The farm equipment market is projected to grow at a CAGR of 4.04% to reach a market size of $135.2 billion by 2025 compared to $102.5 billion in 2018, according to the “Farm Equipment Market by Tractor Power Output, Drive, Combines, Baler, Sprayer, Implement, Rental, & Region – Global Forecast to 2025” report.

Factors such as rising global population, increased mechanization owing to shortage of skilled labor and increasing labor wages, increasing government support/subsidies and other financial aid, and rising demand for improved operational efficiency are the key drivers for the farm equipment market.

Alternatively, the high cost of farm equipment such as balers and sprayers and the growing presence of unorganized players are a few concerns of this market.

The report predicts four-wheel drive will grow at the highest rate in the farm tractors market during the forecast period. The growth of this segment can be attributed to the increased use of high powered farm tractors in regions such as Europe owing to considerably large farmland and changing farmers’ investment capabilities. India, China, and Russia have also witnessed increased usage of four-wheel drive tractors.

Initially, the four-wheel drive was offered in tractors with 100 hp to 120 hp power output. However, some suppliers in the Asia Oceania region have now started offering a four-wheel drive option in 30-70 hp tractors.

For instance, Mahindra and Mahindra launched four-wheel drive Novo tractors in 50-60 hp range that can be used for more than 40 different farming applications. Similarly, Kubota offers four-wheel drive option in smaller tractors. Leading global players such as John Deere, AGCO, and CNH Industrial offer four-wheel drive tractors worldwide.

Thus, the market of four-wheel drive tractors is expected to show immense growth in coming years.

The cereal combine is anticipated to be the largest and fastest growing market from 2018 to 2025. The demand for cereals crops such as rice, wheat, pulses and corn has shown significant growth and is expected to grow further in coming years.

For instance, the Food and Agriculture Organization (FAO) of the United Nations anticipated an increase in rice production by 1.3% to 506 million tons in the year 2017-2018. Also, according to the statistics of the United States Department of Agriculture (USDA), the global wheat crop production accounted for approximately 30% of all types of grains during 2016-2017.

Increasing demand for crops at the global level has additionally accentuated the need for combines to expedite the whole process. Further, Asia Oceania leads the cereal combines market. Countries such as China and India have the highest demand (almost 85%-90%) in the region.

The full report provides further detailed profiles of the following companies:

• John Deere (US)
• AGCO Corporation (US)
• CNH Industrial (UK)
• CLAAS (Germany)
• Kubota (Japan)
• Mahindra & Mahindra (India)
• SDF Group (Italy)
• J C Bamford Excavators (UK)
• Iseki (Japan)