The global agriculture equipment industry is driven by strong, long-term industry fundamentals with the global agricultural output required to double itself by 2050 as against the present level, in order, to match the rate of global population growth, as per projections, amid diminishing natural resources, thus, highlighting & underscoring the imminent & urgent need for tremendously enhancing efficiency & productivity through precision farming. The farm sizes across traditional markets are increasing with ongoing consolidation generating demand for larger & more powerful machinery delivering enhanced efficiency as well as operating economics. The emerging markets, on the other hand, derive a sizeable chunk of their annual GDP from the agriculture sector besides employing a substantial proportion of their workforce (in some developing nations this ratio is 20:80) and are investing significantly towards mechanization of their agriculture sectors. The industry has additional strong growth drivers as well in the form of growing demand from the bio-fuel industry for agriculture sources based feedstock and strong, sustained global commodity price trend.
The global agriculture equipment industry is in the midst of a technology-driven evolution phase involving incorporation & integration of a host of ICT technologies onto product platforms that has augmented the capabilities of these machines tremendously by delivering enhanced operating efficiency through detailed performance monitoring & assessment, improved operating economics, focus on prognostics and remote machinery tracking as well as diagnostics. Further, new product development efforts underway across key global OEMs have a significant focus as well as emphasis on technological innovations capable of delivering & translating into performance & productivity enhancements.
Most leading global & regional OEMs are in the process of aligning & fine-tuning their strategies with emerging as well as latent industry trends & developments. The most notable being the ongoing significant investments by the OEMs, with long-term, sustainable growth perspective, towards deepening local roots across emerging markets through establishment of local manufacturing facilities besides developing new product platforms & technologies, strengthening and extension of global sales, service & support infrastructure with a strong focus on emerging markets.
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