Agriculture Equipment Market to Reach $434.1B Globally by 2032
SEP 1, 2023 - 6:00 am
According to a report published by Allied Market Research the global new, pre-owned, and rental agriculture equipment market was valued at $ 236.6 million in 2020 and is projected to reach $434.2 million by 2032, registering a CAGR of 5.2% from 2023 to 2032.
The field of agricultural machinery has emerged with the significant advancements in technologies in the recent few years. With agricultural equipment, the agriculture sector is becoming more mechanized, which in turn, is making the industry and everyone involved in it profitable in every possible ways.
Prime Determinants of Growth
Precision farming includes information- and technology-based farm management, which identifies, analyzes and manages crop production activities. Furthermore, the implementation of precision farming enables sustainability, profitability and protection of land resources. In addition, rental agriculture equipment is expected to drive the market.
Agriculture equipment is expensive; hence, customers who do not require the equipment continuously or for the long term opt for rental equipment instead of purchasing it. In addition, not all customers can afford to buy such expensive equipment. Governments of various nations offer support for the development of agricultural activities, including subsidies for acquiring equipment and seeds. Developing nations, such as India, offer various subsidies, loan waiver schemes, and other such facilities to improve agriculture production. These programs are expected to offer remunerative opportunities for the expansion of the new, pre-owned, and rental agriculture equipment market during the forecast period.
Due to the COVID-19 pandemic and the subsequent global lockdowns, the new, pre-owned, and rental agriculture equipment market faced a downturn.
However, as the global situation started to improve, the demand for new, pre-owned, and rental agriculture equipment was restored. This, in turn, presented various growth opportunities for companies operating in the new, pre-owned and rental agriculture equipment market.
The new segment to maintain its leadership status throughout the forecast period.
Based on sales type, the new segment held the highest market share in 2020, accounting for nearly half of the global new, pre-owned, and rental agriculture equipment market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to a rise in the use of new, pre-owned, and rental agriculture equipment for the farming sector. However, the rental segment is projected to manifest the highest CAGR of 5.7% from 2020 to 2032, owing to increasing demand for used equipment from customers having budget constraints.
The heavy segment to maintain its leadership status throughout the forecast period.
Based on application, the heavy segment held the highest market share in 2020, accounting for more than three-fifths of the global new, pre-owned, and rental agriculture equipment market revenue and is estimated to maintain its leadership status throughout the forecast period owing to increasing demand for heavy agriculture equipment for farming application. In addition, compact segment is expected to witness the fastest CAGR of 5.8% from 2020 to 2032, owing to increasing farming activity and ease of availability of the loan with low interest to purchase new equipment.
Asia-Pacific to maintain its dominance by 2032.
Based on region, Asia-Pacific held the highest market share in terms of revenue in 2020, accounting for more than one-third of the global new, pre-owned, and rental agriculture equipment market revenue, owing to technological advancements and increased government support in the region. However, the Middle East is also expected to witness the fastest CAGR of 7.5% from 2022 to 2032, owing to the increasing demand for food due to the rising population in developing countries such as Latin America, the Middle East and others.
Leading Market Players: –
Agrostroj Pelhimov A.s.
Deere & Company
J C Bamford Excavators Ltd. (JCB)
Mahindra & Mahindra
Pacific Ag Rentals
Tractors and Farm Equipment Limited
The report provides a detailed analysis of these key players of the global new, pre-owned, and rental agriculture equipment market. These players have adopted different strategies such as new product launches, acquisitions, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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