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World Agricultural Equipment to 2016

 
 





Study #: 2892
Document Type: Industry Study
Date Published: Jun-2012
Format:
   Full study: PDF
   Section, Pages, Tables and Charts: HTML
Pages: 379
Full Study Price: $6,100.00
       

    

Demand growth in developing nations will result from greater pressure on their farming sectors to be more efficient and productive, resulting in machinery sales gains.

Global demand to reach $175 billion in 2016

World demand for agricultural equipment is expected to grow 6.8 percent per year through 2016 to $175 billion. Growth will be driven primarily by sales gains in rapidly developing nations -- particularly China, Brazil, and India -- as these countries continue to mechanize their agricultural sectors. Population expansion and strong economic growth in these nations -- and in other developing nations -- will put increasing pressure on their farm sectors to become more efficient and productive, resulting in growth in machinery sales.

Agricultural machinery demand in the Asia/Pacific region was more than twice that of any other region in 2011. China and India will be the primary nations fueling future market advances in the region, although other smaller markets, including Thailand and Indonesia, will also expand rapidly. Central and South America will post strong sales gains as well, powered by growth in Brazil and other countries with large, increasingly mechanized agricultural sectors, such as Argentina.

Sales in industrialized countries to moderate

Throughout the industrialized world, sales of farm equipment will be determined largely by demand for replacement machinery. North America and Western Europe will both record belowaverage growth through 2016. Demand in these regions will be driven by technological advances, as the efficiency gains afforded by new, technologically sophisticated equipment will make it economically feasible for farmers to replace their machinery more frequently. However, many farmers in developed regions delayed replacing their older machinery during the 2008-2010 economic crisis, avoiding major purchases of new machinery because of an uncertain economic environment. As a result, 2011 saw the beginning of a spike in demand for agricultural machinery, as better economic conditions prompted farmers to finally replace older machines. Since an average replacement cycle is generally eight to nine years, high demand in 2011 will mean many farmers will not be looking to replace machinery in 2016, constraining agricultural equipment demand.

Plowing, cultivating machinery to grow fastest

Farm tractors accounted for the largest share of product sales in 2011, representing 30 percent of all agricultural machinery sales. Plowing and cultivating machinery is expected to be the fastest growing product type through 2016, expanding 9.1 percent per year to $10.7 billion as farmers in developing nations purchase larger and more complex tilling equipment to increase the productivity of their land. Aftermarket parts and attachments demand is projected to increase at the slowest rate, climbing 5.5 percent per year to $27.8 billion in 2016 as the durability of new machinery continues to improve, thus limiting repair and maintenance spending.

Study Scope

This study analyzes the $126 billion world agricultural equipment industry. It presents historical demand data for the years 2001, 2006 and 2011 with forecasts for 2016 and 2021 by type (e.g., farm tractors, harvesting machinery, planting and fertilizing machinery, haying machinery, plowing and cultivating machinery), world region and for 20 major countries.

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 29 industry participants, including Deere, CNH Global and AGCO.
 










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