Professionals 250 Users Online

Agricultural Equipment Market

Agricultural Equipment Market Size, Trend and Share Analysis Report by Type, Component, and Region. Analysis of Key Opportunities and Market Forecast from 2024 to 2031

Agricultural Equipment Market Size and Share Analysis

The global market for agricultural equipment is estimated to value at US$169.0 Bn by the end of 2031 from US$120.1 Bn in 2024. The market is predicted to secure a CAGR of 5.0% in the forthcoming years from 2024 to 2031.

Attributes

Key Insights

Market Size (2024E)

US$120.1 Bn

Projected Market Value (2031F)

US$169.0 Bn

Global Market Growth Rate (CAGR 2024 to 2031)

5.0%

Historical Market Growth Rate (CAGR 2019 to 2023)

4.5%

Sample Report

FREE Report Sample is Available

In-depth report coverage is now just a few seconds away

Download PDF Get FREE Report Sample

Market Introduction and Key Trends

Agricultural equipment refers to machinery, tools, and implements designed specifically for use in farming and agricultural activities. This equipment is utilized across various stages of agricultural production, from land preparation and planting to cultivation, harvesting, and post-harvest processing.

Agricultural equipment plays a crucial role in modern agriculture by increasing efficiency, productivity, and sustainability while reducing labor and resource inputs. Agricultural equipment is used extensively by farmers globally to improve efficiency, reduce labor, and enhance productivity in modern farming operations.

The agricultural equipment market is expected to continue growing as farmers seek ways to enhance efficiency, productivity, and sustainability to meet the challenges of feeding growing global population while addressing environmental concerns.

The agriculture equipment market is exhibiting growing focus on automation and robotics. Automation technologies are streamlining farm operations, improving accuracy, and reducing labor costs from autonomous tractors and robotic harvesters to unnamed aerial vehicles for spraying and crop monitoring.

Sustainability is a growing focus in agriculture, driving demand for equipment and technologies that support environmentally-friendly farming practices. Conservation tillage equipment, precision irrigation systems, and cover crop seeders are examples of solutions that help farmers reduce environmental impact, conserve resources, and improve soil health.

The demand for agricultural equipment is expected to witness significant growth during the forecast period. This strong growth can be attributed to shifting of agricultural activities from animal or manual operations to automated methods.

Factors such as government initiatives, rising urbanization rate and time-saving properties are shifting the focus of farmers to mechanization and improving their investment power. Training programs conducted by the government for technicians, farmers, and machinery users is another important factor that is expected to further propel the demand for tractors over the forecast period.

Key Trends in the Market

  • Precision agriculture continues to be a key trend
  • Digital farming solutions such as mobile apps and farm management software
  • Sustainable farming practices
Custom Report Cover

Make This Report Your Own

Take Advantage of Intelligence Tailored to your Business Objective

> Get a Customized Version

Key Drivers Shaping the Market

Growing Worldwide Population and Changing Dietary Preferences

The world's population is projected to reach nearly 10 billion by 2050, driving up the demand for food, feed, and fiber. Additionally, as incomes rise in developing countries, dietary preferences are shifting toward higher-value products such as meat and dairy, further increasing demand for feed grains and livestock. To meet this rising demand, farmers need to boost productivity and efficiency, leading to increased adoption of modern agricultural equipment.

Emergence of Smart Farming and Farm Management Systems

Smart farming technologies, including Internet of Things (IoT) devices, cloud computing, and farm management software, are transforming agriculture into a data-driven industry. These technologies enable farmers to collect, analyze, and leverage large volumes of data to optimize every aspect of their operations, from field-level management to machinery performance and supply chain logistics.

The integration of smart farming technologies with agricultural equipment allows for seamless data exchange and automation, improving operational efficiency, decision-making, and overall farm profitability.

Increasing Focus on Sustainable Agriculture

There is a rising demand for agricultural equipment and practices that promote sustainability with growing concerns about environmental sustainability, soil health, and water scarcity.  Conservation tillage equipment, no-till planters, cover crop seeders, and precision irrigation systems are examples of technologies that help farmers conserve resources, reduce greenhouse gas emissions, and protect soil and water quality. As governments, consumers, and stakeholders push for more sustainable farming practices, the market for environment-friendly agricultural equipment is expected to grow.

Market Research Methodology

Market Research Methodology

-Perfect through Years of Diligence

Check Research Methodology

Factor Impeding the Agricultural Equipment Market

Infrastructure and Connectivity Issues

Inadequate infrastructure, including roads, transportation networks, and rural electrification, can hinder the adoption and use of agricultural equipment in remote or underdeveloped areas. Poor infrastructure limits farmers' access to markets, machinery, spare parts, and after-sales support services, constraining the potential benefits of mechanization and modernization in these regions. Additionally, limited internet connectivity can impede the adoption of digital farming technologies and precision agriculture solutions.

Sales Team

Sales Team
Client Partner

Let's Connect

Connect me to identify winning opportunities

Ask An Expert
I'm Available

Future Opportunities for the Agricultural Equipment Market

Digital Farming Platforms

Digital farming platforms that integrate machinery, sensors, software, and data analytics are poised to transform farm management practices. Manufacturers can develop comprehensive digital farming solutions that provide farmers with actionable insights, decision support tools, and predictive analytics to optimize operations and maximize yields. These platforms can enable seamless data exchange, connectivity, and automation across the entire agricultural value chain, driving efficiency and profitability for farmers.

The Development and Deployment of Autonomous and Robotic Agricultural Machinery

The development and deployment of autonomous and robotic agricultural machinery are poised to revolutionize farming practices. Autonomous tractors, drones, robotic harvesters, and weeding robots are among the innovative solutions being developed to automate various tasks on the farm. Manufacturers can seize opportunities in this space by investing in research and development to create reliable, cost-effective autonomous systems that enhance productivity and reduce labor requirements.

Category-wise Analysis

The Tractors Segment Created Significant Opportunity in the Market

The tractors segment by product type is estimated to create incremental opportunity 8.5 times that of the combine harvesters segment between 2016 and 2024. The tractors segment is projected to create a total incremental opportunity of more than US$ 20 Bn from 2016 to 2024. This segment is estimated to reach a market value of a little more than US$ 100 Bn by 2024 end, expanding at a CAGR of 3.4%.

The tractors segment is expected to be an attractive segment in terms of market share, owing to high sales in India and China (vs. sales of other equipment). The high sales of tractors can be attributed to their multipurpose features, as they are used as agricultural equipment in the months from February to April and for other transport and commercial purposes from May onwards.

The tractors segment is estimated to account for nearly three-fourth of the global agricultural equipment market share during the forecast period. This segment is estimated to account for a major share and dominate the global agricultural equipment market during the assessment period

In many countries, governments provide extensive support to farmers to purchase agricultural equipment to work more efficiently, which is expected to bolster the growth of the tractor segment in the global market. For instance, in India, the Rashtriya Krishi Vikas Yojana supports farmers to purchase agricultural equipment including tractors at subsidized rates. Many government authorities are undertaking initiatives to educate farmers about the benefits of using agricultural equipment in farming.

Region-wise Analysis

North America Agriculture Equipment Market to Grow Substantially

Many farmers in North America operate machinery fleets that require regular replacement and upgrading. As older equipment reaches the end of its service life or becomes obsolete, farmers seek to invest in newer, more efficient models with advanced features and technologies. This drive to modernize equipment fleets contributes to consistent demand for agricultural machinery in the region.

The tractor segment is estimated to gain more than 20 BPS between 2016 and 2024 and is predicted to expand at a CAGR of 3.3% over the forecast period in North America. Growing demand for tractors in the U.S. and Canada is expected to drive the North America agricultural equipment market.

The tractors segment is estimated to be an attractive segment in terms of market share and incremental opportunity, owing to strong demand in the United States. and Canada.

North America is at the forefront of agricultural technology innovation. The region has a strong presence of leading agricultural equipment manufacturers investing heavily in research and development to develop advanced machinery and precision agriculture technologies. Farmers in North America are eager to adopt these innovations to improve efficiency, productivity, and sustainability on their farms

Asia Pacific is Expected to Hold Notable Share in the Forthcoming Years

Asia Pacific is home to some of the world's most populous countries, such as China and India. There is a rising demand for food, which puts pressure on agricultural production with growing population.

Many countries in Asia Pacific are undergoing rapid agricultural mechanization as labor costs rise and rural labor availability declines due to urban migration. Farmers are increasingly adopting agricultural machinery to replace manual labor and boost productivity. This includes the adoption of tractors, harvesters, planters, and other mechanized equipment.

Asia Pacific region is witnessing a shift from subsistence farming to commercial agriculture, especially in countries with emerging economies. Large-scale commercial farming operations require modern agricultural equipment to increase efficiency and scale up production. As a result, there is a growing demand for high-capacity machinery and advanced technologies to support commercial farming enterprises.

Competitive Landscape

Competition in the agricultural equipment market is driven by product differentiation and innovation. Manufacturers invest heavily in research and development to introduce new and advanced machinery equipped with innovative features, technologies, and functionalities. This includes precision agriculture technologies, autonomous machinery, telematics, and digital farming solutions aimed at improving efficiency, productivity, and sustainability on farms.

The agricultural equipment industry has witnessed significant consolidation through mergers, acquisitions, and strategic alliances. Large manufacturers often acquire smaller companies or form partnerships to expand their product portfolios, enhance their market presence, and access new geographical regions or market segments. This consolidation trend has led to the emergence of fewer but larger players with diverse product offerings and global distribution networks.

Top Industry Players Profiled in the Global Agricultural Equipment Market

  • Deere & Company
  • CLAAS KGaA mbH
  • EXEL Industries
  • Bucher Industries AG
  • LEMKEN GmbH & Co. KG
  • Mahindra & Mahindra Ltd.
  • CNH Industrial N.V.
  • Mitsubishi Mahindra Agricultural Machinery Co. Ltd
  • ISEKI & CO. LTD.
  • Deutz-Fahr
  • SDF S.p.A.
  • Krone UK Group

Market Report Scope

Attributes

Details

Forecast Period

2024 to 2031

Historical Data Available for

2019 to 2023

Market Analysis

US$ Billion for Value

Key Regions Covered

  • North America
  • Asia Pacific
  • Latin America
  • East Asia
  • Europe
  • South Asia & Pacific
  • The Middle East & Africa

Key Market Segments Covered

  • Product Type
  • Application
  • Region

Key Companies Profiled

  • Deere & Company
  • CLAAS KGaA mbH
  • EXEL Industries
  • Bucher Industries AG
  • LEMKEN GmbH & Co. KG
  • Mahindra & Mahindra Ltd.
  • CNH Industrial N.V.
  • Mitsubishi Mahindra Agricultural Machinery Co. Ltd
  • ISEKI & CO. LTD.
  • Deutz-Fahr
  • SDF S.p.A.
  • Krone UK Group

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Agricultural Equipment Market Segmentation

By Product Type

  • Tractors
  • Rotavators
    • Wheel Type
    • Crawler Type
  • Threshers & Dehuskers
    • Wheel Type
    • Crawler Type
  • Power Tillers
    • Wheel Type
    • Crawler Type
  • Power Weeder
    • Wheel Type
    • Crawler Type
  • Plough
  • Baler
  • Seed Drill

By Application

  • Harvesting & Threshing
  • Weed Cultivation
  • Plant Protection
  • Post-harvest & Agro-processing
  • Land Development & Seed Bed Preparation

By Region

  • North America
  • Asia Pacific
  • Latin America
  • East Asia
  • Europe
  • South Asia & Pacific
  • The Middle East & Africa

- Companies Covered in This Report -

  • AGCO Corp
  • CLAAS KGaA mbH
  • Kubota Corporation
  • Tractor and Farm Equipment Limited
  • Deere & Company
  • Mahindra & Mahindra Ltd.
  • EXEL Industries
  • SDF S.p.A.
  • ISEKI & CO. LTD.
  • CNH Industrial N.V.
  • Bucher Industries AG
  • Othera

- Frequently Asked Questions -

Emergence of smart farming and farm management systems is gaining traction in the market.

The market is estimated to record a CAGR of 5.0% in the forecast period from 2024 to 2031

A few of the leading players operating in the market are Deere & Company, CLAAS KGaA mbH, EXEL Industries, and Bucher Industries AG.

The digitalization of agriculture and the adoption of farm management solutions present key opportunity for the market players.

Asia Pacific is expected to hold notable share in the forthcoming years.

This site uses cookies, including third-party cookies, that help us to provide and improve our services. Privacy Policy
Google translate