Farm Equipment Manufacturers and AG Technology Companies Forge Closer Ties

Farm Equipment Manufacturers and AG Technology Companies Forge Closer Ties

PR Newswire

CLEVELAND, Sept. 25, 2024

CLEVELAND, Sept. 25, 2024 /PRNewswire/ -- According to Freedonia Group Global Senior Industry Analyst, Gleb Mytko, "As technological innovation accelerated in the global farm machinery industry in recent years, manufacturers have increasingly partnered with or acquire agricultural technology companies."

Through such cooperative agreements and acquisitions, producers of agricultural equipment are able to gain access to new technologies, bolster their research and development (R&D) activities, and expand their product portfolio, giving them an advantage over competitors. Furthermore, these moves are likely to have a long-term, positive impact on company growth. Because innovation will continue to transform most types of agricultural machinery, companies will increasingly focus on product development and complying with new regulations. For instance, the next generation of emissions standards for off-highway diesel engines will require significant innovations.  

A number of important acquisitions or cooperative agreements – that brought together manufactures of farm machinery and agricultural technology companies – occurred between 2022 and 2024:

• In August 2024, CNH Industrial (a leader in the global farm machinery market) and CropX (a producer of digital agricultural solutions) announced "a new application programming interface (API) connection between the CropX agronomic farm management system and Case IH and New Holland Agriculture equipment" that "automates the transfer of data from CNH machinery to CropX for data visualization, record-keeping, planning, and variable-rate applications." The new interface helps with many different aspects of farming, including planting, application, and harvesting, and provides farmers with a wide range of information.
  
  
• CNH Industrial also acquired a 10% stake in Stout Industrial Technology (artificial intelligence capabilities) in December 2022; purchased a minority stake in EarthOptics (for the development of tillage automation technologies) in January 2023; and bought Augmenta (selective spraying capabilities for precision agriculture) in March 2023. Additionally, it acquired a minority stake in Advanced Farm Technologies (automation & sustainable solutions for agriculture) and bought Hemisphere GNSS from Unistrong (autonomous capabilities for agricultural & construction equipment) in October 2023.
  
  
• In September 2023, AGCO and Trimble entered into a joint venture and "will acquire an 85% interest in Trimble's portfolio of Ag assets and technologies for cash consideration of $2.0 billion and the contribution of JCA Technologies." The move is key to expanding AGCO's precision agricultural business and helps Trimble greatly increase its reach.
  
  
• Deere acquired US-based Smart Apply – a supplier of precision spraying equipment – in July 2023. Precision spraying technology can help farmers address challenges concerning labor, input costs, & regulatory requirements

The Global Agricultural Equipment study incorporates these trends and more. The study analyzes global supply of and demand for agricultural equipment by major world region. Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are provided for production, demand, and net exports of agricultural equipment in current US dollars at the manufacturers' level. Annual data from 2020 to 2027 are also presented. Product demand at the global level is also provided in unit terms.

If you cite the study, please send us a link to the article and we will reciprocate on our product page.

About The Freedonia Group
The Freedonia Group is a premier international business research company, providing clients with product analyses, market forecasts, industry trends, and market share information. From one-person consulting firms to global conglomerates, our analysts provide companies with unbiased, reliable industry market research and analysis to help them make important business decisions. The Freedonia Group's brands also include Packaged Facts, a trusted provider of consumer market research on food & beverage, pet products and services, demographics, and financial services, and Simba Information, the leading authority for market intelligence and forecasts on the education and professional publishing industries. Find off-the-shelf studies at https://www.freedoniagroup.com/ or contact us for custom research: +1 440.842.2400.

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SOURCE The Freedonia Group