According to New Report by Global Industry Analysts, Inc.
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Planting and fertilizing machinery are primarily utilized for agricultural activities such as sowing of seeds, planting of seedlings and application of fertilizers. Years of technology advancements have transformed the engineering design and delivery system of seeding and fertilizing machinery. Currently, a wide variety of sophisticated planting and fertilizing machinery are available in the market suitable for use in a broad range of planting conditions, terrains and crop type. A major factor driving demand in the market is the growing adoption of mechanized farming practices worldwide. Other factors influencing growth in the market include farm income, commodity prices, product innovations, credit availability, government subsidies and scarcity of farm labor.
Farming activity during the 2007-2009 recession period was impacted, though moderately. The tough financial conditions resulted in an increase in farmer carryover debt and delinquency rates. Capital expenditure on farm machinery such as planting and fertilizing machinery was negatively impacted. In the year 2010, farming activity recovered in sync with the rise in global commodity prices. Favorable government policies also aided the recovery process. Increased commodity prices led to higher farm incomes, encouraging farmers to invest in farm equipment and machines. The long-term outlook for the global planting and fertilizing machinery market is positively guided by population growth and rising emphasis on food security and self- sufficiency, especially in developing countries. Declining production yields of cereals and oilseeds worldwide is expected to result in the expansion in land use for agricultural cultivation, thus benefiting market demand.
Rising farm consolidation in developed countries is expected to generate demand for larger machinery. Urbanization is a key factor responsible for consolidation of farms into larger farming plots. With shortages in farm labor supply, bigger equipment assumes mission critical importance in effectively managing large scale farm activities. Developed countries are expected to witness increased demand for high capacity sprayers. Sales of sprayers with capacity of over 1200 gallons are especially expected to witness robust growth. In the United States, new farms acquisitions are resulting in new demand for large size sprayers, as farmers seek to achieve operational benefits and cost advantages. Rapid technology developments like automatic boom section control and assisted steering and boom height control systems are also encouraging growth in the sprayers market.