Latest news with #CNHIndustrial
Globe and Mail
7 days ago
- Business
- Globe and Mail
Pricing of CNH Industrial Capital Canada Ltd. Cdn$500 million notes
CNH Industrial N.V. (NYSE: CNH) today announced that its indirect wholly owned subsidiary, CNH Industrial Capital Canada Ltd., has priced Cdn$500 million in aggregate principal amount of 3.75% notes due June 5, 2029, with an issue price of 100.00%. The notes are being offered on a private placement basis to certain accredited investors in each of the provinces of Canada, which offering is expected to close on June 5, 2025, subject to the satisfaction of customary closing conditions. CNH Industrial Capital Canada Ltd. intends to add the net proceeds from the offering to its general funds and use them for working capital and other general corporate purposes, including, among other things, the purchase of receivables or other assets in the ordinary course of business, as well as the repayment of indebtedness as it becomes due. The notes, which are senior unsecured obligations of CNH Industrial Capital Canada Ltd., will pay interest semi-annually on June 5 and December 5 of each year, beginning on December 5, 2025, and will be guaranteed by CNH Industrial Capital LLC, CNH Industrial Capital America LLC and New Holland Credit Company, LLC, each an indirect wholly owned subsidiary of CNH Industrial N.V. *** The securities offered in the private placement have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the securities in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the 'Securities Act'), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. CNH Industrial Capital LLC is an indirect wholly owned subsidiary of CNH Industrial N.V. and is headquartered in Racine, Wisconsin. As a captive finance company, the primary business of CNH Industrial Capital LLC and its subsidiaries is to underwrite and manage financing products for end-use customers and dealers of CNH Industrial America LLC and CNH Industrial Canada Ltd. (collectively, 'CNH Industrial North America') and provide other related financial products and services to support the sale of agricultural and construction equipment sold by CNH Industrial North America. CNH Industrial Capital LLC and its subsidiaries also provide wholesale and retail financing related to new and used agricultural and construction equipment manufactured by entities other than CNH Industrial North America. CNH Industrial Capital LLC's principal executive offices are located at 5729 Washington Avenue, Racine, WI 53406, and the telephone number is +1(262) 636-6011. Contacts: Media Relations Email: mediarelations@ Investor Relations Email: Attachment 20250602_PR_CNH Industrial Capital_Pricing
Yahoo
22-05-2025
- Automotive
- Yahoo
Brake Friction Products Market worth $15.52 billion by 2032
DELRAY BEACH, Fla., May 22, 2025 /PRNewswire/ -- The Brake Friction Products Market is projected to reach USD 15.52 billion by 2032 from USD 13.32 billion in 2025, at a CAGR of 2.2%, according to a new report by MarketsandMarkets. With EVs' growing market share in the coming years, the steady growth in ICE vehicle demand will increase the demand for brake friction products. Further, a rise in developments in brake friction products, an increase in the strength of brake friction materials, and a surge in investments by tier 1 suppliers in new product development of brake friction raise the quality of the brake friction products used in the OEM market. The longer life of high-quality OEM products significantly impacts the brake friction products aftermarket. OEMs and Tier 1 suppliers are increasingly investing in low-emission, copper-free, and ceramic-based friction materials to comply with Euro 7 and China 7 particulate regulations and address EVs' unique corrosion and NVH (noise, vibration, harshness) challenges. Furthermore, the shift toward long-lasting, environmentally sustainable brake pads and discs is accelerating, with leading manufacturers reporting double-digit growth in premium and low-dust product segments through 2025. This underscores a clear market pivot from traditional volume-driven demand to value-driven innovation and regulatory alignment. Download an Illustrative overview: Browse in-depth TOC on "Brake Friction Products Market" 332 - Tables 89 - Figures333 - Pages The wet brakes market is expected to be the largest and fastest-growing during the forecast period. Wet brakes, known as oil-immersed disc brakes, have been more extensively used in agricultural tractors and construction equipment because of their durability, less maintenance, and excellent performance under adverse environments. Unlike dry brakes, wet brakes use multiple discs and continuous lubrication for higher friction coefficients that should help avoid overheating with better reliability and safety. Recent trends highlight a high installation rate of hydraulic wet brakes: over 80% in agricultural tractors, driven by increased farm mechanization and advancements such as dual-line braking for higher-speed equipment. In January 2024, CNH Industrial integrated upgraded wet disc brake systems in its next-gen Case IH tractors, citing improved heat dissipation and reduced wear. The shift toward electrification and autonomous off-highway equipment also encourages OEMs to adopt wet disc brakes, as they provide better control in regenerative and electronic braking systems. Wet brakes will be the most accepted by 2032 since they have more strength than dry brakes in durability and performance. The HCV segment is estimated to be the fastest-growing brake friction products aftermarket during the forecast period. Heavy commercial vehicles (HCVs) are crucial for freight transport and the construction industries due to their ability to carry heavy loads. Heavy commercial vehicle (HCV) sales are rising due to several factors: the boom in e-commerce, which increases demand for freight transport; government infrastructure investments; and rapid urbanization driving public transport needs. According to OICA, HCV sales rose 13% in 2023 to 27 million units; in 2024, they increased by 1.2%. This can be due to the enhanced growth of logistics and e-commerce. About 80–90% of HCVs worldwide adopt drum brakes, with an average yearly mileage of 29,000 to 30,500 miles, with friction product replacement. As a result of increased infrastructure and construction activities, the demand for HCVs is likely to increase, further enhancing the brake friction aftermarket. Brake friction aftermarket: The brake friction products market remains strictly dominated by many key players, including Robert Bosch GmbH, Aisin Corporation, ZF Friedrichshafen AG, Brembo, and Tenneco. For instance, in November 2024, TTX Brakes launched a premium lineup of brake pads for commercial vehicles and fleets, featuring five customized formulations, including first-to-market CeraPhite and SuperMet technologies. North America is expected to grow significantly during the forecast period North American countries include the US, Canada, and Mexico. The US is primarily led by the US, which is also the biggest automotive market. The US's extensive customer base with high disposable incomes drives demand for vehicle ownership, hence stimulating increased local manufacturing activities by the local automotive OEMs. The North American market is expected to expand with the increasing vehicle sales. In addition, the region is also continuously escalating the quality of materials and manufacturing techniques, which allows for better usage and a longer service life for brake friction products. As a result of the increased usage of SUVs and pickup trucks for off-road activities and long-distance travel, the demand for effective braking mechanisms is on the upswing, thereby increasing the demand for friction products of good quality. They are mainly used in rugged terrains requiring dependable braking for safety and performance. In the heavy truck segment, which has trailers in the US market, braking solutions would be critical to ensure the safety of large loads for transit. The major drivers for the demand for brake friction products in OE and aftermarket are robust vehicle sales, increasing vehicle parc, and vehicle miles driven. American brake friction product manufacturers such as ITT Inc. (US), Tenneco Inc. (US), and Meritor Inc. (US), among others, have a presence in the region. Further, the widespread adoption of LCVs and the growing electrification of automotive applications in the US market are key factors influencing the automotive industry in North America. Key Market Brake Friction Products Industry: Prominent players in the brake friction products Companies include Aisin Corporation (Japan), ZF Friedrichshafen AG (Germany), Brembo S.p.A. (Italy), Nisshinbo Holdings Inc. (Japan), and Tenneco Inc. (US). These companies offer brake friction products for automakers and have strong global distribution networks. Companies are also actively collaborating with global OEMs and launching new products to expand their market presence. For instance, in September 2024, ZF launched the OnGuardMAX advanced driver assistance system (ADAS) and the mBSP XBS modular brake platform for the European commercial vehicle (CV) market. Get 10% Free Customization on this Report: This report provides insights on: Analysis of critical drivers (Increasing vehicle parc & vehicle miles traveled to boost the aftermarket, increase in vehicle production will fuel the demand for brake friction OE market, growing use of brakes due to traffic congestion to increase the demand for replacement units), restraints (improving the life of brake friction products to influence the demand for replacement units), opportunities (use of lightweight materials in brake friction products, eco-friendly, and non-toxic brake friction products to be new avenues of growth for brake manufacturers), and challenges (government regulations related to alloy composition of brake friction products, counterfeit brake friction products in the aftermarket). Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the brake friction products market. Market Development: Comprehensive information about lucrative markets—the report analyzes the brake friction products market across varied regions. Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the brake friction products market. Competitive Assessment: In-depth assessment of market share, growth strategies, and service offerings of leading players in the brake friction products market, such as Robert Bosch GmbH (Germany), Aisin Corporation (Japan), Brembo (Italy), and Tenneco (US). Related Reports: Air Brake System Market Automotive Brake System Market Drive by Wire Market Get access to the latest updates on Brake Friction Products Companies and Brake Friction Products Industry Growth About MarketsandMarkets™: MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report. MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe. Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem. The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing. Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts. To find out more, visit or follow us on Twitter, LinkedIn and Facebook. Contact:Mr. Rohan SalgarkarMarketsandMarkets™ INC.1615 South Congress 103, Delray Beach, FL 33445USA: +1-888-600-6441Email: sales@ Our Website: Logo: View original content: SOURCE MarketsandMarkets
Yahoo
22-05-2025
- Automotive
- Yahoo
Brake Friction Products Market worth $15.52 billion by 2032
DELRAY BEACH, Fla., May 22, 2025 /PRNewswire/ -- The Brake Friction Products Market is projected to reach USD 15.52 billion by 2032 from USD 13.32 billion in 2025, at a CAGR of 2.2%, according to a new report by MarketsandMarkets. With EVs' growing market share in the coming years, the steady growth in ICE vehicle demand will increase the demand for brake friction products. Further, a rise in developments in brake friction products, an increase in the strength of brake friction materials, and a surge in investments by tier 1 suppliers in new product development of brake friction raise the quality of the brake friction products used in the OEM market. The longer life of high-quality OEM products significantly impacts the brake friction products aftermarket. OEMs and Tier 1 suppliers are increasingly investing in low-emission, copper-free, and ceramic-based friction materials to comply with Euro 7 and China 7 particulate regulations and address EVs' unique corrosion and NVH (noise, vibration, harshness) challenges. Furthermore, the shift toward long-lasting, environmentally sustainable brake pads and discs is accelerating, with leading manufacturers reporting double-digit growth in premium and low-dust product segments through 2025. This underscores a clear market pivot from traditional volume-driven demand to value-driven innovation and regulatory alignment. Download an Illustrative overview: Browse in-depth TOC on "Brake Friction Products Market" 332 - Tables 89 - Figures333 - Pages The wet brakes market is expected to be the largest and fastest-growing during the forecast period. Wet brakes, known as oil-immersed disc brakes, have been more extensively used in agricultural tractors and construction equipment because of their durability, less maintenance, and excellent performance under adverse environments. Unlike dry brakes, wet brakes use multiple discs and continuous lubrication for higher friction coefficients that should help avoid overheating with better reliability and safety. Recent trends highlight a high installation rate of hydraulic wet brakes: over 80% in agricultural tractors, driven by increased farm mechanization and advancements such as dual-line braking for higher-speed equipment. In January 2024, CNH Industrial integrated upgraded wet disc brake systems in its next-gen Case IH tractors, citing improved heat dissipation and reduced wear. The shift toward electrification and autonomous off-highway equipment also encourages OEMs to adopt wet disc brakes, as they provide better control in regenerative and electronic braking systems. Wet brakes will be the most accepted by 2032 since they have more strength than dry brakes in durability and performance. The HCV segment is estimated to be the fastest-growing brake friction products aftermarket during the forecast period. Heavy commercial vehicles (HCVs) are crucial for freight transport and the construction industries due to their ability to carry heavy loads. Heavy commercial vehicle (HCV) sales are rising due to several factors: the boom in e-commerce, which increases demand for freight transport; government infrastructure investments; and rapid urbanization driving public transport needs. According to OICA, HCV sales rose 13% in 2023 to 27 million units; in 2024, they increased by 1.2%. This can be due to the enhanced growth of logistics and e-commerce. About 80–90% of HCVs worldwide adopt drum brakes, with an average yearly mileage of 29,000 to 30,500 miles, with friction product replacement. As a result of increased infrastructure and construction activities, the demand for HCVs is likely to increase, further enhancing the brake friction aftermarket. Brake friction aftermarket: The brake friction products market remains strictly dominated by many key players, including Robert Bosch GmbH, Aisin Corporation, ZF Friedrichshafen AG, Brembo, and Tenneco. For instance, in November 2024, TTX Brakes launched a premium lineup of brake pads for commercial vehicles and fleets, featuring five customized formulations, including first-to-market CeraPhite and SuperMet technologies. North America is expected to grow significantly during the forecast period North American countries include the US, Canada, and Mexico. The US is primarily led by the US, which is also the biggest automotive market. The US's extensive customer base with high disposable incomes drives demand for vehicle ownership, hence stimulating increased local manufacturing activities by the local automotive OEMs. The North American market is expected to expand with the increasing vehicle sales. In addition, the region is also continuously escalating the quality of materials and manufacturing techniques, which allows for better usage and a longer service life for brake friction products. As a result of the increased usage of SUVs and pickup trucks for off-road activities and long-distance travel, the demand for effective braking mechanisms is on the upswing, thereby increasing the demand for friction products of good quality. They are mainly used in rugged terrains requiring dependable braking for safety and performance. In the heavy truck segment, which has trailers in the US market, braking solutions would be critical to ensure the safety of large loads for transit. The major drivers for the demand for brake friction products in OE and aftermarket are robust vehicle sales, increasing vehicle parc, and vehicle miles driven. American brake friction product manufacturers such as ITT Inc. (US), Tenneco Inc. (US), and Meritor Inc. (US), among others, have a presence in the region. Further, the widespread adoption of LCVs and the growing electrification of automotive applications in the US market are key factors influencing the automotive industry in North America. Key Market Brake Friction Products Industry: Prominent players in the brake friction products Companies include Aisin Corporation (Japan), ZF Friedrichshafen AG (Germany), Brembo S.p.A. (Italy), Nisshinbo Holdings Inc. (Japan), and Tenneco Inc. (US). These companies offer brake friction products for automakers and have strong global distribution networks. Companies are also actively collaborating with global OEMs and launching new products to expand their market presence. For instance, in September 2024, ZF launched the OnGuardMAX advanced driver assistance system (ADAS) and the mBSP XBS modular brake platform for the European commercial vehicle (CV) market. Get 10% Free Customization on this Report: This report provides insights on: Analysis of critical drivers (Increasing vehicle parc & vehicle miles traveled to boost the aftermarket, increase in vehicle production will fuel the demand for brake friction OE market, growing use of brakes due to traffic congestion to increase the demand for replacement units), restraints (improving the life of brake friction products to influence the demand for replacement units), opportunities (use of lightweight materials in brake friction products, eco-friendly, and non-toxic brake friction products to be new avenues of growth for brake manufacturers), and challenges (government regulations related to alloy composition of brake friction products, counterfeit brake friction products in the aftermarket). Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the brake friction products market. Market Development: Comprehensive information about lucrative markets—the report analyzes the brake friction products market across varied regions. Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the brake friction products market. Competitive Assessment: In-depth assessment of market share, growth strategies, and service offerings of leading players in the brake friction products market, such as Robert Bosch GmbH (Germany), Aisin Corporation (Japan), Brembo (Italy), and Tenneco (US). Related Reports: Air Brake System Market Automotive Brake System Market Drive by Wire Market Get access to the latest updates on Brake Friction Products Companies and Brake Friction Products Industry Growth About MarketsandMarkets™: MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report. MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe. Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem. The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing. Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts. To find out more, visit or follow us on Twitter, LinkedIn and Facebook. Contact:Mr. Rohan SalgarkarMarketsandMarkets™ INC.1615 South Congress 103, Delray Beach, FL 33445USA: +1-888-600-6441Email: sales@ Our Website: Logo: View original content: SOURCE MarketsandMarkets
Yahoo
21-05-2025
- Business
- Yahoo
CNH Industrial Stumbles Into 2025 -- Time to Reassess the Fundamentals
CNH Industrial (NYSE:CNH) is a global leader in capital goods, ranking as the world's second-largest manufacturer of agricultural machinery and a major force in the construction equipment industry. The company has three operating segments: Agriculture, Construction, and Financial Services. The Agriculture segment provides a full line of agricultural equipment, implements, precision agriculture solutions, and aftermarket service. The Construction segment provides construction equipment, including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders, along with a wide variety of attachments. CNH supports its equipment sales by offering a range of financing solutions, including retail finance for the purchase or lease of both new and pre-owned equipment from CNH and other manufacturers. Its strong portfolio of brands includes Case IH, New Holland, STEYR, Raven, New Holland Construction, Case Construction, and Eurocomach. Warning! GuruFocus has detected 10 Warning Signs with CNH. CNH Industrial reported a disappointing set of results for the first quarter of 2025, with both revenue and profitability declining sharply on a year-over-year (YoY) basis. Net sales fell by 21% YoY to $3,828 million, compared to $4,818 million in Q1 2024, reflecting broad-based weakness across key business segments. The adjusted EBIT margins contracted sharply by 580 basis points (bps) YoY to 3.2%, down from 9.0% in Q1 2024. The bottom line reflected the broader operational pressures, with adjusted diluted EPS declining 66% YoY to $0.10, compared to $0.30 in the prior-year quarter. The Agriculture segment, which accounts for approximately 67% of total revenues, experienced a steep 23% YoY decline in net sales to $2,581 million. This was primarily driven by lower shipment volumes resulting from a combination of subdued industry demand across all regions and ongoing dealer destocking. The global demand for tractors, combines, and other heavy machinery has remained weak since late 2022, as persistently high input costs and declining farm incomes continue to pressure farmers' ability to invest in capital equipment. This negative trend has persisted into early 2025 and, according to management commentary, is expected to remain a headwind throughout the year. Regionally, the North American market saw significant declines, with industry volumes down 12% and 24% for small and large tractors, respectively, and combines down 51% YoY. In EMEA, tractor and combine volumes dropped 23% and 34% YoY, respectively. In contrast, the South America and Asia Pacific (APAC) regions saw comparatively resilient demand. Tractor volumes rose 10% in South America, while combine volumes were up 1%. APAC experienced a 12% increase in overall tractor volumes. The segment's EBIT margin declined by 610 bps YoY to 5.4%, impacted by reduced volumes and higher R&D investments. These effects were only partially mitigated by improvements in purchasing efficiencies, manufacturing costs, and ongoing SG&A cost discipline. The Construction segment, contributing roughly 15% of CNH's revenues, also reported weak performance, with net sales down 22% YoY to $591 million (from $758 million). The decline was attributed to lower shipment volumes, mirroring the softening demand across the construction sector. EBIT margins fell by 430 bps YoY to 2.4%, driven by lower shipment volumes and unfavorable pricing, with some offset from cost optimizations. The Financial Services segment, which accounts for the remaining revenue, posted a 5% YoY decline to $651 million. This was primarily due to adverse currency translation effects, lower yieldsespecially in South Americaand a reduction in used equipment sales tied to fewer operating lease maturities. Looking ahead, the global agriculture and construction equipment markets are expected to remain under pressure throughout calendar year 2025 and potentially into early 2026. Over the past several quarters, sustained weakness across both sectors has led to elevated channel inventories at OEMs, including CNH Industrial. As a result, CNH is expected to maintain reduced production levels for the next few months to better align with inventory levels across its supply chain. This strategic moderation in output, while necessary, will likely continue to weigh on both the top line and profitability of the company in the near term. Reflecting the deteriorating demand environment, management has revised its full-year 2025 guidance downward. The prior sales outlook, which projected a decline in the range of (17)% to (12)%, has been adjusted to a wider and deeper contraction of (19)% to (11)%. For context, this implies a potential sales decline of up to 40% from 2023 levels, underscoring the severity of the market downturn. Despite the challenging macro and industry conditions, CNH continues to focus on cost discipline. The company is actively implementing lean manufacturing practices, enhancing strategic sourcing, and maintaining tight control over SG&A and R&D spending. These measures are expected to partially cushion the impact of volume declines on profitability and margins, although overall earnings will remain under pressure as long as end-market demand stays muted. The company's long-term outlook remains positive, as outlined by the management in its Investor Day. CNH Industrial's long-term strategy through 2030 is anchored in three strategic pillars: leading in integrated iron and technology, significantly boosting mid-cycle EBIT margins, and enhancing shareholder returns. The company aims to deliver 1617% mid-cycle adjusted EBIT margins in Agriculture, up from 12.5% in 2024, by executing a further $550 million in cost savings, building on the $550 million already achieved since 2022. CNH is investing heavily in Precision Technology, targeting a doubling of its contribution to Ag net sales from 5% today to 10% by 2030. This will be achieved through increased factory-fit adoption (nearing 100% on large machines), proprietary development of 90% of the Precision Tech stack, and new AI-driven capabilities such as smart spraying (SenseApply) and autonomous field operations. These technologies aim to deliver measurable farmer benefits, including up to 26% yield improvement and 6080% reduction in herbicide use. Complementing its tech-driven strategy, CNH is also transforming its go-to-market and quality operations. The company is restructuring its global dealer network with a tailored regional approach, blending single- and multi-brand models, and investing to improve dealer returns by over 500 basis points while increasing parts and service revenue to over 35% of dealer sales. A 360-degree quality overhaul aims to cut non-quality costs by 200250 basis points by 2030 through tighter governance, predictive maintenance, and manufacturing excellence programs like no fault forward. CNH is committed to returning substantially all industrial free cash flow to shareholders through the cycle while retaining flexibility for strategic M&A. As of March 2025, BlackRock remains one of the largest institutional investors in CNH Industrial, holding a 10.54% stake. Other major shareholders include Vanguard (7.26%), Harris Associates (6.73%), and Franklin Resources (4.61%). However, several prominent gurus have trimmed their positions recently, reflecting caution amid ongoing industry headwinds. David Einhorn (Trades, Portfolio) reduced his stake by 21.09%, while Mason Hawkin and Tweedy, Browne Company cut their holdings by 18.65% and 8.88%, respectively. Additionally, Brandes Investment Partners lowered its position by 7.08% in March 2025. These moves underscore broader investor concerns regarding near-term demand pressures in the agriculture and construction equipment sectors. CNH Industrial is currently trading at a forward P/E of 20.4x for 2025 and 14.0x for 2026, which represents a discount to its five-year historical forward P/E average of 18.36x. The company is also trading at a discount compared to its peers, including AGCO and Lindsay Corporation. AGCO is currently trading at a forward P/E multiple of 25.51x, whereas Lindsay is trading at 21.34x forward P/E. While the current valuation may appear attractive on a relative basis, we believe it is too early to initiate a position in the stock. The broader agriculture and construction equipment industries remain in the midst of a prolonged cyclical downturn, with no clear indication that the bottom has been reached. CNH, despite being a fundamentally strong player, is heavily exposed to industry trends and continues to face significant pressure on its volumes and margins. That said, the company's targeted strategy to expand Precision Tech to 10% of Ag net sales and deliver 1617% mid-cycle EBIT margins by 2030 demonstrates clear long-term intent and execution focus. These structural initiatives, alongside $550M in additional cost savings and enhanced dealer network returns, reinforce CNH's ability to drive sustainable value. In our view, we should take a wait-and-watch approach, keeping CNH on the watchlist for potential entry once early signs of industry stabilization or recovery emerge. This article first appeared on GuruFocus.
Yahoo
13-05-2025
- Business
- Yahoo
Agritech Market Global Outlook & Forecast Report 2025-2030: Rise of Vertical Farming and Controlled Environment Agriculture, and Increased Investments in Agri-Biotechnology and Sustainable Practices
The global agritech market is experiencing robust growth, driven by the increasing demand for sustainable agricultural practices, technological advancements, and supportive government policies. Key technologies, including precision agriculture, AI-based analytics, IoT-enabled devices, robotics, and smart farming solutions, are transforming the sector. Major players have secured significant market shares by focusing on innovation and expanding their global presence. The key players in the global agritech market include AGCO Corporation, Bayer Crop Science, CNH Industrial, Corteva Agriscience, John Deere, Kubota Corporation, Syngenta, and Trimble Inc. Agritech Market Dublin, May 13, 2025 (GLOBE NEWSWIRE) -- The "Agritech Market - Global Outlook & Forecast 2025-2030" report has been added to Agritech Market was valued at USD 24.42 billion in 2024, and is projected to reach USD 48.98 billion by 2030, rising at a CAGR of 12.30% John Deere (Deere & Company) leads the market with a share of approximately 15%-18%, offering advanced solutions such as autonomous tractors and the John Deere Operations Center. Trimble Inc. follows John Deere, known for its GPS technologies and field analytics. Bayer CropScience holds 8%-10% of the market through its Climate FieldView platform, which integrates data analytics with on-field applications. AGCO Corporation contributes 7%-9% via its Fendt, Massey Ferguson, and Valtra brands, integrating IoT and telemetry into its machinery. CNH Industrial, with its New Holland and Case IH brands, accounts for a significant agritech market share, providing telematics and data-driven solutions. Other players, such as Corteva Agriscience, Kubota Corporation, Indigo Ag, and Yara International, focus on digital agronomy, seed technology, and sustainable solutions. Emerging startups like Farmers Edge and CropX are gaining traction with niche innovations in AI, drones, and blockchain. The agritech market is poised for continued expansion, with sustainability and digital transformation at the forefront of competitive strategies. AGRITECH MARKET TREND & DRIVERS Rise of Vertical Farming and Controlled Environment Agriculture (CEA)Adopting vertical farming and Controlled Environment Agriculture (CEA) is revolutionizing the global agritech market, addressing challenges like limited arable land and climate change. Vertical farming leverages hydroponics and AI-driven systems to enhance productivity, while CEA ensures precise environmental control, enabling year-round, resource-efficient cultivation. These advancements, supported by substantial investments and government initiatives, are reshaping sustainable food production Investments in Agri-Biotechnology and Sustainable PracticesThe global agritech market is witnessing unprecedented growth, driven by advancements in agri-biotechnology, precision agriculture, and sustainable farming practices. Investments surpassed USD 27 billion in 2023, marking a 19% rise from 2022, as governments and private enterprises prioritize technological solutions to address challenges like food security and climate change. Innovations such as drought-resistant crops, precision irrigation, and autonomous machinery are revolutionizing agriculture, enabling higher yields and resource Support and InitiativesThe global agritech market is experiencing rapid growth, driven by government initiatives targeting critical issues such as food security and climate change. Substantial funding programs, such as the EU's $10 billion Horizon Europe initiative and the US Farm Bill's $500 million allocation for precision agriculture, are accelerating technology adoption. These efforts have enhanced productivity and sustainability, with emerging markets in Asia and Africa leading the democratization of agritech solutions. Moreover, governments are also promoting agritech adoption through tax incentives and startup-friendly policies. For instance, in North America, the United States and Canada have introduced tax credits for agritech investments, encouraging farmers and corporations to adopt sustainable Growth and Food SecurityThe global agritech market is experiencing significant growth, driven by rising food demand as the population approaches 9.7 billion by 2050. Advanced technologies like precision agriculture, AI, and vertical farming are transforming agricultural practices, enhancing productivity while minimizing environmental impact. Vertical farming is a key area of growth in the agritech sector, with companies like AeroFarms and Plenty leading the charge. These companies are developing state-of-the-art indoor farms that use minimal water, land, and energy to produce crops in urban settings. For example, AeroFarms' vertical farming systems use aeroponics and LED lighting to grow leafy greens and herbs without soil, using 95% less water than traditional farming methods. This not only increases food availability in urban areas but also reduces the carbon footprint associated with food production and RESTRAINTS Limited Digital Literacy in Rural AreasThe global agritech market faces significant barriers due to limited digital literacy and infrastructure in rural areas, particularly in emerging economies. Farmers often lack the skills and resources to adopt innovative technologies, which restricts agritech adoption and stifles growth. Collaborative efforts among governments, NGOs, and agritech companies are crucial to bridging this gap and unlocking the sector's full Initial Investment CostsHigh initial investment costs pose a significant barrier to agritech adoption, particularly in regions with limited financing access. Technologies like precision farming and autonomous machinery require substantial capital, often exceeding USD 100,000, making them unaffordable for small and medium-sized farms in both emerging and developed markets. GEOGRAPHICAL ANALYSIS North America holds the most significant share of the global agritech market, accounting for over 35% in 2024. The region's growth is fueled by high adoption of precision farming technologies, robust investment in agricultural R&D, and government incentives for sustainable Asia Pacific agritech market is growing rapidly due to rising food demand driven by a population of over 4.7 billion. Governments in countries like China and India are offering subsidies to boost precision farming and modern agricultural technologies. Furthermore, government initiatives like Japan's Smart Agriculture Project and Australia's "Ag2030" plan are driving represents another mature agritech market, driven by stringent environmental regulations and the adoption of sustainable agricultural practices. Government support is a key driver, with the European Commission allocating €1.3 billion under Horizon Europe for sustainable agricultural R&D in 2023. This funding fosters the development of data-driven solutions and promotes innovation in the sector. Also, the rising demand for organic produce is pushing the use of Agritech tools for better crop management and reduced resource consumption. Companies like BASF launched digital platforms in 2024 to help farmers meet environmental regulations. Furthermore, labor shortages are leading to increased use of robotics and automation in agriculture, with over 25% of farms in Northern Europe integrating robotic systems by late 2023. These systems are helping reduce operational costs by up to 40%.The Latin American Agritech market is growing due to rising food demand, driven by a growing population and urbanization. By 2030, the region's population is projected to increase by 8%, boosting the need for sustainable agricultural solutions. Government policies in countries like Brazil are accelerating Agritech adoption, with investments in digital farming and precision agriculture. The focus on sustainability is reshaping the sector, as Latin American farmers adopt technologies to reduce resource usage and waste. This is attracting investment and fostering partnerships between startups and major agricultural Middle East and Africa (MEA) region is witnessing a gradual adoption of Agritech, primarily in water-scarce countries like Israel, the UAE, and South Africa. For example, the UAE's "Food Security Strategy 2051" promotes sustainable farming practices and drone technology. Also, government support is crucial for the adoption of agritech solutions. The South African government's "Agriculture and Agro-processing Master Plan," launched in 2020, aims to integrate technology into farming. Furthermore, venture capital investments in agritech startups are growing. In 2023, Egypt's agritech company "Greenhouse" raised USD 1.5 million to expand its operations, focusing on vertical farming and efficient water use. Key Attributes: Report Attribute Details No. of Pages 317 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $24.42 Billion Forecasted Market Value (USD) by 2030 $48.98 Billion Compound Annual Growth Rate 12.3% Regions Covered Global Premium Insights Market Trend & Opportunities Rise of Vertical Farming and Controlled Environment Agriculture (Cea) Increased Investments in Agri-Biotechnology and Sustainable Practices Market Drivers Government Support and Initiatives Population Growth and Food Security Market Challenges Limited Digital Literacy in Rural Areas High Initial Investment Costs Segmental Analysis Vendors Landscape Recent Developments by Top Major Brands Market at a Glance The Role of IoT, AI, and Machine Learning in Transforming Traditional Farming Practices IoT in Precision Agriculture AI for Predictive Insights Machine Learning for Automated Solutions Livestock Management and Monitoring Benefits and Challenges Recent Developments in the Agritech Market Strategic Partnerships and Collaborations Mergers and Acquisitions (M&A) Technological Advancements Shifting Consumer Preferences Government Regulations and Policy Support Value Chain Analysis Research and Development (R&D) Input Suppliers Technology Providers Farmers and Agricultural Producers Processing and Manufacturing Distribution and Logistics Retail and Consumer Engagement Support Services Supply Side and Demand Side Indicators Supply Side Indicators of the Global Agritech Market Demand Side Indicators of the Global Agritech Market Market Opportunities & Trends Rise of Vertical Farming and Controlled Environment Agriculture (Cea) the Vertical Farming Revolution Controlled Environment Agriculture (Cea) Advancements Growing Consumer Demand for Fresh, Sustainable Produce Technological Innovations Driving Agritech Government Support and Investments Increased Investments in Agri-Biotechnology and Sustainable Practices Agri-Biotechnology at the Forefront of Innovation Precision Agriculture Boosting Sustainable Practices Regulatory Push and Incentives Driving Adoption Private Sector Innovations Transforming the Market Adoption of Precision Agriculture and IoT Integration in Farming Precision Agriculture: Enhancing Resource Efficiency and Crop Yield IoT Integration: Revolutionizing Farm Management Economic and Environmental Benefits Driving Adoption Market Growth Enablers Population Growth and Food Security The Challenge of Food Security Technological Innovations Enhancing Agricultural Productivity Urban Agriculture and Vertical Farming Agritech Solutions for Sustainable Food Production Government Support and Initiatives Funding and Incentives Bolstering Agritech Adoption Public-Private Partnerships Driving Technological Integration Tax Benefits and Startup Support Addressing Global Challenges Through Agritech Impact on the Agritech Market Outlook Rising Adoption of Automation and Robotics Addressing Labor Shortages and Cost Efficiency Enhancing Sustainability with Precision Technology Investments and Policy Support Market Restraints Limited Digital Literacy in Rural Areas the Digital Divide in Rural Areas Impact of Limited Digital Skills on Agritech Adoption Limited Digital Infrastructure and Connectivity Skepticism and Lack of Trust in Agritech Solutions Financial Burden on Agritech Companies Collaborative Efforts to Address the Digital Literacy Gap Developing Hybrid Solutions for Easier Adoption Overcoming Digital Literacy Barriers to Unlock Agritech Potential High Initial Investment Costs Financial Barriers in Emerging Markets Slow Adoption in Developed Markets Financing Challenges and Innovative Solutions Addressing High Initial Investment Costs Regulatory and Policy Challenges Inconsistent Regulatory Landscapes Data Privacy and Security Concerns Government Subsidies and Traditional Agricultural Policies Environmental and Safety Regulations Regional Disparities and Market Access Impact on Investment and Innovation Key Company Profiles AGCO Corporation Bayer Crop Science CNH Industrial Corteva Agriscience John Deere Kubota Corporation Syngenta Trimble Inc. Other Prominent Vendors Agreena AgroStar ARSR Tech CeresAI CropX DeHaat EcoRobotix FarmInsect Indigo Ag Yara International For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Agritech Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
