"Global Market Insights: long-term market expansion is inevitable

A sustained expansion of the global market for agricultural machinery is inevitable, despite short-term sales fluctuations, geopolitical tensions and economic uncertainty. The latest market analysis published by „Global Market Insights“ highlights that the sector continues to grow due to structural changes in agriculture and rapid technological advances.

 Analysts estimate that the global agricultural machinery market will be worth more than €186 billion by 2025. The market value of agricultural machinery is expected to reach USD 186 billion by 2020 and around USD 350 billion by 2035. This would correspond to an average annual growth rate of 6.5%, which is considered to be extremely high.

Similar trends are reported by other market research centres, which predict that the market for agricultural machinery will grow by more than 6% per year over the next decade. Tractors, combine harvesters and combines will account for the largest share of the market, especially in regions where intensive farm modernisation and production efficiency improvements are taking place.

The integration of precision farming technologies, automation and robotics into agricultural machinery is seen as a key driver for long-term growth. Farmers are increasingly turning to solutions that optimise the use of fertilisers, seeds and crop protection products, reduce fuel consumption and compensate for labour shortages.

It is estimated that smart control systems, automated driving technologies and advanced sensors can reduce farm operating costs by 10–20% and increase yields by up to 15%, making investment in modern machinery a strategic priority in the long term.

However, market development remains uneven in different regions of the world. For example, the Asia-Pacific region is currently demonstrating the fastest growth, driven by rising food demand, population growth and active government support programmes focused on farm modernisation.

Demand for advanced agricultural machinery is growing at a double-digit rate in China, India and Southeast Asia, which will eventually make the region the largest share of the global market for agricultural machinery.

In Europe, the market for agricultural machinery is also expanding, albeit at a more moderate pace. Stringent environmental and technical requirements and farmers' more cautious investment in an uncertain economic environment are preventing the market from expanding faster.

All in all, the market for agricultural machinery will remain one of the most promising areas of agribusiness over the next decade. Technological advances, automation and precision farming solutions will become key competitive factors and the ability to adapt to the changing needs of farmers will determine the success of manufacturers and suppliers in the global marketplace.