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Farming equipment market to be worth $173.5 billion in 2016

Press Release   •   Nov 05, 2013 10:00 GMT

Global demand within the farming equipment market has been forecast to increase 6.7% per year through 2016 to $173.5 billion.

Growth in the global market for farming equipment is dependent on varied factors including economic scenario, weather and demand. Population growth is expected to fuel demand for agriculture produce, which in turn would lead to increase in demand for farm equipment.

Furthermore, increased utilization of agricultural products in petroleum and pharmaceutical industry is also contributing to increased demand for farming machinery.

Agricultural or farm equipment comprise a wide range of machines and tools which assist the various farming processes required to enhance the output as well as the quality of crops.

The basic technology of farming equipment has changed little in the last century. Though modern harvesters and planters may do a better job or be slightly tweaked from their predecessors, the combine of today still cuts, threshes, and separates grain in essentially the same way it has always been done.

However, technology is changing the way that humans operate the machines, as computer monitoring systems, GPS locators, and self-steer programs allow the most advanced tractors and implements to be more precise and less wasteful in the use of fuel, seed, or fertilizer.

According to a recent market report, 'Global Farm Equipment Market Report: 2013 Edition,' Europe and North America are at the reins of the global farming equipment industry.

However, demand in the Asia/Pacific region was more than twice that of any other region in 2011. China and India will be the primary nations fueling future market advances in this region, although other smaller markets, including Thailand and Indonesia, will also expand rapidly through 2016.

The Central and South America region will post strong sales gains through 2016 as well, powered by growth in Brazil and other countries with large, increasingly mechanized agricultural sectors, including Argentina.

The farming equipment market is fiercely competitive with three key players, John Deere, AGCO Corporation, and CNH Global NV, accounting for the majority share of the market.

These firms chiefly compete on the basis of product features, quality, and pricing; scale of distribution; and technological innovation.

For more information on the farming equipment market, see the latest research: Farming Equipment Market

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