openPR Logo
Press release

Farm Equipment Market's $136.3 Billion Projection by 2028

Farm Equipment Market's $136.3 Billion Projection by 2028

The global farm equipment market is projected to grow from USD 107.7 billion in 2023 to USD 136.3 billion by 2028, at a CAGR of 4.8% from 2023 to 2028.

Growing demand for mechanization in agriculture with supporting subsidies & incentives from governments is projected to drive the demand for farm tractors. The market is set to grow, driven by the increasing popularity of electric and autonomous tractors, as well as the growing need for rental services of such equipment. This trend is creating avenues for expansion. Factors like the rise in farm mechanization, government backing through farm loan waivers and credit financing, contract farming, and a lack of skilled labor are the main forces behind the growth of the farm equipment industry.

Inquiry Before Buying @ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=164005174

Battery Electric Tractors would lead the future of the tractor industry.

To adhere to strict emission regulations for Non-Road Mobile Machinery (NRMM), manufacturers are creating hybrid and electric farm tractors. Hybrid versions combine a diesel engine with an energy storage system to enhance fuel efficiency and power for heavy tasks. Alternatively, fully electric tractors rely solely on batteries. Hybrid tractors can save around 35-40% on annual fuel costs. Challenges like expensive batteries, limited technology, and restricted applications may slow electric tractor adoption in the next few years. Yet, the advantages-like energy efficiency, strong torque, clean emissions, and low upkeep-will drive demand over the long term.

Many Indian states are offering incentives to promote the adoption of electric tractors. States like Kerala, Tamil Nadu, and Madhya Pradesh offer a waiver of road tax for electric tractors, and the discount on road tax ranges from 50% to 100%. States like Delhi, Gujarat, Maharashtra, and Rajasthan provide direct cash incentives along with the road tax waiver. These incentives are structured similarly to the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. Solectrac, Inc., a Northern California-based company specializing in battery-powered electric tractors for agricultural and utility use, has unveiled that its e25 compact electric tractor is now qualified for participation in the Clean Off-Road Equipment (CORE) Voucher Incentive Program, supported by a substantial USD 125 million fund. With all the support from governments, developments in battery technology like increased battery capacities, reduced charge time, etc., and increased cost of skilled labor, especially in vineyards, would generate a demand for electric tractors.

>250 HP segment to grow fastest over the forecast period.

>250 HP tractors have a powerful hydraulic system, which can be used to power implements such as Plows and harvesters and are designed to be comfortable for the operator, even during long hours of use. The agricultural industry constantly evolves, and farmers increasingly look for ways to increase productivity. High-power tractors can help farmers do this by allowing them to work more land in a shorter time. High-power tractors are popular in large-scale farming operations in the North American region in the United States and Canada, where extensive fields and mechanized farming techniques require powerful equipment to increase efficiency and productivity. According to USDA (United States Department of Agriculture), in the US, the average farm size for 2021 was 445 acres, up from 444 acres the previous year. These tractors are not popular in Asia Oceania owing to their high cost and higher requirements and the popularity of lower HP tractors. Companies like John Deere, Fendt, and Valtra provide tractors of >250 HP. Valtra's Q Series meets these needs effectively with its powerful engine, efficient transmission, strong hydraulics, and optimal wheelbase. Fendt 1050 Vario and John Deere 8R are some tractor models launched in 2022 with a power output of more than 600 HP.

Asia Oceania is estimated to be the dominant regional market.

The Asia-Oceania region boasts diverse crops, including staples like rice and wheat, palm and cotton, and products like sugarcane, tea, and fruits. These crops heavily influence the demand for tractors, as mechanization is pivotal in increasing agricultural efficiency. In Asia Oceania countries, there's a notable transition from labor-intensive farming methods to advanced agricultural technology. This shift has led to higher requests for renting tractors, along with equipment like harvesters, sprayers, and threshers, which are crucial for modern farming. Agriculture employs over 50% of the workforce in this region, with 450 million smallholder farmers producing 80% of the consumed food. With most smallholding farms, the demand for low HP tractors will lead the market as these tractors are tailored to their needs. According to Markets and Markets analysis, 31-70 HP tractors are projected to dominate the market. According to a study published in 2022, the Southeast Asia agricultural tractors market was primarily dominated by tractors with less than 50 HP horsepower. With a focus on operational versatility, this horsepower range aptly addresses the diverse needs of small to medium-sized farms prevalent in the region. Its affordability resonates well with cost-conscious farmers, particularly those within the substantial smallholder segment. Government efforts to enhance agricultural production further align with these tractors, suited for crop farming and fragmented landholdings in the region.

India will be leading the market in Asia Oceania, followed by China. India, a leading global tractor manufacturer, is addressing the rise in agricultural mechanization, which drives tractor use and necessitates a shift towards electric models. With the cost of electric tractors imposing a major challenge, government support, including subsidies, could bridge the cost gap between electric and diesel tractors. Central and state-level incentives, tax rationalization, and insurance fee reductions can boost the adoption of electric tractors, aligning with India's push for cleaner and more sustainable agriculture practices. The presence of dominant market players such as Mahindra & Mahindra (India), Kubota (Japan), Yanmar Holdings Co., Ltd. (Japan), etc., are actively contributing to the evolution of both traditional and electric tractor markets in the Asia-Oceania region, reflecting the growing emphasis on sustainable and efficient agricultural practices.

Key market Players:

Major players operating in the farm equipment market are John Deere (US), AGCO Corporation (US), CNH Industrial (UK), Kubota Corporation (Japan), and CLAAS KGAA (Germany).

View Detail TOC @ https://www.marketsandmarkets.com/Market-Reports/agriculture-equipment-market-164005174.html

Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com

One stop solution for all Market Research & Consulting needs.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Farm Equipment Market's $136.3 Billion Projection by 2028 here

News-ID: 3318769 • Views:

More Releases from MarketsandMarkets™ INC.

EV Charging Station Market Size, Share, Trends & Analysis by 2030
EV Charging Station Market Size, Share, Trends & Analysis by 2030
According to a research report "EV Charging Station Market by Application, Level of Charging, Charging Point, Charging Infrastructure, Operation, DC Fast Charging, Charge Point Operator, Connection Phase, Service, Installation and Region - Global Forecast to 2030" published by MarketsandMarkets, the global EV Charging Station Market is projected to grow from USD 7.3 billion in 2024 to USD 12.1 billion by 2030, at a CAGR of 8.8%. Factors such as rising EV
Air Brake System Market Size, Share, Trends & Forecast Report, 2030
Air Brake System Market Size, Share, Trends & Forecast Report, 2030
The global air brake system market size was valued at USD 3.1 billion in 2023 and is expected to reach USD 3.4 billion by 2028, at a CAGR of 2.2% during the forecast period 2023-2028. The air brake system market is expected to grow due to several factors. These include the rising demand for heavy commercial vehicles, the expansion of railways, increased long-haul transportation, and upcoming safety-related regulatory requirements.
Air Brake System Market Size, Share, Trends & Forecast by 2028
Air Brake System Market Size, Share, Trends & Forecast by 2028
According to a research report "Air Brake System Market by Type (Disc & Drum), Component (Compressor, Governor, Tank, Air Dryer, Foot Valve, Brake Chamber, & Slack Adjuster), Rolling Stock, Vehicle Type (Rigid Body, Heavy-Duty, Semi-Trailer, & Bus), Region - Global Forecast to 2028" published by MarketsandMarkets, the global air brake system market is projected to grow from USD 3.1 billion in 2023 to USD 3.4 billion by 2028 at a
ADAS Market worth 655 million Units by 2030
ADAS Market worth 655 million Units by 2030
According to a research report "ADAS Market by Offering (Hardware (Camera, Radar, LiDAR, Ultrasonic, ECU), Software (Middleware, Application Software & OS)), System Type, Vehicle Type (PC, LCV, HCV), Level of Autonomy, Vehicle Class, EV type and Region - Global Forecast to 2030" published by MarketsandMarkets, the global ADAS market size is projected to grow from 334 Million Units in 2024 to 655 Million Units by 2030, at a CAGR of

All 4 Releases


More Releases for Asia

South East Asia Business Jet Market And Top Key Players are Asia Corporate Jet, …
By 2022, the South East Asia Business Jet Markets estimated to reach US$ XX Mn, up from US$ XX Mn in 2016, growing at a CAGR of XX% during the forecast period. The Global Business Jet Market, currently at 21 million USD, contributes the highest share in the market and is poised to grow at the fastest rate in the future. The three broad categories of business jets are Small,
RAMPF Korea – Producing in Asia for Asia
Joint Venture for the Asian markets – The international RAMPF Group has realigned the cooperation with its long-standing partner Orient Dosiertechnik from Korea with the founding of RAMPF Korea Co., Ltd. The new company based in Hwaseong City is developing and producing mixing and dispensing systems specifically for the Asian markets. Within the framework of the new joint venture based in Hwaseong City, mixing and dispensing systems are being developed and
LIXIL Asia Presents Asia Pacific Property Awards
Through its power brands GROHE and American Standard, LIXIL Asia signs a three-year deal to become the Headline Sponsor of the Asia Pacific Property Awards from 2019 until 2022. 23rd January 2019: The International Property Awards, first established in 1993, are open to residential and commercial property professionals from around the globe. They celebrate the highest levels of achievement by companies operating within the architecture, interior design, real estate and property
PEOPLEWAVE WINS ASIA TECH PODCAST PITCHDECK ASIA 2019 AWARDS
15 January 2019, Singapore – Peoplewave, Asia’s leading data-driven HR technology company, won the Asia Tech Podcast (ATP) Pitchdeck Asia 2019 Awards, being awarded “Startup Most Likely to Succeed in 2019". The 2019 Pitchdeck Asia Awards is an opportunity for the Asian Startup Ecosystem to shine a spotlight on some of its best startups. The awards were decided by a public vote. More than 7,200 votes were cast by registered LinkedIn
Undersea Defence Technology Asia, UDT Asia 2011
Latest Military Diving Technologies featured in UDT Asia Equipping Asia’s navies with the latest diving technology for asymmetric warfare and operations SINGAPORE, 17 October 2011 - Naval diving and underwater special operations is a field that is seeing increased attention and investment amongst navies in Asia. Units such as the Indonesian Navy‟s KOPASKA, the Republic of Singapore Navy‟s Naval Diving Unit (NDU), the Royal Malaysian Navy‟s PASKAL are increasingly utilising specialised equipment for conducting
Asia Diligence – Specialist Investigative Due Diligence for Asia & Beyond
Asia Diligence today announced the opening of its European Customer Services office in the United Kingdom. The office is to be managed by Steve Fowler and will focus on providing services to Asia Diligence’s European customers. Asia Diligence is also planning to open a US office in the near future, which will provide customer service to its US and North American clients. Asked to comment on the move, Luke Palmer, the