Farm Machinery Market size was valued at USD 10,956.3 million in 2021 and is expanded to grow at a significant CAGR of 3.9% over 2022-2028. The agricultural sector is heavily reliant on farming machinery since it aids in boosting output at lower prices and with less human and animal effort. The demand for farm technology has also increased in recent years, and this trend is projected to continue as the world’s population grows. Common farm machinery used includes cultivators, tractors, and planter mowing tools. The market is also driven by increasing mechanization rates in developing countries, which may impact the long-term. The shrinking land, water resources, and labor force increase the need for farm mechanization in developing countries. Governments are also providing incentives to farmers who invest in improved equipment to meet the demands for increased output more efficiently. Over the next seven years, rising global food demand is predicted to positively impact the market. The agricultural equipment industry is being driven by a rapidly rising population, urbanization, favorable government initiatives, and skyrocketing food demand worldwide. The transition from traditional farming methods to modern agricultural gear has given the equipment market a new lease on life. Farm machinery has shown to be quite efficient in terms of both saving time and improving crop productivity. In 2021, the tractor segment had the most market share by type. The agriculture sector is likely to benefit from increased R&D activity and the launch of hybrid and electric tractors by a number of companies. Farm mechanization is becoming more popular, and governments’ push for it may improve sales and lead to innovations like driverless machinery, which might drive the market throughout the projection period.
Recent Market Developments:
In Aug 2021, Deere & Company has signed a definitive agreement to acquire Bear Flag Robotics for $250 million USD. Founded in 2017, the Silicon Valley-based startup develops autonomous driving technology compatible with existing machines. The deal accelerates the development and delivery of automation and autonomy on the farm and supports John Deere’s long-term strategy to create smarter machines with advanced technology to support individual customer needs.
In June 2021, CNH Industrial N.V, has entered into an agreement to acquire 100% of the capital stock of Raven Industries, Inc. a US-based leader in precision agriculture technology for US$58 per share, representing a 33.6% premium to the Raven Industries 4-week volume-weighted average stock price, and US$2.1 billion Enterprise Value.