| Study Period | 2019-2031 | CAGR | 8.7% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 5.34 Billion |
| Forecast Year | 2031 | Forecast Year Market Size | USD 11.22 Billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | Europe |
The global baler market size was valued at USD 5.34 billion in 2022. It is estimated to reach USD 11.22 billion by 2031, growing at a CAGR of 8.7% during the forecast period (2023–2031).
A baler or hay baler is farm equipment utilized to compress cut and raked crops (such as hay, cotton, salt marsh hay, flax straw, and silage) into compact bales that are simple to handle, transport, and store. The bundled plant's inherent (e.g., nutritional) value is often preserved by drying and storing it in a bale. Depending on the type of baler used, the resulting bales can take on a number of different shapes and sizes. They can be tied with various materials, including twine, strapping, netting, or wire.
The first round baler was likely devised in the late 19th century, and Pilter displayed one in Paris (as illustrated by Michael Williams in Steam Power in Agriculture: Blandford, 1977). This portable device was intended for use with threshing machines. Industrial balers are also utilized in material recycling facilities to transport metal, plastic, and paper bales.
The Asia-Pacific region has become one of the most lucrative markets in the agriculture sector over the last decade. Despite the fact that the area, particularly in nations like India, Australia, and Southeast Asia, is rapidly accelerating the adoption of smart agriculture equipment, the market is still in its infancy. Similarly, the region is seeing significant investments from agricultural OEMs and governments to support projects for smart agriculture. Cost-effective machinery, especially balers, are in high demand because of the various climatic conditions in these countries.
In recent years, drought conditions in parts of Australia and New Zealand have resulted in large amounts of hay and straw production, increasing demand for balers and associated equipment. These climatic conditions and the consequent changes in the needs of farmlands in these areas are compelling companies to focus on innovation and increasing their customer base. For instance, In June 2020, despite the COVID-19 pandemic, Case Corporation, a part of CNH Industrial America LLC, introduced its double-knotting technology-based TwinePro knotter on its LB4XL balers, including LB434XL in the Australia and New Zealand region.
As per the Food and Agricultural Organization (FAO), global livestock production accounts for more than 35% of the gross value of the world's agricultural production; the number varies for advanced and emerging economies. Factors such as urbanization, rise in disposable incomes, lifestyle changes, and dietary habits have led to the growth of global livestock production. In addition, Asia-Pacific has witnessed the most significant rise in meat production across the five regions. It signifies that the demand for meat increases with the increase in population and rising disposable incomes.
Moreover, the farmers and animal husbandry owners must keep sufficient fodder in storage to feed such livestock. By efficiently meeting these demands, agricultural balers play a crucial role in ensuring steady growth in livestock production. Agricultural balers offer greater convenience to farmers in transporting and storing straw and hays and ensure they have sufficient fodder. Similarly, leading baler manufacturers, such as CNH Industrial N.V., Deere and Company, and KUBOTA Corporation, are increasingly providing different types of balers to cater to the different needs of farmers.
The average cost of a baler varies based on type, features, and country of manufacture. The average cost for a baler was in the range of USD 75,000 to USD 85,000 in 2019. The maintenance cost for balers also increases based on the number of rolls used in the field. These high costs have become one of the most substantial barriers to the large-scale adoption of balers. Small farmers, chiefly from emerging economies such as India, China, Mexico, and Southeast Asia, are often discouraged by financial constraints resulting from insufficient financial support and a lack of financial policies for adopting balers.
Furthermore, the technical specifications of balers associate them with regular maintenance. Using round balers to create silage bundles is labor-intensive and necessitates a well-designed feeder system. Inconvenient downpours make the hay soggy, making it difficult for the loaders to feed it into the machine. On the other hand, crop straw becomes loosened if the hay is overly dry. This takes time to clean the equipment. These factors hinder the adoption of balers to a certain extent.
Agricultural balers are one of the most crucial equipment in the fields. Large square balers facilitate transporting and storing a large quantity of hay and straw crops. Such a massive load creates high inertial and pressing forces, leading to unpleasant vibrations in the tractor cabs and putting a mechanical strain on the driver. In addition, companies have been continually developing innovative products to overcome such challenges to provide a seamless harvesting process. For instance, in 2019, Deere & Company added the intelligent vibration damping feature on its 7R tractor series lined with balers. This feature helps eliminate unwanted vibration in the tractor, thus providing a seamless driving experience for the tractor driver.
Furthermore, new designs and increased automation are increasing the demand for high-density balers to improve the efficiency of on-farm operations. In September 2020, Case IH, a part of CNH Industrial, N.V., significantly improved its LB436 HD large square balers. The company has incorporated innovative TwinePro knot technology, which offers consistent tying with a loop knot that enhances the knot strength. The balers also have a bale chamber that offers 16% longer and 50% more plunger force than other Case IH models. Such technological advancements in baler are creating opportunities for market growth.
Asia-Pacific Dominates the Global Market
Based on region, the global baler market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant global baler market shareholder and is estimated to exhibit a CAGR of 11.02% during the forecast period. The dominant share is attributable to prominent market players in the region, including IHI Corporation, Kubota Corporation, and Mahindra & Mahindra Limited. The expanding livestock farming in this region is expected to spur market expansion over the forecast period. Strong economic growth in developing nations like China and huge agriculture industries in countries such as Australia are the primary reasons for the large market share of the Asia-Pacific market. China and India are prominent global markets for agricultural equipment. In 2018, China accounted for more than 30% of the regional demand for farm gear. Regional growth can be ascribed to low mechanization and large agricultural land areas. However, the mechanization of various agricultural processes is evolving progressively in the Asia Pacific, which is estimated to spur demand for agricultural machinery over the forecast period.
Furthermore, as China and India rely heavily on agriculture, central and state government subsidies encourage farmers to invest in agriculture apparatus. For instance, in parts of India, particularly in Andhra Pradesh, government subsidies allow more farmers to adopt straw balers. In 2018, the state government provided paddy balers at a subsidy of 50%. Therefore, an estimated range of 150 to 200 new farmers in the state implemented balers. This is anticipated to increase demand for agricultural balers in the Asia-Pacific region. In addition, changing climatic condition leading to environmental distress is expected to boost the market growth in the region. Delhi, the national capital of India, has been witnessing environmental distress in October and November over the last few years. One of the key factors often associated with this is the burning of paddy straw at the end of the rabi harvesting season. The situation fails to improve through straw management equipment, driving the demand for advanced balers.
Europe is predicted to exhibit a CAGR of 9.9% over the forecast period. The region's growth can be attributed to large farm sizes in European countries. Another major reason for the expected growth of the region is the initiatives undertaken by the government to promote the usage of machinery in agriculture. Further, the region is characterized by manufacturers, OEMs, and a large customer base. Based in the region, companies such as CLAAS KGaA mbH and CNH Industrial N.V. contribute significantly to the market share.
North America is expected to grow substantially in the global market. Large producers of corn, wheat, and soy fuel the demand for agriculture equipment in the North American region. Canada and the United States are significant contributors to the expansion of the agriculture baler market in North America. The market is being boosted by the rise of industrialization and technological advancements. Additionally, the presence of well-established manufacturers in the region, primarily in the United States, contributes to the expansion of the market. The leading manufacturers are emphasizing the development of energy-efficient balers using advanced and variable technologies.
| Report Metric | Details |
|---|---|
| Segmentations | |
| By Product |
|
| Company Profiles | AGCO Corporation CLAAS KGaA mbH CNH Industrial N.V. Deere & Company IHI Corporation Kuhn SAS Kubota Corporation Maschinenfabrik Bernard Krone GmbH Same Deutz-Fahr Group S.p.A. (SDF) Mahindra & Mahindra Limited. |
| Geographies Covered | |
| North America | U.S. Canada |
| Europe | U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe |
| APAC | China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific |
| Middle East and Africa | UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA |
| LATAM | Brazil Mexico Argentina Chile Colombia Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
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The global baler market is segmented by product.
Based on the product, the global baler market is bifurcated into round and square balers.
The round baler dominates the global market and is predicted to exhibit a CAGR of 9.41% over the forecast period. Balers that produce round bales are categorized as round balers. The round baler is the most prevalent form in industrialized nations today. Large round balers with variable chambers typically generate bales with a 48 to 72 inches diameter and a width of up to 60 inches. Depending on dimensions, material, and moisture content, the bales can range in weight from 500 to 1,000 kg. Common modern small round balers (also known as "mini round balers" or "roto-balers") generate bales that are 20 to 22 inches (51 to 56 cm) in diameter, 20.5 to 28 inches in width, and weigh between 18 to 25 kg.
Furthermore, the large share of round balers is attributed to their low power requirements. A mini-round baler requires significantly lower power in comparison to square balers. Thus making it a popular choice for smaller farmers with low-horsepower tractors. Round balers are also easy to operate with fewer adjustments and provide bales with higher weather resistance than square bales.
Balers producing square or rectangular-shaped bales are categorized as square balers. The square balers market is further segmented into small and large square balers. Small square balers produce bales with dimensions not more than 15 X 22 inches and weigh up to 140 lbs. Small square balers accounted for over half of the total square balers' shipments in 2019. However, the large square balers dominated the revenue share due to their significantly higher price than the small ones. Owing to the extensive usage in large-sized livestock farms, large square balers are anticipated to record high growth.
