Global Agriculture Equipment Market Overview
Agriculture Equipment Market Size was valued at USD 2,28,307 Million in 2023. The Global Agriculture Equipment industry is projected to grow from USD 2,38,044 Million in 2024 to USD 3,62,958 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.3% during the forecast period (2024 - 2032).
The Agriculture Equipment Market has witnessed the remarkable market growth in recent years and projected to experience notable sales during the foreseeable future back on the consistent advancement in agriculture equipment and rising demand for agricultural productivity. Product level innovation from leading agriculture equipment manufacturers in regular time of interval is further escalating the market growth across the continents. Factors such as rising mechanization in the agriculture industry along with booming advanced farming are creating an opportunity for agriculture equipment manufacturers to generate maximum financial revenues via agriculture equipment.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
August 2024: CNH Industrial revealed its new line of electric tractors aimed at reducing carbon emissions in agriculture. The electric tractors are part of CNH’s broader sustainability initiative.
Agriculture Equipment Market Trends
-
Increasing Need for Agricultural Productivity
The demand for food is expected to grow substantially during the forecast period. The exponential increase in the world's population leads to an increased demand for food. According to the United Nations Food and Agriculture Organization, agricultural output per person has increased by 50% since 1960. Several government bodies across the globe are taking numerous steps to make targeted increases in productivity within specified periods. It is estimated that the output per unit of total resources used in production will be doubled by 2050 to meet the growing demand, while resources such as land and labor are limited.Â
One of the key factors expected to drive the agricultural sector is the mechanization of agricultural machinery. Resources such as water are limited, and it is of extreme importance that water resources be handled with high efficiency to improve water management. As per data from the UN, approximately 70% of the freshwater withdrawn every year is used in agriculture. Furthermore, around two-thirds of the global population live in water-scarce areas, necessitating efficient water management systems.
Government Assistance Through Farm Loan Waiver and Credit Financing
The implementation of farm loan waivers scheme incentives farms to invest in agriculture equipment. Government worldwide have introduced various schemes aimed at reliving farms of their debt and promoting farm mechanics. According to Agricultural Policy Monitoring and Evaluation 2019 by the Organization for Economic Co-operative and Development (OECD), farm policies in 53 countries, including EU nations and OECD, along with emerging 12 key economies on average USD 528 billion (EUR 465 billion) per-year of direct support to farmers during the 2016-18 period.Â
However, between the year 2019-21 government provided a support of USD 817 billion per year, for the 54 countries a 13% increase over the USD 720 billion reported for 2019-20. Of this total, USD 500 billion per year was paid from public budgets, with the rest being transferred through higher prices. Individual producers received USD 611 billion per year in positive support in 2019-21, representing 17% of gross farm receipts in OECD countries and 13% in the 11 emerging economies.
For instance, in the year 2019, government of Maharashtra, India, introduced the Mahatma Phule Farm Loan Waiver Scheme, followed by the Maharashtra Argo Business Network Project in the March 2021, aimed at assisting a small and marginal fruit and vegetable.
Agriculture Equipment Market Segment Insights
Global Agriculture Equipment Product Type Insights
Based on Product Type, the Agriculture Equipment Market is segmented across the following segments: tractor, harvester, planting and crop processing equipment, cultivation & soil separation equipment, hay & forage equipment, spraying equipment, and others. The tractor segment dominates the market share in 2023. Tractor is the most popular and diverse equipment used in the agriculture industry. It is the go-to equipment for anyone looking to move, pull, plow, haul, and till soil or land.Â
A tractor has numerous different attachments through which it can perform various functions. It can be fitted with a tiller, rotary cutters, aerators, cultivators, pallet forks, disc harrows, and many other attachments. Tractors can perform several functions in agriculture, such as plowing, sowing, tilling, and harrowing. Moreover, a tractor is used for pushing or pulling the machinery. This helps in making the farming operations more convenient. They also play a central role in increasing the efficiency and productivity of agriculture equipment fastener by mechanizing task that would otherwise be labor-intensive and time consuming.
Figure 1: Agriculture Equipment Market, by Product Type, 2023 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Global Agriculture Equipment Function Insights
Based on end user industry, the Agriculture Equipment Market is segmented across the following segments: harvesting, planting & fertilizing, haying, plowing & cultivation, and post harvest & arro processing. The harvesting segment dominates the market share in 2023. Harvesting refers to removing and gathering crops from the field where they are grown and moving them to other places for processing, storing, and consumption purposes.Â
Proper harvesting of crops is essential to maximize grain yield, minimize grain damage, and maintain crop quality. Timely and efficient harvesting processes strengthen quality product delivery to the market. Harvesting equipment such as drapers, harvesters, plows, and other farm harvesting machinery is mounted or towed behind the tractor to provide a source of power for performing harvesting operations when the tractor is mechanized. Such factors are expected to drive the demand for the harvesting segment during the forecast period.
Global Agriculture Equipment Regional Insights
The Agriculture Equipment Market, based on region, has been divided into North America, Europe, Asia Pacific, Rest of World. North America consists of US, Canada, and Mexico. Europe consists of UK, Germany, France, Italy, and Rest of Europe. Asia-Pacific consists of China, India, Japan, and Rest Of Asia-Pacific. Middle East & Africa consists of Saudi Arabia, South Africa, UAE, and Rest of Middle East & Africa. South America consists of Brazil, Argentina, and Rest of South America. Asia-Pacific is one of the largest markets for agricultural equipment, as many countries in the region are highly dependent on the agricultural sector.Â
The increased demand for agricultural tractors in the region can be credited to factors such as the growing harvesting, seed sowing, irrigation, and cultivation activities in farm fields. Asia-Pacific is an abundant source of crops sprayer and vegetables, low labor costs, and favorable government guidelines in countries such as India, China, Japan, and South Korea. These countries also have a strong focus on agriculture, and hence the demand for agricultural equipment in the agriculture sector is also expected to be high.
Europe is one of the prominent regions for the agricultural tractors market. With a rich history in farming tradition, Europe boots a diverse landscape that necessitates a wide range of agricultural equipment tailored to varying climate condition and farming practices. Moreover, in the Europe government authorities are taking numerus action to promote agriculture equipment in the different countries for instance, in the UK, the government authorities are working on its Food 2030 strategy to produce more food without harming natural resources to offer sustainable and healthy food. The increasing demand for innovative and technologically developed agricultural equipment is expected to increase with the sale in the region.
Figure 2: Agriculture Equipment Market Size By Region 2023 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The rising investments in the agricultural industry are expected to drive the growth of the agricultural equipment market in North America. Furthermore, the rising demand for modern agricultural equipment is expected to offer lucrative opportunities to the agricultural equipment market during the study period. The increase in agricultural activities across the region is also expected to contribute significantly to the growth of the regional market during the forecast period. Moreover, governments and other organizations in the region are continuously working on increasing developments in the agricultural sector in the region.
Global Agriculture Equipment Key Market Players & Competitive Insights
The Agriculture Equipment Market is highly competitive, with a number of large, well-established players. The major players are constantly innovating and developing new products to stay ahead of the competition. There is also a growing number of smaller players entering the market, offering specialized equipment or niche products. Some players, such as Deere & Company and Claas, have a strong brand reputation that gives them a competitive advantage.Â
Some players, such as Deere & Company, are investing heavily in new technologies, such as precision agriculture and automation. Integrating technology like sensors, GPS, and data analytics into equipment for precision tasks like targeted spraying and variable-rate fertilization, optimizing resource use and yield.Â
Developing self-driving tractors, drones, and robots for tasks like planting, weeding, and harvesting, addressing labor shortages and improving efficiency. Focusing on electric and hybrid tractors and equipment to reduce emissions and meet environmental regulations. Some players, such as AGCO, offer a wide range of products, which allows them to cater to a wider range of customer needs. Some players, such as CNH Industrial, have a strong distribution network that gives them access to a large number of customers. The competitive landscape of the Agriculture Equipment Market is expected to continue to evolve in the coming years, as new technologies emerge and new players enter the market.
Key Companies in the Agriculture Equipment Market include.
- JC Bamford Excavators Limited
- Yanmar Holdings Co., Ltd.
- Lovol Heavy Industry Co., Ltd.
Agriculture Equipment Market Industry Developments
In December 2023, Bourgault Industries Ltd. has been acquired by Linamar Corp. which will enable Linamar to enhance the range of its products and the inclusion of seeding equipment line in its existing product portfolio. Thus the Acquisition is beneficial for both parties.
In October 2023, the compact 6075 Cab tractor was unveiled by Mahindra Ltd. A major agriculture company which can go a long way in assisting the company in strengthening the market position among medium, and smallholders.
In May 2023, AGCO Corporation struck a deal with Bosch, and it has started integrating and improving the Rogator with smart spraying technology Corteva which is expected to enhance the speed of spraying work while minimizing the costs involved.
In April 2023, Yanmar America maintains leadership in the manufacture of sub-compact and compact tractors and has teamed up with Tarter Farm and Ranch Equipment to offer complementary products that are oversized implements for small tractors.
In November 2022, the New Series of 5EN and 5ML was added to the tractor's family lineup by John Deere. The tractors would make it very feasible to work in a narrow vineyard or orchards and would assist in controlling, supervising, and improving output with greater profitability from the businesses.
In July 2023, Deere & Company has acquired Smart Apply, Inc., a precision spraying equipment company based in Indianapolis, Indiana. The company developed the Smart Apply Intelligent Spray Control Systemâ„¢, an upgrade kit that can improve the precision and performance of virtually any air-blast sprayer used in orchard, vineyard, and tree nursery spraying applications. Smart Apply helps growers reduce chemical use, airborne drift, and run off, while optimizing high-value crop yields and meeting sustainability objectives.
In March 2023, Mahindra & Mahindra Ltd.’s Farm Equipment Sector (FES) today completed its acquisition of MITRA Agro Equipment Private Limited (M.I.T.R.A) by increasing its shareholding from the existing 47.33% to 100%, making it a wholly owned subsidiary of Mahindra & Mahindra Ltd. (M&M). As part of this acquisition, Mahindra fully bought out Omnivore’s stake in the business.
Agriculture Equipment Market Segmentation:
Global Agriculture Equipment Product Type Outlook (USD Million, 2019-2032)
- Planting and Crop Processing Equipment
- Cultivation & Soil Separation Equipment
Global Agriculture Equipment Function Outlook (USD Million, 2019-2032)
- Post Harvest & Arro Processing
Agriculture Equipment Market Regional Outlook
|
Attribute/Metric
|
Details
|
|
Market Size 2023
|
USD 2,28,307 Million
|
|
Market Size 2024
|
USD 2,38,044 Million
|
|
Market Size 2032
|
USD 3,62,958 Million
|
|
Compound Annual Growth Rate (CAGR)
|
5.3% (2024-2032)
|
|
Base Year
|
2023
|
|
Market Forecast Period
|
2024-2032
|
|
Historical Data
|
2019- 2022
|
|
Market Forecast Units
|
Value (USD Million)
|
|
Report Coverage
|
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
|
|
Segments Covered
|
Product Type, Function, and Region.
|
|
Geographies Covered
|
North America, Europe, Asia Pacific, and Rest of World.
|
|
Countries Covered
|
US, Canada, Mexico, UK, Italy, Germany, France, Spain, Rest of Europe, China, India, Japan, Sout Korea, Rest Of Asia-Pacific, Brazil, Argentina, Rest of South America, South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa.
|
|
Key Companies Profiled
|
AGCO Corporation, Deere & Company, CNH Industrial, Kubota Corporation, Mahindra & Mahindra Ltd., Iseki & Co., Ltd., JC Bamford Excavators Limited, Daedong Industrial Co., Escorts Limited, Claas KGAA MBH, SDF S.P.A., Yanmar Holdings Co., Ltd., Alamo Group Inc., Bucher Industries, Lovol Heavy Industry Co., Ltd., among others.
|
|
Key Market Opportunities
|
·      Growing Emphasis on Agriculture Mechanisation within the Developed and Developing Region
|
|
Key Market Dynamics
|
·      Increasing Need for Agricultural Productivity
·      Government Assistance Through Farm Loan Waiver and Credit Financing
·      Advancement in Precision Agriculture to Drive Market Expansion
|
Agriculture Equipment Market Highlights:
Frequently Asked Questions (FAQ) :
The Agriculture Equipment Market size was valued at USD 2,28,307 Million in 2023.
The Global market is projected to grow at a CAGR of 5.3% during the forecast period 2024-2032.
Asia-Pacific had the largest share of the Agriculture Equipment Market in 2023.
The key players in the market are AGCO Corporation, Deere & Company, CNH Industrial, Kubota Corporation, Mahindra & Mahindra Ltd., Iseki & Co., Ltd., JC Bamford Excavators Limited, Daedong Industrial Co., Escorts Limited, Claas KGAA MBH, SDF S.P.A., Yanmar Holdings Co., Ltd., Alamo Group Inc., Bucher Industries, Lovol Heavy Industry Co., Ltd., among others.
The tractor Cut-off Tool segment dominated the Agriculture Equipment market in 2023.
The harvesting had the largest revenue share of the Agriculture Equipment Market in 2023.
