Agricultural Machinery Market in India to Expand 6.40% CAGR Till 2023
According to a Research On Global Markets report, the agricultural machinery market in India is predicted to expand at a compound annual growth rate (CAGR) of 6.40% between 2018 and 2023. The market was valued at INR 575 Bn in 2017, and analysts expect the market to gain considerable value in the coming years. Frequent innovations in the designs and functions of agricultural equipment is deemed to be the major driving force of the industry.
The central government of India has proposed several initiatives focusing on ‘on-farm mechanizations’ as the Indian farming sector is heavily reliant on agricultural equipment, since it helps in increasing productivity, at reduced costs. These government initiatives are aiding further penetration of advanced machinery in the agricultural sector of the country, according to Research On Global Markets.
The report published by Research On Global Markets features a comprehensive analysis of the different market segments based on products and players. Product-wise, the tractor segment held the largest share (81%) of the market in 2017. Continuous efforts by the government to facilitate the adoption of mechanization, by making tractors affordable, has resulted in a significant rise in the demand for these equipment. Apart from tractors, 19% of the market share were held jointly by rotavators, threshers and power tillers in 2017.
The Indian government’s commitment towards rural development through mechanization of agricultural practices is expected to boost the agricultural machinery market in India. Also, government subsidies and low import duties on agricultural equipment have made such heavy machinery affordable for farmers, thus increasing sales volumes. However, despite large-scale adoption of agricultural machinery across the country, most of the agricultural practices involve traditional tools like sickle, wooden plough, etc., owing to small per-farmer land-holdings. Moreover, aftersales service of firm equipment is poor in the country, which in turn is deterring the adoption of these equipment in India.
Research on Global Markets tracks the performance of some of the major players operating in the agricultural machinery market in India including Escorts Limited, Force Motors Limited, Greaves Cotton Limited, Mahindra & Mahindra Limited, Shivagrico Implements Limited, VST Tillers Tractors Limited, CNH Industrial (India) Private Limited, International Tractors Limited, John Deere India Private Limited, TAFE Motors and Tractors Limited , among others
Key highlights of this report:
- Agricultural machinery market - definition and structure
- Agricultural machinery market - value chain analysis
- Agricultural machinery market size and growth forecast – value-wise (2018-2023e)
- Agricultural machinery market in India segmentation
- Comprehensive analysis of the government initiatives in this market
- Key growth drivers of the market
- Key deterrents to the growth of the market
- Comprehensive analysis of the competitive landscape
This report has been formulated and designed with the purpose of giving businesses a concise understanding of the demand for agricultural machinery in India to determine the viability of the market, develop strategies based on the drivers, and to help brands identify competition and respond accordingly.