Agriculture forms an important part of a nation’s economy. Increasing use of heavy machineries and equipments to facilitate the farming practices has led to a surge in energy consumption. Energy efficiency programs developed pertaining to farming practices includes all the efforts aimed towards reducing energy consumption. Such efforts comprise the use of new energy efficient technologies and farming management practices. Governments in several countries incur heavy losses on subsidies given to the farmers for use of electricity and fossil fuels. The use of energy efficient technologies will not only reduce the energy dependence, but will also contribute towards sustainable development. By following such practices farmers would be able to slash their electricity bill as well as contribute towards the goal of reducing carbon emissions. Moreover, the rebates on purchase of energy efficient equipments by the farmers can also augment the energy efficient technologies market.
The segmentation of the energy efficient agricultural technologies market can be done on the basis of the technologies and geography. The energy efficient technologies are generally aimed towards large agricultural farms, ranches and rural small businesses with a view to make them energy efficient. Various technologies include the use of energy efficient farming equipments, vehicles and energy efficient irrigation pumps and motors. The energy efficient systems for agricultural practices can also include the use of energy efficient cooling and heating systems. Energy efficiency can also be achieved in case of farming vehicles by reducing the fuel consumption. These practices include proper tire inflation and frequent vehicle maintenance.
North America is one of the major segments dominating the energy efficient technologies market. Government assistance by providing technical support and free energy audits for farmers is one of the major factors driving the energy efficient technologies market in North America. These practices contribute towards the rural development and food security. Asia pacific is still a developing market with a huge potential. Presence of agriculture dependent economies such as India and China makes them an ideal market for companies wanting to invest in manufacturing of energy efficient agricultural technologies. European segment is mainly driven the energy efficiency favoring policies designed by the European Union that include the rebates on purchase of energy efficiency farming equipments and technologies. The Rest of the World segment includes Middle East, Africa and Latin America. A majority of the demand for energy efficient agriculture technologies in RoW segment comes from countries such as Argentina, South Africa and Brazil.
Rural economic development, attainment of food and energy security, government support through rebates on purchase of energy efficient farming equipments and provision for technical support and free energy auditing to the farmers are the major drivers for the energy efficient agricultural technologies market. Lack of properly framed farming management programs and policies a in Asia Pacific and RoW is one of the major restraints to the energy efficient agricultural technologies market. Moreover, most of such farms are located in remote area, which makes it difficult for governments to spread the general awareness about the importance and benefits of energy efficiency.
Some of the major players in energy efficient technologies market include companies such as Deere & Company, New Holland Agriculture and Baldor Electric Company, Applied Industrial Technologies and Hansen Motors.
