Focus Industry: Agricultural Machine Manufacturing

Industry - Agricultural Machinery

Agricultural machines are primarily required for professional use by farmers in producing and harvesting foods, and to a growing extent by contractors carrying out such work on their behalf. However, with farmers diversifying, non-food activities have grown and some agricultural machinery is being used to a greater extent outside pure agriculture, for example by local authorities. Additionally the standard definitions of the sector also cover non-agricultural mowers so any statistical material will normally include items used for the care of lawns, parks and sports grounds. Nevertheless farming still provides the central requirement and at the core of the variation of demand is the development of farm incomes.

Agricultural machineries are used in various agricultural activities such as sowing, reaping, harvesting, irrigation and application of fertilizers. There are many types of such equipment, from hand tools and power tools to tractors and the countless kinds of farm implements that they tow or operate. Diverse arrays of equipment are used in both organic and nonorganic farming. Especially since the advent of mechanized agriculture, agricultural machinery is an indispensable part of how the world is fed. Some of the key agricultural machineries are tractors, haying machineries, power tillers and harvesting machineries. Farmers are adopting modern agricultural technologies to increase farm yield due to the increase in demand for food supply.

The global agricultural machinery market is envisaged to witness moderate growth and is likely to post a CAGR of more than 7% over the forecast period. With growing investment opportunities in the agricultural sector, the market for agricultural machinery is anticipated to have a positive outlook in the coming years. The flow of foreign direct investment in developing countries has become a key driver of agricultural activities. Many developing nations are striving to attract foreign investments in their agricultural sector. The increasing foreign investments in the agricultural sector will translate into the high adoption of agricultural machinery, which in turn will lead to its augmented demand over the predicted period.


Product segmentation and analysis of the agricultural machinery market

  • Tractors
  • Power Tillers
  • Haying machinery
  • Harvesting machinery
  • Planting and fertilizing machinery
  • Ploughing and cultivating machinery
  • Irrigation pumps
  • Parts and attachments

Tractors dominate the market and account for more than 44% of the market share in terms of revenue. Factors such as a shift toward mechanization and a reduction in the number of people in agriculture sectors are increasing the adoption of tractors. Tractors have broad applications across different agricultural activities, such as such as tilling, ploughing, and planting, which will contribute to this segment’s growth over the period.


The global agricultural machinery market is highly fragmented owing to the presence of numerous well-established players. Most of these players are technologically advanced and use innovative methods to develop products. As a result, many local vendors are finding it increasingly challenging to compete with the bigger players in terms of quality, technology, and price. The level of vendor competition is anticipated to intensify with an increase in product line extensions, technological innovations, and M&As.


The agricultural machinery market is expected to see an increase in market consolidation, as a result of the intense, competitive landscape. Therefore, to stay competitive, the leading players are increasingly striving to provide innovative, cost-effective and high-quality services, to the consumers within this market.


  • IoT Sensors, Big data and analytics are set to transform the world of agriculture as we know it.
  • Innovation, precision farming, data management and other productivity based farming solutions in mature markets.
  • Efficiency through gradual mechanization in fast growing emerging markets using technologies previously proven in the mature markets
  • In an effort to increase equipment availability and reduce costs in consumption of parts and labor, agribusinesses are searching for ways to effectively manage their assets. Arrelic offers OEM insights and in-depth problem solving to improve reliability and maintenance of assets. Arrelic identifies high-impact, high-value opportunities early in the process to drive initial investment and encourage capability transfer. By internalizing knowledge and expertise, Arrelic enables agribusinesses to maximize asset availability through optimum operating models.
  • Arrelic also analyzes the intersections of offerings and processes to highlight complexity hot spots and works to help simplify those areas. By implementing Arrelic proven improvement methodology, Process Cycle Efficiency, it is able to focus on process speed, agility and waste elimination to shorten lead times.
  • Arrelic enables the efficient use of equipment, personnel and inputs to improve outcomes and returns. Arrelic helps companies by reducing capacity and allowing them to focus on the strategic elements of business.
  • The shift to automation from manual processes improves productivity, enhances asset utilization, prevents loss and deviation, enables traceability and increases the quality of product for agribusinesses. Arrelic provides the technological tools and change management services that drive innovative methods of information transfer from the farm to the refinery.

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