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Agricultural equipment market to reach US$139.41bn by 2022

The increasing use of farm tractors is expected to ensure the productivity and profitability in agricultural sector. (Image source: Phil Parker/Flickr)

In a recent market research report, MarketsandMarkets predicts that the global agriculture equipment market is projected to grow at a CAGR of 5.31 per cent from 2017 to 2022, thereby reaching a market size worth US$139.41bn by 2022

According to the research report, the farm tractors market is expected to reach a market size worth US$65.57bn by 2022, at a CAGR of 5.24 per cent during the forecasted period.

The report entitled “Farm Tractor Market by (Power Output (30, 31-100, 101-200, >200hp), Drive Type (2WD, 4WD, & Autonomous Tractor), Combines Market (Corn, Rice, Wheat, Soybean), Implements Market (Harvest, Hay, Plant & Fertilize, Plow & Cultivate, Spray) - Forecast to 2022” focuses on to estimate the agricultural equipment market on the basis of farm tractors, combines, implementation at the regional level and define factors related to market growth.

The report has described that the factors like increasing demand for food, scarcity of skilled labour in agriculture and rising labour cost led to the rise in adapting agri-equipment in the sector.

In addition, the government subsidy in agricultural equipment and a growing need for operational efficiency and profitability are the key drivers for increasing agri-equipment market.

The MarketsandMarkets report has projected the Asia-Oceania region as the largest and fastest growing agricultural equipment market during 2017 to 2022, due to the fact that the growing population and large agricultural land in the region have led to the increasing use of agricultural machinery.

China and India, with high population and extensive agricultural land, are projected to be the key contributors for agricultural equipment market in the region.

In terms of farm tractor sales, the report has shown that China, India and the US will dominate the segment in the forecasted period.

The report stated that while the US and Canada will have market for high horsepower farm tractor, the Asia-Oceania and North America region will have market for small and medium range farm tractors due to the limited agricultural land per farmer in the region.

Among the combines market, the demand for rice is expected to grow across the globe in the coming years.