The global agricultural & forestry machinery market size was worth around USD 302 billion in 2021 and is predicted to grow to around USD 489 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.5% between 2022 and 2030.
Agricultural & Forestry Machinery Market
The global agricultural & forestry machinery market size was worth around USD 302 billion in 2021 and is predicted to grow to around USD 489 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.5% between 2022 and 2030. The report analyzes the global agricultural & forestry machinery market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the agricultural & forestry machinery market.
Agriculture and forestry machinery are the equipment that assists the process of forest activities and farming like cultivating land, collecting wood logs, harvesting, and many others. Harvesters, rotators, crop sprayers, tractors, and skidders are different types of forest and agriculture machinery available in the market.
Growing mechanization of farming & forestry operations to drive the market growth
The market for agricultural and forestry machinery is propelled by the growing mechanization of farming practices through the use of farm machinery. By ensuring timeliness in farming operations, mechanization of farming operations increases yield and profitability. This, therefore, enables farmers to make the most use possible of expensive inputs like irrigation, seeds, and fertilizer. Additionally, farm mechanization aids in the preservation of agricultural products, which increases profitability by lowering post-harvest losses.
The high initial investment limits the market growth
High initial costs remain a major issue, which has compelled harvesters to include smart equipment. Harvests continue to place a high value on leased machinery when they are unable to pay the installation costs in advance. On the other hand, the principal issue with the difficulties of maintaining foreign cost competitiveness still affects the suppliers of forestry machinery. Therefore, it is projected that these issues will limit the global agricultural & forestry machinery market expansion.
Government subsidies and promotion of advanced machinery to provide lucrative opportunity
Sometimes a lack of cash prohibits farmers from having the opportunity to buy agricultural equipment for farm production. Governments all across the world are supporting and encouraging the use of farm equipment by offering subsidies on this equipment, allowing producers to offer the equipment at a lower price. A further possibility for market expansion is provided by manufacturers collaborating with regional cooperation to secure contracts for the supply of cutting-edge technologies, such as electrified machinery, to conserve energy and prevent harmful contamination under various programs for a sustainable environment. Thus, government subsidies and the promotion of advanced machinery is expected to provide lucrative opportunity for global agricultural & forestry machinery market expansion.
Growing urbanization act as a major challenge for the market growth
Farmlands and forests have been used in recent years to build hotels, shopping malls, and other profitable economic ventures. Farmland, meadows, and woodlands are rapidly disappearing as a result. The use of agricultural and forestry machinery has been impacted indirectly by this. Ironically, the shrinking amount of farmland and forestland makes it necessary to manufacture agro-forestry products with more efficiency. For instance, according to World Bank data, around 56% of the world’s population – 4.4 billion inhabitants – live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050, at which point nearly 7 of 10 people will live in cities. Thus, the aforementioned fact significantly impacted the market expansion.
The global agricultural & forestry machinery market is segmented based on agriculture machines, forestry machines, and region
Based on the agriculture machine, the global market is bifurcated into combine & forage harvesters, field sprayers, tractors, soil cultivating equipment, milking & poultry machines, and haymaking machines. The tractors segment accounted for the largest market share in 2021 and is expected to remain dominant over the forecast period. The segment growth is attributed to their extensive and most common use for farming. There are several various types of tractors used in farming, including small tractors, wheeled tractors, track tractors, and orchard tractors, with wheeled tractors being the most popular and utilized for a variety of tasks.
These tractors can be used in any farm operation, with their main purpose being to tow agricultural machinery like harvesters, sprayers, cultivators, and more. Because of this, the purchase of tractors is generally high as compared to other machines. However, the combine & forage harvesters are expected to show tremendous growth over the forecast period. This machine helps in harvesting crops more efficiently and even a farmer who plants small grains can benefit from it.
The launch of a new combiner will elevate the segment market growth in the future. For instance, in September 2021, Mahindra & Mahindra Ltd., launched the new Swaraj Pro Combine 7060, a tracked harvester from the Swaraj product line. Paddy farmers in West Bengal will benefit from improved productivity, performance, and convenience of use with the new Swaraj Pro Combine 7060, a tracked Harvester from Swaraj. This harvester will also maximize potential grain production for best-in-class acreage. Fitted with a new paddy cutter bar, the new Swaraj Pro Combine 7060 is also capable of performing efficient cutting of sleeping crops with consistency at comparatively lower costs.
Based on the forestry machine, the global market is bifurcated into forwarders, chainsaws, swing machines, skidders, bunchers, loaders, and others. The skidders segment is expected to dominate the market during the forecast period. Every track the skidder goes on is profitable, and it has everything under control. The skidder picks up the trunks of the sawn-down trees, moves them to a collection site, and stacks them. The operator is placed in a comfortable operating area, and the forestry machine has no trouble moving forward, backward, or sideways. On the other hand, the chainsaw segment experienced significant growth in recent years.
Due to the rising global demand for commodities, deforestation has significantly increased during the previous ten years. When it comes to deforestation, Brazil has been at the top of the list. The demand for chainsaws is boosted by the growing use of wood in the construction of homes, the manufacture of furniture, and the pulp industry. Additionally, the market is anticipated to expand significantly throughout the projected period as a result of rising demand from industries like construction. The market is being driven further by the high priority given by professional and semi-professional workers to the implementation of safety regulations to prevent accidents and injuries. Thus, driving the segmental growth over the forecast period.
|Report Attributes||Report Details|
|Report Name||Agricultural & Forestry Machinery Market Research Report|
|Market Size in 2021||USD 302 Billion|
|Market Forecast in 2030||USD 489 Billion|
|Compound Annual Growth Rate||CAGR of 5.5%|
|Number of Pages||184|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Key Companies Covered||Mahindra & Mahindra, Claas KGaA mbH, Kubota Corporation, Caterpillar Inc., AGCO Corporation, Deere & Company, Weifang Euro king Machinery, John Deere, Bucher Industries AG, Bonang Transmission, Hubei Machinery and Equipment, Same Deutz-Fahr, AGROSTROJ Pelhrimov, Valmont Industries Incorporated., China National Machinery Industry Corporation, Escorts Limited, Concern Tractor Plants., among others.|
|Segments Covered||By Agriculture Machine, By Forestry Machine and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)|
|Countries Covered||North America: U.S and Canada
Europe: Germany, Italy, Russia, U.K, Spain, France, Rest of Europe
APAC: China, Australia, Japan, India, South Korea, South East Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Chile
The Middle East And Africa: South Africa, GCC, Rest of MEA
|Historical Year||2016 to 2020|
|Forecast Year||2022 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
Asia Pacific is expected to hold the largest market share during the forecast period
The Asia Pacific region is expected to hold the largest global agricultural & forestry machinery market share over the forecast period. The growth in the region is attributed to the increased awareness among farmers about the use of farming machines and mechanized farming practices. As one of the major agricultural regions in the world, the region's use of innovative and advanced agricultural machines has increased. For instance, according to the secondary analysis, agriculture equipment sales dominated the Indian market with a total of 810,000 units sold in 2020.
The expansion in population and per capita income, particularly in India, has fueled the adoption of innovative farming methods over human labor. For instance, according to WorldData.info, from 1960 to 2021 the population of India increased from 450.55 million to 1.39 billion people. This is a growth of 209.3% in 61 years. The highest increase in India was recorded in 1974 with 2.36%. The smallest increase in 2021 with 0.97%. Furthermore, government backing and investment in the region boosted market expansion. India ranks second in the international agriculture sector, after China, which is expected to hold the largest market share.
On the other hand, the highest market growth is anticipated to emerge in North America and Europe over the next several years because of the existence of highly skilled farmers in these regions. Farmers' knowledge of using new farming methods and mechanical equipment had a small impact on the market expansion.
Although the lockdown situation had an impact on farming and production, North America eventually saw an upsurge in its agricultural production. Additionally, the adoption of hybrid forestry equipment increased their usefulness for farming. However, in Europe, where new equipment would use less fuel, the production of sustainable wood and its use in logging have become more important, supporting the market expansion of the region.
The global agricultural & forestry machinery market is dominated by players like
By Agriculture Machine
By Forestry Machine
The global agricultural & forestry machinery market is anticipated to grow significantly during the forecast period due to the constantly growing demand for advanced machinery in the developed regions. The growing economic stability in many countries has increased the demand for food. Moreover, the growing population across the globe is also posing high demand for food.
According to the report, the global agricultural & forestry machinery market size was worth around USD 302 billion in 2021 and is predicted to grow to around USD 489 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.5% between 2022 and 2030.
The global agricultural & forestry machinery market growth is expected to be driven by Asia Pacific. It is currently the world’s highest revenue-generating market due to increased awareness among farmers about the use of farming machines and mechanized farming practices.
The global agricultural & forestry machinery market is dominated by players like Mahindra & Mahindra, Claas KGaA mbH, Kubota Corporation, Caterpillar Inc., AGCO Corporation, Deere & Company, Weifang Euro king Machinery, John Deere, Bucher Industries AG, Bonang Transmission, Hubei Machinery and Equipment, Same Deutz-Fahr, AGROSTROJ Pelhrimov, Valmont Industries Incorporated., China National Machinery Industry Corporation, Escorts Limited, Concern Tractor Plants., among others.