Global powered agriculture equipment market – analysis & forecast from 2016 to 2022

GLOBAL POWERED AGRICULTURE EQUIPMENT MARKET

By Equipment Type (Tractor, Combine Harvester, Self-propelled

Sprayer, Self-propelled Forage Harvester, & Self-propelled

Sugarcane Harvester)

Country Analysis & Forecast from 2016 to 2022

BIS Research Sample Pages 2

Global Powered Agriculture Equipment Market


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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY ....................................................................................... 19

2 SCOPE & RESEARCH METHODOLOGY ............................................................ 22

2.1 REPORT SCOPE ......................................................................... 22

2.1.1 MARKET DEFINITION ...................................................... 22

2.1.2 REPORT COVERAGE ......................................................... 23

2.1.2.1 Market Classification .................................................. 23

2.1.2.1.1 Market Segmentation by Equipment.................... 23

2.1.2.1.2 Market Segmentation by Geography ................... 24

2.1.3 ASSUMPTIONS & LIMITATIONS ...................................... 25

2.1.4 STAKEHOLDERS .............................................................. 26

2.2 RESEARCH PARAMETERS .......................................................... 26

2.3 RESEARCH DESIGN ................................................................... 28

2.3.1 SECONDARY RESEARCH .................................................. 29

2.3.2 PRIMARY RESEARCH ....................................................... 30

2.3.3 DATA ANALYZING & MARKET ESTIMATION ..................... 31

2.3.3.1 Bottom-Up Approach .................................................. 31

3 MARKET DYNAMICS ............................................................................................ 32

3.1 INTRODUCTION ........................................................................ 32

3.2 MARKET DRIVERS ..................................................................... 33

3.2.1 DECREASING ARABLE LAND AREA .................................. 33

3.2.2 RISING GLOBAL POPULATION ........................................ 34

3.2.3 EASY CREDIT AND SUBSIDIES AVAILABILITY IN

ASIAN MARKETS ............................................................. 36

3.2.4 RISING DEMAND FOR ADVANCED AGRICULTURAL

MACHINERY .................................................................... 37

3.3 MARKET RESTRAINTS ............................................................... 38

3.3.1 FLUCTUATING WEATHER CONDITIONS & FARMING

CALENDARS .................................................................... 38

3.3.2 DYNAMIC ECONOMIC ENVIRONMENT ............................. 40




3.3.3 ALTERING GOVERNMENT POLICIES ................................ 41

3.3.4 HIGH COST OF MACHINERY ............................................ 42

3.4 MARKET OPPORTUNITIES ......................................................... 43

3.4.1 IMPROVED CREDIT AVAILABILITY .................................. 43

3.4.2 GOVERNMENT SUBSIDIES ............................................... 43

4 INDUSTRY TRENDS ............................................................................................. 44

4.1 VALUE CHAIN ANALYSIS ........................................................... 44

4.2 CONSORTIUMS IN AGRICULTURE EQUIPMENT MARKET ............ 45

5 COMPETITIVE LANDSCAPE ............................................................................... 48

5.1 KEY STRATEGIES & DEVELOPMENTS IN THE GLOBAL

AGRICULUTURE EQUIPMENT MARKET ....................................... 48

5.1.1 INTRODUCTION .............................................................. 48

5.1.2 MERGERS AND ACQUISITIONS ....................................... 51

5.1.3 PARTNERSHIPS, COLLABORATIONS & JOINT

VENTURES ...................................................................... 53

5.1.4 PRODUCT LAUNCHES ...................................................... 54

5.1.5 BUSINESS EXPANSION ................................................... 55

5.1.6 AWARDS & RECOGNITIONS ............................................ 56

5.2 PORTER’S FIVE FORCES ANALYSIS ........................................... 59

5.2.1 INTRODUCTION .............................................................. 59

5.2.2 THREAT OF NEW ENTRANTS ............................................ 61

5.2.2.1 Capital Requirements ................................................. 61

5.2.2.2 Product Differentiation ............................................... 61

5.2.2.3 Government Policies .................................................. 62

5.2.2.4 Economies of Scale .................................................... 62

5.2.2.5 Access to Distribution Channel..................................... 62

5.2.3 BARGAINING POWER OF BUYERS ................................... 62

5.2.3.1 Concentration of Buyers ............................................. 63


5.2.3.3 Buyer’s Information About Supplier’s Product ................ 63

5.2.3.4 Switching Cost .......................................................... 63

5.2.3.5 Presence of Substitutes .............................................. 64

5.2.4 BARGAINING POWER OF SUPPLIERS .............................. 64





5.2.4.2 Supplier Concentration ............................................... 64

5.2.4.3 Threat of forward integration ...................................... 65

5.2.4.4 Switching Cost .......................................................... 65

5.2.5 THREAT FROM SUBSTITUTES .......................................... 65

5.2.5.1 Switching Costs ......................................................... 65

5.2.5.2 Buyer’s Propensity towards Substitute .......................... 65

5.2.6 INTENSITY OF COMPETITIVE RIVALRY ........................... 66

5.2.6.1 Industry Concentration ............................................... 66

5.2.6.2 Intermittent Over Capacity ......................................... 66

5.2.6.3 Customer’s Loyalty Towards Brand ............................... 66

5.2.6.4 Switching Cost .......................................................... 67


5.2.6.6 Entry Barriers ........................................................... 67

6 AGRICULTURE EQUIPMENT MARKET, BY EQUIPMENTS ........................ 68

6.1 INTRODUCTION ........................................................................ 69

6.2 TRACTOR .................................................................................. 70

6.2.1 REGIONAL ANALYSIS OF TRACTORS MARKET ................. 71

6.2.1.1 The Americas ............................................................ 71

6.2.1.2 Europe ..................................................................... 79

6.2.1.3 Asia-Pacific ............................................................... 87

6.3 COMBINE/COMBINE HARVESTER ............................................ 102

6.4 SELF-PROPELLED SPRAYER ..................................................... 106

6.5 FORAGE HARVESTER ............................................................... 111

6.6 SUGAR CANE HARVESTER ....................................................... 114

7 GEOGRAPHICAL ANALYSIS ............................................................................ 117

7.1 INTRODUCTION ...................................................................... 118

7.2 THE AMERICAS ....................................................................... 119

7.2.1 MARKET STATISTICS .................................................... 120

7.2.2 NORTH AMERICA .......................................................... 122

7.2.2.1 THE U.S. ................................................................ 125

7.2.2.2 CANADA ................................................................. 127




7.2.3 SOUTH AMERICA ........................................................... 129

7.2.3.1 BRAZIL .................................................................. 131

7.2.3.2 Rest of South America .............................................. 134

7.3 EUROPE .................................................................................. 136


7.3.2 WESTERN EUROPE ........................................................ 139

7.3.2.1 GERMANY ............................................................... 141

7.3.2.2 THE U.K. ................................................................ 143

7.3.2.3 FRANCE ................................................................. 146

7.3.2.4 ITALY .................................................................... 148

7.3.2.5 Rest of Western Europe ............................................ 151

7.3.3 EASTERN & CENTRAL EUROPE ....................................... 152

7.3.3.1 RUSSIA .................................................................. 154

7.3.3.2 Turkey ................................................................... 155

7.4 ASIA-PACIFIC ......................................................................... 157


7.4.2 CHINA ........................................................................... 159

7.4.3 INDIA ........................................................................... 161

7.4.4 JAPAN ........................................................................... 164

7.4.5 AUSTRALIA/NEW ZEALAND .......................................... 166

7.4.6 SOUTH KOREA ............................................................... 168

7.4.7 REST OF ASIA-PACIFIC ................................................. 171

7.5 REST OF THE WORLD .............................................................. 173


7.5.2 MIDDLE EAST & NORTH AFRICA .................................... 175

7.5.3 SOUTH AFRICA ............................................................. 176

8 COMPANY PROFILES ........................................................................................ 178

8.1 INTRODUCTION ...................................................................... 178

8.2 AGCO CORPORATION .............................................................. 179

8.2.1 COMPANY OVERVIEW ................................................... 179

8.2.2 FINANCIALS ................................................................. 180

8.2.2.1 Overall Financials .................................................... 180

8.2.2.2 Geographic Revenue Mix .......................................... 181




8.2.2.3 Segment Revenue Mix .............................................. 182

8.2.2.4 Financial Summary .................................................. 182

8.2.3 KEY STRATEGIES & DEVELOPMENTS ............................. 183

8.2.4 SWOT ANALYSIS ........................................................... 185

8.3 ALAMO GROUP ........................................................................ 186


8.3.2 FINANCIALS ................................................................. 187


8.3.2.2 Revenue by Divisions (Segment & Geographical

Revenue Mix) .......................................................... 188



8.3.4 SWOT ANALYSIS ........................................................... 190

8.4 CLAAS GROUP ......................................................................... 191


8.4.2 FINANCIALS ................................................................. 192





8.4.4 SWOT ANALYSIS ........................................................... 196

8.5 CNH INDUSTRIAL NV .............................................................. 197


8.5.2 FINANCIALS ................................................................. 198






8.5.4 SWOT ANALYSIS ........................................................... 203

8.6 DEERE & COMPANY ................................................................. 204


8.6.2 FINANCIALS ................................................................. 205









8.6.4 SWOT ANALYSIS ........................................................... 210

8.7 ESCORTS GROUP ..................................................................... 211


8.7.2 FINANCIALS ................................................................. 212




8.7.4 SWOT ANALYSIS ........................................................... 214

8.8 ISEKI & COMPANY LIMITED .................................................... 215


8.8.2 FINANCIALS ................................................................. 216






8.8.4 SWOT ANALYSIS ........................................................... 220

8.9 KUBOTA CORPORATION .......................................................... 221


8.9.2 FINANCIALS ................................................................. 222






8.9.4 SWOT ANALYSIS ........................................................... 226

8.10 MAHINDRA & MAHINDRA (M&M) ............................................ 227


8.10.2 FINANCIALS ................................................................. 228









8.10.4 SWOT ANALYSIS ........................................................... 233

8.11 SAME DEUTZ-FAHR GROUP S.P.A. ........................................... 234


8.11.2 FINANCIALS ................................................................. 235






8.11.4 SWOT ANALYSIS ........................................................... 239




LIST OF TABLES

TABLE 1 INCREASE IN ARABLE LAND AREA 33

TABLE 2 PRESENT & ESTIMATED CHANGE IN POPULATION IN THE TEN MOST POPULOUS COUNTRIES 35

TABLE 3 SUBSIDIES SPECIFICALLY FOR THE PURCHASE OF AGRICULTURE

EQUIPMENT 36

TABLE 4 WORLD FARMING CALENDAR 39

TABLE 5 PRICES OF AGRICULTURE EQUIPMENTS 42

TABLE 6 THE U.S. : TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 71

TABLE 7 KEY COMPANIES OPERATING IN THE U.S. 73

TABLE 8 CANADA : TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 74

TABLE 9 BRAZIL : TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 75

TABLE 10 REST OF SOUTH AMERICA : TRACTORS SALES BY HP, 2015 – 2022

(UNITS) 78

TABLE 11 GERMANY: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 79

TABLE 12 THE U.K.: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 80

TABLE 13 FRANCE: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 81

TABLE 14 ITALY: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 82

TABLE 15 REST OF WESTERN EUROPE: TRACTORS SALES BY HP, 2015 – 2022

(UNITS) 83

TABLE 16 RUSSIA: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 84

TABLE 17 TURKEY: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 85

TABLE 18 INDIA: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 87

TABLE 19 FARM MECHANIZATION SCHEMES 89

TABLE 20 NUMBER OF TRACTORS PER HECTARE BY STATE 92

TABLE 21 KEY COMPANIES OPERATING IN INDIA 93

TABLE 22 CHINA: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 94

TABLE 23 SALE OF TRACTORS WITH PRODUCTION VOLUMES 95

TABLE 24 EXPORT VOLUME OF WHEELED TRACTOR 95

TABLE 25 SUBSIDIES FOR TRACTORS IN CHINA 97

TABLE 26 KEY COMPANIES OPERATING IN CHINA BY MARKET SHARE 98

TABLE 27 JAPAN: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 99

TABLE 28 AUSTRALIA & NEW ZEALAND: TRACTORS SALES BY HP, 2015 – 2022

(UNITS) 99




TABLE 29 KOREA: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 100

TABLE 30 REST OF APAC: TRACTORS SALES BY HP, 2015 – 2022 (UNITS) 101

TABLE 31 GLOBAL COMBINES MARKET SIZE, BY COUNTRY, 2014 – 2022 (UNITS) 103

TABLE 32 REGISTRATION OF COMBINE HARVESTERS IN EU 105

TABLE 33 GLOBAL SELF-PROPELLED SPRAYERS MARKET SIZE, BY COUNTRY, 2014 – 2022 (UNITS) 108

TABLE 34 ASP OF SPRAYERS 110

TABLE 35 GLOBAL SELF-PROPELLED FORAGE HARVESTERS MARKET SIZE, BY

COUNTRY, 2014 – 2022 (UNITS) 112

TABLE 36 GLOBAL SELF-PROPELLED SUGAR CANE HARVESTER MARKET SIZE, BY COUNTRY, 2014 – 2022 (UNITS) 115

TABLE 37 THE AMERICAS AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 120

TABLE 38 THE AMERICAS TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 121

TABLE 39 THE AMERICAS AGRICULTURE EQUIPMENT MARKET VOLUME, BY

REGION (UNITS), 2015-2022 122

TABLE 40 NORTH AMERICA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 124

TABLE 41 NORTH AMERICA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 125

TABLE 42 THE U.S. AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 126

TABLE 43 THE U.S. TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 127

TABLE 44 CANADA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 128

TABLE 45 CANADA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 129

TABLE 46 SOUTH AMERICA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 130

TABLE 47 SOUTH AMERICA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-

2022 131

TABLE 48 BRAZIL AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 132

TABLE 49 BRAZIL TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 133

TABLE 50 REST OF SOUTH AMERICA AGRICULTURE EQUIPMENT MARKET VOLUME,

BY TYPE (UNITS), 2015-2022 134

TABLE 51 REST OF SOUTH AMERICA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 135

TABLE 52 EUROPE AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 137




TABLE 53 EUROPE TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 138

TABLE 54 EUROPE AGRICULTURAL EQUIPMENT MARKET VOLUME, BY REGION

(UNITS), 2015-2022 138

TABLE 55 WESTERN EUROPE AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 139

TABLE 56 WESTERN EUROPE TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-

2022 140

TABLE 57 GERMANY TRACTOR MARKET STATISTICS 142

TABLE 58 GERMANY AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 142

TABLE 59 GERMANY TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 143

TABLE 60 TRACTOR MARKET STATISTICS 144

TABLE 61 THE U.K. AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 144

TABLE 62 THE U.K. TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 145


TABLE 64 FRANCE AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 147

TABLE 65 FRANCE TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 148


TABLE 67 ITALY AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS),

2015-2022 149

TABLE 68 ITALY TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 150

TABLE 69 REST OF WESTERN EUROPE AGRICULTURE EQUIPMENT MARKET

VOLUME, BY TYPE (UNITS), 2015-2022 151

TABLE 70 REST OF WESTERN EUROPE TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 152

TABLE 71 EASTERN/CENTRAL EUROPE AGRICULTURE EQUIPMENT MARKET


TABLE 72 EASTERN/CENTRAL EUROPE TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 154

TABLE 73 RUSSIA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 155

TABLE 74 TURKEY TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 156

TABLE 75 ASIA-PACIFIC AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 158

TABLE 76 CHINA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS),

2015-2022 160

TABLE 77 CHINA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 161

TABLE 78 PRICE & SUBSIDY OF AGRICULTURE EQUIPMENT 162




TABLE 79 INDIA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS),

2015-2022 163

TABLE 80 INDIA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 164

TABLE 81 JAPAN AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 165

TABLE 82 JAPAN TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-2022 166

TABLE 83 AUSTRALIA & NEWZEALAND AGRICULTURE EQUIPMENT MARKET


TABLE 84 AUSTRALIA & NEW ZEALAND TRACTOR MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 168

TABLE 85 SOUTH KOREA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 169

TABLE 86 SOUTH KOREA TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-

2022 170

TABLE 87 REST OF APAC AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 171

TABLE 88 REST OF APAC TRACTOR MARKET VOLUME, BY TYPE (UNITS), 2015-

2022 172

TABLE 89 REST OF THE WORLD (ROW) AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE (UNITS), 2015-2022 174

TABLE 90 MIDDLE EAST & NORTH AFRICA AGRICULTURE EQUIPMENT MARKET


TABLE 91 SHARE OF AGRICULTURE TRACTOR PLAYERS IN SOUTH AFRICA (2014) 176

TABLE 92 SOUTH AFRICA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022 177




LIST OF FIGURES

FIGURE 1 GLOBAL AGRICULTURE EQUIPMENT MARKET, BY EQUIPMENT TYPE (UNITS) 19

FIGURE 2 TRACTORS AND COMBINES MARKET VOLUME, BY COUNTRY, 2015

(UNITS) 21

FIGURE 3 AGRICULTURE EQUIPMENT MARKET CLASSIFICATION 23

FIGURE 4 AGRICULTURE EQUIPMENT MARKET SEGMENTATION, BY EQUIPMENT TYPE 23

FIGURE 5 AGRICULTURE EQUIPMENT MARKET SEGMENTATION, BY GEOGRAPHY 24

FIGURE 6 AGRICULTURE EQUIPMENT MARKET – STAKEHOLDERS 26

FIGURE 7 RESEARCH PARAMETERS 27

FIGURE 8 REPORT DESIGN 28

FIGURE 9 PRIMARY INTERVIEWS BREAKDOWN, BY PLAYERS, DESIGNATION, AND REGION 30

FIGURE 10 DRO OF AGRICULTURAL EQUIPMENT MARKET AND THE INTENSITY OF

IMPACT 32

FIGURE 11 EFFECT OF ECONOMIC ENVIRONMENT ON THE AGRICULTURE EQUIPMENT DEMAND 41

FIGURE 12 VALUE CHAIN ANALYSIS OF AGRICULTURE EQUIPMENT MARKET 44

FIGURE 13 ORGANIC & INORGANIC STRATEGIES ADOPTED BY THE KEY PLAYERS 49

FIGURE 14 TOTAL NUMBER OF STRATEGIES & DEVELOPMENTS 51

FIGURE 15 KEY MERGERS & ACQUISITIONS (2013-15) 52

FIGURE 16 KEY PARTNERSHIPS & COLLABORATIONS (2013-15) 54

FIGURE 17 KEY PRODUCT LAUNCHES (2013-15) 55

FIGURE 18 KEY BUSINESS EXPANSION ACTIVITIES (2013-15) 56

FIGURE 19 KEY AWARDS & RECOGNITIONS (2013-15) 58

FIGURE 20 PORTER’S FIVE FORCES ANALYSIS FOR THE AGRICULTURE EQUIPMENT

INDUSTRY 60

FIGURE 21 TRACTORS VOLUME TO CROSS 2.3 MILLION UNITS BY 2022 69

FIGURE 22 INDIA & CHINA – LEADING TRACTORS MARKETS 70

FIGURE 23 DRIVERS OF TRACTOR MARKET IN THE U.S. 72

FIGURE 24 DRIVERS OF TRACTOR MARKET IN BRAZIL 76

FIGURE 25 CHALLENGES FACED BY TRACTOR MARKET IN BRAZIL 77

FIGURE 26 CHALLENGES IN TRACTOR MARKET IN TURKEY 86

FIGURE 27 DRIVERS OF TRACTOR MARKET IN INDIA 88




FIGURE 28 CHALLENGES FOR TRACTOR MARKET IN INDIA 90

FIGURE 29 SEGMENTATION OF TRACTORS IN INDIA BY HORSEPOWER & MARKET

SHARE 91

FIGURE 30 DRIVER OF THE TRACTOR MARKET IN CHINA 96

FIGURE 31 INDIA & BRAZIL – LEADING IN COMBINES MARKET 102

FIGURE 32 THE U.S. – THE LARGEST MARKET FOR SPRAYERS, 2015 107

FIGURE 33 FORAGE HARVESTERS MARKET SIZE, VOLUME (UNITS) 111

FIGURE 34 BRAZIL – LEADING COUNTRY SUGARCANE HARVESTER MARKET 114

FIGURE 35 GEOGRAPHIC LANDSCAPE 118

FIGURE 36 SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN THE AMERICAS 119

FIGURE 37 SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN NORTH AMERICA 123

FIGURE 38 SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN EUROPE 136

FIGURE 39 SNAPSHOT OF WESTERN EUROPE AGRICULTURE EQUIPMENT MARKET, BY COUNTRY 141

FIGURE 40 SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN ASIA-PACIFIC 157

FIGURE 41 SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN ROW 173

FIGURE 42 GEOGRAPHIC REVENUE MIX OF TOP 5 PLAYERS IN THE MARKET 178

FIGURE 43 OVERALL FINANCIALS, 2012-14 ($MILLION) 180

FIGURE 44 GEOGRAPHIC REVENUE MIX, 2012-14 ($MILLION) 181

FIGURE 45 SEGMENT REVENUE MIX, 2012-14 ($MILLION) 182


FIGURE 47 REVENUE BY DIVISIONS, 2012-14 ($MILLION) 188



FIGURE 50 OVERALL FINANCIALS, 2012-14 ($BILLION) 198

FIGURE 51 GEOGRAPHIC REVENUE MIX, 2013-14 ($BILLION) 199

FIGURE 52 SEGMENT REVENUE MIX, 2012-14 ($BILLION) 200

FIGURE 53 OVERALL FINANCIALS, 2012-14 ($BILLION) 205

FIGURE 54 GEOGRAPHIC REVENUE MIX, 2012-14 ($BILLION) 206

FIGURE 55 SEGMENT REVENUE MIX, 2012-14 ($BILLION) 207










1 EXECUTIVE SUMMARY

The need for agriculture equipments is gradually rising due to constraining factors such as

rising global population, growing labor shortage and rural wages. The increasing mechanization

in agriculture provides with the solution of the above issues and offers the scope of maximizing

production and productivity both. The rising farm income is the major factor driving the end

users to adopt more of the agriculture equipments. The agriculture equipment market has

been categorized into key equipments, namely: tractors, combine harvesters, sprayers, forage

harvesters, and sugarcane harvesters. In this report, the market share and size of these

agriculture equipments have been tracked.

FIGURE 1

GLOBAL AGRICULTURE EQUIPMENT MARKET, BY EQUIPMENT TYPE

(UNITS)

Tractors

Combines

Sprayers

Forage

Harvesters

Sugar cane

Harvesters

Volume, 2015 (Units) Volume, 2022 (Units) CAGR % (2016 – 2022)

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Volume, 2014 (Units)

XX

XX

XX

XX

XX

Source: Secondary Research, Expert Interviews, and BIS Research Analysis

The figure above details the market size and growth of global agriculture equipment market.

The sales of tractor market was XX units in 2012, which increased by XX% in 2013. The

market, however, declined by XX% in 2014 and further went down to XX% in 2015. However,

this sales volume is predicted to increase and reach XX units by 2022. The sales of combine




harvester was XX units in 2012, which increased by XX% in 2013. The market then declined

by XX% in 2014 and further XX% in 2015. However, this sales volume is predicted to increase

and reach XX units by 2022.

The sales of sprayers was XX units in 2012, which increased by XX% in 2013. Later the market

declined by XX% in 2014 and increased by XX% in 2015. However, this sales volume is

predicted to increase and reach XX units by 2022. The sales of forage harvester was XX units

in 2012, which decreased by XX% in 2013. Further the market declined by XX% and XX% in

2014 and 2015 respectively. However, this sales volume is predicted to increase and reach XX

units by 2022. The sales of sugarcane harvester was XX units in 2012, which increased by

XX% in 2013. Later the market declined by XX% in 2014 and further XX% in 2015. However,

this sales volume is predicted to increase and reach XX units by 2022.

Some of the key players in the industry are: AGCO Corporation, CNH Industrial, Deere & Co.,

Kubota Corporation, Same Deutz FAHR, and Mahindra & Mahindra among others. These

companies are further aiming for more product launches and mergers & acquisitions to expand

their market and stop new entrants from entering. The expected growth rate between 2016

and 2022 of the market would remain less than XX% because of factors such as: high cost of

equipments, fluctuating weather conditions, altering government policies, and dynamic

economic environment among others, thus, restricting the market growth.




FIGURE 2

TRACTORS AND COMBINES MARKET VOLUME, BY COUNTRY,

2015 (UNITS)

CanadaTractors: XX units

Combines: XX units

U.S.Tractors: XX units

Combines: XX units

Brazil Tractors: 52,985 units

Combines: 6,786 units

U.K.Tractors: XX units

Combines: XX units

Germany Tractors: XX units

Combines: XX units Russia Tractors: XX units

Combines: XX units

China Tractors: XX units

Combines: XX unitsIndia Tractors: XX units

Combines: XX units

Australia & New

Zealand Tractors: XX units

Combines: XX units


The above figure shows the tractors and combines market volumes in different countries in

2015. Maximum sales of tractors i.e. XX units in the year 2015 was from India, followed by

China. In India XX units of combine harvesters were sold in the same year. Similarly, China

sold a total of XX units of tractors and XX units of combines in 2015. The next country leading

is the U.S., contributing a significant share in the global agriculture equipment market. The

country sold XX units of tractors and XX units of combines in 2015.

APAC is leading the market by selling a total of XX units of agricultural equipments in 2015.

This is due to the reason that it includes countries such as India, China, and Japan, among

others which are the leading populous countries globally. This high rate of population has

boosted the demand of food & other agricultural products and consequently has led to the rise

in demand of agriculture equipments.




2 SCOPE & RESEARCH METHODOLOGY

2.1 REPORT SCOPE

The necessity of engaging in innovative strategies regarding agriculture production and

reducing the reliance on manual labor has boosted the demand of agriculture equipments

globally. The report constitutes of a thorough study of the market share and the market size of

the agriculture equipments including the analysis of tractors, combines harvesters, sprayers,

forage harvesters, and sugarcane harvesters. The agriculture equipments market by

geography has also been extensively analyzed in this report including the market trends across

the key geographic regions of the global market, along these lines- market size, drivers,

growth opportunities, and challenges. The industry analysis presents a detailed insight about

the participants in the agriculture equipment industry using the value chain analysis.

2.1.1 MARKET DEFINITION

The agriculture equipment market comprises of the various equipments which are used to

enhance agricultural productivity, production and cropping intensity. The market has been

analyzed for the key equipments, namely: tractors, self-propelled combine harvesters, self-

propelled sprayers, self-propelled forage harvesters, and self-propelled sugarcane harvesters.




2.1.2 REPORT COVERAGE

2.1.2.1 Market Classi f icat ion

FIGURE 3

AGRICULTURE EQUIPMENT MARKET CLASSIFICATION

BY EQUIPMENT BY GEOGRAPHY TRACTOR

COMBINE HARVESTERS

SELF-PROPELLED SPRAYERS

SELF-PROPELLED FORAGE

HARVESTERS

SELF-PROPELLED SUGAR CANE

HARVESTERS

AMERICA

EUROPE

ASIA-PACIFIC

REST OF THE WORLD

AGRICULTURE EQUIPMENT

MARKET

Source: BIS Research Analysis

2 . 1 . 2 . 1 . 1 M a r k e t S e g m e n t a t i o n b y E q u i p m e n t

FIGURE 4

AGRICULTURE EQUIPMENT MARKET SEGMENTATION, BY EQUIPMENT

TYPE

SELF-PROPELLED

SUGAR CANE

HARVESTERS

TRACTORS

•< 50 HP TRACTORS

•50 HP – 100 HP TRACTORS

•100 HP + TRACTORS

SELF-PROPELLED

SPRAYERS

SELF-PROPELLED

FORAGE HARVESTERS

COMBINES





The equipments chapter is divided into five key products in the market, which are: tractors,

combines harvesters, sprayers, forage harvesters, and sugarcane harvesters. Each product is

presented with the key players, restraints, and opportunities in addition to the proper market

size and share.

2 . 1 . 2 . 1 . 2 M a r k e t S e g m e n t a t i o n b y G e o g r a p h y

FIGURE 5

AGRICULTURE EQUIPMENT MARKET SEGMENTATION,

BY GEOGRAPHY

U.S.

Canada

Brazil

U.K. Germany

Russia

India

France

Turkey

Middle East

& North

Africa

South

Africa

Italy

China

Japan

Korea

Australia

New Zealand


The market for agriculture equipment by geography includes a detailed analysis of the market

size, growth opportunities, and trends across major geographies. The geographic analysis

includes quantification of major drivers in certain countries of the world, along with analysis of

equipments, key players and trends within these regions.




2.1.3 ASSUMPTIONS & LIMITATIONS

The market has been segmented on the basis of equipments and geography in the

agriculture equipment market

The market has been mapped on the lines of key equipments used in agriculture,

namely; tractors, self-propelled combine harvesters, self-propelled sprayers, self-

propelled forage harvesters, and self-propelled sugarcane harvesters

In Asia-Pacific region the tractors market for <XX HP or <XX HP tractors for Japan,

China, and Korea was not considered

The geographical areas have been segmented into The Americas, Europe, Asia-

Pacific, and Rest of the World (ROW). For better analysis, The Americas is further

divided into North America (including the U.S. and Canada) & South America

(including Brazil), Europe into Western Europe (Germany, UK, France, and Italy) and

Eastern & Central Europe (Russia and Turkey), Asia-Pacific (India, China, Japan,

Australia & New Zealand (ANZ), and Korea) and ROW (South Africa and Middle East

& North Africa)

Turkey is considered in the Eastern Europe region for the calculation purposes

The countries in the European Union were considered in the Western Europe region

for the market size calculation

At instances where market size for the self-propelled forage harvesters and sugar

cane harvesters was not available from the secondary or primary sources, there the

market size was estimated based on the value addition from the interviews

The base year considered for the calculation of market size was 2015. Instances

where the market size for the FY 2015 was not available from primary or secondary

sources, at such instances the values were estimated

The historical year analysis was done from the FY 2009 to FY 2014

The market size was estimated for the FY 2016 and projected from the year 2016 to

2022

The compound annual growth rate (CAGR) was calculated from 2016 to 2022




2.1.4 STAKEHOLDERS

FIGURE 6

AGRICULTURE EQUIPMENT MARKET – STAKEHOLDERS

EQUIPMENT MANUFACTURERS

EQUIPMENT SUPPLIERS

OEMSAGRICULTURE CONSULTANTS

GOVERNMENT ASSOCIATIONS


2.2 RESEARCH PARAMETERS

The research parameters constitutes of the factors that are highly impacting the concerned

market. The figure below gives the list of factors that were analyzed to estimate and forecast

the agriculture equipments market.




FIGURE 7

RESEARCH PARAMETERS

MARKET DRIVERS

BURNING ISSUES

MARKET RESTRAINTS MARKET OPPORTUNITIES

• AGREEMENTS, COLLABORATIONS, & PARTNERSHIPS: More than 30 deals in the last three years

• NEW PRODUCT LAUNCHES: More than 40 new product launches in the

last three years

INDUSTRY TRENDS

CURRENT MARKET

INFORMATION

AND DATA

SUPPLY AND DEMAND

SIDE FACTORS

PORTER’S ANALYSIS &

GEOGRAPHIC USAGE PATTERN

INFLUENCING

FACTORS (Market Trends and

Dynamics)

MARKET SIZE & SHARE

ANALYSIS

MARKET SIZE & FORECAST:

• By Equipment

• By Region

Arrive at the Market Size, Share,

and CAGR for

the Agriculture Equipments

Market

MARKET SIZE

INDUSTRY TRENDSEVOLUTIONPRODUCT/EQUIPMENT

ANALYSIS

MARKET SHARE

COMPANY DEVELOPMENTSSUPPLY &

VALUE CHAIN

PRICING ANALYSIS

COMPETITIVE LANDSCAPE

HIGH GROWTH

SEGMENTS

FORECAST

Source: Secondary Research, Primary Interviews, and BIS Research Analysis




2.3 RESEARCH DESIGN

The research methodology design adopted for this specific study includes a mix of data

collected from secondary and primary sources. We exhaustively use both primary sources (in-

house experts, industry leaders, market players, and independent consultants) and secondary

sources (a host of paid and unpaid databases) along with analytical tools to build our forecast

and predictive models.

FIGURE 8

REPORT DESIGN

Bottom-

Up

Top-

down

Scope Definition Research Design Sample Selection

REPORT

WRITINGData Validation Data Analysis Data Collection

Primary

Interviews

Observation

/Feature

Mapping

Primary

Data

Secondary

DataPrimary Interviews/

Secondary Research


This research study involves the usage of extensive secondary sources, directories, company

websites, and annual reports. It also makes use of databases such as Hoovers, Bloomberg,

Business-week, Factiva, and One-Source to collect useful and effective information for an

extensive, technical, market-oriented, and commercial study of the global market. The

following illustrative figure shows the market research methodology applied in preparing this

report on the agriculture equipment market.

The process of market engineering involved calculation of the market statistics, market size

estimations, market forecast, market crackdown, and data triangulation (the methodology for




these quantitative data processes is explained in the sections below). An extensive primary

research study was undertaken to gather information, and authenticate the critical numbers

arrived at segmentation types, industry trends, and key players of each type of equipment in

the market.

For this purpose, bottom-up approach was used extensively along with several data

triangulation methods to perform market estimation and market forecast for the overall

segment markets listed in this report. From all the numbers arrived at in the complete market

engineering process, extensive qualitative and quantitative analysis was also undertaken, in

order to list key information throughout the report.

2.3.1 SECONDARY RESEARCH

Several hundreds of secondary sources such as certified publications, articles from recognized

authors, white papers, annual reports of companies, investor relations presentations,

directories, and databases among others were used in the broad secondary research process

for this research study, to identify and collect qualitative and quantitative information of the

market.

Secondary research was conducted in order to obtain crucial information about the industry’s

value chain, market’s monetary chain, total pool of key players, and application areas. It also

assisted in market segmentation according to industry trends to the bottom-most level,

geographical markets and key developments from both market and technology oriented

perspectives. The key data points taken from secondary sources include:

Segmentation breakups, split-ups, and percentage shares

Data for market volume

Key industry trends of the top players of the market

Qualitative insights into various aspects of the market, key trends, emerging areas

Quantitative data for mathematical and statistical calculations




2.3.2 PRIMARY RESEARCH

The primary sources involve the industry experts from the agriculture equipment industry

including the suppliers, manufacturers, distributors, administrators, solution providers, and

technology developers of this industry’s value chain. All primary sources were interviewed to

gather and authenticate qualitative & quantitative information and determine the future

prospects.

FIGURE 9

PRIMARY INTERVIEWS BREAKDOWN, BY PLAYERS, DESIGNATION,

AND REGION

XX%

XX%

XX%

BY PLAYERS

Tier 1 Tier 2 Tier 3

XX%

XX%

XX%

XX%

BY REGION

North America Europe

Asia-Pacific ROW

XX%

XX%

XX%

BY DESIGNATION

C Level Director Others


In the extensive primary research process undertaken for this study, the primary sources –

industry experts such as CEOs, vice presidents, marketing directors, technology & innovation

directors, founders and related key executives from various key companies and organizations

in the agriculture equipment industry have been interviewed to obtain and verify both

qualitative and quantitative aspects of this research study.




Data Points taken from Primary Sources includes:

Validation and triangulation of all the numbers and graphs

Current and proposed production volumes of a particular equipments by market

players

Pricing estimation and validation of the pricing and forecast model

Validation of the numbers of the various markets for equipment and geography

Market shares of key industry players in the agriculture equipment ecosystem

Percentage split of individual markets for geographical analysis. Forecast for various

segments of overall markets and validation of the forecast data

Industry preferences, and market dynamics

2.3.3 DATA ANALYZING & MARKET ESTIMATION

2.3.3.1 Bottom-Up Approach

Total Market Size in Terms of VolumeGlobal

Market

Size

Summation of

equipments volume

globally

Summation of equipments

volume in a region

Summation of all types of equipments

(for e.g. summation of all types of

tractors)in a country

Volume of each Agriculture Equipments (for

e.g. tractors) shipped in particular country

PRIMARY SOURCES:

Demand and Supply Side Experts

SECONDARY SOURCES:

Annual Reports, Presentations,

Press Release, Journals, Paid Databases,

Company Websites, News Articles

and BIS Repository





3 MARKET DYNAMICS

3.1 INTRODUCTION

The market dynamics section of the report examines the diverse factors which governs the

process of manufacturing, distribution and usage of agricultural equipments globally. This

analysis will provide an in-depth understanding of the direction in which the market is headed

and the impacts of various factors on the same. . This section covers the major market

dynamics, namely: the drivers, restraints, challenges, and the opportunities in the agricultural

equipment market, listing and analyzing several factors that positively and negatively affect

the agricultural equipment industry.

FIGURE 10

DRO OF AGRICULTURAL EQUIPMENT MARKET AND THE INTENSITY

OF IMPACT

DR

IVE

RS

• Decreasing arable land area

• Rising global population

• Easy Credit and Subsidies Availability in Asian Markets

• Rising demand for advanced agricultural machinery

RE

STR

AIN

TSO

PP

OR

TUN

ITIE

S

• Fluctuating Weather Conditions & farming calendars

• Dynamic economic environment

• Altering government policies

• High cost of machinery

• Improved credit facilities

• Government subsidies

D

R

O

XXXX

XXXX

XXXX

XXXX

IMPACT

XXXX

XXXX

XXXX

XXXX

IMPACT

XXXX

XXXXIMPACT

Source: Secondary Sources, Primary Interviews, BIS Research Analysis




4 AGRICULTURE EQUIPMENT MARKET,

BY EQUIPMENTS

4.1 INTRODUCTION

The necessity of achieving food sufficiency for the ever-growing global population led to the

increased focus of government authorities on the adoption and utilization of agriculture

machinery worldwide. There has also been active support from the government in the form of

subsidies and credit facilities in this market to ensure its utilization by the small farmers as

well. The market gets further boost by the increasing migration of labor workforce to urban

areas, increasing farm incomes, and other factors. This chapter describes in detail the key

agricultural equipments and their market size in terms of volume such as tractors, combine

harvesters, sprayers, forage harvesters, and sugarcane harvesters along with the status of

their utilization in key markets.

FIGURE 11

TRACTORS VOLUME TO CROSS 2.3 MILLION UNITS BY 2022

Tractors

Combines

Sprayers

Forage

Harvesters

Sugar cane

Harvesters

Volume, 2022 (Units) CAGR % (2016-2022)

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Volume, 2015 (Units)

XX

XX

XX

XX

XX





4.2 TRACTOR

The tractors are the integral part of the agriculture industry with highest volume market as

compared to any other equipment. The historical trend in the tractors market has many ups

and downs, with a huge increase of XX% in 2013 and consistent decrease in 2014 and 2015 of

XX% and XX% respectively. In 2016, the market is expected to show steady growth rate with

a tendency of decline in some countries.

FIGURE 12

INDIA & CHINA – LEADING TRACTORS MARKETS

XX

XX XX XX

XX

2012 2013 2014 2015 2022

U.S.

2015 = XX units

2022 = XX units

India

2015 = XX units

2022 = XX units

China

2015 = XX units

2022 = XX units

Brazil

2015 = XX units

2022 = XX units

Turkey

2015 = XX units

2022 = XX units

Russia

2015 = XX units

2022 = XX units

Germany

2015 = XX units

2022 = XX units

France

2015 = XX units

2022 = XX units

Canada

2015 = XX units

2022 = XX units

Tractors Market

By 2022, the tractors volume is expected

to cross XX million units with expected

CAGR of XX%, between 2016 and 2022

India and China are the biggest market

with ~XX% market share in terms of

tractors volume in 2015

The U.S., Turkey, Brazil, Russia, Germany,

France, and Canada are the other bigger

tractors market

Source: Secondary Sources, Expert Interviews, and BIS Research Analysis




TABLE 1

BRAZIL : TRACTORS SALES BY HP, 2015 – 2022 (UNITS)

Particulars 2014 2015 2016 2018 2020 2021 2022

CAGR %

(2016 -

2022)

<50 HP XX XX XX XX XX XX XX XX

50 HP - 100 HP

XX XX XX XX XX XX XX XX

100 HP + XX XX XX XX XX XX XX XX

Total XX XX XX XX XX XX XX XX


The maximum sold tractors in Brazil are between 50 -100 HP. The total unit of these tractors

sold in Brazil in the year 2013 was XX, which decreased to XX units in 2014. The sale again

decreased by XX% in 2015 and reached XX units and is estimated to further decrease by XX%

by the end of 2016. The sale of this segment of tractors is predicted to reach XX units by 2022

at a CAGR of XX%. The units of tractors sold in 2014 were XX while it was more than XX units

in 2013.




4.2.1.1 Asia-Paci f ic

The major countries included in the Asia-Pacific (APAC) region are India, China, Japan, Korea,

Australia, and New Zealand among others.

TABLE 2

INDIA: TRACTORS SALES BY HP, 2015 – 2022 (UNITS)

Particulars 2014 2015 2016 2018 2020 2021 2022

CAGR %

(2016 -

2022)

<50 HP XX XX XX XX XX XX XX XX

50 HP - 100 HP


100 HP + XX XX XX XX XX XX XX XX



The maximum sold tractors in India are between 50 HP to 100 HP. The total unit of these

tractors sold in India in the year 2013 was XX which decreased to XX units in 2014. The sale

further decreased by XX% in 2015 and reached XX units and is now estimated to increase by

XX% by the end of 2016. The sale of this segment of tractors is predicted to increase and

reach XX units by 2022 at a CAGR of XX%.

The growth in the Indian tractor market has been on the path of continuity, although not

uniformly due to slowdown in agriculture sector. The Indian tractor industry accounts for one

third of the total production of tractors globally and provides livelihood to about XX% of India’s

population. Moreover, India is amongst the XX leading exporters of agricultural products in the

world. The export of agriculture products which were $XX billion in 2010 reached $XX billion by

2014 and is further expected to reach $XX billion by the end of 2015. India has been exporting

tractors to countries such as Sri Lanka, Nepal, and the U.S.




The tractors in India are available in different horsepower ranging from less than XX to more

than XX HP. The highest demand in Indian agriculture is for the tractors with XX HP to XX HP.

The reason behind growth of the tractors below XX HP is the low initial cost involved and better

fuel efficiency when compared to their high priced and high powered alternatives, making it

feasible for the small farmers to adopt tractors than using bullock carts. On the other hand,

factors which are hindering the growth of this below XX HP segment particularly are: the

restricted applicability of such tractors on soft soil only, existence of second hand market of

high HP tractors, and limited creditworthiness of farmers among others.

The total tractors above XX HP sold in the year 2015 in India are XX units. These are used in

areas with ample amount of alluvial soil which does not require deep plowing such as Punjab,

Haryana and Uttar Pradesh among others. It has been predicted that the sale of these tractors

with high HP will rise due to the government support for contract farming through leasing of

farm lands.

FIGURE 13

SEGMENTATION OF TRACTORS IN INDIA BY HORSEPOWER &

MARKET SHARE

Tractors Segment By Horsepower

Below 30 HP XX% 31-40 HP XX% 41-50 HP XX% Above 50 HP XX%

Mahindra Swaraj

Mahindra

Eicher

Eicher

Mahindra

New Holland

John Deere

Massey Ferguson

New Holland

Mahindra

Sonalika

New Holland


The figure above provides a synopsis of the demand of tractors with different horsepower in

India and the companies leading in those segments, with Mahindra leading the India tractor

market.




India currently has a total of XX domestic and XX multinational companies manufacturing

tractors. Few of the companies with their tractor sales during 2014-15, are listed below:

TABLE 3

KEY COMPANIES OPERATING IN INDIA

Company Tractor Sales in

Units (2014-15) Description

Mahindra &

Mahindra XX

Founded in 1983, operates in 40 countries in 6

continents, provides with tractors ranging from15 HP to

85 HP under the brand name- Arjun, Bhoomiputra,

Sarpanch, Shaan, Yuvraj and Swaraj

Escorts XX

Launched in 1960, provides with tractors under the brand

name- Farmtrac, Powertrac and Steeltrac, has four

manufacturing plants in Faridabad and one subsidiary

unit in Poland in the name of Farmtrac Europe

Tractors &

Farm

Equipments

XX

Founded in 1960, holds approx. than XX% of Indian

tractor industry, works in partnership with AGCO

Corporation and the Massey Ferguson brand

ITL (Sonalika) XX

Its agro segment was established in 1969, provides a

complete product line including tractors, engines, farm

machinery attachments, and diesel gensets among others

John Deere XX

Founded in 1837, manufactures agricultural,

construction, and forestry machinery, diesel engines,

drive trains used in heavy equipment and lawn care

equipment

New Holland XX

Founded in 1895, offers a large range of agricultural

tractors and farm machinery in India including harvesting

equipments, hay & forage equipments, seeding

equipments and sprayers among others





TABLE 4

KEY COMPANIES OPERATING IN CHINA BY MARKET SHARE

Company Market Share Description

YTO XX%

Founded in 1955, manufactures a range of products

including agricultural tractors, engines, combine

harvesters and trucks

Foton XX%

Founded in 1998, specializes in agricultural equipment

construction machinery, vehicles, core components,

financial services and other businesses

John Deere XX% Founded in 1837, manufactures agricultural, construction,

and forestry machinery, diesel engines, drivetrains

Mahindra Yueda XX%

Formed in 2009 with a joint venture between Mahindra’s

Farm Equipment Company in India and Jiangsu Yueda

Yancheng Tractor Manufacturing Co. Ltd., a Chinese

tractor manufacturer

Shanghai New

Holland XX%

Formed in 2001, with a joint venture between CNH Global

and SAIC, manufactures, distributes and ultimately

exports agricultural tractors under 100 horsepower

Jiangsu Qingtuo

Ag Equipment XX%

manufacturer of big and middle size tractors for near 40

years

Shandong

Shifeng XX%

Founded in 1993, works on five subsidiary lines-

Agricultural Vehicle, Agricultural Equipment, LCV &

Electric Car, Nylon Chemical Fiber & Tire, and the Coal-

fired Power Plant

Others XX%

Changzhou Dongfeng Agricultural Machinery Co., Anhui

Changjiang Agricultural Machienry, Chnagfa Group, and

Guangxi Quinzhou Lishun Machinery among others





4.3 COMBINE/COMBINE HARVESTER

Combines are amongst the most expensive agricultural equipments in the market. Since

combines are used for short period of time, thus, users prefer renting than buying. Earlier,

combines were drawn by horse or mule and used as a bull wheel to provide power but the

modern combines are self-propelled and use diesel or gas engines for power. The combines

consist of a combine head which are equipped with different heads designed for particular

crops. Moreover, the maximum utilized type of combine harvester is a self-propelled combine.

FIGURE 14

INDIA & BRAZIL – LEADING IN COMBINES MARKET

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

India

Brazil

U.S.

Middle East & NorthAfrica

Eastern/CentralEurope

China

Germany

France

Canada

Italy

ANZ

U.K.

Japan

Korea

South Africa 2015 2022

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Combines Market Size, Volume, By Country, (Units)Combines CAGR % (2016 – 2022), By Country





TABLE 5

GLOBAL COMBINES MARKET SIZE, BY COUNTRY,

2014 – 2022 (UNITS)

Particulars 2014 2015 2016 2018 2020 2021 2022

CAGR %

(2016 -

2022)

U.S. XX XX XX XX XX XX XX XX

Canada XX XX XX XX XX XX XX XX

Brazil XX XX XX XX XX XX XX XX

Rest of South

America XX XX XX XX XX XX XX XX

Germany XX XX XX XX XX XX XX XX

U.K. XX XX XX XX XX XX XX XX

France XX XX XX XX XX XX XX XX

Italy XX XX XX XX XX XX XX XX

Rest of Western Europe


Eastern/Central

Europe XX XX XX XX XX XX XX XX

China XX XX XX XX XX XX XX XX

India XX XX XX XX XX XX XX XX

Japan XX XX XX XX XX XX XX XX

Korea XX XX XX XX XX XX XX XX

ANZ XX XX XX XX XX XX XX XX

Rest of APAC XX XX XX XX XX XX XX XX

Middle East &

North Africa XX XX XX XX XX XX XX XX




Particulars 2014 2015 2016 2018 2020 2021 2022

CAGR %

(2016 -

2022)

South Africa XX XX XX XX XX XX XX XX



4.4 SELF-PROPELLED SPRAYER

FIGURE 15

THE U.S. – THE LARGEST MARKET FOR SPRAYERS, 2015

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Sp

rayers

CA

GR

% (

2016 –

2022)

Sp

rayers

(U

nit

s)

2015 2022 CAGR % (2016 - 2022)





4.5 SUGAR CANE HARVESTER

Sugarcane harvester is used in agriculture to harvest the sugarcanes and partially process it in

a faster and more efficient manner. . The equipment is light weight, which results in more

flexibility. Along with this, the damage rate of the equipment is low and consumes less oil. The

sugarcane harvester is suitable for plain grounds mainly and for large number of sugarcane

only. The users have to be cautious about the processing of sugarcane. The sugarcane

harvested in segments should be processed as soon as possible because the sugarcane starts

losing sugar content once its cut. This market possesses a permanent threat from the low or

no-calorie sweeteners used as a substitute. Imports hold insignificant market shares in this

market because the crop requires immediate processing after harvesting in order to prevent

damage.

FIGURE 16

BRAZIL – LEADING COUNTRY SUGARCANE HARVESTER MARKET

XX

XX XX XX XX XX XX XX XX XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

2015 2022 CAGR % (2016 - 2022)

Source: Secondary Research, Expert Interviews, and BIS Research




5 GEOGRAPHICAL ANALYSIS

5.1 INTRODUCTION

The “Geographical Analysis” segment of the report covers the major region-wise trends in the

agriculture equipment market. The market statistics for each of the major geographies are also

given in this chapter. The market has been segmented into four different regions, namely: The

Americas, Europe, Asia Pacific (APAC), and Rest of the World (ROW). North America is further

divided into South America & North America and Europe is divided into Western and Eastern/

Central Europe, which are further explained country wise. APAC region includes China, India,

Australia New Zealand (ANZ), South Korea, and others. ROW includes the Middle East and

South Africa.

FIGURE 17

GEOGRAPHIC LANDSCAPE

Americas Europe Asia-Pacific

Tractor

Combine Harvester

Sprayers

Forage Harvesters

Sugar Cane

Harvesters

XX XX XX XX

2014 2015 2016 2022

XX XX XX XX

2014 2015 2016 2022

XX XX XXXX

2014 2015 2016 2022

XX XX XX XX

2014 2015 2016 2022

XXXX XX

XX

2014 2015 2016 2022

XXXX XX

XX

2014 2015 2016 2022

XX XX XXXX

2014 2015 2016 2022

XX XX XX XX

2014 2015 2016 2022

XX

XX XX

XX

2014 2015 2016 2022

XX XX XX XX

2014 2015 2016 2022

XX XXXX

XX

2014 2015 2016 2022

XX XX XX

XX

2014 2015 2016 2022

XX XX XX

XX

2014 2015 2016 2022

XXXX XX

XX

2014 2015 2016 2022

XX XX XX

XX

2014 2015 2016 2022

Source: Expert Interviews and BIS Research Analysis




5.2 THE AMERICAS

For better mapping of the market size of agriculture equipment market in America, the market

has been segmented into North America and South America. Further, the key regions of all

segmentation has been analysed both qualitatively and quantitatively. The focus has been

placed on the factors driving and restraining the market growth.

FIGURE 18

SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN

THE AMERICAS

NORTH AMERICA

Market Volume (2016): XX Units

CAGR (2016-2022): XX%

SOUTH AMERICA

Market Volume (2016): XX Units

CAGR (2016-2022): XX%

CAGR (2016-2022) : XX%

CAGR (2016-2022) : XX %

CAGR (2016-2022) : XX%

Note: The CAGR mentioned in the figure is in terms of volume





5.2.1 MARKET STATISTICS

TABLE 6

THE AMERICAS AGRICULTURE EQUIPMENT MARKET VOLUME,

BY TYPE (UNITS), 2015-2022

Particulars 2015 2016 2017 2018 2019 2020 2021 2022

CAGR

%

(2016-

2022)

Tractor XX XX XX XX XX XX XX XX XX

Combine Harvester


Sprayers XX XX XX XX XX XX XX XX XX

Forage Harvesters


Sugar Cane Harvesters


Total XX XX XX XX XX XX XX XX XX


The total tractors sold in the American agriculture equipment market in 2014 were XX which

decreased to XX units in 2015. This sales volume is estimated to decrease further by XX% by

the end of 2016. The sale of tractors is predicted to increase and reach XX units by 2022 at a

CAGR of XX%. This region includes countries which are rich in agriculture related activities and

thus forms a significant market for agriculture equipments.

The sale of combine harvesters was XX units in 2014 which decreased to XX units in 2015. This

sales volume is estimated to decrease by XX% by the end of 2016. The sale of combine

harvesters is predicted to increase and reach XX units by 2022 at a CAGR of XX.




5.3 EUROPE

The agriculture sector in Europe is facing challenges due to the climate change and,

environmental reforms. Further, lack of sufficient water supplies, increasing droughts and

uncertainties implies that Europe's agriculture sector needs to focus on the ways to increase

productivity. The Europe market accounts for around XX% share in the global agriculture

equipment market in the year 2015. Germany is the largest contributor in the market with

XX% share, followed by France (XX%) and Italy (XX%).

FIGURE 19

SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN EUROPE

EUROPE: Agriculture Equipment Market Volume, 2015 – 2022

(UNITS)

XX XX

XX

2015 2016 2022

~XX%Of Agriculture Equipment

Market is shared by Western

Europe

~XX%Of Agriculture Equipment

Market is shared by Eastern

and Central Europe

Eastern and

Central Europe

Western Europe

Europe: CAGR of Agriculture Equipment Market Volume, 2016–

2022 (%)

XX

XX

XX

XX

XX

Tractor

Combine Harvester

Sprayers

Forage Harvesters

Sugar CaneHarvesters





FIGURE 20

SNAPSHOT OF WESTERN EUROPE AGRICULTURE EQUIPMENT

MARKET, BY COUNTRY

The agriculture equipment

market of Germany in terms

of volume is growing at

~XX%CAGR from 2016 to 2022

XX%

XX%

XX%

XX%

XX%

Germany

France

U.K.

Italy


market of the U.K. in terms

of volume is growing at



market of France in terms of

volume is growing at



market of France in terms of

volume is growing at



5.3.1.1 GERMANY

Germany is one of the leading exporting countries of agriculture machinery in the world and is

ranked first when it comes to agriculture equipment market in Western Europe. The key factor

pushing this market towards growth is the wide coverage of value chain in Germany, which

leads to innovations and developments in product portfolio.




TABLE 7

CHINA AGRICULTURE EQUIPMENT MARKET VOLUME, BY TYPE

(UNITS), 2015-2022

Particulars 2015 2016 2017 2018 2019 2020 2021 2022

CAGR%

(2016-

2022)


Combine Harvester



Forage Harvesters






The total tractors sold in the agriculture equipment market in China in 2014 were XX units,

which decreased to XX units in 2015. This sales volume is estimated to increase further by

XX% by the end of 2016. The sale of tractors is predicted to increase and reach XX units by

2022 at a CAGR of XX%. The sale of combine harvesters was XX units in 2014 which

decreased to XX units in 2015. This sales volume is estimated to increase by XX% by the end

of 2016. The sale of combine harvesters is predicted to increase and reach XX units by 2022 at

a CAGR of XX%.




TABLE 8

AUSTRALIA & NEWZEALAND AGRICULTURE EQUIPMENT MARKET

VOLUME, BY TYPE (UNITS), 2015-2022

Particulars 2015 2016 2017 2018 2019 2020 2021 2022

CAGR%

(2016-

2022)


Combine Harvester



Forage Harvesters






The total tractors sold in the agriculture equipment market in Australia-New Zealand in 2014

were XX units, which decreased to XX units in 2015. This sales volume is estimated to increase

further by XX% by the end of 2016. The sale of tractors is predicted to increase and reach XX

units by 2022 at a CAGR of XX%. The sale of combine harvesters was XX units in 2014 which

decreased to XX units in 2015. This sales volume is estimated to increase by XX% by the end

of 2016. The sale of combine harvesters is predicted to increase and reach XX units by 2022 at

a CAGR of XX%.




5.4 REST OF THE WORLD

The primary reason behind the comparatively small contribution of ROW in the agriculture

equipment market is due to the scarce water resources in the region which is the most

essential requirement for conducting agriculture activities. Moreover, most of the land available

is destroyed by desertification. It becomes difficult for the suppliers to sell their equipments

due to shortage of capital. The region relies heavily on the imports of agricultural equipments.

The market statistics for each key region in ROW are given in this chapter, focusing majorly on

the factors driving and restraining the market growth. The market has been segmented into

two regions- South Africa and Middle East (including Turkey and Egypt). These regions have

dry climatic conditions but include more developed regions, which served as the major push

factor for the growth of agriculture equipment market in this region.

FIGURE 21

SNAPSHOT OF AGRICULTURE EQUIPMENT MARKET IN ROW

Middle East & North Africa

2016

2015

2016

2017

2018

2019

2020

2021

2022

Tractor Combine Harvester

South Africa: Agriculture Equipment

Market volume, 2014-2022 (Units)

2015

2016

2017

2018

2019

2020

2021

2022

Tractor Combine Harvester

Middle East & North Africa: Agriculture

Equipment Market volume, 2014-2022

(Units)

RoW Market Share, by Region

, 2016 (%)





6 COMPANY PROFILES

6.1 AGCO CORPORATION

6.1.1 COMPANY OVERVIEW

Particular Specific (as of 2015)

Website www.agcocorp.com

Contact Details

4205 River Green Parkway Duluth,

Georgia 30096 U.S.

Tel: +1.770.813.9200

Year of Establishment 1990

Ownership Type Public

Company Type Manufacturer, Distributor

Number of Employees 22,111

Net Revenue $XX million (as per 2014)

Competitors Alamo group, CLAAS Group, CNH Industrial, Kubota Corporation

Brands Challenger, FENDT, GSI, Massey Ferguson, VALTRA, GLEANER, and

White Planters among others

Subsidiaries

Massey Ferguson Corp., Valtractors Mexico SA de CV, Fendt

Fordertechnik GmbH, AGCO Funding Corporation, AGCO

Manufacturing Ltd.

Related Products & Services Tractors, combine harvesters, seeding & tillage equipments, hay &

forage solutions, parts

Other Products & Services Precision farming, ground storage, protein production system,

ground care machinery, engines, generators

Source: AGCO Corp. Website, BIS Research Analysis

http://www.agcocorp.com/




6.1.2 FINANCIALS

6.1.2.1 Overal l F inancials

FIGURE 22

OVERALL FINANCIALS, 2012-14 ($MILLION)

Dec'2012 Dec'2013 Dec'2014

Net Revenue 9,962.20 10,786.90 9,723.70

Operating Income 693.2 900.7 646.5

Net Income 597.2 597.2 410.4

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Op

era

tin

g I

nco

me

& N

et

Inco

me

($ M

illio

n)

Ne

t R

ev

en

ue

($ M

illi

on

)

Source: AGCO Annual Report, BIS Research Analysis




6.1.2.2 Geographic Revenue Mix

FIGURE 23

GEOGRAPHIC REVENUE MIX, 2012-14 ($MILLION)

XX

XX

XX

XX

XX

XX

XX

EAME North America South America APAC

$ M

illio

n

Dec'2012 Dec'2013 Dec'2014


EAME* Europe, Africa, Middle East




6.1.2.3 Segment Revenue Mix

FIGURE 24

SEGMENT REVENUE MIX, 2012-14 ($MILLION)

XX

XX

XX

XX

XX

XX

XX

XX

$ M

illio

n

Dec'2012 Dec'2013 Dec'2014


6.1.2.4 Financial Summary

AGCO Corporation generated net revenue of $XX million in the FY 2014 which was XX% less

than the FY 2013. The company earned $XX million from Europe, Africa & Middle East regions

alone in 2014 and its highest earning business segment in the same year was tractors which

added $XX million alone to its revenue. Till the third quarter of 2015, the company accounted

for total $XX million of net revenue, which was XX% less than the same time period in 2014.

Moreover, maximum sales generated by the third quarter of FY 2015 was concentrated in the

EMEA region which was around $XX billion, less than that of the previous year. The sales

revenue was largest from Germany, Scandinavia and Russia. The reason behind this declining

revenue is the lower rate of industry demand for farm equipment across all regions and the

unfavourable effect of foreign currency translation.




6.1.3 KEY STRATEGIES & DEVELOPMENTS

Date Strategy Description

November

2015 Recognition

AGCO Corporation won the “Major European Tractor of the

Year” Awards at Agritechnica, Hannover Fair for its products

Fendt, Massey Ferguson and Valtra Tractors

September

2015 Product Launch

AGCO Corporation launched the next generation of guidance

technology for farm machinery to help growers maximize

outputs

September

2015 Product Launch

AGCO Corporation launched the AGCO e-sourcing platform to

manage all production material sourcing projects across the

organization

September

2015 Business Expansion

AGCO Corporation signed a memorandum of understanding

(MOU) with the Alibaba Group in Shanghai, China to start an

“Internet-plus-Agriculture” crossover program

September


AGCO Corporation announced the opening of its brand new

manufacturing base in Changzhou, China to enhance R&D

and manufacturing capacity

September

2015 Product Launch

AGCO Corporation launched the Go-Task Mobile App for

wireless transfer of task data to and from AGCO machines

and programs

August 2015 Product Launch

AGCO Corporation launched fuse connected services to

combine the right machines, technologies, parts, and

services

April 2015 Partnership

AGCO Corporation’s brand GSI partnered with Cultivating

New Frontiers in Agriculture (CNFA) to improve farm

productivity and food security

November

2014 Joint Venture

AGCO Corporation and Appareo Systems(the U.S.) entered

into a joint venture to deliver advanced technologies and

equipment management solutions




Date Strategy Description

May 2014 Collaboration

AGCO Corp. collaborated with DuPont Pioneer (the U.S.) to

bring wireless data transfer technology solutions to farmers

in the U.S., Canada, Brazil and key European countries

February


AGCO launched the Global Fuse Contact Center, a customer

support resource to assist customers with setup, calibration,

and operational support on all its precision agriculture and

machine communication technology products

September

2013 Joint Venture

AGCO Corp. and Russian Machines(Russia), part of the Basic

Element group formed a joint venture to manufacture and

distribute agricultural equipments and replacement parts in

Russia

July 2013 Business Expansion AGCO Corp. announced the launch of precision farming

business strategy Fuse Technologies (the U.K.)

Source: AGCO Corporation Press Release, BIS Research Analysis




6.1.4 SWOT ANALYSIS

AGCO CROP.

The company has over 3,100 dealers spread across over 140 countries, thereby

maintaining a strong global foothold

In addition to becoming one of the leading names in the global tractor market, the

company is rapidly touching base with newer technologies encompassed under

precision farming, making them well positioned in the changing landscape of

conventional farming

Introduction of strategic plans such as the as disciplined inventory reduction program

that resulted in year end inventories below 2013 levels, on a constant currency basis,

despite falling demand

Increased investment of approximately $500 million for the share repurchase program

Increased level of investment in research, engineering and development to ensure

that farmers have the required infrastructure and technology support to maximize

profits and efficiency

Well recognized brands across the globe with high brand recall value

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

When compared with products of its competitors, certain brands of AGCO

Corp have products with relatively smaller life cycle

A majority of the manufactured products are financed by Rabobank and

any difficulty by the bank to continue to provide that financing, or any of

its business decision will compel AGCO Corp to look for other sources for

financing for capital equipment purchases which has become both

expensive and daunting in the recent economic downturn

Significant opportunities for the company’s grain storage and handling

business to grow in the developing markets such as Brazil and Africa

because of the inefficiencies in handling crops after harvest

Increasing global protein consumption presents a major opportunity for

the company’s protein production side of the business

New product launch, enhanced distribution and dealers services can be

targeted for developed markets

Other than tractors, the companies can leverage their strong brands with

other innovative harvesting products

A major chunk of revenue generation and manufacturing is based out of

the U.S., making the company subject to risks of taxes, foreign laws,

economic and political conditions, and government policies among others

Overall weekend demand across major markets, deteriorating farm

economies, and negatively impacted farmers’ sentiment

Intense competition in the major revenue generating segment, i.e.

tractors





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