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THE GLOBAL AGRICULTURE EQUIPMENT MARKET SIZE IS EXPECTED TO REACH 6.25 MILLION UNITS BY 2030 FROM 4.93 MILLION UNITS IN 2024, GROWING AT A CAGR OF 4.02% DURING THE FORECAST PERIOD.
The Agriculture Equipment Market Size, Share, & Trends Analysis Report By
- Agriculture Tractors: Horsepower Type (Less Than 50 HP, 50-100 HP, and Above 100 HP) and Wheel Drive Type (2-Wheel-Drive and 4-Wheel-Drive)
- Seedling, Planting, & Irrigation: Irrigation Pumps, Planters, and Seed Drillers
- Land Preparation: Tillers, Ploughs, and Harrow
- Harvesting & Threshing: Combine Harvester, Thresher, and Others
- Weeding & Plant Protection: Sprayers and Weeders
- Geography: North America, Europe, APAC, Latin America, and Middle East & Africa
Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2025–2030.
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AGRICULTURE EQUIPMENT MARKET REPORT SCOPE
REPORT ATTRIBUTE | DETAILS |
---|---|
Market Size (2030) | 6.25 Million Units |
Market Size (2024) | 4.93 Million Units |
CAGR (2024-2030) | 4.02% |
HISTORIC YEAR | 2021-2023 |
BASE YEAR | 2024 |
FORECAST YEAR | 2025-2030 |
SEGMENTS BY | Agriculture Tractors, Seedling, Planting, & Irrigation, Land Preparation, Harvesting & Threshing, Weeding & Plant Protection, and Geography |
GEOGRAPHIC ANALYSIS | North America, Europe, APAC, Latin America, and Middle East & Africa |
KEY PLAYERS | AGCO Corporation, CNH Industrial, John Deere, Kubota Corporation, and Mahindra |
MARKET INSIGHTS
The global agriculture equipment market size witnessed shipments of 4.93 million units in 2024 and is expected to reach 6.25 million units by 2030, growing at a CAGR of 4.02% during the forecast period. The market is experiencing rapid growth, driven by technological advancements, the need for increased agricultural productivity, and a focus on sustainability. The agriculture equipment market growth is propelled by the growing demand for more efficient farming practices to feed the expanding global population, which is expected to reach 9.7 billion by 2050. Mechanization, technological innovation, and government support are key factors influencing this market.
Mechanization has become one of the most critical factors in modernizing agriculture, especially in developing economies. Advanced machinery, including precision farming equipment, autonomous tractors, and robotic harvesters, has transformed traditional farming methods. These innovations not only increase operational efficiency but also reduce the need for manual labor. For example, autonomous tractors, like those developed by John Deere, are now equipped with GPS systems, enabling them to work efficiently with minimal human intervention.
Governments across the world are playing an essential role in supporting the adoption of advanced agricultural equipment, thereby propelling the global agriculture equipment market growth. Various incentives, subsidies, and funding programs are being introduced to encourage the use of modern machinery, especially in emerging markets. In India, for instance, John Deere launched seven new tractors and three implements in 2023 as part of its "Power and Technology 4.0" edition, specifically designed to improve productivity in India's diverse farming environments. Similarly, governments in developed countries like the United States have offered financial incentives for farmers to adopt sustainable farming practices, such as reducing greenhouse gas emissions or adopting precision farming technologies. These initiatives not only make advanced equipment more affordable but also help drive the agriculture equipment market's growth.
The growing focus on sustainability in agriculture is reshaping the market. As the agricultural sector is a significant contributor to global carbon emissions, there is a rising demand for eco-friendly and fuel-efficient machinery. For instance, New Holland's T4 Electric Power tractor, launched in December 2022, is designed to reduce the carbon footprint of farming operations. Electric tractors, which are quieter, more efficient, and less polluting, are becoming a viable alternative to traditional diesel-powered machinery. Such innovations are expected to play a pivotal role in the global push for carbon neutrality and sustainability within the agricultural sector.
Despite its growth prospects, the agriculture equipment market faces several challenges. One of the main obstacles is the high initial cost of advanced machinery, which can be prohibitive for small and medium-sized farmers. While subsidies and financing options can mitigate this, affordability remains a barrier in many regions. Additionally, economic downturns, such as the one currently being experienced in the agricultural sector, can impact demand for high-cost machinery. For example, AGCO, a leading manufacturer of agricultural machinery, reported a significant decline in earnings in 2024 due to reduced demand for farm equipment, highlighting the vulnerability of the sector to economic fluctuations. Also, supply chain disruptions, especially in the wake of the pandemic and geopolitical tensions, have affected production and distribution. For instance, Deere & Co. faced challenges in maintaining production levels, leading to a reduction in workforce and delayed deliveries of machinery to customers.
The future of the global agriculture equipment market lies in automation, sustainability, and smart farming solutions. The integration of autonomous tractors, drones, and robotic harvesters is expected to revolutionize farming operations by reducing labor costs and improving efficiency. Additionally, the growing emphasis on electric and hybrid tractors, driven by environmental concerns, will continue to reshape the agriculture equipment market. The development of smart farming solutions, such as IoT-enabled devices and AI-driven analytics, will allow farmers to monitor crop health, soil conditions, and weather patterns in real-time, leading to more informed decision-making and higher productivity. In conclusion, the global agriculture equipment market is on a strong growth trajectory, driven by technological innovations, government support, and sustainability initiatives. While challenges such as high costs and supply chain disruptions persist, the market’s future looks promising, with automation, electric equipment, and smart farming solutions set to dominate the landscape. The sector’s ability to address global food security challenges and environmental concerns will shape its long-term success.
MARKET TREND & DRIVERS
Growth in Electrification and Sustainable Solutions
The agriculture equipment market is undergoing a transformation driven by electrification and sustainability. Key players like Monarch Tractor and Solectrac are leading with robust sales growth in electric tractors, while advancements in battery technology and precision farming tools are optimizing efficiency and reducing emissions. Government initiatives, such as the USDA's $500 million grants and India's subsidy programs, are further accelerating adoption. This dual focus on innovation and eco-friendly practices is reshaping the industry, positioning it for significant growth and alignment with modern agricultural demands.
Shift Toward Precision Agriculture
The global agriculture equipment market is experiencing a paradigm shift with the growing adoption of precision agriculture technologies. These advancements, including GPS-enabled tractors, autonomous machinery, and IoT-integrated systems, optimize resource use, enhance productivity, and reduce environmental impact. Key players like John Deere, Kubota, and CNH Industrial are driving innovation, while government incentives and rising adoption in emerging markets further fuel demand.
Growing Investment From Farm Equipment Manufacturers
Investment by farm equipment manufacturers is a key driver fueling the demand for farm equipment in the global market. Increased funding from major agricultural machinery producers enables the development of advanced technologies, enhancing productivity and efficiency in farming. For instance, John Deere’s $3.5 billion investment in automation and electric machinery is a testament to the industry's focus on innovation. Similarly, AGCO's strategic acquisitions, such as the 2023 purchase of the precision agriculture firm Fendt, demonstrate how manufacturers are boosting their capabilities to meet the evolving demands of global markets. These investments are particularly noticeable in emerging markets, where the need for mechanization and modernization of agriculture is growing rapidly. As manufacturers expand their presence globally, they also contribute to improved accessibility and affordability of farm equipment, stimulating further agriculture equipment market growth.
INDUSTRY RESTRAINTS
Challenge From the Rental Agricultural Equipment
The increasing demand for rental agricultural equipment is becoming a key constraint in the global farm equipment market, potentially impacting new machinery sales. Farmers, particularly in regions with seasonal activities or smaller farm sizes, are opting for cost-effective rental solutions to access specialized machinery without significant capital investment. This trend, supported by improved equipment availability and favorable leasing terms, is particularly prominent among small and medium-sized farms, contributing to a decline in new equipment purchases and altering market dynamics.
Supply Chain Disruptions
The agriculture equipment market continues to face significant disruptions due to lingering supply chain issues, geopolitical tensions, and rising raw material costs. For instance, in 2023, John Deere reported production delays of up to six months, citing semiconductor shortages and higher steel prices as major factors. Similarly, CNH Industrial experienced a 5% decline in equipment sales in Q1 2023, while emerging markets like India grapple with logistical challenges and port congestion, further hindering machinery availability and market growth.
SEGMENTATION INSIGHTS
The global agriculture equipment market is experiencing significant advancements, driven by the demand for efficiency, sustainability, and higher productivity in farming operations. Recent product launches across various equipment types, including tractors, irrigation systems, land preparation machinery, harvesting tools, and plant protection equipment, highlight the industry's innovative direction. These developments are reshaping the market to meet the diverse needs of agriculture worldwide.
- In the agriculture tractors segment, key players are introducing advanced models with cutting-edge features. AGCO's Fendt 600 Vario Series, launched in 2024, offers versatility with a power range of 140 to 240 HP, catering to a wide range of farming applications. Mahindra’s Oja range, launched in August 2023, focuses on modernizing operations while offering affordability. These innovations reflect the growing trend toward automation, precision, and sustainability in tractor manufacturing.
- Sustainability and electrification are driving advancements in seedling, planting, and irrigation equipment in the agriculture equipment market. John Deere made a significant move in January 2023 by introducing battery-powered farming equipment, promoting eco-friendly planting and irrigation solutions. Additionally, Mahindra's PlantingMaster Potato+, developed in collaboration with Dewulf, enhances potato planting efficiency, highlighting the growing demand for sustainable and precise farming systems.
- The land preparation equipment segment in the global agriculture equipment market has also seen significant progress. CLAAS introduced the EVION 400 Series harvesters in July 2023, designed to enhance soil preparation and overall performance in pre-planting operations. These innovations address the rising awareness of soil health and efficient land management practices, especially in regions with expanding mechanized farming.
- Automation is becoming a key feature in harvesting and threshing equipment. New Holland's T8 tractor with Raven Autonomy, launched in November 2022, offers driverless grain cart capabilities, marking a major milestone. AGCO's Fendt AutoDock System, the first automatic header connection system for combines, further improves harvesting efficiency by reducing downtime and labor needs. These developments are especially valuable in developed markets facing labor shortages.
- The weeding and plant protection equipment segment in the agriculture equipment market is also adopting precision technologies to ensure sustainable crop growth. AGCO's Fendt Rogator® 900 Series sprayer exemplifies this trend with advanced application technology, reducing chemical use and environmental impact. These innovations are part of the industry's broader shift toward sustainable farming practices.
Overall, these product launches underscore the agriculture equipment market's commitment to integrating technology and sustainability. As global food demand rises, these innovations equip farmers with the tools needed to tackle the challenges of modern agriculture effectively.
GEOGRAPHICAL ANALYSIS
APAC dominated the global agriculture equipment market share, accounting for over 58% in 2024. The Asia Pacific 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. Also, government initiatives like Japan’s Smart Agriculture Project and Australia’s “Ag2030” plan are driving innovation. These programs aim to enhance productivity and sustainability through robotics and digital technologies. Furthermore, the North American agriculture equipment market is experiencing significant growth, driven by advancements in technology and increasing demand for efficient farming solutions. Government funding is a significant driver, with the USDA allocating over USD 500 million in 2023 to promote technologies like IoT and autonomous machinery. This has spurred innovation among startups and established firms. Also, private sector investments are fueling growth, with Deere & Company reporting a 15% sales increase in precision agriculture tools in 2023. Venture capital funding for platforms like Indigo Agriculture exceeded USD 2 billion.
The European agricultural equipment market is a key driver of the region's farming industry, providing advanced tools and technologies to enhance productivity and ensure sustainable farming practices. Government support is a key driver, with the European Commission allocating USD 1.5 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 agriculture equipment tools for better crop management and reduced resource consumption. Companies like BASF launched digital platforms in 2024 to help farmers meet environmental regulations.
The Latin American agriculture equipment market is growing due to rising food demand, driven by a growing population and urbanization. R&D investment is fueling market growth, with over USD 5 billion invested in agriculture equipment in 2023. Countries like Argentina and Chile are leveraging technology to improve crop yield and address climate change challenges. Also, 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 companies. Furthermore, the Middle East and Africa (MEA) agriculture equipment market has been witnessing dynamic growth fueled by recent product innovations, strategic partnerships, and government-led incentives to enhance agricultural productivity. Technological innovations, such as precision farming are improving crop yields and water efficiency, particularly in water-scarce areas like Saudi Arabia and the UAE. For example, the UAE's "Food Security Strategy 2051" promotes sustainable farming practices and technology. Also, government support is crucial for the adoption of agriculture equipment solutions. The South African government’s "Agriculture and Agro-processing Master Plan," launched in 2020, aims to integrate technology into farming.
VENDORS LANDSCAPE
The global agriculture equipment market is highly competitive, driven by the presence of established industry giants, regional players, and new entrants. Leading companies, such as John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, and Mahindra & Mahindra, dominate the global agriculture equipment market by focusing on technological innovation, product diversification, and geographic expansion. The market's competitive dynamics are further influenced by partnerships, acquisitions, and a strong emphasis on sustainable farming practices.
John Deere remains a dominant player, generating USD 61.5 billion in revenue in 2023, with nearly 60% coming from its agriculture division. Similarly, CNH Industrial and Kubota Corporation reported revenues of USD 22.5 billion and USD 21.3 billion, respectively, with significant contributions from their agriculture segments. Mahindra & Mahindra, a regional leader, caters to local markets with cost-effective products and maintains its position as the world's largest tractor manufacturer by volume, having sold over 390,000 tractors in 2023.
Technological innovation plays a pivotal role in the competitive landscape of the global agriculture equipment market. Companies are increasingly integrating GPS, IoT, and AI technologies into their machinery to enhance productivity and operational efficiency. John Deere's launch of its autonomous tractor in 2024, which incorporates AI-driven navigation and real-time crop analysis, represents a major leap in precision farming. AGCO Corporation’s Precision Planting SmartFarmer, with a 25% adoption rate in North America in 2023, underscores the growing shift toward digital agriculture solutions to address productivity challenges.
Electrification is another key trend reshaping the global agriculture equipment market. Companies like Solectrac, Mahindra, and Yanmar are leading the transition toward electric and hybrid-powered agricultural machinery. Solectrac, for example, reported a 30% growth in 2023, driven by its electric tractors in North America. In India, Mahindra's e-Kaali electric tractor sold over 10,000 units within six months of its launch, supported by government subsidies. Yanmar's SmartAssist Remote electric tractor, launched in Japan, also saw a 15% increase in sales in its first year.
Strategic partnerships and acquisitions are integral to agriculture equipment market growth. CNH Industrial's acquisition of Raven Industries in 2022 enhanced its precision agriculture portfolio, contributing to a 12% increase in revenue from digital solutions in 2023. Kubota’s collaboration with Microsoft announced in 2023, focuses on integrating cloud computing for improved operational efficiency and predictive maintenance. Furthermore, despite these advancements, challenges persist, including supply chain disruptions, fluctuating raw material costs, and stringent environmental regulations. However, with growing government incentives and the increasing adoption of precision agriculture technologies, the global agriculture equipment market is poised for continued transformation, with companies that emphasize sustainability, technological advancement, and cost-effectiveness likely to lead the way.
SNAPSHOT
The global agriculture equipment market size is expected to grow at a CAGR of approximately 4.02% from 2024 to 2030.
The following factors are likely to contribute to the growth of the agriculture equipment market during the forecast period:
- Shifting Consumer Preference Towards Organic Food Products
- Growing Investment from Farm Equipment Manufacturers
- Expansion of Emerging Markets
Base Year: 2024
Forecast Year: 2025-2030
The report considers the present scenario of the global agriculture equipment market and its market dynamics for 2025−2030. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the market.
Key Company Profiles
- AGCO Corporation
- Business Overview
- Product Offerings
- Key Strategies
- Key Strengths
- Key Opportunities
- CNH Industrial
- John Deere
- Kubota Corporation
- Mahindra
Other Prominent Vendors
- Antonio Carraro
- Business Overview
- Product Offerings
- BCS Group
- Branson Tractor
- Captain Tractors Pvt. Ltd.
- CLAAS
- Iseki
- JCB
- KIOTI
- Lovol
- LS Tractors
- McCormick
- Same Deutz-Fahr
- TYM Corp.
- VST Tillers Tractors
- Yanmar
Segmentation by Type
Agriculture Tractors
- Horsepower Type
- Less Than 50 HP
- 50-100 HP
- Above 100 HP
- Wheel Drive Type
- 2-Wheel-Drive
- 4-Wheel-Drive
Seedling, Planting, & Irrigation
- Irrigation Pumps
- Planters
- Seed Drillers
Land Preparation
- Tillers
- Ploughs
- Harrow
Harvesting & Threshing
- Combine Harvester
- Thresher
- Others
Weeding & Plant Protection
- Sprayers
- Weeders
Segmentation by Geography
- North America
- The U.S.
- Canada
- APAC
- China
- India
- Thailand
- Malaysia
- Australia
- Indonesia
- Europe
- France
- Germany
- Italy
- Poland
- The U.K.
- Spain
- Finland
- Sweden
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- Turkey
- South Africa
- Egypt
Frequently Asked Questions
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Frequently Asked Questions
How big is the global agriculture equipment market?
What is the growth rate of the global agriculture equipment market?
What are the significant trends in the agriculture equipment industry?
Which region dominates the global agriculture equipment market share?
Who are the key players in the global agriculture equipment market?