The term "agriculture equipment" describes the machinery or manufactured parts that boost land productivity in agro-based economies across the globe. The equipment immediately promotes farmers' or landowners' inclination to integrate automated technology into traditional farming. The global labor scarcity and high expenses of caring for cattle on building sites are further incentives for customers to capitalize on the benefits of modern farming equipment.
Asia-Pacific Agricultural Equipment Market Driving Factors and Challenges
Drivers: Production costs and farm labor costs are closely related. The Asia-Pacific region's agriculture machinery market is therefore being driven by rising labor costs and a shortage of agricultural workers. In recent years, for example, there has been an average increase of USD 0.2 in daily farm wages in India. Because of the rural-to-urban migration of people, it is expected that this tendency will continue as the amount of farm work declines.
In developing countries such as China, the typical population is also more dependent on agriculture. Over time, the percentage has decreased because so many people relocate to urban areas each year. As an illustration, China's farm labor availability is observed to fall by 0.5 to 1% year.
Challenges: Heavy price tags accompany agricultural equipment, particularly the more technologically sophisticated models. Many farmers may find these expenses to be unaffordable, especially small-scale growers and those in remote areas. Farmers are sometimes deterred from replacing their antiquated tools with more contemporary and efficient machinery due to the substantial upfront costs associated with such purchases. A major obstacle to the growth of the agricultural equipment market in India is the high cost of agricultural machinery, which also hinders the growth of the sector as a whole. These tools have several advantages, such more efficiency and production, but because they are pricey, adoption of them is slowed considerably. Due to the gap in the market caused by this unequal access, the market's potential growth is constrained.
Impact of COVID-19 on Asia-Pacific Agricultural Equipment Market
The Asia-Pacific Agricultural Equipment Market had major impacts from the COVID-19 epidemic, which brought with it possibilities as well as challenges. Delays in the production and delivery of equipment were brought on by the pandemic's early impact on supply chains. Farmers' capacity to upgrade and maintain their equipment was impacted by this, which also had an effect on the supply of agricultural machinery and spares. A reduction in the demand for new equipment acquisitions during the crisis' peak was caused by government-imposed lockdowns and restrictions that further hampered agricultural activities.
Asia-Pacific Agricultural Equipment Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; AGCO Corp., AMAZONEN-Werke H. Dreyer GmbH & Company KG, CNH Industrial NV, Deere and Company, Escorts Limited, International tractors limited, Iseki & Co. Ltd, Kubota Corporation, Mahindra & Mahindra Ltd, Netafim Limited, YANMAR Co. Ltd, and Others.
Asia-Pacific Agricultural Equipment Market Segmentation:
By Product Type: Based on the Product Type, Asia-Pacific Agricultural Equipment Market is segmented as; Tractors, Plowing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying Machinery, Irrigation Machinery, Others.
By Region: This research also includes data for Australia, China, India, Japan, South Korea, Rest of Asia-Pacific.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.