The market growth is attributed to the growing demand for agriculture and food products nationwide. This has forced farmers to adopt advanced technologies and methods in their agricultural practices to meet the growing demand for food by the population of the country. Over the past few years, human and animal power in agriculture has reduced, Because of this, the need for a variety of equipment is emerging. The government is also encouraging farmers to use technically advanced farming machinery and is investing a significant amount in farming equipment, which is propelling market growth.
Moreover, the UAE has high per capita food consumption, making it the GCC region's most promising agriculture market. In 2021, the total production of cereals across the UAE was 23,475 metric tons, and in 2022 it was 23,031 metric tons. Growth in the production of food products will increase the demand for technically advancedfarm equipmentto increase the production rate of fruits and vegetables which is anticipated to drive the overall market growth. The government is also encouraging private, local, and foreign companies to come and invest in the agricultural economy which will have a positive impact on the market growth. It has also launched its National Food Security Strategy which aims at boosting the country's future domestic supply and developing foreign partnerships to diversify food resources.
UAE farm equipment market growth drivers
Growing demand for organic food and government initiatives
One of the prime reasons supporting the market growth is the increasing demand for organically grown food and crops. Organic food does not contain harmful chemicals or fertilizers, because of which its consumption has increased in the last few years. Moreover, growing health concerns due to the rising number of chemical poisoning incidents worldwide are fueling the demand for organic food, which in turn is expected to drive the overall market growth.Rapid urbanization, less available arable land, and increased preference for locally grown food produced in an environmentally friendly and sustainable way are driving the adoption of advanced farm equipment across the agriculture sector of UAE. Advanced farm equipment is a useful tool to overcome challenges faced by traditional agriculture such as freshwater shortages, climate change, and soil degradation.
Additionally, the growing affluent middle class, willing to pay more for higher quality food produced with fewer pesticides, is also fueling market growth. This rising demand for organic food has forced the country to adopt advanced technologies and methods in its agricultural practices to meet the escalating demand.
In 2022, the governments of UAE and India signed the Comprehensive Economic Partnership Agreement (CEPA) to expand cooperation through bilateral food and agriculture trade. The UAE government has also signed an MoU with Ireland's Department of Agriculture, Food, and Marine to enhance cooperation in food security. Further, a wheat farm in Mleiha, Sharjah, was launched in 2022. This is to provide food needs and raise production rates to cover the needs of Sharjah's cities and regions.
The first phase of wheat cultivation covered an area of 400 hectares. The project will be completed in three phases. The second phase will be on an area of 880 hectares in 2024, and the third phase will reach its completion on an area of 1,400 hectares in 2025. In 2022, the share of the emirate of Sharjah was 330,000 metric tonnes. The developments and initiatives taken by the government of the country are expected to significantly drive the overall market growth during the forecast period.
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- Historical data & forecasts from 2022 to 2030
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Segmentation
By Type
- Combines
- Plows
- Sprayers
- Planters
- Others
By Function
- Plowing & Cultivation
- Sowing & Planting
- Plant Protection & Fertilizing
- Harvesting & Threshing
- Others
By Application Period
- Pre-Harvesting
- During & Post-Harvesting
Table of Contents
Companies Mentioned
- Agromont Industrial Group
- Kubota Corporation
- Claas KGaA
- Kanoo Machinery
- Yanmar Holdings Co.
- National Industrial Co. W.L.L
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 74 |
Published | December 2024 |
Forecast Period | 2025 - 2030 |
Estimated Market Value ( USD | $ 65.02 Million |
Forecasted Market Value ( USD | $ 74.67 Million |
Compound Annual Growth Rate | 2.8% |
Regions Covered | United Arab Emirates |
No. of Companies Mentioned | 6 |