Did you know tractors will constitute 30% of the global agricultural equipment market demand this year?According to a Future Markets Insight Report, the global agricultural equipment market is expected to be valued at US$68.12 billion in 2022.
With the increasing growth of the farm mechanisation, coupled with the increase in investments by OEMs for Agricultural Equipment, the overall demand for agricultural equipment is projected to grow at a CAGR of 4.8% between 2022 and 2032, totalling around US$108.86 billion by 2032.
The adoption of technologies including mechanized IoT implementation, AI-based equipment, GPS-enabled equipment, flying drones is aiding the market growth opportunities.
Modern agriculture equipment is influencing the manufacturers to develop products that could meet the end-users' demand. Mechanised equipment, controlled by remote devices through the integration of IoT, helps to reduce the operational cost and relative operational time.
Additionally, A.I. technology has advent robotics by implementing agriculture robotics, including autonomous tractors, ground-based sensors, and others that help produce food at reasonable costs. This technology has immensely boosted digitalization in the agriculture sector.
The primary factor contributing to the growth of this market is advancement in technology and the increasing adoption of advanced equipment in agriculture furthermore the increasing usage of cost-cutting methodologies for designing farm equipment is contributing to the growth of this market, in addition to this, the growing population has to lead to increased demand for food this is also a major factor driving the growth of Agricultural Equipment Market.
Moreover, the initiatives taken by the government to provide subsidies are having a positive impact on this market. In addition, companies are educating farmers about the loan policies, credit financing and other benefits of contract farming is another factor boosting the market growth. A shift in agriculture activities from animals or manual operations to the automated method is the major factor propelling the growth of the agricultural equipment market.