Report: Global Ag Market To Reach $100 Billion By 2015

The global market for agricultural equipment is forecast at a modest pace of growth, with developing economies offsetting the impact of slower growing developed world, according to a new report by Global Industry Analysts.

Market expansion will be driven by greater farm mechanization in significant markets such as India and China, the group said. Countries such as Indonesia, Thailand, Brazil and Russia are also expected to post robust growth due to increased use of machinery. Furthermore, governments in these countries are increasingly placing greater emphasis on enhancing productivity through automation or mechanizing traditional processes.

In the U.S. there will be below-average gains stemming from slowed agricultural output. Europe will see a modest growth with rising farmer incomes from high crop prices, the report showed. Demand will continue to be mostly replacement driven since the farming sectors are stagnant in terms of number of farms, acreage and other parameters. Extensive use of precision agriculture aided by latest technologies in GPS systems will also drive growth. ❖