during the forecast period. There has been a significant increase in the production of agricultural equipment over the years. However, in 2020, factors such as COVID-19, limited supply of farm equipment parts, lower first-half new tractor sales, closure of production facilities and lower working capital have led to a drop in the global production of agricultural equipment. .
New York, 09 Feb. 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Farm Equipment Market by Tractor Power Output, Tractor Drive Type, Autonomous Tractor, Electric Tractor, Farm Equipment, Implement, Rental & Region – Global Forecast to 2027″ – https://www.reportlinker.com/p04960851/?utm_source=GNW
However, manufacturing facilities, open international borders and government support for the agricultural industry are expected to largely boost momentum by the end of 2020. The global economic recovery is also expected to be fueled by production. increased vaccines and immunization. rate, allowing businesses to reopen more quickly.
The introduction of agricultural loan forgiveness programs encourages farmers to purchase agricultural equipment. Governments have launched various programs in different parts of the world to relieve farmers of their loans and encourage agricultural mechanization.
Government subsidies play a vital role in a country’s agricultural sector. For example, the United States Farm Service Agency (FSA) provides guaranteed, direct farm property and farm loans to family-sized farmers who cannot obtain commercial credit from a bank. agricultural system institution or other lenders.
FSA loans can also be used to buy land, livestock, equipment, feed, seeds and supplies.
The maximum loan amount has increased from $250,000 to $300,000 and the guaranteed amount on conservation loans has increased from 75% to 80%. The government spends huge sums on subsidies every year to stimulate the agricultural sector.
As agricultural equipment such as tractors, combine harvesters and combine harvesters are expensive, it is difficult for farmers to purchase such equipment with their limited sources of finance. Therefore, several governments have increased their support through grants/credits to encourage farmers to adopt modern agricultural equipment to increase food production.
Various OEMs have launched retail financing programs with customized dealership and lease operations solutions. In March 2021, John Deere launched the dealer financial incentive programs for the sale of new equipment.
In 2021, CLAAS launched a program for 2022 orders with incentives to help manage supply chain disruptions. The company also offers incentive pre-sale programs, including low finance rates and discounts on first orders of its equipment.
AGCO provides its dealers with volume sales incentives, demonstrations and other promotional materials to aid sales. It designs its sales programs, including retail financing incentives and policies to maintain parts and service availability, along with extended product warranties, to improve the competitive position of its dealers.
In 2021, Kubota launched a special offer for compact tractors, including $0 down payment, 0% APR for up to 84 months, and savings of up to $1,200 on LX Series tractors. In 2019, the company retained the services of FMI, a Buckinghamshire-based incentives and events agency, to develop a new dealer incentive program called Kubota Rewards Club.
Thus, these incentive programs for the purchase of agricultural equipment from equipment manufacturers are expected to increase the production and sales of agricultural equipment during the forecast period.
The 31-70 HP segment is expected to lead the Power Output segment due to higher demand for these tractors across the world.
The 31-70 HP segment is estimated to dominate the market, in terms of value, during the forecast period owing to the increased demand for these tractors in China, India and the United States. Government subsidies, loan waivers and policies should encourage farmers to purchase high horsepower tractors rather than traditional low horsepower tractors.
The growing mechanization of farms in emerging countries, driven by government efforts, should drive the market. Growing demand for high horsepower tractors and growing dealer network with appropriate marketing are other factors expected to drive the market globally.
Four-wheel drive segment expected to grow at fastest CAGR from 2021 to 2027
The demand for four wheel drive tractors is expected to increase in the future with the changing demands of farming activities such as covering a larger acre of land or the need to pull large implements. The availability of underpowered tractors with four wheel drive is expected to be a major factor in their growing demand.
John Deere model 5050 D is a low horsepower tractor that delivers 50 HP and is available in four wheel drive. In 2021, Sonalika Tractors (India) launched its advanced Tiger DI 75 four-wheel drive tractor with CRD (Common Rail Diesel System) technology.
Sonalika also introduced the customized Tiger DI 65 four-wheel drive tractor with two advantages to provide 65 HP power and 55 HP economy. The two new models are available in 4W and 2W versions.
Asia-Oceania expected to be the highest growing regional market
For market analysis, the Asia-Oceania region includes India, Japan, China, South Korea, Australia, and Rest of Asia-Oceania.
However, China saw a decline in tractor sales in 2020 and 2019, due to delays in agricultural equipment subsidies in Chinese provinces and upgraded emissions regulations.
In addition to high container shipping, factors such as increasing gross domestic product (GDP), infrastructure investment, rising per capita income, growing inclination towards mechanization, and government initiatives in FDI have created more opportunities for agricultural enterprise, which has driven the farm tractor market in the Asia-Oceania region.
In-depth interviews were conducted with CEOs, CMOs, other chief innovation and strategy officers, and executives from various key organizations operating in this market.
• By Business Type: Farm Equipment OEM – 100%
• By designation: C level – 30%, administrators – 50% and others – 20%
• By region: Asia-Oceania – 40%, Europe – 30%, North America -5% and Rest of the world -25%
John Deere (USA), AGCO Corporation (USA), CNH Industrial (Netherlands), Kubota Corporation (Japan) and CLAAS (Germany) are the major players in the agricultural equipment market.
The study segments the agricultural equipment market and forecasts the market size based on power output (250 HP), type of drive (two-wheel drive and four-wheel drive), agricultural tools, by function (plowing & cultivating, harvesting & threshing, sowing & planting, plant protection & fertilization, and others), equipment rental agricultural, by type of equipment (tractors, combines, sprayers, balers, and others), rental market of agricultural tractors by power 250 HP), Agricultural Tractor Rental Market, By Drive Type (Two-Wheel Drive and Four-Wheel Drive), Autonomous Tractor Market, Autonomous Tractor Market, By Horsepower (100 HP), electric tractor market, by propulsion (battery electric and hybrid electric) and region (Asia Oceania, North America, Europe and rest of the world [RoW]).
The study also includes an in-depth competitive analysis of leading agricultural equipment manufacturers in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Purchasing the Report:
The report will assist market leaders/new entrants in this market with information on the closest approximations of revenue figures for the overall Agricultural Equipment Market and sub-segments. This report will help stakeholders understand the competitive landscape and better understand how to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with insights into key market drivers, restraints, challenges, and opportunities.
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