The combine harvester market is projected to grow at a CAGR of 4.8% during the forecast period. The increasing farm mechanization is one of the most important reasons behind the growth of the combine harvester market. Also, the favorable credit policies toward machinery purchase adopted by the government and other institutions, coupled with the ability to increase farm productivity are driving the growth of the market studied. High Prices of the machinery is one of the prime constraints of the market, especially in the developing and underdeveloped countries, Hence leasing of combine harvesters is popular in these regions.
Key Market Trends
Labor Shortage and Rise in Labor Wages
The factors that are expected to augment the demand for combine harvesters are growth in the urban population and industrialization, which led to a shortage in farm labor, thus pushing the farmers to employ machinery for harvesting. The average rise in the farm labor wage noticed in the United States is USD 0.5 per hour. The labor wage recorded in 2018 was USD 13.4 per hour in 2018. In order to improve the efficiency of land use and crop yield, there is a rise in farm mechanization which has directly led to the growth of the combine harvester market. The demand for combine harvesters is primarily from farmers with large landholdings.
North America Dominates the Market
The scarcity of labor and the rising labor costs in North America coupled with the need to replace old machinery with the new one is fueling the region to adopt the new technology and enhance the productivity and efficiency of the crops grown in North America. Also, the erratic climate condition in this region is driving the market for combine harvesters owing to their high operational efficiency. The United States holds the major share of the combine harvesters market in North America.
In the global combine harvester market, companies are not only competing on the basis of product quality and promotion but are also focused on strategic initiatives, in order to account for prominent market shares. Companies are heavily investing in the development of new products, and are collaborating and acquiring other companies. This is expected to increase its market shares while strengthening R&D activities.
The key players in the market are CLAAS, John Deere, Zhengzhou Amisy Machinery Co. Ltd, Yanmar Co. Ltd and Kubota Agricultural Machinery.
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