Industry Study with Forecasts for 2018 & 2023
Advances will be driven by the increasing mechanization of farming operations and rising per capita calorie intake in developing countries, along with replacement demand in developed areas.
Asia/Pacific region to remain key market
The Asia/Pacific region, is the largest and fastest growing regional market. China alone will account for 29 percent of global value gains between 2013 and 2018. India, the third largest national farm equipment market behind China and the United States, will also record large increases, as will Brazil. Product sales are expected to climb at robust rates as well in a number of smaller developing markets, including Turkey, Ukraine, Thailand and South Africa. Nevertheless, used farm machinery will continue to constrain demand for new equipment in developing nations.
Product sales in developed countries that are already highly intensive users of agricultural machinery will be largely fueled by replacement requirements. Replacement schedules are influenced by overall economic conditions and the ongoing development of new technologies capable of substantially reducing costs and improving yields, making it economically feasible for farmers to replace farm equipment more frequently. These innovations include high-value precision farming