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The global combine harvester market is projected to register a 3.9% CAGR with an opportunity of US$ 17,138 Mn during 2022-2030, reaching US$ 64,940 Mn by 2030. Growing financial support from the government to purchase farm equipment and an increase in farm mechanization impact the market growth over the forecast period.
The top five companies in the global combine harvester market collectively hold more than 71% of the market share, making it an oligopolistic market. Some of the major companies in the market are KS Group, John Deere, Kubota Corporation, Massey Ferguson, Weichai Lovol Heavy Industry Co., Ltd., YANMAR Co., Ltd., Mahindra & Mahindra Ltd., CLAAS KGaA mbH, Hind Agro Industries, Tractors and Farm Equipment Ltd., Kartar Agro Industries, Preet Group, SDF S.p.A. and New Holland. Market players are adopting strategies such as product launches, partnerships, acquisitions, and the introduction of new technologies and a variety of innovative agricultural solutions to stay ahead of the competition.
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Recent strategies adopted by key market players are:
Factors leading to the growing presence of players in the combine harvester market include:
Increasing Need for Technologically Advanced Farm Equipment
The rising global demand for cutting-edge farm machinery is one of the key factors driving the combine harvester market. Farm mechanization boosts crop output and farm profitability while reducing post-harvest losses, saving time and labor, and lowering overall crop production costs. Increased awareness about these benefits has helped boost the demand for equipment powered by mechanical and electrical power sources, as well as manually operated tools and animal-driven implements. The agriculture sector contributes notably to any country's GDP around the world. In addition, governments in both developed and emerging economies are concentrating on strengthening their agricultural operations, driving the demand for combine harvesters.
Government Support for Agricultural Mechanization
Governments globally grant varying subsidies on combine harvesters from time to time. The United States Department of Agriculture (USDA) administers more than 60 direct and indirect farmer assistance programs, with the majority of direct aid going to farmers producing a few products, such as maize, soybeans, and wheat. Insurance, farm risk coverage, price loss coverage, conservation programs, marketing loans, disaster help, research, and other subsidies also help drive the growth of the market.
In order to improve the US agriculture infrastructure, Agriculture Infrastructure Fund (AIF) was created to mobilize a medium- to long-term financial debt facility for investment in post-harvest management infrastructure through incentives and financial support.
Current Trends in the Market:
Labor Shortage and Rising Cost of Farm Labor
A labor shortage is affecting American farmers in 2020, for the fourth year in a row, Corn, fruits, vegetables, peas, and beans are lying unharvested across states as a result of a lack of farm workers. Due to the shortage, fruits and vegetables are being imported to satisfy the demand.
Farmers in the United States are employing a variety of cutting-edge techniques to expand their farming operations while using sparse labor resources. To work as efficiently with fewer resources, farmers are using agrotechnology such as sensors, forecasting models, robotics, and automation to enhance crop quantity and quality, despite their high initial costs.
Factors restraining market growth
Overall Cost of Farm Equipment Manufacturing
Combine harvester tractor designs have evolved in response to changing consumer expectations in recent years. However, modernizing equipment design requires large investments in research and development, which could drive up the price of the finished product. Although product effectiveness is important to farmers, the cost is the most important consideration for many small farmers, especially in emerging and underdeveloped economies. The complexity of combination harvesters has increased in recent years, making them much more difficult to operate.
Power Sector Witnessed Decline During COVID-19
The supply chains of a number of industries were disrupted by the COVID-19 pandemic. Although the agriculture sector seemed to be the least affected of all, sales of agricultural equipment significantly decreased as a result of the supply chain disruptions Government initiatives to designate agricultural activities as essential services were mostly to blame for this. According to Astute Analytica report’s Covid-19 graphical representation, the combine harvester market will have a decline of -7.9% in 2020.
The agricultural industry faced issues such as the shortage of farm equipment components and a decline in tractor sales followed by the closure of production facilities and working capital loss. The combine harvester industry was negatively impacted by the COVID-19 pandemic in 2020 but had started to recover by the end of 2021.
Governments across the globe announced varying degrees of lockdown to stop the spread of coronavirus. State-wide lockdowns in countries made it difficult for farmers to get their combine harvesters delivered from dealer locations to their farms. The European Union's farm machinery business was significantly impacted by the new restrictions passed throughout the EU in reaction to the COVID-19 epidemic. This discouraged farmers from purchasing new combine harvesters in the year 2020.
The self-propelled segment accounted for the largest market share in 2021 and is expected to expand at the highest CAGR over the forecast period. For farms with hard soil, wheeled harvesters are tremendous. They are the typical variety that is widely used in Bangladesh and India. Self-propelled combine harvesters are growing because of their high productivity and low maintenance Tractors equipped with combine harvesters are often preferred in small farmlands (ranging in size from 1 to 10 acres).
Mechanism Segment Analysis
The hydraulic combine harvesters segment dominated the market in 2021 while the hybrid combine harvesters segment is expected to register the highest CAGR over the forecast period. The header is the combine harvester's primary operating system. The performance of the entire machine and the design of the transmission system are directly impacted by the hydraulic drive system of the header. Hydraulic control offers advantages such as high-power density and minimal volume. However, hybrid combine harvesters work well even on farms that have green trunks or damp surfaces and can harvest the crop with no losses and in less time.
Power Segment Analysis
A diesel engine is often included in a modern combine harvester to provide power to all of the machine's operational systems and to propel the machine when in use. According to Astute Analytica report, the market share of combine harvesters with 150–300 horsepower will register the highest CAGR, while those with less horsepower will account for the dominant share of the market. The increased availability of a plethora of cutting-edge diesel engine combine harvesters could also work favorably for the diesel engine segment.
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Grain Tank Size Analysis:
The 250-350 bu segment held the dominant market share in 2021 and is predicted to register the highest CAGR over the forecast period. The promising growth prospects of the 250 bu segment is attributed to the rising demand for small tractors.
The class 3-4 (5-8 kg/s) segment accounted for the dominant market share in 2021, while the class 5-6 (9-12 kg/s) segment is projected to exhibit the highest CAGR of 4% over the forecast period. The productivity (throughput) of a harvesting machine is determined by the caliber and speed of undertaking a variety of operations. Wider machines are better suited for larger fields and lighter soil textures, while smaller machines are more agile in smaller fields. Small rice fields limit the operations of wider machines, preventing small landowners from adopting them. Small combine harvesters have recently gained popularity in Southeast Asia owing to the presence of numerous small agricultural areas in the Asian nations of Bangladesh and India.
Crop Type Analysis
The wheat segment dominated the market in 2021 with a nearly 35% share. The continuous rise in demand for wheat and the consecutive rise in focus on increasing its production relative to other crops is expected to drive the segment's growth. India, the second-largest producer of wheat in the world, is focusing on the larger mechanization of the agricultural sector to cater to the rising demand from South and Southeast Asia, as well as from Europe, West Asia, and North Africa. Exports from Ukraine have been hampered since the invasion by Russia in February 2022, presenting the increased demand for harvesters for wheat in the Asia Pacific.
Rising urbanization in the Asia Pacific area is causing a shift from manual to automated farming. The market for combine harvesters in the region is expected to register a CAGR of 4% over the forecast period. Enormous agricultural activities and the rising adoption of cutting-edge technologies in the region, combined with the support of governments, are driving market expansion.
The markets in North America and Europe are anticipated to witness promising growth prospects in the second half of the forecast period as a result of the scheduled renewal of combine harvester stocks in these regions. The market in India is anticipated to present additional opportunities due to advancing agriculture technologies during the forecast period.
The global combine harvester market is sub-segmented into:
By Grain Tank Size
By Crop Type
|Market Size Value in 2021
|US$ 46,362.3 Million
|Expected Revenue in 2030
|US$ 64,940.4 Million
|Value (USD Mn)
|By Type, By Mechanism, By Power, By Class, By Grain Tank Size, By Crop Type, By Region
|Deere & Company, Kubota Corporation, Mahindra & Mahindra Limited, CLAAS KGaA mbH, KS Group, YANMAR Co., Ltd., Preet Group, SDF S.p.A., Hind Agro Industries, Tractors and Farm Equipment Limited, Kartar Agro Industries, Massey Ferguson, LOVOL, New Holland, Other Prominent Players
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The size of the global combine harvester market is US$ 46,362.26 Million in 2021.
Self-propelled, Tractor-pulled Combine, and PTO-powered Combine are types of combine harvesters available in the market.
Increased demand for technologically advanced farm equipment and government support for agricultural mechanization are some factors influencing market growth.
High cost of farm equipment manufacturing is a key factor restraining the growth of the combine harvester market.
Deere & Company, Kubota Corporation, Mahindra & Mahindra Limited, CLAAS KGaA mbH, KS Group, Yanmar Co., Ltd., Preet Group, SDF S.p.A., Hind Agro Industries, Tractors and Farm Equipment Limited, Kartar Agro Industries, Massey Ferguson, LOVOL and New Holland are some of the key players in the market.
Reaping, threshing, and winnowing are the main functions of combine harvester.
Labor shortage and the rising cost of farm labor are the trends of the market as growth in the urban population is predicted to drive up demand for combine harvesters.
150-300 HP segment holds the highest market share as manufacturers are introducing a slew of advanced combine harvesters.
The 250-350 bu grain tank size is high in demand.
China is the highest shareholder country in the Asia Pacific Combine Harvester Market.
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