Major Upsurge in the Demand for Seed Drill Machines Likely to Push Global Revenues During 2017 to 2026 | Major Players - KUBOTA Corporation , Mahindra & Mahindra , Derre and Company , Farmet , AGCO Corporation , KUNH Machineries , Bobcat Company
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In addition to demand in developed markets, the adoption of seed drill machines in developing regions is growing on account of a slew of factors. A significant percentage of population is migrating to non-farming jobs, which has posed challenges in terms of availability of labor. Further, growing awareness on the benefits of using seed drill for sowing seeds vis-à-vis manual sowing is also leading to increased adoption.
Although demand for seed drill machines has remained steady over the years, broader challenges in the agriculture sector have led to a slowdown in sales. Seed drill machines have long replacement cycles, and the advances in drill machines haven’t been so revolutionary so as to induce an upgrade. It is on the back of a hangover of the slowdown in broader agriculture sector that the demand for seed drill machines is likely to grow at a moderate pace.
The concept of leasing seed drillers is gaining ground among farm owners, with new rental businesses springing up to cater to the growing demand. Leasing is likely to gain further momentum in the near future, owing to the waning perception towards equipment ownership. The emphasis on lowering operational costs is also likely to provide an impetus to used seed drillers.
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Asia Pacific excluding Japan (APEJ): A Lucrative Market for Seed Drill Machines
Demand for seed drill machines continues to grow at a brisk pace in Asia Pacific excluding Japan (APEJ). The demand is especially higher in China and India, as a significant percentage of the population is engaged agriculture as a means of livelihood. The agriculture sector in both China and India is witnessing a transformation, as farm owners have to adapt to the changes in the workforce availability. According to estimates, over 10 million farm workers have shifted to non-agriculture based jobs in India over a decade. The limitation in terms of lack of labor is influencing farm owners to invest in farm machinery and equipment. The scenario is not starkly different in China, where a steady adoption of seed drill machines has been witnessed in the last decade or so.
In many countries of Asia Pacific, mechanization was limited to the use of tractors and harvesters. The use of machines for sowing remained an afterthought for many years, however, investment has witnessed a steady increase in the recent past. Although the adoption rate is impressive, there is lot of scope for further penetration of seed drill machines.
Sensing the unique opportunities in agrarian societies such as China and India, manufacturers are focusing on raising awareness on the benefits of seed drill machines. The high input and low output challenge associated with manual sowing can be countered with the use of seed drill machines, and manufacturers are positioning their products on these lines. The rising seed and fertilizer costs are putting pressures on farm owners to increase productivity, and seed drill machines have emerged as a prudent option.
Overall, the outlook on the global seed drill machines market remains positive, however, it is highly likely that growth will be sluggish over the forecast period.
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