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Key Trends in the U.S. Agriculture Equipment Market

Posted by IndustrySelect on Wednesday, June 17, 2020

Workers in a John Deere factory floor in Waterloo, IA

3 MIN. READ

Understanding the current state of the agriculture equipment industry, particularly in the United States, can be challenging. That's especially true in this period of trade turmoil and in the wake of coronavirus.

Here, we provide an overview of the agriculture equipment industry so you can navigate the market with confidence.

Global Agriculture Equipment Industry Overview

In 2018, the global agriculture equipment market was valued at $139 billion, and is expected to exceed $200 billion by 2024. That represents a six-year increase of 8.9%.

That growth can be largely attributed to the rapid progression of equipment and technology in agriculture equipment manufacturing.

For example, there have been large advancements in artificial intelligence (AI)-assisted harvesting tools that streamline the process by reducing the manpower needed.

It allows fields to be harvested more efficiently than with traditional, non-robotic harvesting tools.

For farmers, those advancements are considered an opportunity too good to pass up. They allow farmers to complete their work more efficiently while saving on expenses through reduced manpower in the fields.

In addition, farmers worldwide are experiencing increased demand because of an ever-larger global population, which the United Nations predicts will reach 8.6 billion by 2030.

In the coming years, manufacturers incorporating robotics and other advanced technology into their products are expected to come out on top. Cutting-edge tractors and harvesters are likely to be particularly popular. Tractors accounted for 25% of total agricultural equipment sales in 2018, and harvesters are expected to account for 21% of agricultural equipment sales by 2025.

COVID-19, of course, has radically changed the outlook for all U.S. industries, including farm equipment. However, searches for farm equipment have surged on the industrial marketplace IndustryNet, suggesting more industrial companies are looking to source agriculture equipment closer to home. COVID-related federal USDA stimulus packages have also helped reinvigorate the U.S. agriculture industry and in turn, those manufacturers that supply them.

Overveiw of the U.S. Farm Equipment Industry

The U.S. farm equipment industry expects significant growth in the coming years for many of the same reasons as the global industry. Because of increased food awareness across the U.S. as a whole, more local farmers are expanding their operations, and that means more investment in agricultural equipment.

Similarly, large agriculture organizations are likely to invest in cutting-edge equipment to make sure they remain competitive in the national and international markets. And, advanced agricultural equipment can also make farming safer, a significant factor in an industry just after a year of rising fatality rates.

According to data collected by IndustrySelect, 5% of U.S. farm equipment fabricators reported an employment increase in 2018 and 2% reported sales growth.

Unfortunately, U.S.-imposed tariffs on China, Mexico and Canada have had detrimental effects on the U.S. agriculture industry. For example, many Midwest farms that relied on China to purchase their soybeans are struggling since China began importing soy from Brazil in response to the tariffs.

The negative effects of the tariffs likely will only worsen, and the government assistance pledged to farmers is only a temporary and artificial fix to keep them afloat. U.S. farmers will continue suffering until the appropriate trade negotiations are reached and the tariffs are lifted.

Selling to Farm Equipment Manufacturers

If you're a sales leader or marketer looking to sell to the farm equipment industry, we can help.

IndustrySelect provides clients with touch-point data for potential leads, including contact information and other actionable data.

To learn more about how you can use IndustrySelect to generate leads for your company, visit our website.

Are you looking for agriculture equipment? Search, source and quote for free among 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services on IndustryNet, the industrial marketplace.

 

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