Global agricultural machinery market to reach $391 billion by 2027, research
The global agricultural machinery market reached U$202.2 billion in 2018 and is expected to reach $391.15 billion by 2027, by registering an annual growth of 7.82 per cent across the globe.
According to a report by Research and Markets, the global market further generated a volume of 38 million uinits in 2018 and is expected to reach 78 million units by the year 2027 with a CAGR of eight percent. This is primarily attributed to the growing demand for agricultural activities across the world.
Asia Pacific captured a share of 41 per cent in 2018 by reaching $82.93 billion in 2018 and is anticipated to grow up to $180 billion by 2027, marking a CAGR of nine percent, dominating the market, over the forecast period.
The market volume has also reached 22 million in 2018 and is expected to reach 50 million units by 2027 accounting a CAGR of nine per cent over the forecast period.
The growth in the region can be attributed to increase in investments towards agriculture from government to maintain the highest productivity from the agricultural fields.
China and India are the major contributors in this region driving the growth over the forecast period between 2020-2027. On the back of rising export of agricultural products focused to the international market, it is expected that market growth would flourish, over the forecast period.
The North America region captured a market size of $54 billion in the year 2018 and is expected to reach $92 billion by 2027, with a CAGR of six per cent. The volume of this region had grown to 5,790.62 thousand units in the year 2018 and is expected to reach $10,000 units by 2027, registering a CAGR of seven percent.
The market is primarily led by the production in the US, with a market of $41.78 billion and 4 million units in 2018, and it is expected to grow at a CAGR of six percent for value and seven percent for volume of the market in this region.
With the rising availability of advanced technologies in the agricultural machineries by the key players of this region, along with growing agricultural productivity in the available land, the demand for agricultural machinery in this region is expected to witness a rapid growth over the forecast period.
In comparison, the Latin America and Middle East & Africa regions are presently generating a moderate demand for agricultural machineries in the market owing to government support and initiatives aiding the growth of agricultural yield.
It has been observed that there are harsh climatic conditions which is expected to restrain the agricultural growth in countries of Middle East and Africa, increasing their dependency on agricultural import, thus, addressed a market of $14 billion and 3,000 units in 2018 with CAGR of eight percent in value seven percent in volume.
While the Latin American countries such as Brazil and Argentina have been flourishing in their agricultural exports to countries of Middle East, Africa, and rest of the world on account of increasing arable land and growing support from local, accounting market size of $7 billion with CAGR of 9 percent and 1,6 million units with CAGR of eight percent in 2018.