The combine harvesters market is projected to register a CAGR of 3. 7% during the forecast period. Increasing farm mechanization is one of the most important reasons behind the growth of the combine harvester market.
New York, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Combine Harvesters Market - Growth, Trends, and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05993754/?utm_source=GNW
Farm mechanization saves time and labor, cuts down crop production costs, in the long run, reduces post-harvest losses, and boosts both crop output and farm income. Steady growth was observed in manually operated tools, animal operated implements and equipment operated by mechanical and electrical power sources.
Moreover, the favorable credit policies toward machinery purchase adopted by the government and other institutions, coupled with the ability to increase farm productivity are driving the growth of the market studied. Asian countries like India, China, and Japan are urging farmers to adopt the latest technologies through which they can enhance productivity. China and Japan are moving toward autonomous farms in the upcoming years. Hence, the major players in the country have invested in developing advanced combine harvesters.
Key Market Trends
Labor Shortage and Rising Cost of Farm Labor
The factors that are expected to augment the demand for combine harvesters are growth in the urban population and industrialization, which led to a shortage in farm labor, thus pushing the farmers to employ machinery for harvesting. Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor since they are a more cost-effective, easily available, and more efficient means of agricultural operation.
According to USDA, the daily wages of non-supervisory farm workers increased from USD 12.0 to USD 13.2, an increase of 10.4% in the period of four years (2014 – 2018). However, the daily wages of non-supervisory labor in other industries has just increased by 3.5% during the same period. This increase in wages of the farm labors will lead to more demand for various farm technologies, including combine harvesters, in the country. In order to improve the efficiency of land use and crop yield, there is a rise in farm mechanization which has directly led to the growth of the combine harvester market. The demand for combine harvesters is primarily from farmers with large landholdings.
North America Dominates the Market
The scarcity of labor and the rising labor costs in North America coupled with the need to replace old machinery with new one is fueling the region to adopt the new technology and enhance the productivity and efficiency of the crops grown in North America. Also, the erratic climate condition in this region is driving the market for combine harvesters owing to their high operational efficiency.
The United States holds the major share of the combine harvesters market in North America. According to the Association of Equipment Manufacturers, the sale of self-propelled combine harvesters in the United States was 6,003 units in 2016, which has increased by 10.1% and reached 6,611 units in 2019. However, the sale of self-propelled combines has decreased by 2.3% when compared to the sale in the previous year (2018).
In the global combine harvesters market, the companies are not only competing on the basis of product quality and promotion but are also focused on strategic initiatives, in order to account for prominent shares. The companies are heavily investing in the development of new products and are collaborating with and acquiring other companies. This is expected to increase its market shares while strengthening its R&D activities.
The key players in the market are CLAAS, John Deere, Yanmar Co. Ltd, and Kubota Agricultural Machinery. These companies are partnering with other companies and are expanding their production capacity to cater to the growing demand for innovative combine harvester products. For instance, in 2018, Kubota Agricultural Machinery has established a new tractor and combined harvester manufacturing plant in China, in order to expand its agricultural machinery business.
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