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:
US Tractor and Combine Harvesters Market
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