Farm Equipment Market Analysis and New Market Opportunities Explored
The increasing
population has been propelling the demand for food items, which is consequently
driving the growth of the global farm equipment market. The up gradation in the technology,
increasing government subsidies on agricultural machineries, growth of
precision farming and easily available credit schemes from financial
institutions are encouraging the growth of the global market. Asia-Pacific
accounted for the largest share in the global market in 2014, owing to its
large population that translates into demand for crops. Among the various
types, the tractors segment dominated the global farm equipment market in 2014.
Farm equipment
includes machineries used for the production and maintenance of crops and
agricultural livestock. Tractors are one of the essential farm equipment that
serves several purposes in agriculture, including plowing, harrowing, and
transportation of agricultural products. The harvesting equipment includes
combine harvesters and threshers. The modern tractors are equipped with global
positioning systems (GPS) and on-board computers. The expansion of precision
farming has been positively impacting the growth of the farm equipment market.
The farmers are up grading their traditional farm equipment with more advanced
alternatives. The advent of do-it-yourself (DIY) repair tractors have also
reduced the cost and hassle of tractor repairing, thus providing more comfort
to farmers.
The government in
different countries has been extending several subsidy programs to encourage
farmers in their agricultural ventures. In 2004, China implemented subsidy
policy for agricultural machineries, which increased over the years and now
includes 12 agricultural categories. Around 175 types of agricultural
machineries were subsidized by the Chinese government in 2015. During 2004 –
2012, the Chinese government dedicated $12 as subsidy for agricultural
machineries. In order to promote food security in the country, the Chinese
government has announced a subsidy scheme in 2015 for farm equipment, under which
about 30% of the sales price of such equipment will be subsidized. The staple
crop growers in the country, including sugar and cotton farmers will be
prioritized.
The large
replacement cycle of farm machineries is one of the major restraints in the
growth of the market. Moreover, the high cost of modern equipment is one of the
major challenges for market penetration of small scale farms. The reducing farm
land, owing to rapid urbanization is expected to be one of the major hurdles
for the market during the forecast period.
Certain product
related legal restrictions associated with the modern farm equipment are
creating a low degree of dissatisfaction among the consumers. Such restrictions
include legal authorization of manufacturers for putting password or an
encryption on the devices associated with the equipment, and the legal
unlawfulness on the password breach by the consumers.
Market Segmentation:
By Type
Tractors
Tillage Equipment
Planting Equipment
Harvesting Equipment
Fertilizing and
Plant Protection Equipment
Irrigation Equipment
By Phase
Land Development
Sowing and Planting
Cultivation
Harvesting and
Threshing
Post Harvesting
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The major farm
equipment markets in Europe include Germany, France, Italy, the U.K., Russia,
Turkey, and Poland. Whereas the key markets in Asia-Pacific include China,
India, Japan, and Australia. The major companies in the global market include
Alamo Group Inc., AGCO Corporation, Deere & Company, Daedong industrial
Company Limited, Escorts Group, and Netafim.
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