The planting machinery market has been forecast to reach a value of $11.1 billion by 2018, driven by mechanisation of farming practices and subsidy programs legislated by governments worldwide.
Planting machinery is primarily utilised for agricultural activities such as the sowing of seeds, planting of seedlings and application of fertilizers.
Years of technological advancements have transformed the engineering design and delivery system of planting machinery. Currently, a wide variety of sophisticated planting machinery is available in the market suitable for use across a broad range of planting conditions, terrains and crop type.
Farming activity during the 2007-2009 recession was impacted, although only moderately. The tough financial conditions resulted in an increase in farmer carryover debt and delinquency rates.
Capital expenditure on farm machinery such as planting machinery was negatively impacted. In the year 2010, farming activity recovered in sync with the rise in global commodity prices. Favourable government policies also aided the recovery process.
Increased commodity prices led to higher farm incomes, encouraging farmers to invest in farm equipment and machines
Rising farm consolidation in developed countries is expected to generate demand for larger machinery. Urbanisation is a key factor responsible for consolidation of farms into larger farming plots. With shortages in farm labour supply, bigger equipment assumes mission critical importance in effectively managing large scale farm activities.
Asia-Pacific represents the leading market worldwide, thanks to growth in China and India. Low levels of agricultural mechanisation and use of traditional inefficient farm equipment in these countries offer massive untapped opportunities for growth.
In developed markets such as North America and Europe, demand is forecast to stem primarily from replacements of old machinery. In addition to replacement demand, technological advances aimed at improving equipment efficiency will also spur growth.
The long-term outlook for the planting machinery market is positively guided by population growth and rising emphasis on food security and self- sufficiency, especially in developing countries.
For more information on the planting machinery market, see the latest research: Planting Machinery Market
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