What is farm equipment or agricultural machinery?
Agriculture machinery or farm equipment refers to mechanical devices and structures used in agriculture or other farming activities. Various types of this equipment range from hand tools and power tools to tractors and the many countless farm equipment that can be used to tow or operate. A variety of different equipment is utilized in organic and non-organic farming.
A breakdown of the types of farm equipment can be found below;
- Combine Harvester
- Chain Saw
- Brush Cutters and others
Top 5 farm equipment
- Tractor: The tractor is a staple all over the world in farming. It is available in a variety of sizes to suit any farming venture. The main purpose of the tractor is to pull agricultural equipment, but modern tractor models can be fitted with different attachments to meet all kinds of farming needs. Because of this, tractors are a common purchase for large and small-scale farmers alike.
- Combine Harvester: Grain farmers require combines, also known as harvesters or combine harvesters that help to harvest their crops efficiently. Even small-scale grain farmers can benefit greatly by using a combination. These massive pieces of machinery use a complex system of gears, blades, belts, and wheels to turn cereal crops into grain.
- Harrow: When plowing the soil for cultivation, harrowing stirs it up in preparation for agriculture. The attachments break down soil clumps, bring the soil level, and distribute weed and crop leftovers to make it easier for the new plants to get root and develop. Harrows are also used to distribute fertilizer and manure since they can break up clumps and distribute nutrients more effectively.
- Mowers: Mowers are essential to every large piece of land; however, tractor owners can profit from attachments for mowers. Several mowers satisfy the needs of farms, including grass management and harvesting. The exact kind of mower you need will depend on your property and your needs, as you might require several attachments to cover various areas of your property.
- Cultivators: Cultivators are utilized to cultivate the soil, particularly for controlling weeds. They are employed for low tilling and are commonly used in smaller farming operations.
What is the market size of agriculture and farm machinery?
The global agricultural and farm equipment market is expected to reach a valuation of US$ 90 billion by 2028 and is expected to grow at a significant CAGR of 5.2% over the forecast period of 2022-2028, according to a recent report by RationalStat. This growth is attributed to various factors such as the increasing demand for food due to the growing population, the need for higher efficiency and productivity in agriculture, and the adoption of advanced technologies in farming practices.
Factors Driving the Growth of the Global Farm Equipment Market
The global farm equipment market is being driven by various factors such as:
Increasing Demand for Food Due to Growing Population
As per the United Nations, the global population is expected to reach 9.7 billion by 2050, which will require a 70% increase in food production. Therefore, there is a significant need for modern and efficient farm equipment to meet the increasing food demand.
Need for Higher Efficiency and Productivity in Agriculture
With the advancement of technology, farmers are increasingly adopting precision farming techniques that require advanced equipment to optimize production and reduce wastage. Precision agriculture involves using data-driven techniques and IoT-based devices to monitor crops, soil health, and weather conditions. This allows farmers to optimize their use of resources such as water, fertilizers, and pesticides, resulting in increased efficiency and productivity.
Adoption of Advanced Technologies in Farming Practices
The adoption of advanced technologies in farming practices is also contributing to the growth of the global farm equipment market. Technological advancements such as the use of drones, artificial intelligence, and robotics in farming practices are increasing efficiency, reducing labor costs, and improving crop yields.
Precision Farming Techniques and IoT-Based Devices
Precision farming techniques and IoT-based devices are playing a significant role in the growth of the global farm equipment market. These technologies allow farmers to monitor crop growth and health, predict weather conditions, and optimize resource usage to increase efficiency and productivity.
Government Initiatives and Policies to Promote Agriculture
Globally governments are implementing schemes such as subsidies, loans, and insurance policies to support farmers and promote the use of advanced farm equipment. For instance, the Indian government’s Pradhan Mantri Fasal Bima Yojana provides crop insurance to farmers and encourages the use of modern farm equipment to increase productivity.
Regional Analysis of the Global Farm Equipment Market
The Asia Pacific region is expected to dominate the global farm equipment market due to the significant adoption of advanced farming technologies, increasing population, and rising demand for food. Asia Pacific agricultural machinery market grows with a significant CAGR of 7.6% during the forecast period due to the increasing government subsidies, India is one of the major markets within the Asia Pacific region that is growing the fastest.
Since agriculture is responsible for an essential portion of the nation’s GDP, the government is investing an enormous amount of effort into improving the efficiency of agriculture with various programs. Additionally, North America and Europe are also significant markets due to the presence of large agricultural industries in these regions.
Impact of COVID-19 on the Global Farm Equipment Market
The COVID-19 pandemic has had little or no impact on the global farm equipment market. While the pandemic initially disrupted supply chains and led to a slowdown in the manufacturing of farm equipment, the industry has since rebounded due to several factors.
However, on the other hand, the pandemic highlighted the importance of agriculture and the need for modern and efficient farming techniques. As a result, governments globally implemented various measures to support the agricultural industry, including providing subsidies and promoting the adoption of advanced farming technologies. This led to an increase in demand for farm equipment, particularly for precision farming techniques and IoT-based devices.
Furthermore, the pandemic led to a surge in demand for locally sourced food, resulting in an increase in small-scale farming activities. This, in turn, led to an increase in demand for small-scale farming equipment, such as tractors and tillers. For instance, the total tractor sales reached over 800,000 in 2020, representing an increase of nearly 11% from 2019.
Conclusion and Future Outlook for the Industry
The global farm equipment market is expected to witness significant growth in the coming years, driven by the increasing demand for food, the adoption of advanced farming technologies, and government initiatives to promote agriculture. The industry players are continuously investing in research and development to develop innovative and advanced farm equipment to meet the evolving needs of farmers globally. The market is expected to continue to grow, with significant opportunities for new entrants in the industry.
Ujjwal is the Director and Founder of RationalStat LLC, a leading global market research & procurement intelligence firm with 10+ years of industry expertise. Ujjwal Parwal is an experienced market research consultant. He helps growth-driven organizations and entrepreneurs understand market entry prospects, and industry assessment, and grow their revenue strategically. He is a skilled market researcher with a demonstrated record of working in the Chemicals & Materials, Automobile, Industrial Automation, Packaging, Green Energy, Pulp & Paper, ICT, Oil & Gas, and Food & Beverages industries. He has helped start-ups to understand market entry prospects and industry assessment.