Agricultural efficiency across the globe has been significantly increasing over the last two decades. With the exponential growth of the global population, the subsequent increase in global food demand has been witnessed. Traditional farming practices are time-consuming and dependent on manual power. To minimize the time and cost structure of traditional farming practices, recently, farmers have been adopting innovative farming practices globally.
The harvesting equipment market is expected to grow from $22.42 billion in the year 2021 to $30.11 billion by 2027, at a CAGR of 5.08% from 2022 to 2027. The key developed countries, including the U.S., the U.K., Japan, Germany, and France, are adopting mechanized and precision farming practices in the agricultural sector. In developing countries, the improvement in quality of living due to high-income levels and the demand for fresh farm produce and animal protein is bolstering the demand for crop production.
The finite presence of natural resources, such as arable land and fresh water, along with falling farm yield trends in many crop categories, have encouraged the growers and agricultural companies to introduce innovative and advanced agriculture equipment to boost farm profitability.
High growth in the market is driven by the rising demand for harvesting equipment in the precision farming and forage industry. The rising precision farming practices in North America and Europe positively impact the market. Also, the growing industrial applications of maize provoke farmers to adopt harvesting equipment technology to meet the industrial standards. Additionally, the surging demand for animal feed and growing forage crop production demands the harvesting equipment in the market. Limited availability of after-sales service is a major challenge faced by developing and undeveloped countries. High initial cost and lower buying power of farmers are the key challenges faced by the Asia-Pacific and Japan market.
Harvesting equipment Used in Agriculture
Harvesting equipment is used for various crops, including maize, wheat, rice, root crops, fruit crops, and forage crops. Harvesting equipment is mainly used for maize crop harvesting globally. Moreover, the growing demand for maize from the food, feed, and ethanol industry is further driving the harvesting equipment market during the forecast period 2022-2027.
In terms of product, the multiple types of harvesting equipment present in the market include combine harvesters, forage harvesters, sugarcane harvesters, and others. Combine harvester is a multitasking machine used in various crop types, including maize, wheat, rice, soybean, sorghum, and oilseed. The sugarcane harvester is specially designed for sugarcane harvesting practices. The demand for forage harvesters is rising from dairy farms and animal feed producers as the demand for meat and meat products is increasing.
Harvesting Equipment Market (by Region)
The trends of the harvesting equipment market vary across different regions. The harvesting equipment market holds a prominent share in various countries of North America, South America, Europe, Asia-Pacific and Japan, the U.K., China, and Rest-of-the-World. Presently, China plays an important role in the harvesting equipment market. Due to the availability of raw materials and labor, Chinese harvesting equipment manufacturers are selling their harvesting equipment at a very lower price as compared to a global price index.
Analyst's Take on the Market:
According to Rakhi Tanwar, Principal Analyst, BIS Research, "Harvesting equipment has huge potential in the near future, as it is used by farmers, animal feed producers, and dairy farmers. Through a better adoption of such agriculture equipment in precision farming, the consumers' demand for harvesting equipment will increase during 2022-2027."
Recent Developments in Global Harvesting Equipment Market
- In March 2022, Deere Company updated its S-Series combine harvesters as per consumer demand. Due to this, the company creates awareness among the farmers and drives sales growth globally.
- In May 2021, Mahindra Mahindra Ltd. established a new production plant for farm equipment in Pithampur, India. This plant produces rice transplanters, potato planters, and harvesters. The company has a strong presence in Asian markets. Due to this investment, the company would increase its harvester production in the Asian market.
- In September 2021, CNH Industrial N.V. launched Case IH Axial-Flow 4000 combine harvester in Africa and the Middle East region. Due to this product launch, CNH Industrial N.V. entered Africa and the Middle East market.
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Competitive Landscape of the Harvesting Equipment Market
The harvesting equipment market comprises players such as AGCO Corporation, Amalgamations Group, Bernard Krone Holding SE & Co. KG, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, KUBOTA Corporation, Mahindra & Mahindra Ltd, Zoomlion Heavy Industry Science and Technology Co., Ltd., International Tractors Limited, and Yanmar Co Ltd. These companies are focusing on product development and marketing and are trying to establish their sales offices in various countries. For instance, in June 2020, Deere & Company launched X Series combine harvesters in the North America market. The models X9 1000 and X9 1100 combine harvesters were launched in the North America market. With this, the company enhanced its product portfolio in the harvesting equipment market.
The global payers in the harvesting equipment market are adopting the new product launch strategy for further business expansion. The innovative automated harvesting equipment equipped with sensors and software are booming in the market. To cater to this demand, various global players are adopting new product launches and product up-gradation strategies in the market. For instance, in May 2019, AGCO Corporation launched its Fendt IDEAL 10 harvester in the Scotland market. Due to this, the company would increase its presence in the Scotland market.
Cumulatively, the growing trend of precision farming, rise in industrial application and production of maize and rise in awareness of harvesting equipment further drive the harvesting equipment market globally.
