World Farm Equipment Industry Overview

• Publication date: June 2010

Like all other industrial segments , the global economic slowdown also influenced the farm equipment and machinery industry ; however, the industry is set to regain its pace following the recovering economy and changing industry trends in the years ahead. Europe and the US are two of the major industry s for farm equipment representing a considerable share of the global industry . However, the biggest contributor to the market revenues is...

Like all other industrial segments , the global economic slowdown also influenced the farm equipment and machinery industry ; however, the industry is set to regain its pace following the recovering economy and changing industry trends in the years ahead.

Europe and the US are two of the major industry s for farm equipment representing a considerable share of the global industry . However, the biggest contributor to the market revenues is the BRIC industry which continued to record high profits even during the worldwide economic recession. Brazil, India, and China, three of the major BRIC countries, are projected to be the key regions to drive the demand for farm equipment and machinery. Further, the market will also reap profits on account of increasing mechanization of the agricultural segments of the major industry s like China and India. Factors like the increasing global population, world Gross Domestic Product , per capita agricultural land, worldwide agricultural production, the US and European net farm income are also cited to be responsible for driving the market growth in the years to come.

The present report, titled “,” offers a comprehensive analysis of the global agricultural equipment and machinery industry . It analyzes the global industry in the context of growth patterns of the market , future growth, and key opportunities that are yet to be leveraged. In addition to covering the American and European agricultural equipment and machinery industry , this report also gives exclusive coverage of the farm equipment industry s of three key BRIC countries – India, China and Brazil. For all these regions/countries, key trends have been identified, major factors that are expected to drive growth has been analyzed and key challenges likely to be faced by each geographical region has been assessed. Further, the study analyzes the performance and functioning of the leading players in the farm equipment market . Projection for the global farm equipment industry has been done for the period from 2010 to 2014 .

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the farm equipment market . We employed various significant variables that have an impact on this market and created regression models with SPSS Base to determine the future direction of the market . Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

Global Agricultural Machinery Industry

I. Farm Equipments: An Introduction

I. I. Farm Equipments: Supply Chain Analysis
I. II. Kinds of farm Equipments
I. II. 1 Farm Tractors
I. II. 2 Primary Tillage Machine
I. II. III. Secondary Tillage Machine
I. II. IV. Sowing and Planting Machine
I. II. 5 Harvesting Machines
I. II. VI. Crop Processing Machine

II. Global Farm Equipment and Machinery Industry : An Overview

II. I. Market Value and Growth Rate
II. 2 Product Segmentation
II. 3 Geographical Segmentation

III. North American Farm Equipment Industry

III. 1 Market Value and Growth Rate
III. 2 Industry Trends
III. II. I. Reduction in Number but Growth in Size of Farms
III. II. II. Maximum Exports to Industrialized Economies
III. 3 Market Drivers
III. III. I. Development of Biofuels
III. III. II. Adequate Food to Sustain the World Population
III. III. III. Government subsidies
III. 4 Challenges
III. IV. I. Economic Conditions
III. IV. II. Weather Conditions

IV. European Farm Equipment Industry

IV. 1 Market Value and Growth Rate
IV. 2 Industry Trends
IV. II. I. Large high-yield commodity farming:
IV. II. II. Specialized Smaller scale farming:
IV. II. III. Precision Farming: GPS-Based Control Systems
IV. II. IV. Overall decrease in the Tractor Industry
IV. II. V. High Revenues Potential in Eastern Europe Industry
IV. 3 Market Drivers
IV. III. I. European Agricultural Policy
IV. III. II. Agricultural Incomes
IV. III. III. Growing Non Food Demand for Bioenergy
IV. III. 4 Ban of certain pesticides by 2011
IV. 4 Challenges
IV. IV. I. Decreasing EU budget for agricultural policy
IV. IV. II. Greater Machinery Output
IV. IV. 3: Compliance with Exhaust Emission Directives


V. Chinese Farm Equipment Industry

V. I. Market Value and Growth Rate
V. II. Industry Trends
V. II. I. Rapid Development
V. II. II. New Integrated Agricultural Machinery Structure
V. II. III. Industrialized Agriculture
V. 3 Market Drivers
V. III. I. New Favorable Government Policies
V. III. II. Rapidly Increasing Exports in International Industry
V. III. III. Market Restructuring and Impact of Higher Wages
V. IV. Challenges
V. IV. I. Reuse of Agricultural Machinery:
V. IV. II. The Main Products are Small Size and Moderate to Low Quality

VI. Brazil Farm Equipment Industry

VI. I. Market Value and Growth Rate
VI. II. Industry Trends
VI. II. I. International platform for exports of Farm Equipments
VI. II. II. Huge Demand for Tractors
VI. III. Growth drivers
VI. III. I. Government Support to Agriculture
VI. III. II. High Conversion of Pasture Land into Crop Land
VI. IV. Challenges
VI. IV. I. High Prices of Equipments in Local Industry

VII. Indian Farm Equipment Industry

VII. I. Market Value and Growth Rate
VII. 2 Industry Trends
VII. II. 1 Significant Tractor Industry
VII. II. II. Varied Pace of Farm Equipment Industry Growth across States
VII. 3 Market Drivers
VII. III. I. Improved Availability of Loans and Subsidies
VII. III. II. Focus on Productivity to maximize ROI from agriculture
VII. III. III. Increased Competitive Landscape due to WTO Norms
VII. 4 Challenges
VII. IV. I. Lack of Awareness in Farmers
VII. IV. II. Inadequate Infrastructure and Services in Rural Areas
VII. IV. III. Increasing fragmentation of land

VIII. Global Farm Equipment Industry : Key Drivers

VIII. I. Growth in Net Farm Income
VIII. II. Rising Population
VIII. 3 Shifts towards Richer and Vegetarian Diets
VIII. 4 Limited Availability of Cultivation Land

9. Global Farm Equipment Industry : Major Challenges

9.1 Government Actions and Change in Government Policies
9.2 Weather, Climate and Natural Disasters
9.3 Availability of Credits to Farmers

10. Competitive Environment

1I. Industry Player

1I. I. John Deere
1I. I. 1 Coporate Description
1I. I. 2 Revenue and Income Analysis
1I. I. III. Corporate Strategy
1I. II. CNH Global
1I. II. I. Coporate Description
1I. II. II. Revenue and Income Analysis
1I. II. III. Business Strategy
1I. III. AGCO
1I. III. I. Coporate Description
1I. III. II. Revenue and Income Analysis
1I. III. III. Business Strategy:

1II. Industry Outlook

1II. 1 Industry Projection
1II. 2 Projection Methodology
1II. II. 1 Dependent and Independent Variables
1II. II. 2 Correlation Analysis
1II. II. 3 Regression Analysis

List of Figures and Charts

Global Agricultural Equipment Revenues , from 2000 to 2010
World Demand of Major Agricultural Equipment Products (% Breakup) 2009
Market Size of Farm Equipments-Geographical Breakup in 2009
US Farm equipment exports in US USD Bln to Various Countries in 2007
Farm Equipments with Percentage increase in sales in US, 2009
Farm Equipments with Percentage increase in sales in US, 2009
Percentage Change in sales of Farm Equipments in Canada in 2009
Trend of Farm Equipment Revenues Volume in Europe, from 2004 to 2009
Production of Farm Equipments in Europe, from 2004 to 2009
Farm Equipment Production in Europe (Country wise Breakup), 2008
Farm Equipment Revenues in Europe (Country wise Breakup), 2008
European Tractor Industry (Country wise sales breakup), 2008
Trend of Registrations of Tractors in Europe from Jan-Sep 2009
Equipment Revenues in the newer EU Member States in Central & Eastern Europe
Percentage change in real agricultural income per worker in Europe in 2009
Expenditures structure of European Union (1988-2013)
Domestic sales of farm Equipments in Brazil, 1983-2008
Trend of Exports of Brazilian Farm Equipments in last 25 Years
Continent wise Breakup of Exports of Brazilian Farm Equipments, 2009
Sales Trend of Tractors in Brazil, from 2000 to 2009
Growth Trend of Indian Agricultural Market
Market Share of Various Farm Equipments v/s Tractor in India
Net Farm Income in US, from 2000 to 2010
Net Farm Income in Euros O27, from 2000 to 2009
World Population Prospects, 2000-2050
Rising Gross Domestic Product in world, 2006-2050
Global Trend of Per Capita Agricultural Land, 1965-2010
Global Trend of Urbanization, 1965-2010
Percentage Change in Wheat Production during El Nino Year
Competitive Landscape of Global Farm Equipment Industry Players in 2009(Based on Revenues )
John Deere Revenue Growth: FY06-FY09
John Deere Income Growth: FY06-FY09
CNH Global Revenue Growth: FY06-FY09
CNH Global Income Growth, FY06-FY10
AGCO Revenue Growth, FY06-FY10
AGCO Income Growth, FY06-FY10
Global Farm Equipment Industry Projection : 2009A-2014F

List of Tables

World’s Region-wise Agricultural Equipment Growth Rate, 2000-10
United States Revenues of Tractors (by Type) 2008 & 2009
State wise Breakup of Revenues of Tractors in India, 2009
Product Portfolio of Farm Equipment Industry Players
Financial Status of Major Players in Farm Equipment Industry , 2009
Dependent & Independent Variables (2000– 2009)
Correlation Matrix
Model Summary – Coefficient of Determination