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Agriculture Equipment Market

Agriculture Equipment Market

Agriculture Equipment Market Size, Share & Trends Analysis Report By Product (Agriculture Tractors, Harvesters, Planting Equipment), By Application (Harvesting & Threshing, Sowing & Planting), By Region, and Segment - Global Forecasts 2022 - 2032

Agriculture Equipment Market
FACT7120MR

Global Agriculture Equipment Market Outlook (2022-2032)

The agriculture equipment market has garnered a market value of US$ 160.16 Bn in 2022, anticipated to register a positive CAGR of 4% in the forecast period 2022-2032 and reach a value of US$ 237.08 Bn.

Report Attributes

Details

Agriculture Equipment Market Size (2022)

US$ 160.16 Bn

Sales Forecast for Agriculture Equipment (2032)

US$ 237.08 Bn

Global Market Growth Rate (2022 to 2032)

4% CAGR

Key Companies Profiled

  • AGCO Corporation
  • Escorts Group
  • Agromaster
  • ISEKI & Co. Ltd.
  • APV GmbH
  • Bellota Agrisolutions
  • CLAAS KGaAmbH
  • CNH Industrial N.V
  • Deere & Company

Demand Analysis of Agriculture Equipment from 2015-2021 Vs Future Outlook 2022-2032

From 2015 to 2021, the global agriculture equipment market registered significant gains, reaching a valuation of US$ 154 Bn in 2021. According to Fact.MR- market research and competitive intelligence provider- the industry flourished at a CAGR of 4.9% during the aforementioned historical period.

Increasing mechanization in the agriculture sector coupled with the surge in farmers’ income is expected to be a primary factor driving the growth. Favorable climatic conditions for food production and government support with loan waiver schemes for farmers of all income categories are also presumed to favor the market growth. 

Technologically advanced agricultural robotics, such as autonomous tractors and flying drones to help farmers produce food at low costs to fulfill the growing demand for food, are anticipated to be better prospects for market growth over the forecast period. Considering these factors, the global agriculture equipment market is projected to witness high growth over the coming years, registering a CAGR of 4% to top US$ 237.08 Bn by 2032.

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What is driving the Market Demand for Agriculture Equipment?

Increasing Crop Production across Emerging Economies to Stimulate Demand

The sudden increase in demand for tractors, harvesters, and planters in H1 /2021 led to lower inventory levels for OEMs and their dealers in H2/2021. In addition, OEMs worldwide are currently experiencing a shortage of semiconductors and high commodity prices of steel, aluminum, and other raw materials.

As a result, OEMs are unable to balance supply and demand, which may allow OEMs to increase their product prices ranging from 4% to 22% in the next few quarters of 2022, a trend that is expected to continue till 2023. However, strong crop production in Asian economies, notably in China and India, along with the need to replace aging equipment is expected to drive the growth of the market.

The high initial cost of agricultural equipment is anticipated to be one of the bottlenecks for adopting agriculture equipment, notably for small income farmers. The rental business is expected to be one of the new revenue streams for market growth to overcome such challenges.

Moreover, several start-ups are now engaged in developing applications that will help farmers connect among themselves. These applications will also help the farmers connect with rental companies in their vicinity.Favorable government initiatives are anticipated to drive the growth of the market during the forecast period. For instance, the Russian government is attempting to trigger investment in capital purchases by proposing several subsidies for strategically significant sub-sectors including meat and milk production.

The Ministry of Agriculture sanctioned 464 projects worth USD 4 billion, expected to receive government support food security and reduce the livestock imports. Moreover, factors such as lack of human resources and the availability of easy credit and funds are projected to spur the demand for tractors and other farm equipment in other emerging countries over the forecast period.

Country-wise Analysis

How Opportunistic is the Agriculture Equipment Industry in the U.S?

High Demand for Farm Mechanization to Uplift Growth Prospects

According to Fact.MR, the US was valued at US$ 35.1 Bn in 2021 and is expected to register a CAGR of over 5% during the forecast period. Growth is primarily driven by the abundance of large farmland, which has led to high demand for farm mechanization. Moreover, the region is witnessing increased adoption of intelligent combine harvesters equipped with monitoring tools to increase farm yield.

Factors such as rising labor costs, the amalgamation of robotic systems and Global Positioning Systems (GPS) in tractors and harvesters, increasing demand for high-capacity machinery due to large farms, and the rising popularity of self-propelled machines are all expected to drive the regional market growth over the forecast period.

What Drives the Demand for Agriculture Equipment in Middle East and African Countries?

The Middle East and Africa region was valued at US$ 10.1 Bn in 2021 and is expected to record a CAGR of 2% over the forecast period. South Africa, Saudi Arabia, and UAE are notable markets in the region. The arid and semiarid countries in the Middle East with low and variable rainfall are likely to witness increased demand for irrigated and crop processing equipment over the forecast period.

Increasing Chinese investments in African countries are expected to boost the regional agriculture sector. The recent business expansion of New Hope Group, an investment firm, in Egypt is one such instance that suggests the increasing Chinese influence in the region.

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Category-wise Insights

Which Product Type Leads the Market?

Demand for Tractors to Top All Other Agriculture Equipment

The tractor segment accounts for the largest revenue share of over 30%, attributed to the labor shortage and the growing population to meet the global food requirements, which has made tractors a prerequisite for increasing productivity in the agriculture industry. The promotion of farm mechanization and the increasing adoption of precision farming in regions such as the Asia Pacific and Latin America have also accelerated the growth.

The emergence of electric tractors is anticipated to be a significant growth prospect for market participants. The growth is ascribed to the cost-effectiveness coupled with electric tractors' eco-friendly and high-efficiency attributes. However, a lack of energy density to cater to large field operations is expected to hamper their adoption over the forecast period.

The harvester segment is anticipated to reach around US$ 58 Bn by 2032, recording a CAGR of over 6% over the forecast period. Innovations in harvesting equipment are anticipated to favor the growth of the segment over the next few years. The rising popularity of smart combine harvesters and the integration of smart actuators into existing combine harvesters also contribute to market growth.

Which Application is projected to Get Traction in the Market?

Land Development and Seedbed Preparation to Dominate

The land development and seedbed preparation segment accounts for over 20% of the revenue share and is expected to expand at a significant CAGR of over 5% during the forecast period. The segment is inclusive of tractors, levelers, and agriculture implements.

The demand for agricultural tractors is gaining traction owing to numerous factors such as the increasing need for food propelling the need to mechanize farm work, availability of technologically advanced tractors, and increased urbanization causing a shortage in labor, forcing farmers to adopt machinery. This is anticipated to contribute to the growth of the overall market.

The adoption of tech-driven agriculture machinery such as robotics is also expected to fuel the demand for the farm machinery market in the forthcoming years. Furthermore, the preference for smart agriculture equipment is gradually picking up pace in countries such as India, Australia, and Southeast Asia, which is currently an emerging market.

Moreover, the region is witnessing substantial investments from agricultural OEMs and governments to promote smart agriculture initiatives. The varying climatic conditions across these countries and demand for cost-efficient equipment, particularly balers, are driving the demand for advanced agricultural equipment.

Competitive Landscape

The competitive landscape of the agriculture equipment market is shaped by product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. 

  • In May 2021, CLAAS KGaAmbH acquired a minority stake in Dutch start-up AgXeed B.V. The acquisition was intended for the development and commercialization of autonomous agriculture machines.
  • In August 2021, John Deere introduced the new 6155MH Tractor, which delivers reliability and all the field-proven performance like the M series, envisaging the company to attract a new customer base.

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Agriculture Equipment Market Report Scope

Report Attributes

Details

Forecast Period

2022-2032

Historical Data Available for

2015-2021

Market Analysis

US$ Mn for Value 

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • MEA

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Nordics
  • China
  • Japan
  • South Korea
  • Brazil
  • Mexico
  • GCC
  • Turkey
  • South Africa

Key Market Segments Covered

  • Product
  • Application
  • Region

Key Market Segments in Agriculture Equipment Industry Research

  • By Product Outlook

    • Agriculture Tractors
    • Agriculture Harvesters
    • Agriculture Planting Equipment
      • Row Crop Planters
      • Air Seeders
      • Grain Drills
      • Others
    • Irrigation & Crop Processing Equipment
    • Agriculture Spraying Equipment
    • Hay & Forage Equipment
    • Other Agriculture Equipment
  • By Application

    • Agriculture Equipment for Land Development & Seed Bed Preparation
    • Agriculture Equipment for Sowing & Planting
    • Agriculture Equipment for Weed Cultivation
    • Agriculture Equipment for Plant Protection
    • Agriculture Equipment for Harvesting & Threshing
    • Agriculture Equipment for Post-Harvest & Agro-Processing

- FAQs -

Fact.MR expects the market for agriculture equipment to grow at a 4% CAGR from 2022 to 2032
The global agriculture equipment market size was estimated at US$ 154 Bn in 2021
By 2022-end, Fact.MR forecasts the agriculture equipment demand to be valued at US$ 160.16 Bn
From 2015-2021, agriculture equipment sales grew at a CAGR of 4.9%, according to Fact.MR
According to Fact.MR, the tractor segment accounts for the largest revenue share of over 30%.
As per Fact.MR, the Middle East & Africa is expected to garner a value of over US$ 10 Bn
In the U.S, demand for agriculture equipment is expected to expand at a CAGR of 5% through 2032

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