Washington, D.C., — Continued adoption and integration of new technologies to improve crop yields and meet the soaring demand for food are expected to be key influencers for growth in the agriculture market, according to a new study, Vertical Market Outlook Series: Agriculture Equipment released by the Equipment Leasing & Finance Foundation.
The report provides an outlook on the agriculture equipment sector in the U.S., demographic and spending trends, and key developments impacting this sector over the next one to two years. It is the fourth release of the Foundation’s forward-looking Vertical Market Outlook Series designed to help readers recognize and understand opportunities and challenges that may affect their businesses.
The report, commissioned by the Foundation and prepared by Engine Group, comprises data from a variety of sources, including the Federal Reserve, USDA, Purdue University Center for Commercial Agriculture, Grandview Research and Farm Equipment and Ag Equipment Intelligence, which reports that the global agriculture equipment market size was $139 billion in 2018 and is expected to have a compound annual growth rate of 8.9% for the period 2019 to 2025.
Among the wide range of issues examined in the study are:
• Use of technology, such as ground-based sensors, autonomous tractors, and drones;
• Rise in farm bankruptcies;
• Trade war impact on farm equipment;
• Role of climate change in agriculture; and
• Niche market opportunities, including locally-grown food, small farming, and precision agriculture.
“This report focuses on the areas of the agriculture equipment industry that we believe to be the most relevant to the equipment finance sector,” said Tom Ware, Foundation Research Committee Chair. “The valuable insights are provided for equipment finance professionals to use in informing their strategic planning and decision-making.”
In addition to Engine Group’s broad knowledge of the U.S. macroeconomic environment and the agriculture sector, the study draws from sources including outside industry experts and consultants.