The Middle East and Africa pre-harvest market is expected to reach USD 5.19 billion in 2024 and reach USD 6.79 billion by 2029, growing at a CAGR of 5.52% from 2024 to 2029.
Farm operations are performed in a timely manner, and the quality of agricultural commodities produced by the use of machinery is better. Further, the workload is reduced and also it brings about a change in the characteristics of agricultural practices. The agriculture industry is presently facing many challenges, such as producing more food to feed the rapidly growing population with a waning labor force. Without the use of agricultural equipment, it is likely to become very difficult to sustain the needs of this growing population.
Lately, however, there has been innovation in chemicals, fertilizers, and seeds, which has empowered agricultural producers to try to meet the steadily rising demands of the world population. The use of pre-harvest equipment is likely to help farmers improve their production capacities to reduce the widening gap between demand and supply of agricultural produce. But in spite of such innovations in agricultural productivity, the challenges for the agricultural industry to supply the growing global economy with adequate supplies of agriculture are greater than ever before.
The tillage and planting equipment are the major segments capturing nearly 60% of the total market share. The production of self-propelled equipment has shown incredible growth in the last two decades because of its increased use by farmers, facilitated by simplicity in the application. The planting equipment accounts for 30% of the total market. Steadily increasing use of pre-harvest equipment in order to increase production capacity and efficiency is the cause of the observed market growth. Moreover, increasing awareness among farmers and several government initiatives, especially in developing economies, is anticipated to increase the demand for the market in the coming few years.
The pre-harvest market in the Middle East and Africa is driven by the advantages linked to it, such as enhanced farm yield and lessening labor requirements. Other factors propelling the demand for the industry include increased consumption of food due to population growth, augmented farm mechanization level, and rising income of middle-class farmers in developing nations. Additionally, several government initiatives and subsidiaries provided by them, especially in developing economies, are projected to augment the Middle East and Africa pre-harvest market throughout the forecast period. But still, the lack of awareness and hefty cost of farm equipment, are the major challenges in the growth of the market. Primary restraining factors for the agricultural equipment market are the small and fragmented land holdings in various parts of the Middle East and Africa.
Major companies are focusing on launching new products to expand their business in the Middle East and African markets. Substantial investments were made by companies in the local market to cater to the domestic demand. New products were launched by manufacturers to provide customized solutions to the farmers. Another area of focus was the launching of crop-specific agricultural equipment. Collaborations were made with distributors in foreign markets to guarantee a continuous supply of the products and implements. Thus, from 2018 to 2023, new product launches and collaborations were the leading growth strategies for pre-harvest agri equipment, together accounting for 63% of the total developments.
The Middle East and Africa pre-harvest equipment market industry is highly consolidated, with few companies manufacturing most of the products, and the rest of the market share is divided into small companies. Deere & Company (U.S.), CNH Global (The Netherlands), and AGCO Corp (U.S.). are the market leaders with a combined share of about 60%. The other players include Mahindra & Mahindra Ltd (India), Valmont Industries Inc.(U.S.), Iseki & Company Ltd(Japan), etc. Deere & Company is the market leader with 38% in 2018. In order to expand its product lines, John Deere has introduced various equipment. The company also adopted expansion and investments as its strategies for expanding its market globally. It invested around USD 58 million in its John Deere Seeding manufacturing plant in Moline to enhance its operations.
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