With the world’s population expected to reach 9.7 billion by 2050, there will be a greater demand for food, which will drive the need for agriculture machinery. According to a study of Transparency Market Research (TMR), the global ag machinery market stood at US$ 132.3 billion in 2022 and is projected to reach US$ 219.5 billion by 2031. The industry is slated to expand at a CAGR of 5.8% between 2023 and 2031. With Asia Pacific taking the lead.
According to the TMR study, the market value of agriculture machinery is also increasing due to advancements in technology, which have led to the development of innovative and advanced farming equipment and machinery such as precision farming, smart irrigation systems, and autonomous tractors. These advanced technologies are expected to increase the efficiency of farming and reduce labor costs.
Additionally, governments in several countries are supporting farmers by providing subsidies and incentives for the purchase of agricultural machinery and equipment. This support is expected to increase the adoption of modern farming techniques and equipment, which will, in turn, boost the growth of the agriculture machinery and equipment market in the near future.
The increasing adoption of precision farming techniques is a major factor that is expected to create lucrative avenues for the market growth during the forecast period.
Furthermore, the global market is expanding rapidly due to the increasing demand for food security. Food security is a growing concern globally, and governments and organizations are investing in modern farming techniques and equipment to improve crop yields and ensure food security. This is expected to drive the demand for agriculture machinery and equipment, especially in developing countries where agriculture is a major source of income and employment.
Key Findings of the Market Report
- By machinery and equipment type, tractors generated over 47% of market revenue in 2022
- Sales of electric tractors to spike significantly, backed by an increase in the shift towards carbon-free mobility
- On the basis of harvesting machinery, combine harvesters to generate significant revenue pools
- Increasing adoption of modern farming techniques and equipment to improve their productivity is driving sales of agriculture machinery.
- The increasing demand for biofuels is expected to boost the growth of the agriculture machinery and equipment, given the need to decarbonize the farming grid.
- Use of sensors, IoT, and data analytics to optimize crop production and reduce waste is making headway into the agriculture machinery and equipment industry.
Regional Landscape
Asia Pacific is expected to lead the global market. This is attributed to the increasing demand for food, an expanding population, and adoption of modern farming techniques. Additionally, the availability of government subsidies and incentives to farmers for the purchase of agricultural machinery and equipment is driving market growth. The agriculture machinery and equipment market in Asia Pacific is also witnessing a shift towards precision farming and smart agriculture practices, which are expected to boost the growth of the market. Adoption of precision farming techniques such as GPS-based soil mapping and crop scouting is expected to drive the demand for precision farming equipment.
