The report provides a comprehensive analysis of the potential of Agriculture Equipment in Australia. The report covers an overview and genesis of the industry, market size in terms of total sales value.

Its market segmentations include by Type of Equipment, by Mode of Sales, by Type of Purchase, by Automation, by Region, By Application and others; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Report Ocean estimates, the impact of COVID-19, a shortage of components interfered with the production of many items of machinery but the rental agricultural equipment market became popular during the pandemic. The pre-owned Agri-equipment market has been relatively growing. The Australia Agri-Equipment market is expected to grow at a CAGR of $% during 2021-2026F, driven by technological advancements, government initiatives and the availability of loans.

In future, a lot of technological advancements like Navigation and GPS being installed in tractors are expected to pick up traction. Automation will also reduce the cost of labour, which is currently very high in Australia. Fully automatic machinery sales will go up in the coming years.

Young farmers highly prefer financed purchases. Interest rates being comparatively low in the past few years has been a major factor behind this. In future even if people have the cash to buy equipment, building a long-term business credit will be one major factor behind the growth of financed purchases.

Key Trends by Market Segment:

By Automation (Semi-automatic, Manual, Automatic)

The affordability of semi-automatic equipment increases their demand for normal agricultural operations. Even though automatic equipment is more widely used, manual transmission engines are less complicated, lighter and have more gears than automatic transmission engines saving 5-15% on fuel consumption.

By Type of Purchase

The interest of farmers to access cheap finance and utilize their tax deduction incentives from the Government has increased the demand for financed purchases. Major financing products for agriculture equipment in Australia are chattel mortgages and finance leases.

Competitive Landscape

Australia Agriculture Equipment market is moderately concentrated with five players capturing ~75% of the market share in 2021. John Deere and CNH Industrial and AGCO collectively dominate the market owing to their increased focus on technology and innovation in the product portfolio. Major Players in the market have an adequate employee base and are involved in both manufacturing and supplying of equipment worldwide.

Future Outlook

Demand for alternative fuel-based tractors rather than conventional diesel-based tractors will drive the market owing to their fluctuating prices. Technological advancements such as GPS technology will improve the working performance of tractors in the future. More farmers will be driven towards technology in the medium term. Online mode of sales will be a major part in the segment owing to the higher penetration of online media in the market. The variety of choices and the transparency of price ranges available to the farmers ensure increasing preference for online sales channels.