Agricultural Equipment Market

Agricultural Equipment Market Outlook (2024 to 2034)

Global agricultural equipment market revenue is projected to reach US$ 127.6 billion in 2024. The market has been forecasted to increase to a value of US$ 194.4 billion by the end of 2034, expanding at a CAGR of 4.3% between 2024 and 2034.

Agricultural equipment includes machinery, tools, and implements designed for farming and agricultural activities, used from land preparation and planting to cultivation, harvesting, and post-harvest processing. Farming equipment plays a crucial role in modern agriculture by increasing efficiency, productivity, and sustainability, while reducing labor and resource inputs. Farmers globally use agricultural equipment extensively to improve efficiency, reduce labor, and enhance productivity in modern farming operations.

Key Market Growth Drivers

• Demand for agricultural equipment and practices promoting sustainability is on the rise due to growing concerns about environmental sustainability, soil health, and water scarcity. Technologies such as conservation tillage equipment, no-till planters, cover crop seeders, and precision irrigation systems help farmers conserve resources, reduce greenhouse gas emissions, and protect soil and water quality.
• There is a greater push from governments, consumers, and stakeholders for more sustainable farming practices, increasing the environment-friendly agricultural equipment market size.
• Renting farm equipment is another major factor enabling farmers to harvest their crops on time by avoiding large upfront costs for equipment purchases, and it also offers them a convenient means of improving their operations.
• Factors such as government initiatives, rising urbanization rates, and time-saving properties are driving farmers to focus on mechanization and enhance their investment capacity. Government training programs for technicians, farmers, and machinery users are also expected to further boost the demand for tractors in the forecast period.
• Another significant factor responsible for the agricultural equipment market growth is the need to alleviate the financial burden on farmers. Farm equipment, such as forage harvesters, mower conditioners, and tillage equipment, are expensive to purchase and take a longer time to make the farming business profitable.

Report Attributes	Details
Agricultural Equipment Market Size (2024E)	US$ 127.6 Billion
Projected Market Value (2034F)	US$ 194.4 Billion
Global Market Growth Rate (2024 to 2034)	4.3% CAGR
East Asia Market Share (2024E)	25.6%
North America Market Share (2024E)	22.4%
Sales of Tractor Pulled / Attachment (2034F)	US$ 72.5 Billion
Individual Ownership Segment Value (2034F)	US$ 91.4 Billion
Key Companies Profiled	Bucher Industries AG; Deere & Company; Tractor and Farm Equipment Limited (TAFE); LEMKEN GmbH & Co. KG; ISEKI & CO. LTD.; Deutz-Fahr; SDF S.p.A.; Krone UK Group; Mahindra & Mahindra Ltd.; CNH Industrial N.V.; Mitsubishi Mahindra Agricultural Machinery Co. Ltd; Deere & Company; CLAAS KGaA mbH; EXEL Industries; Kubota Corporation

What are the Prevailing Trends in the Market for Agricultural Equipment?

“Need for Reduction in Labor and Resource Inputs and Adoption of Automation in Farming”

Agricultural equipment has become a crucial part of modern-day agriculture as it increases efficiency, productivity, and sustainability while reducing labor and resource inputs. The equipment is extensively used by farmers worldwide to improve efficiency, enhance productivity, and reduce labor 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 the growing global population while addressing environmental concerns. The market is showing a 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 unmanned aerial vehicles for spraying and crop monitoring.

Sustainability is a growing point of 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.

What Issues Do Manufacturers of Farming Equipment Need to Overcome?

“Higher Transportation Costs and Dependence on Local Providers”

Agricultural land is often situated far from major cities and urban centers. This poses challenges in accessing equipment rental services and transporting rented machinery to remote locations. Limited transportation infrastructure, such as roads and connectivity, increases costs and delays in delivering and retrieving rented equipment, discouraging some farmers from using rental services.

The long distance between the rental provider's location and remote agricultural lands results in higher delivery and pickup costs for rented equipment. As a result, rental companies need to charge additional fees to cover transportation expenses, making rental services less economically attractive for farmers in remote areas.

Country-wise Insights

North America is expected to hold an agricultural equipment market share of 22.4% in 2024. East Asia is poised to capture 25.6% market share in 2024. South Asia & Oceania is projected to dominate the market during the forecast period. Farm tractor sales in India are expected to rise due to increased farm mechanization, which is being driven by government efforts and subsidies/loan waivers.

• According to the Tractor and Machinery Association of Australia (TMA), sales of small tractors in Australia are increasing due to the support of the Instant Asset Write-off scheme. In 2020, the sales of tractors under 40 horsepower (30 kilowatts) increased by 72% for the month and ended up 36% higher for the entire year.

Why is There Significant Demand for Agricultural Equipment in the United States?

“Inclusion of Robotic Systems and GPS in Farming Equipment”

Attribute	United States
Market Value (2024E)	US$ 22.2 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 33.3 Billion

The United States is expected to account for 77.6% of the market in North America in 2024. The region is expected to exhibit significant growth despite the widespread adoption of farming equipment mechanization. This is attributed to the improved fuel efficiency and additional features of the equipment, including robotic systems and GPS.

Agricultural equipment market trends in the country are influenced by the abundance of large farmland, leading to a high demand for farm mechanization. Also, the country is witnessing increased adoption of intelligent combine harvesters equipped with monitoring tools to improve farm yield.

Factors such as rising labor costs, integration of robotic systems and the Global Positioning System (GPS) in tractors and harvesters, increased demand for high-capacity machinery due to large farms, and the growing popularity of self-propelled machines are analyzed to drive market growth in the region during the forecast period.

What Has Made China a Lucrative Market for Manufacturers of Agricultural Equipment?

“Financial Support from Government for Procuring Agricultural Machinery”

Attribute	China
Market Value (2024E)	US$ 14.9 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 22.4 Billion

China accounts for half of the market share in the East Asian region due to factors such as high containerized transportation, increasing gross domestic product (GDP), infrastructure investments, rising per capita income, growing inclination toward mechanization, and government initiatives for FDI have created more opportunities for the farming business, in turn driving market growth in China.

Farmers in China are gradually becoming tech-savvy and adopting GPS software products & tractors, equipped with telematics which is anticipated to spur sales of agriculture equipment. The government subsidies provided for the procurement of agricultural machinery are projected to offer great opportunities for market growth. According to the government of China, the farming sector is vital to national, economic, and social progress.

Category-wise Insights

The market for agricultural equipment is categorized into tractor-pulled/attachment and self-propelled of which the former is set to capture a market share of 56.8% in 2024. In terms of ownership, the market is segmented into individual and rental of which the the former is set to account for 9/10 of the market.

Which Agricultural Equipment Category is Expected to Remain Prominent?

“Shortage of Labor Increasing Sales of Tractors”

The global agricultural equipment market is primarily driven by tractors due to factors such as labor shortage and the need to meet the increasing global demand for food across the globe. Tractors are essential for boosting productivity in the agriculture industry. The promotion of farm mechanization and the rising adoption of precision farming in regions such as Asia Pacific and Latin America are further fueling this growth.

Introduction of electric tractors is expected to create significant growth opportunities for market participants. The growth of electric tractors is attributed to their cost-effectiveness, eco-friendly nature, and high efficiency.

Where is Demand for Farm Equipment Rental Growing?

“Need for Efficient Cultivation of Larger Areas”

Attribute	Rental
Segment Value (2024E)	US$ 36.2 Billion
Growth Rate (2024 to 2034)	4.7% CAGR
Projected Value (2034F)	US$ 57.5 Billion

Based on ownership, the rental segment is expected to witness significant growth, and the trend is expected to continue during the forecast period. With the growing global population, there is an ongoing need to expand cultivated land to meet the demand for food. Opening up new land for cultivation requires the use of farm equipment for land preparation, clearing, and planting. The farm equipment rental market is playing a crucial role in providing farmers with the necessary machinery to efficiently cultivate larger areas, thus driving agricultural expansion. As agriculture continues to be a key player in global economic growth, the demand for farm equipment rental services is on the rise.

Agricultural land is often far from major cities or urban centers, creating logistical challenges in accessing equipment rental services and transporting rented machinery to remote locations. Limited transportation infrastructure, including roads and connectivity, leads to increased costs and delays in delivering and retrieving rented equipment, which discourages some farmers from using rental services.

The distance between the rental provider's location and remote agricultural lands results in higher delivery and pickup costs for rented equipment. Rental companies need to charge additional fees to cover transportation expenses, making rental services less economically attractive for farmers in remote areas.

Competitive Landscape

Key players in the agricultural equipment market are focusing on expanding their geographical footprint and adopting strategies to create more consumers in the market. They are also eager to explore acquisition and merger opportunities.

• In July 2023, John Deere introduced a new See & Spray premium performance upgrade kit for John Deere self-propelled sprayers, the See & Spray line's newest addition. This kit employs an AI-powered vision system to help farmers profit while combating herbicide resistance through precise application, spraying only weeds rather than the entire field. This technology stabilizes the spray arm when mounted cameras are required to capture clear field images. A machine learning model can distinguish weeds from plants in milliseconds by analyzing multiple camera images simultaneously.
• In January 2022, John Deere introduced a fully autonomous 8R tractor. The new tractor is equipped with a TruSet-enabled chisel plow, GPS guidance system, and advanced technologies, including six pairs of stereo cameras for 360-degree obstacle detection and distance calculation, as well as a deep neural network that can classify each pixel of each image in just 100 milliseconds.
• In December 2021, New Holland Agriculture developed a Straddle Tractor tailored to the narrow vineyards found in premium wine-growing regions like Champagne, Médoc, and Burgundy.
• In November 2021, John Deere unveiled new material collection systems and mechanical grapples for compact utility tractors. The New Frontier MG20F Mechanical Grapple offers a quick-attach solution for fast installation and has a lift capacity of 1,200 pounds (544 kg).
• In November 2021, CLAAS introduced its new flagship TORION 1913 and TORION 2014 models, featuring increased engine power, higher lift capacity, and an even greater loading height.

Fact.MR provides detailed information about the price points of leading manufacturers of agricultural equipment positioned across the world, sales growth, production capacity, and technological advancements, in this new market report.

Segmentation of Agricultural Equipment Market Research

• By Category:

  • Tractor-Pulled/ Attachment
  • Self-Propelled

• By Application:

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

• By Ownership:

  • Individual
  • Rental

• By Region:

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