In fiscal year 2022, the market for agricultural equipment is projected to reach a value of US$ 162 billion, up from US$ 157 billion in fiscal year 2021.
The market is anticipated to increase at a 4.2% CAGR from 2022 to 2032, reaching a value of US$ 238 billion by the end of that year.
The initial high cost of agricultural equipment is expected to be one of the barriers to adoption, particularly for low-income farmers. To address such problems, the rental sector is likely to be one of the new sources of revenue for market growth. Furthermore, some start-ups are currently working on applications to enable farmers to connect with one another. These apps will also assist farmers in connecting with rental providers in their area.
Prominent Growth Drivers Influencing agriculture equipment
The agriculture equipment market has been witnessing a strong growth over the past few years, driven by a variety of factors such as increasing demand for food and improved efficiency of farming operations. The growing population, rising disposable incomes, and changing lifestyles are leading to an increased demand for food, which is driving the demand for agricultural equipment. Moreover, the increasing adoption of precision farming and mechanization of agricultural operations are providing a further impetus to the market.
Additionally, the emergence of connected and automated farming systems, and the growing demand for organic food are some of the factors that are expected to drive the market in the future. The government initiatives to promote modern farming and agricultural mechanization are also expected to contribute to the market growth. Furthermore, the growing focus on research and development activities in the field of agriculture equipment is expected to provide several opportunities for the market in the coming years. On the other hand, the high cost of agricultural equipment and the dearth of skilled labor in rural areas are some of the factors that are expected to restrain the market growth.
Which product type is gaining traction in the global agriculture equipment market
The global agriculture equipment market is gaining traction in a variety of product types. As technology and automation become more prevalent in the agriculture industry, the demand for agricultural equipment is increasing. For example, robotics, GPS-guided tractors, and other mechanized equipment are becoming more common in farms. Additionally, the popularity of precision agriculture is growing, resulting in increased demand for advanced products such as sensors, drones, and AI-powered applications. Moreover, smart farming practices are also gaining traction, with the use of agrochemical sensors and automated irrigation systems becoming more widespread.
As a result, manufacturers are focusing on developing new products and technologies to meet the growing demand. This includes the introduction of innovative designs, materials, and technologies to increase efficiency and reduce costs. Furthermore, the adoption of social media, the Internet of Things (IoT), and big data analytics is also transforming the way farmers manage their crops. All of these changes are creating a strong demand for advanced agricultural equipment and services, resulting in a robust market for the same.