Global agricultural machinery market to reach $391 million by 2027, research
The global agricultural machinery market reached USD 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 38,767.73 thousand units in 2018 and is expected to reach 78,217.12 thousand units by the year 2027 with a CAGR of 8.32%. This is primarily attributed to the growing demand for agricultural activities across the world.
Asia Pacific captured a share of 41.01% in 2018 by reaching USD 82.93 billion in 2018 and is anticipated to grow up to USD 179.54 billion by 2027, marking a CAGR of 9.18%, dominating the market, over the forecast period.
The market volume has also reached 22,447.8 thousand units in 2018 and is expected to reach 47,962.39 thousand units by 2027 accounting a CAGR of 9.01% 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 i.e. 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 USD 54.44 billion in the year 2018 and is expected to reach USD 91.69 billion by 2027, with a CAGR of 6.11%. The volume of this region had grown to 5,790.62 thousand units in the year 2018 and is expected to reach USD 10,520.13 thousand units by 2027, registering a CAGR of 7.01%.
The market is primarily led by the production in the US, with a market of USD 41.78 billion and 4,501.21 thousand units in 2018, and it is expected to grow at a CAGR of 6.42% for value and 7.22% 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 USD 13.79 billion and 2,824.07 thousand units in 2018 with CAGR of 7.96% in value an7.78% 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 USD 7 billion with CAGR of 8.76% and 1,636.24 thousand units with CAGR of 8.85% in 2018.
