World Agricultural Equipment to 2012 (Forecasts for 2012 & 2017 in 26 countries)

Abstract

Global demand to rise 3.7% annually through 2012

World demand for agricultural machinery and equipment is forecast to increase 3.7 percent annually through 2012 to $111 billion. Gains will be paced by the accelerating mechanization of the agriculture sectors in currently large agricultural equipment markets such as China and India whose farm sectors are nevertheless still significantly unmechanized and inefficient in comparison to those found in more developed markets. Moreover, rapidly rising global staple food crop prices and shortages in 2007 and early 2008 indicate a growing necessity to increase farm productivity and efficiency in developing countries. To some extent, gains could be hindered if energy prices remain at their current high levels through the forecast period and negatively impact global economic growth.

China, India hold best growth prospects in developing areas

Strongest growth in agricultural equipment demand will be registered in developing countries, with China and India holding by far the best prospects. Other large developing nations with sizable agricultural sectors, such as Brazil and Russia, will also post healthy gains as a result of increasing mechanization of their agricultural sectors. Besides benefitting from rising incomes, farmers in these regions will continue to strive to increase productivity through further automation and replacement of older equipment. Increasingly, draft animals such as horses and oxen used during various stages of the farming process will be replaced by agricultural equipment. In addition, rising wages in many of these countries as well as large scale migration to urban areas will necessitate the replacement of human capital with fixed capital such as farm machinery.

Study coverage

It presents historical data (1997, 2002, 2007) plus forecasts (2012, 2017) for supply and demand by type in six regions and 26 countries worldwide. The study also considers market environment factors, evaluates company market shares and profiles 25 global competitors.