According to analysis from JP Morgan of Trimble's 2022 Investor Day, the company is thinking globally and focusing on its aftermarket offerings in its agriculture applications.

During the event, held Sept. 7, Trimble's management discussed the company's $20 billion addressable market for aftermarket precision solutions, attributing around $16 billion of that to international markets aside from North America, where over half of Trimble's ag revenue is generated.

"TRMB's first-fit sales continue to shrink [<25 percent of FY21 sales] as OEMs more aggressively vertically integrate; therefore, aftermarket expansion remains a top priority [though it recently announced a first-fit partnership with Claas]," said JP Morgan analysts.

"Compared to NA, a higher proportion of farmers in other regions operate mixed fleets, which presents a challenge for precision ag adoption due to data barriers, system variances, and increased overall complexity. TRMB's Tractor Implement Management system [TIM] is expected to address challenges around mixed fleets, giving a common architecture to the implement that is independent of the tractor [and its brand]."

In its second quarter earnings, Trimble reported $941.2 million in revenue, up 6 percent excluding the effects of divestitures, acquisitions and foreign currency translation.

This story also appears on Agricultural Equipment Guide.