In the first quarter of last year, the predictions for the industry of heavy machinery were optimistic. Innovation and markets that were growing, like artificial intelligence the cloud, intelligent cities and many more led the way into 2020. However, the landscape has been changing since the COVID-19 outbreak began.
There are however significant differences between farm machinery developments as well as other equipment. The agricultural sector has always been the main technology-driven driver in the heavy industry. Indeed, the automation of agriculture and the success of a firm could be tightly linked. It is therefore reasonable to assume that market forecasts may be slightly different from the machines for agriculture.
Six key trends in industry that are shaping agriculture machinery
The adoption of sustainable mechanization
Concerns about water resources, natural resources and soil degradation has led manufacturers to consider modern techniques that are more eco-friendly. The major players in the agricultural machinery industry have issued demands for attendees of the UN Food System Summit to increase efficiency in production.
It is expected that this trend will persist for a considerable amount of time. In order to meet the ever-growing need for food in next few years will be more challenging because of the numerous environmental impacts on agriculture. So, the machines for agriculture will probably undergo a slight shift, favoring different machinery that it did before.
Furthermore the government is likely to help finance the transition to sustainable farming equipment. Agriculture is at the top of the majority of countries and governments because the industry is responsible for the majority of other industries. So, focusing on environmentally sustainable farming equipment is the best way to go.
Precision agriculture
Since the industry of agricultural machinery is in the front of technology advancement It's not a surprising that the concept of precision farming is among the major developments. In order to implement precision farming, you need the use of high-tech equipment, farmers aren't worried about it.
Instruments like sensors in-field and drones that are not piloted (frequently called drones) let farmers concentrate on the smallest specifications and details of specific crops. In addition, the data gathered by these tools can provide insights regarding possible improvements in the allocation of plants and other aspects.
Precision farming is predicted to be the future of agriculture. Major companies like Monsanto and Agco Corporation have begun implementing precision farming and prescriptive-planting that allow them to optimize the cultivation of food crops.
The fascination with robotics
Although the widespread adoption of robotics by major corporations in the field of agriculture has been slow compared to other industries, there's a reason to believe that demand for robotics will increase rapidly. Agriculture machinery has reached its size limitations in several countries, and is hindering further advances. Farmers will therefore have to look to AI and machine learning for solutions.
In addition, robotic equipment and machines can be used in harsh conditions, enhancing the efficiency of operations, as well as produce more agricultural products which makes them an attractive option. Robotic machines can be used in the evenings and Saturdays, helping speed up production processes and reducing production costs.
It's anticipated that the increasing demand for agricultural products will eventually oblige farmers to adopt robotics to manage their business. Because of the competitive market that even a slight lag could cause farmers to go out of the market.
Remote workforces and autonomous workers
The pandemic imposed a burden on many industries , heavy machinery not being an exception. Nearly every business regardless of the industry began to look into ways to run its operations remotely. The use of technology allowed them to explore new management concepts.
One of the principles that has grown into a major popular trend in the industry is the development of autonomous workers. In the end, large companies across North America and other places across the world have realized that having more costs don't always mean more efficient. Employees can complete complicated tasks by themselves as provided that the right information and tools are in place.
Therefore, companies across a variety of industries are looking at remote workforce solutions that will enable their workers. Field technology and service solutions allow farmers and field workers all the information they require in real-time. Instead of needing to constantly be in contact or performing other tasks that aren't of high-quality, workers are able to focus entirely on providing worth.
Supply chain modifications
Since countries have been closing their borders as well as pursuing industrial projects that have impacted the supply chain for industrial machinery, heavy equipment and others has been hampered. Global supply chains have a variety of weak points, and one of the most notable examples is during the initial phase of the pandemic, when China shut down its borders and blocked access to medical supplies.
The recovery in the economy will be spread out across the world , and will depends on how badly the country or region affected by the pandemic, and how quickly it is able to recover. To avoid an event similar to this in the future, the heavy machines and other supply chains are expected to be more flexible and resilient. This means that supply chains across the globe are expected to shift to regional areas and less dependent on global production.
Although the world is still recovering from the pandemic (as as evident by the rapid rise in the price of raw materials) it is likely that there are numerous lessons to be discovered. Because the global agricultural equipment market is of such important role for governments as well as nations in general and beyond, we can expect to see more failsafes to be included in supply chains that are being implemented.
More efficient than ever mechanization
Countries in the developing world haven't been able to keep up with the latest technological advancements in farming machinery. They are typically using a large amount of manual workers instead of using agricultural machines. But, it appears that the dynamics of the market are shifting.
Although farm tractors are the most important commodity in the market for agricultural machinery greater and more profound adjustments are likely particularly in the emerging world. Mordor Intelligence predict that India will witness a drastic decrease in manual labor in farms and a rise in the utilization of high-tech machinery. They also predict that in the coming years, the Asia-Pacific region will be able to surpass North America and other agricultural machinery markets to become the fastest-growing region.
Therefore, the market for machinery is expected to search for more customers from the Asia-Pacific region, as the businesses are expected to grow in the region. Because farmers have plenty of potential for growth and we can anticipate firms like John Deere to market themselves more effectively.
