization and government support. In Africa, the agricultural department is planning to allocate more than USD 48 million for subsidies provided to small farmers during 2015-2017.

The top vendors in the global agricultural machinery market highlighted in the report are:

  • AGCO
  • CLAAS
  • CNH Industrial
  • John Deere
  • Kubota

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

The global agricultural machinery market is expected to grow at a CAGR of over 7% during the period 2016-2020, according to Technavio’s latest report.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com