Global agricultural machinery market shows modest growth

The rapid growth of the global population and the replacement of old equipment have a greater demand for agricultural machinery. In 2017, the global agricultural machinery market is expected to reach US$122.9 billion. Market growth in developing countries will offset the decline in the markets of developed countries, and the global agricultural machinery market will show modest growth.

The factors that affect the demand of the global agricultural machinery market mainly include economic prospects, weather and demand. Rapid population growth will have a greater demand for crops, which will translate into demand for agricultural machinery. Increased living standards and personal income growth will generate greater demand for agricultural products and high-end foods. In addition, the petrochemical and pharmaceutical industries also have a greater demand for agricultural products.

The difference in the size of the national economy determines the variety and scope of different agricultural machinery. The United States and Canada are major producers of high horsepower tractors (above 100 hp). European and some Latin American emerging economies produce more medium-sized tractors (40-100 hp), and in the manufacture of medium and small horsepower tractors (below 40 hp), Japan Reigned. The continuous advancement of technology has made it possible to manufacture tractors with more horsepower to meet the needs of farmers.

A report on the global agricultural machinery market pointed out that the Asia-Pacific region is the largest agricultural machinery market, and it is also the fastest growing market, with a compound annual growth rate of 7.9%. This growth will be mainly driven by the growth in sales of fast-growing developing countries, especially China and India. These developing countries have been devoting themselves to the mechanization of agriculture, and their population expansion and strong economic growth have brought increasing pressure on the agricultural sector and have also contributed to the continuous increase in sales of agricultural machinery. In addition, Indonesia, Thailand, Brazil and Russia also have a relatively high growth rate. The governments of these countries are working to promote agricultural mechanization to increase food production and productivity.