Global demand for agricultural machinery continues to increase

According to the news from Dallas, USA, the annual growth rate of demand for agricultural equipment in the world is expected to reach 6.7% by 2016, and sales will increase to 173.5 billion US dollars. This growth will mainly benefit from the growth in sales growth of fast-developing developing countries (especially China, Brazil and India). These developing countries have been devoting themselves to the mechanization of agriculture, and their population expansion and strong economic growth have brought increasing pressure on the agricultural sector and have also contributed to the continuous increase in sales of agricultural machinery.

It is understood that the demand for agricultural machinery in the Asia-Pacific region in 2012 was more than double that of other regions. Although other small-scale markets (including Thailand and Indonesia) will have rapid growth in demand for agricultural machinery by 2016, China and India will play an important role in accelerating market progress in the future. In addition, due to the increasing mechanization of agriculture in Brazil and other countries (including Argentina), the agricultural machinery sales in Central America and South America will also have strong growth in 2016.

In industrialized countries, the annual growth rate of agricultural equipment sales in North America and Western Europe to 2016 will be lower than the average level. Among them, technological advances will drive demand growth, and the use of new technology equipment will increase operational efficiency, which will prompt farmers to change their machinery and equipment more frequently.

It is reported that agricultural tractors were the largest agricultural products department in 2011, and their sales accounted for 30% of the total agricultural machinery sales. Among them, the cultivation and cultivation machinery is expected to become the fastest growing product type from 2011 to 2016. As farmers in developing countries purchase larger and more complex farming equipment (for increasing productivity), sales of farming and cultivation machinery are expected to increase by 9.1% annually. Due to the improvement of new mechanical durability and limited repair and maintenance expenses, the demand for parts and accessories is expected to grow at the slowest rate. Its annual growth rate is estimated to be 5.4%, and sales will reach US$27.6 billion by 2016.

In addition, China will surpass the United States to become the world's largest agricultural machinery manufacturer. In 2011, the United States defeated China with a slight advantage and became the largest producer in the field of agricultural machinery. Its agricultural machinery shipments reached US$23.1 billion. The Chinese agricultural equipment manufacturing industry is expected to grow rapidly by 2016, while the United States' growth is expected to be relatively modest. Therefore, by 2016, the shipment of Chinese agricultural machinery industry is expected to be 70% higher than that of the United States. In addition, thanks to strong local market support and rapid industrialization, manufacturing shipments in Brazil and India are also expected to grow rapidly.