Data show that the global agricultural product prices have fallen by 10% to 40% in the past five years, and the recent global trade disputes have exacerbated the decline in commodity prices, affecting farmers’ enthusiasm for crop planting and their demand for agricultural production materials.
Although the development of the agricultural industry is at a low ebb, related industries are also facing many obstacles in seeking new growth, and the long-term impact of disruptive technologies on agriculture and the innovations they can bring are still unclear, but the growing global population and demand for food make us still believe that agriculture has a future worth looking forward to, and agricultural companies also have reasons to remain optimistic. Perhaps in the near future, we will witness an unprecedented technological revolution in the agricultural field with our own eyes, but in this process, there are indeed many things that agricultural stakeholders can do.
The factors affecting the global agricultural machinery market demand are mainly economic prospects, weather and demand. The rapid growth of the global population and the replacement of old equipment have a large demand for agricultural machinery products. The Asia-Pacific region is the largest market for agricultural machinery demand and also the fastest growing market, with a compound annual growth rate of 7.9%. This growth will mainly benefit from the growth of sales in rapidly developing developing countries (especially China and India). These developing countries have been committed to mechanization in the agricultural sector, and their population expansion and strong economic growth have brought increasing pressure to the agricultural sector, which has also led to a continuous increase in agricultural machinery sales. In addition, the markets in Indonesia, Thailand, Brazil and Russia are also growing rapidly. The governments of these countries are committed to promoting agricultural mechanization to increase food production and productivity.