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Pre-harvest Equipment Market - New Revenue Pockets
The Asia-Pacific region has become an important region for key players in the industry, as the farmers have become open to mechanization. The farm equipment market in Asia-Pacific captures about 31% of the total market revenue. The market is expected to expand with a CAGR of 6.3% from 2013 to reach $17,767.2 million by 2018. This region is the emerging market with investments from several multinational manufacturers especially in major markets such as India and China. China is the main market in this region, accounting for 25% revenue. There are more global players in the market trying to enter this region by means of mergers, acquisitions or partnerships for business expansion. The Asia-Pacific market is expected to expand with the highest growth rate due to the increasing demand from countries such as India and China. The restraining factor in this market is high cost of equipment with small and fragmented land holding.
Agriculture is a very important industry in China as it employs around 300 million people. Labor-intensive farming is mostly practiced in the country; and this country has shortage of arable land. The projected growth rate of the Chinese market is also high when compared with other regions, due to governmental support. To improve upon their row-farming, the country has started utilizing the seed drills. There has been diversification of machine types, from grain production to processing as well as storage equipment. The Chinese Government is supporting the farmers for sustainable use of mechanization and the trend is expected to continue. In Indian agriculture, farm mechanization is an important segment and plays a crucial role in agricultural development. Though the level of mechanization is low, there is scope for improvement. Small-scale farmers have also become open to the adoption of tilling, planting, irrigation, and plant protection equipment which is a new revenue pocket for the key industry players.
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