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Advancement of technology in the agricultural sector led to mind boggling incursion of agricultural equipment in the global agriculture industry providing stepping stones for remarkable modernization and commercialization of the agricultural sector. Both developed and developing world witnessed this trend of using agricultural equipment in farming and agricultural sector. Traditional farming techniques are now becoming obsolete and global market is flooded with electricity driven agricultural machinery including tractors, threshers, plough, harrow, sprayer, harvester, sprinklers, diggers, harrow, etc. According to UN comptrade data global trade of agricultural equipment was worth whooping USD 58 billion in 2013.
Further according to the data, sector was growing at the rate of 7.3% in 2004-13. Further, oil seeds and grain farming equipment was prime segment of the global agricultural equipment industry. Considering developing economies of the world, Canada, Australia, Germany, France, United Kingdom, Netherlands are biggest markets for agricultural equipment. Growth of agricultural equipment industry in developing countries like Mexico, Brazil and China is also significant. Major global agricultural equipment companies include AGCO Corporation, MTD PRODUCTS AG, Alamo Group, CLAAS, etc.
Considering European economy farming machinery market is extremely vigorous and strong. In the west tractors and farm harvesters has maximum share in the industry. Agriculture is proliferating in Germany, France and UK which is significantly contributing to maximum growth in the equipment industry. Further, positive sentiments are associated to growth in agricultural equipment market in central and Eastern Europe.
Farming equipment industry of North America is witnessing massive growth and development. Demand for harvesters reached new records after 2013. However, demand for tractors has risen meagerly in North American region. However, pessimism is associated to South American market due to low income growth, poor economic stability and low rainfall rates. Mexico and Brazil are performing outstandingly in the South American region.
Asian agricultural equipment market has witnessed remarkable growth relative to the global industry. India and China emerged as prime markets for agricultural equipment in Asia. Both the economies are aiming at substantial mechanization and modernization of agriculture which has resulted in massive growth in the sector. However, monsoon failure in India to an extent has constrained the sales of harvesters but tractor sales are still sky high Indian economy.
African agricultural equipment industry growth is rather weak and dismal attributing to immense poverty and less reliance on agricultural industry. African economy still does not have well developed market for agricultural equipment.
Considering Australian economy, it is one of the largest market for agricultural equipment in the world. It is one of the leading importer of farming machinery from The US. Commercialization of agriculture, high income and greater mechanization has resulted in superbdemand for agricultural equipment in Australia. Sales of tractors is enormous in the continent.
Thus, global economy is witnessing splendid growth in the agricultural equipment sector. Remarkable sales, new launches, better agricultural income are the prime reasons which are going to generate further sales in the industry. Asian economy is expected to drive greater growth in the sector.
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