Global Balers Market - 2021-2028
Baler is a farm machine that cut or compress hay in to compact, dense bales that are easy to manage, transport and store. These are extensively used in grass farms that are intended for animal fodder purposes. Also, balers are used for post-harvest waste management in crops such as rice, cotton, wheat, sugar cane and corn. Waste straw management turned as a lucrative application segment owing to the use of these hay bales in commercial applications such as animal fodder, ethanol production, as a building material and heating fuel. Bales of rice straws, corn straws and wheat straw are largely in use as quality animal fodder across the globe. Balers are designed in round and square models to produce bales of respective shapes. Round balers offer high flexibility to use in uneven fields and are significantly light in weight over square counterparts. The global balers market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%.
Market Dynamics: The increasing use of crop straws as animal fodder is driving the demand for balers
The widespread use of grain straws as fodder for livestock animals is increasing the demand for balers globally. Livestock owners are interested towards baling of hay and crop leftovers owing to the handling, transport and storage benefits of bales over loose grass. The demand for such fodder is continuously growing with increasing cattle population. Furthermore, handling of crop leftovers, post-harvest has been a severe concern in agriculture across the world. Much of this waste including straws, hay, leaves and twigs are burnt or buried. However, burning of crop waste is resulting in air pollution and bush fires, and burying create hurdles in soil preparation for next crop. Thus, the need for effective handling of waste has been a paramount interest among farmers. Balers evolved as an effective solution as it provides fine cutting of straws and forms dense bales, which are then disposed at distant fields.
Market Segmentation: Hay helps shape the stems and bushes, which is easy to transport and store, which boost the demand for hay balers
The hay baler relates to a distinct piece of agricultural equipment utilized to harvest hay, including grasses and other plants called legumes. Timothy Grass, clover and alfalfa are common hay crops. The crops utilized as animal feed are cut with a mowing machine. The process breaks the stems and makes hay more palatable to cattle.
A hayrake is utilized to use the hay so that the windrow can dry completely. The baler collects the cut hay from the windrow and packs it into round or square-shaped bales to support transportation and storage, increasing the demand for hay balers protected by rain and snow, which is protected by hay shed.
Geographical Penetration: Asia Pacific is dominating the global market, with wide spread use in farms of Japan and China
Asia-Pacific is the largest regional market for balers in terms of sales volume and revenue. The region accounted for over 40% of the dollar sales in 2020 owing to well-established demand from China, Japan and India. Japan has been on the forefront of agricultural mechanization owing to aging farmers and low availability of farm labor. The country witnessed early adoption and rapid penetration of balers before any other Asian markets. India evolved as the most lucrative market owing to the growing use of machines in farming activities and relatively low penetration. Also, the presence of large cattle population is resulting in significant demand for animal fodder. India follows seasonal farming and the agriculture is highly dependent on monsoon rains. Also, livestock owners greatly rely on rice and wheat straw bales for fodder.
Ministry of New and Renewable Energy, Govt. in India estimated that about 500 Mt of crop residue is generated every year which is burned by the farmers. This is resulting in large amount of pollution.
Competitive Landscape: Increasing usage of balers made the market competitive
The global balers market is highly fragmented with large number of companies operating in the market. However, companies such as AGCO Corporation, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company and Kubota Corporation are enjoying top market positions owing to the wide geographic presence, high brand value in agriculture machinery and superior quality products.
IHI Corporation, KUHN SAS, Maschinenfabrik Bernard KRONE GmbH & Co. KG, Mahindra Tractors, SDF S.p.A., American Baler Company, International Baler, McHale, VirtualExpo Group, Carlos Mainero & CO SAICFI, Vermeer Corporation, KARTAR Agro Industries Private Limited, and Ochre Media Pvt Ltd are some other leading companies in the market
COVID-19 Impact: Pandemic dampened the sales of farm machinery including balers
The Covid-19 pandemic posed a significant negative impact on the global balers market. The sales of farm equipment sharply declined owing to lockdowns and other restrictions guided by the government. Dealers remained close during much of the lockdown period and finance activities halted due to break of vehicle registrations. Also, the demand from farmers declined significantly owing to subdued farming activities and slowdown of economy. On the supply side, production of balers has been on pressure owing to restrictions on manufacturing industry. Many companies suspended or lowered their production due to close of factories or restricted labor permit
However, the industry is expecting revival in demand owing to easing restrictions and improving economy. Countries such as India and China are reporting increased sales in late 2020 owing to resilient agriculture activities