Government's Ag2030 mission aims to generate AUD 100 Bn in agricultural production by 2030 driving huge demand for Agriculture equipment in Australia: Ken Research

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Jan 11, 2023, 06:44 ET

GURUGRAM, India, Jan. 11, 2023 /PRNewswire/ -- The Australia Agriculture Equipment market is moderately concentrated with five players capturing ~75% of the market share in 2021. Most manufacturers of agricultural machinery sell their machines through authorized dealerships. Both OEM's and aftermarket sales go hand-in-hand owing to increase in demand for original equipment which increases the demand for spare parts. Online Physical-digital channels of Purchase listing their products online will be preferred by consumers in the medium term.

There is continuous growth in the sales of tractors in the agricultural equipment market as they are inevitable for farming operations in the rough terrain of Australia.
GPS enabled agricultural equipment and predominance of precision farming techniques are the major trends in the market.
There is heavy competition among local and foreign players as significant proportion of agricultural equipment used in Australia are imported from overseas.
OEM's and aftermarket sales go hand-in-hand as the demand for original equipment rises, demand for spare parts increase along with it.
Price and quality of the equipment along with the level of automation and type of commodity produced by the farmer affects the decision-making process of purchasing an equipment.

Surge in demand for New Technology: Farmers are currently preferring technological upgradations in their agricultural equipment. GPS enabled agricultural equipment and predominance of precision farming techniques are the major trends in the market. GPS technology helps in accurate field navigation to minimize redundant applications and enable maximum ground coverage in the shortest possible time in the rough terrain in Australia. Precision Agronomics Australia (PAA) has developed a unique product in the i4M technology and is leading the next wave of precision agriculture. Increased use of data science, automation, communication technologies has gained prominence in the sector.

Government Initiatives to Regulate Agri-equipment Market: Regional Investment Corporation (RIC) administers concessional loans on behalf of the Australian Government for farm businesses, drought-affected small businesses and other eligible businesses. These farmer loans assist farmers to purchase, establish or develop a farm business or machinery. Rural Research and Development Corporation (RDC) invest around AUD 1,176 Mn each year in agricultural innovation, with more than $300 million of funding coming from the Australian Government. RDC focuses on investing in digital agriculture and mechanization to deliver new trade and market access for producers, create jobs and reduce red tape.

Importance of loans and credit schemes: Increasing price of agriculture equipment will necessitate the importance for loans and credit schemes to invest in the purchase of machineries. Availability of credit and loans at a lower interest rate increases the preference for financed purchases. 13% of the total workforce employed in agriculture will be young population of 15 to 34 years of age by 2025. Young farmers will prefer financed purchases owing to the low capital in hand and easy availability of credit from different sources.

Analysts at Ken Research in their latest publication "Australia Agricultural Equipment Market Outlook to 2026F - Driven by Adoption of Technological Advancements in Farming Techniques and Financial support of Government" by Ken Research observed that Agri-equipment Market in Australia is at a growing stage. The rising government policies and demand in Agri-equipment industry, an increase in credit availability along with rising online platforms for sale of Agri-equipment is expected to contribute to the market growth over the forecast period. The market is expected to grow at 9.1% CAGR by value, during 2021-2026F.

Key Segments Covered in the report:-

Australia Agri-Equipment Market

By Type of Equipment

Tractors
Harvesters
Planting Equipment
Irrigation and crop processing Equipment
Spraying Equipment
Hay and Forage equipment

By Mode of Sales

Online
Offline

By Type of Purchase

Financed purchase
Non-Financed purchase

By Automation

Semi-automatic
Manual
Automatic

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By Sales Channel

OEM
Aftermarket

By Application

Harvesting& Threshing
Land development and seed bed preparation
Sowing and Planting
Weed cultivation
Post-harvest & Agro-processing
Plant protection

By Region

Western Australia
New South Wales
Queensland
Northern territory
South Australia
Victoria
Tasmania

Key Target Audience

Existing Agricultural Equipment Companies
New Market Entrants- Domestic OEMs
New Market Entrants- Foreign OEMs
Agricultural Equipment Financing Companies
Government Bodies
Investors & Venture Capital Firm
Agricultural Equipment Manufacturers
Agricultural Equipment Distributors
Agricultural Equipment Associations
Market Research and Consulting Firms
Government Bodies & Regulating Authorities

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Time Period Captured in the Report:-

Historical Period: 2016-2021
Base Period: 2021
Forecast Period: 2021-2026F

Companies Covered:-

Leading companies

John Deere
Kubota
CLAAS
AGCO
CNH Industrial
Massey Ferguson
CASE Agriculture
AGRIFARM
Farm Tech
DOBMAC
GASON
VIN ROWE
PELLENC

Key Topics Covered in the Report:-

Executive Summary
Country Overview of the Australia
Overview and Genesis of Agriculture Equipment Market in Australia
Ecosystem of Australia Agriculture Equipment Market
Market Segmentations of Agriculture Equipment Market in Australia
Snapshots on different Agriculture Equipment Markets in Australia
SWOT Analysis of Australia Agriculture Equipment Market
Growth Drivers of Australia Agriculture Equipment Market
Trends and Developments of Australia Agriculture Equipment Market
Challenges of Australia Agriculture Equipment Market
Competitive Analysis of Agriculture Equipment Market in Australia
Future Outlook and Projections of Agriculture Equipment Market in Australia, 2021-2026
Government Initiatives to Regulate Australia Agri-equipment Market
Cross Comparison of Major Players in Australia Agri-equipment Market
Covid-19 Impact on Australia Agri-equipment Market
Outlook and Future Projections for Australia Agri-equipment Market
Market Opportunity and Analyst Recommendations
Research Methodology

For more insights on the market intelligence, refer to the link below:-

Australia Agricultural Equipment Market

Related Reports By Ken Research: -

South Africa Agricultural Equipment Market Outlook to 2025-By Product Type (Tractors, Tillage Equipment, Planters & Seeders, Sprayers, Combine Harvesters, Precision Farming and Others); By Domestic Sales and Import; By Region (Free State, Mpumalanga, Kwa Zulu Natal and others)

South Africa has a dual-agricultural economy, with both well-developed commercial farming being carried out by commercial farmers & cooperatives in large estates along with subsistence-based agriculture production being done by peripheral farmers in smaller rural areas. The market is currently in its recovery stage after witnessing major decline in 2016 owing to drought. Domestic demand is principally being met through imports which are sourced primarily from India and China. The major stakeholders in the market have been international OEMs, domestic distributors & importers and domestic OEMs. Prominent business strategies adopted by major players include forming extensive dealer network, farmer-magazine advertisement; new product launches product innovation and improved after sales services. The market registered a CAGR of close to 3.0% in terms of sales volume of machinery during 2012-2018.

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Philippines Agricultural Equipment Market Outlook to 2023- By Product Type (Tractors, Combine Harvesters, Planters, Seeders and Tillage Equipments and Tillage Equipment), By Tractor Segment (Upto 60 Hp, Between 61-130 Hp and above 130 Hp), By Production (Imported and Domestically Manufactured) and By Region (Luzon, Visayas and Mindanao)

Philippines Agricultural Equipment Market is expected to experience an upward trend in terms of sales volume as well as sales value owing to increasing demand for food due to steady growing population, increasing prices of agricultural equipments with emerging players in the market, increasing number of financing options and penetration of driverless tractors in Philippines. Various government supporting policies such as the Rural Development Project and Inclusive Partnerships for Agricultural Competitiveness Project are expected to facilitate growth of agricultural sector and hence increasing the demand for agricultural equipment.

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