Combine Harvester Market Size and Share Analysis 2024-2031
The global combine harvester market is poised for significant growth in the coming years, driven by favorable government support, labor shortages, and the increasing need for advanced machinery to improve farm output. According to a preliminary study by Fairfield Market Research, the market displayed stable growth in 2022, valued at approximately US$50 billion, and is expected to continue its upward trajectory through 2030.
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Key Report Findings
1. Government Support to Drive Market Growth: Favorable government policies and incentives are expected to bolster the growth of the combine harvester market.
2. Labor Shortages Create Opportunities: The consistent shortage of labor and the need for advanced machinery to enhance farm productivity are creating ample opportunities for the combine harvester industry.
3. North America's Market Dominance: North America accounts for a significant share of the combine harvester market.
4. Opportunities in Asia: The combine harvester industry is expected to witness significant opportunities across Asian countries in the forthcoming years.
Market Analysis in Brief
In 2022, the combine harvester market displayed stable growth, with industry figures indicating a value of around US$50 billion. Fairfield Market Research's preliminary study suggests that the market will continue to grow at a stable pace through 2030. John Deere, with over 180 years of history, remains the largest combine harvester company in the world. The Asia Pacific region is expected to strengthen its top regional standing in the coming years.
Growth Drivers
Consistent Shortage of Labor:
Industrialization and urbanization have transformed most businesses, including agriculture, which remains labor-intensive. Rapid urbanization has led to a decline in adequate labor, pushing farmers and agriculture business owners to opt for advanced machinery. This has fueled demand for combine harvesters, which are essential for harvesting and cleaning grain and non-grain crops.
Growing Agricultural Mechanization:
Manufacturers are developing more affordable agricultural machinery for small and mediumscale farmers. Increased awareness and knowledge of novel technology have positively transformed the agriculture sector, with farmers opting for agricultural mechanization. The Indian Council of Food and Agriculture predicts a 25% reduction in agriculture workers by 2050, further driving demand for machinery like combine harvesters. Mechanization reduces labor costs, saves time, lowers crop production costs, and enhances crop outputs and farm incomes, bolstering market growth.
Government Support:
Government authorities worldwide encourage adopting modern technology in agriculture to improve farm outputs. Incentives and subsidies have made it more economical for farm owners to purchase new equipment like combine harvesters. For instance, the Indian government's Department of Agriculture, Cooperation & Farmers Welfare offers a subsidy of 40% of the project cost, limited to 24 lakhs, to rural entrepreneurs. Such incentives are expected to benefit the combine harvester market.
Growth Challenges
High Costs and Seasonal Demand:
Combine harvesters are complex and require significant investment from manufacturers and purchasers. The high price point can be a significant challenge for small and mid-sized farmers. Additionally, the demand for these machines is seasonal, making it difficult for manufacturers to maintain consistent production year-round, potentially hindering market growth.
Growth Opportunities Across Regions
North America Likely to Cement Dominance:
Labor scarcity in developed nations, coupled with the need to replace old agricultural machinery, positively influences the North American combine harvester market. The United States, in particular, accounts for a considerable share of the market, driven by a growing inclination towards agricultural mechanization and the availability of modern equipment. According to the Association of Equipment Manufacturers, sales of self-propelled combine harvesters in the US increased by 15.8% in 2022 compared to 2021.
Asia Pacific to Prevail as a Key Revenue Pocket:
The Asia Pacific region is expected to offer significant opportunities for the combine harvester market, driven by a gradual increase in the use of advanced agricultural equipment
and favorable government support. Emerging economies like China and India are witnessing a rise in agricultural activities, paving the way for market growth.
Competitive Landscape
Major players in the combine harvester market include CLAAS, Kubota Agricultural Machinery, John Deere, Yanmar Co. Ltd., Zhengzhou Amisy Machinery Co. Ltd., Iseki & Co. Ltd., Kuhn SA, New Holland, AGCO Corporation, Foton Lovol International Heavy Industry Co. Ltd., and Buhler Versatile Incorporated. To gain a competitive edge, these industry players are focusing on new product launches, partnerships, collaborations, acquisitions, and alliances.
The global combine harvester market is set for steady growth, driven by technological advancements, government support, and the increasing need for mechanization in agriculture. Despite challenges such as high costs and seasonal demand, the market is expected to witness significant opportunities, particularly in North America and Asia Pacific.