How
Us Agriculture Equipment Market Is Positioned?
US
agriculture equipment market was observed to be at maturity stage owing to the
advances in mechanization and technological developments in agriculture that
have been particularly influential in driving change in the farm sector coupled
with rapid growth in average farm productivity. Also, increasing presence of
both international as well as domestic players coupled with new government
initiatives has created a positive impact on the market. Tractors are
multipurpose equipment with ability to handle multiple implements such as
harrows, ploughs, sprayers and others. The US tractor market both in terms of
sales value and volume has increased at a positive CAGR during the review
period 2014-2019. The market experienced a decline in terms of sales volume
during 2015 and recovered gradually over the years. Factors such as
technological advancements and increased consumer demand have increased the
demand for mechanized farming thereby have enhanced the sales of tractors in
the country. US combine harvesters market both in terms of sales value and
volume has been experiencing a negative CAGR during the review period
2014-2018.
Low commodity prices, weakening farm
income and elevated used equipment levels in the US were observed to pressurize
high demand for farm equipment, especially high HP models of combine
harvesters. As this equipment is expensive in nature, farmers within US
remained apprehensive of making such big purchases, and instead approached second-hand
market or delayed purchases.
Us
Tractor Market Segmentation
By Type of Tractors (2WD and 4WD)
Two wheeled tractors were observed
to dominate the US tractor market during 2018. Tractors in the range 5-200 HP
usually come in the category of two-wheeled drive tractors. 2-Wheel Drive
tractor is generally used in dry farming conditions as well as for the purpose
of field farming transportation. The remaining market share was captured by
four wheeled tractors.
The tractors with horse powers below 40
are the compact tractors that serve basic farming tasks such as mowing and
manure handling. The segment was observed to clearly establish itself as market
leader within US tractor market during 2018. The remaining market share was
collectively captured by tractors falling in the HP range of 40-100 and above
100 HP in the year 2018.
By
Horse Power (up to 250 HP, 250-350 HP and more than 350 HP)
Combine harvesters of up to 250 HP
dominated the country’s combine harvesters market during the year 2018,
followed by 250-350 HP and more than 350 HP ranges. Earlier, farmers had to
harvest crops by carrying out a series of laborious operations one after the
other. Emergence of harvesting machinery has effectively reduced their time and
efforts thus, meeting the growing demands of urban dwellers and help towards
breaking up soil efficiently.
Comparative
Landscape In The Us Tractor And Combine Harvester Market
Both the US tractor as well as combine
harvester market was observed to be heavily concentrated along with the
presence of both domestic and international players in the market such as John
Deere, New Holland, AGCO, Mahindra, Kubota and others. In addition to that, it
has become extremely difficult to enter and expand within the market as
existing players such as market leader – John Deere and other players have
clearly established their brand identity and new players may not be able to
find adequate means of distribution since the market is broad. Some of the
parameters on the basis of which companies compete within this segment include
price, after sale services, access of distribution & dealership channels
and level of digitalization in their machineries and equipments.
Us
Tractor And Combine Harvester Market Future Outlook And Projections
Over the forecast period, it is further
estimated that US tractor market in terms of sales volume will increase at a
positive CAGR during the period 2019-2024. The market is forecasted to grow
owing to technological innovations such as driverless tractors, ease of
financial support and growing consumer demand. On the other hand the US combine
harvester market is anticipated to recover during the forecast period as
farmers are expected to further shift towards large size farming. Although
agricultural land has been shrinking in the US, the demand for large farms has
been increasing. Additionally, the constant increase in consumption demand is
pushing farmers to produce more at a time, which would require more farmland.
With larger farms, the use of combine harvesters will be on the rise because
harvesting hay on a large farm is not manually possible.
For more information on the research
report, refer to below link:
Related reports
Contact Us:
Ken Research
Ankur Gupta,
Head Marketing & Communications
+91-9015378249
