Traditionally, demand for tillers has witnessed steady increase over the years on account of shortage of agricultural labor and rising wage rates. Sales have also grown on account of growing emphasis among farm owners on increasing efficiency. Tiller machines are highly efficient over manual processes, and rising trend of farm mechanization is likely to augur well for the growth of the market.
Although tiller machine sales are likely to witness steady growth, broader trends related to sluggishness and lack of momentum in the agriculture sector are likely to stymie growth. Low crop yields, volatile commodity prices, and regulatory changes to curb global warming have put pressures on farm owners. This, in turn, has led to waning investments in tiller machines and other farm equipment. The broader challenges in agriculture industry are likely to curtail growth of the global tiller machines market during the assessment period.
Minimalism and pragmatism are driving the concept of renting among residential and commercial users. Renting is an affordable option vis-à-vis buying, and a number of brick-and-mortar and online providers have sprung up to cater to the growing demand for renting equipment. Although the growing pervasiveness of renting is inducing corporate sales, it is a deterrent to the overall growth of the market, owing to its impact on declining sales.
Although the demand for tiller machines is likely to grow at a sluggish rate around the globe, manufacturers can expect a steady stream of opportunities to emerge from end-users in Asia Pacific excluding Japan (APEJ). There is a significant demographic where penetration of tiller machines is still at a nascent stage. The agrarian nature of the society in many countries of APEJ is likely to promote the growth of the market.
Electric tillers offer ease of use and convenience, on account of which their demand has witnessed a steady increase during the assessment period. Although hydraulic tillers currently account for a higher revenue share, demand for electric tillers is expected to grow at a higher rate during the assessment period. Sensing the growing preference for electric tillers, manufacturers are focusing on broadening their range of offerings in the electric hydraulic segment.
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Leading players in the market are focusing on R&D investments and launching affordable tillers to consolidate their position in the market. Manufacturers are also tying up with universities and research institutions to foster innovation in the development of tillers. For example, Agriculture Research Station, Mannuthy of Kerala Agriculture University has developed a “ten headed” agricultural machine that can be used for completing three tasks simultaneously. The multipurpose power tiller is targeted at residential consumers. Further, owing to the steady demand for tiller machines in APEJ, manufacturers are focusing on launching affordable range of products that offers basic tilling functions.
Overall, the sluggishness in farm and garden equipment industry is likely to rub off on the prospects of tiller machines market. The global tiller machines market is projected to grow at a moderate CAGR during the assessment period.