According to the 111-page report researched by Market Future Watch, the largest driver for the previous four years of agricultural machine manufacturing is the increased demand for food due to increasing global populations. The rising mechanization of the agricultural activities is also leading to increased production of crops, thereby leading to the increase in need of agricultural equipment in the region.
HARVESTING EQUIPMENT will DOMINATE
When segmented by product type and by function, harvesters dominated both categories. As
OEMs are GEARING UP
According to another a Research and Markets report released on December 7, 2018, there is another factor for the future growth of Agriculture Equipment Manufacturing; improvement of commodity prices and the recovery from oversupply during 2013-2017.
Market insider reports, “The OEMs are gearing up for the upswing after a prolonged period of operating at sub-optimal pace with a focus on ramping up production rates and fine-tuning supply chains to efficiently meet increasing demand levels and avoid logistical gaps. The OEMs are also renewing their product portfolios in alignment with the market upturn through new product introductions incorporating leading technologies and features focused on enhanced performance as well as productivity while optimizing the total cost of ownership.”
STILL a FEW CONCERNS
Cost of materials has been increasing over the last few years. As material cost increases manufacturers who have a history and good relationships with vendors will have an advantage of providing competitive pricing.