The North American plowing and cultivating machinery market was valued at USD 3.9 billion in 2018 and is expected to reach USD 866 million by 2024, at a CAGR of 2.96% during the forecast period, 2019-2024.
North America is the largest market for agricultural machinery in the world, thanks to the use of advanced farming over extensive areas, with support from new technologies used in farm machinery. Some of the advanced technologies used in ploughing and cultivating operations extensively in North America include GPS-enabled equipment, extensive soil sampling, and real-time monitoring of soil moisture content using sensors, among others.
Key Market Trends
Scarcity of Low Cost Labor influencing Increased Adoption of Farm Mechanization
During the period between 2002 and 2014, the population of field and crop workforce in the United States saw a decline of 22.9%, on average. Increase in wages is a clear indication of the labor shortage on US farms. In 2014, more than half of all hired farmworkers, or roughly half a million workers in the United States were immigrants. The increasing shortage of labor is encouraging farmers, mainly large-scale, to adopt farm mechanization. Anticipation of the shortage of labor, specifically skilled labor, may drive higher demand for farm mechanization, which may result in higher demand for agricultural machinery, including plowing and cultivation machinery, in North America.
United States dominates the Regional Market
The US plowing and cultivating machinery market accounted for 44.4% market share in the North American region in 2017, despite the growing popularity of no-till farming in the country. Plowing and tillage are the primary causes of soil erosion, and thus, there is an increasing demand for no-till farming- a type of soil conservation farming that prepares the land for plowing without mechanically disturbing the soil. In the United States, in 2015, nearly 35% of cropland was under no-tilled cultivation and more than 10 million acres of cover crops were seeded across the country. The no-tillage farming technique is gaining immense popularity in the country, owing to significant economic benefits, including low soil erosion, high soil biological activity, and improved soil organic matter. Moreover, these benefits are expected to provide additional economic gains to farmers over time. Thus, the widespread no-tillage farming practice is expected to hold back the US plowing and cultivating machinery market’s growth during the forecast period.
Competitive Landscape
The North American plowing and cultivating machinery market is highly consolidated, with the top five companies holding more than 60% of the market share. Apart from the major players, there are a lot of local companies cornering smaller shares in the North American plowing and cultivating machinery market.
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- The market estimate (ME) sheet in Excel format
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