World demand for agricultural equipment to increase 6.7 per cent yearly

A study reveals global demand for agricultural equipment will grow 6.7 per cent through 2016. (Image source: ellenm1/Flickr)

According to the World Agricultural Equipment to 2016 research, global demand for agricultural equipment is expected to increase 6.7 per cent per year through 2016 to US$173.5 billion

Growth will be driven mainly by sales in developing nations, particularly China, Brazil, and India, as these countries continue to mechanise their agricultural sectors. Population expansion and economic growth in these nations will lead to increased pressure on their agriculture sector to become more productive. This will in turn result in a rise in farm machinery sales.

The study reveals that agricultural machinery demand in Asia Pacific was more than twice that of any other region in 2011. China and India will be the primary nations fueling future market advances in this region, although other smaller markets, including Thailand and Indonesia, will also expand rapidly through 2016.

In the industrialised world, North America and western Europe will both record below-average growth in farm equipment sales through 2016.

Demand will be driven by technological advances, as the efficiency gains by newer equipment with sophisticated technology will make it economically feasible for farmers to replace their machinery more frequently.

The study analyses the world agricultural equipment industry and presents demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by type (e.g., farm tractors, harvesting machinery), world region and major country.