Market Scenario

Global agriculture equipment market was valued at US$ 269.3 billion in 2023 and is projected to reach a market valuation of US$ 565.8 billion by 2032 at a CAGR of 8.6% during the forecast period 2024-2032.

Today, modern farming has pushed aside its traditional roots with powerful technology and sophisticated equipment. It’s why the global agriculture equipment market is thriving, but it's not the only reason. The ever-growing population requires more food output, so farmers have to resort to better machinery in order to accommodate this demand. Governments around the world have also been pushing for modern methods of farming. One example of this is India, which decided to allocate $800 million for farm machinery purchases in 2022.

Asia-Pacific dominates the global market because of how agrarian that part of the world remains. Countries like China and India are home to a great deal of farmable land that needs efficient tools to operate on. The growth potential for these countries is massive too; alone, China’s agriculture machinery market was worth over $32 billion in 2022, and India’s sat at $14 billion. However, North America still has its fair share when it comes to dominating this space — especially the United States. 

It's become clear that precision agriculture will be at the forefront from here on out in the global agriculture equipment market. This method uses AI and IoT data analytics to make farming as efficient as possible. The global precision farming market was worth about $9.5 billion in 2022, and experts predict it will grow by almost 13% until 2027 — overtaking general agriculture equipment growth along the way. Sustainability concerns have also driven manufacturers toward electric and autonomous machines that won’t harm our planet nearly as much as their older counterparts do now. Electric tractors are predicted to see sales reach 500k units globally by 2030 thanks to new regulations being put into place around many countries worldwide.

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Market Dynamics 

Trend: Increasing Adoption of Tech-Driven Agriculture Machineries 

Automation and robotics have been implemented more in agriculture, especially in North America and Europe agriculture equipment market. This is because labor shortages and high costs have lately become significant challenges for farmers. In these regions, they’ve been implementing machinery driven by technology to help them be more efficient, productive, and sustainable by eliminating a lot of their labor-intensive tasks. For example, autonomous tractors are now so advanced that they can operate without human intervention which allows farmers to manage their fields from anywhere around the world.

Autonomous tractors aren’t the only things being created with robotic systems. Companies are also making them for planting, harvesting, and pruning crops as well. Naïo Technologies is a French company that has developed agriculture robots such as the Oz weeding robot. The Oz weeding robot can autonomously navigate through vegetable fields while removing weeds on its way through. The company has already sold over 150 robots worldwide. Drones are also becoming very popular in the agricultural equipment market too because of how multifunctional they can be when it comes to monitoring crops or precision spraying chemicals onto them. Astute Analytica believes that the market for agriculture drones will reach $32.4 billion by 2050 with most of that growth being due to the increasing demand for automation and robotics.

The need for food increases year after year as our population keeps growing bigger and bigger. That’s why experts believe that the acceleration of automation and robotics will become even faster than what we’re seeing today. By embracing these technologies it’ll allow farmers to optimize their operations while still reducing labor costs along with improving sustainability practices too!

Driver: Government Subsidies Fuel Agriculture Equipment Demand in Developing Nations

Governments around the world have started taking note of agricultural mechanization in the agricultural equipment market. The sector not only helps drive down food insecurity, but it also plays a big role in economic growth. This is why so many governments are offering subsidies and financing options to farmers who want to invest in new equipment. It’s safe to say that these incentives have proven successful. India, for example. In 2023, the country allocated $2 billion in agricultural mechanization subsidies. Additionally, they offer short-term agricultural loans up to INR 3 lakhs with a 7% annual interest rate (and 3% subvention on prompt repayment) through government-run programs.

China is also taking a strong part in boosting the adoption of farm equipment. The country offers subsidies of up to 40% on certain types of machinery and equipment. These incentives in the agricultural equipment market are proving effective – between 2016 and 2021, tractor sales in Africa grew by a remarkable 25%. As a result, the country has started witnessing a shift from labor-intensive manual farming to higher efficiency and higher crop yields.

Even in America, the agriculture equipment market is witnessing seeing similar trends emerge with the USDA's Partnerships for Climate-Smart Commodities program offering funding from million to 0 million for large-scale projects that reduce greenhouse gas emissions while providing direct financial support to farmers through equipment purchases. Additionally, the USDA regularly announces discretionary funding opportunities on Grants.gov that agricultural producers and organizations can apply for. The United Kingdom also has their own Farming Investment Fund which awards grants between £25,000 and £300,000 specifically for helping farmers invest in equipment. The UK's Farming Investment Fund offers a grant between £25,000 and £300,000 specifically for helping farmers invest in equipment to add value to their produce. Additional grants like the Improving Farm Productivity grant and Slurry Infrastructure grant also support purchasing power.

Challenge: Rising Input Costs Squeeze Farmers' Ability to Invest in New Machinery

Farmers around the global agricultural equipment market are facing scary price surges. In February 2023, the USDA released their Farm Sector Income forecast and it projects farm production expenses to reach nearly $500 billion for the year. That's a 4% increase from 2022, and a massive 28% climb ($87 billion) compared to just two years ago in 2020. This sharp two-year increase is actually the highest in farm input costs that has ever been recorded. People are worried because production costs are outpacing commodity prices and that makes it harder and harder for farmers to break even. One of the biggest reasons why prices have risen so much is due to equipment becoming more expensive. The University of Illinois says that total machinery costs have gone up by 15% in four years between 2017–21 for a tractor with a power take-off (PTO) horsepower of 310 after factoring in overhead, fuel and labor. These numbers aren't new, they have been gradually increasing by about 4% each year over the past decade just like how capital recovery costs have gone up by almost double (70%) during the same time frame.

The decisions UK farmers must make are incredibly difficult: either spend savings on immediate cost increases or invest in future operations. Spending now may prevent short term losses, but without savings to buy new machinery or adopt sustainable energy sources later on, they’re stuck with what they currently have which could be outdated and inefficient. If farmers decide not to spend money they don't have now, then reduced input spending means there will be fewer crops and less livestock — simply put fewer products to sell — reducing profitability even if output prices do eventually fix themselves with input costs down the line. About four out of every ten farmers surveyed in the agricultural equipment market expect input prices to rise more than 30% this year alone, leading many producers to rethink their spring planting plans as well as re-evaluate their risk management strategies.

The biggest problem with all these rising input prices is that they won't come down easily, if at all. In fact, they may have reached a new normal of higher costs in the agriculture equipment market. Farmers feel like they’re getting squeezed because USDA's prices paid index for commodities, services, interest, taxes and farm wages has decreased year-over-year less than 14% of the time since 1990. Farmer sentiment hasn't been this low in years. Almost half of U.S. farmers listed higher input costs as their top concern, beating out government policies (37%) and low commodity prices (36%). In January 2022, some survey respondents expected input prices to climb more than 20% compared to the previous year.

Segmental Analysis 

By Equipment Type:

Harvesting & threshing equipment undoubtedly plays a crucial role in agriculture equipment market, contributing a significant 57.1% revenue share to the global market in 2023. The direct impact of harvesting on crop yield and quality, along with the growing demand for efficiency, drives this segment. With populations booming, maximizing yield is imperative—a factor directly fueling the demand for advanced harvesting & threshing equipment. Considering the capital-intensive nature of these machines, their substantial revenue contribution is expected.

However, the fertilizing & pest control machinery segment is a rising star, projected to exhibit a CAGR of 9.3% in the coming years. This surge reflects the increasing emphasis on sustainable farming practices and the need to intelligently manage input usage. Precise fertilizer application not only reduces costs but also ensures better yields and minimizes environmental impact. As concerns about ecological balance and soil health intensify, targeted pest control and efficient fertilization become paramount – propelling this segment's growth trajectory. For example, companies like Raven Industries offer precision fertilizer applicators that use sensors and variable-rate technology to optimize nutrient delivery, reducing waste and minimizing runoff into waterways.

By Power Output:

The 71-130 HP segment of the global agriculture equipment market accounted for 44.6% revenue share in 2023 and is estimated to maintain its domination while growing at a CAGR of 9.6%. As this power is enough for robust performance but without venturing into high-cost territory. Farmers with medium‑ to large‑scale farms find this power range versatile enough to handle tasks from ploughing and planting to light harvesting. As farmers adapt to diverse soil conditions and changing crop rotations, agriculture equipment within this power bracket offer the operational flexibility they need. As more farmers become contract service providers, there is a greater need for machinery that can perform effectively on plots and terrains that vary greatly in size and ruggedness.

While the 71-130 HP segment dominates among mid-size operations, demand for high-power output equipment has surged globally due to rapid expansion of large landowners with expansive farms, especially in India and China. Additionally, large-scale farmers in Canada and the US — who have the means to invest in larger tractors — are also driving demand for 131-250 horsepower machinery. Higher horsepower helps haul heavier loads, cover more ground rapidly with wider implements and work longer hours with reduced downtime — critical factors when managing vast tracts of land.

By Drive Type

The global agriculture equipment market is dominated by two-wheel drive equipment, which made up an impressive 77.3% share in 2023. Famers have long favored these models due to their lower cost structure, easier maintenance and wide range of uses on all different farms types around the world. In Southeast Asia, 80% of machinery sales are for two-wheel drive equipment, so they’re here to stay. 

However, things are about to change now that four-wheel drive machines are entering the industry. Although the four-wheel drive segment is currently much smaller than its counterpart, it’s expected to grow at a CAGR of 9.6% from 2023 to 2031. Farmers are realizing that higher traction and stability in farming operations will save money in the long run – especially with challenging terrain and wet fields conditions becoming closer realities every day. Four-wheel drives also take on large-scale work more efficiently as farms consolidate over time and require less soil compaction - it's safe to say these powerful options carrying heavy loads will be tempting for anyone looking to upgrade their old system.

By Application 

When it comes to applications, harvest and threshing machinery is the most popular segment in the global agriculture equipment market, with a whopping 33% of the total revenue. As we move further into modern agricultural practices, more and more advanced harvesting and threshing machines are being implemented as well. In this field of machinery alone, we can see lots of progression with GPS navigation and IoT-based monitoring systems being added to some devices. With these technologies farmers have greater precision when they harvest and thresh their crops, which reduces waste.

In countries where traditional agriculture is shifting to mechanized agriculture such as Asia-Pacific and Africa, demand for advanced harvesting and threshing equipment is booming. This trend further solidifies the benefits that come with using these machines. It’s not just that they’re faster at harvesting crops, it’s about how much better they do it; boosting produce values in markets all over the world. Different governments have stepped up in offering financial incentives for farmers within their countries too. Many small-scale farmers who couldn't afford these products otherwise now have access through low-interest loans or special subsidies. High-end harvesters and threshers cost a small fortune though, so many people have started developing better market models for them. Rental service businesses are popping up all over the place; specifically in regions where medium-scale farming is most prevalent. This way everyone can get access to good quality machinery without having to buy it outright.

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Regional Analysis

Recent years have seen the global agriculture equipment market evolve. It’s responding to technological advances and increased adoption of modern machinery. The benefits of this change are efficiency, scalability, and sustainability — with various regional dynamics shaping this transformation. A study suggests that the global agriculture equipment market is likely to expand quickly. As a part of that momentum, Asia Pacific is projected to contribute 66% of the revenue share. This region houses some of the world's most populous countries: China and India, which both boast vast agriculture land. In fact, agriculture drives over 60% of India's economy via its population alone. So many people working in agriculture calls for a variety of machinery and equipment.

Governments in this region have been systematically pushing policies and subsidies aimed at bringing advanced tools into play. Some the major agriculture equipment manufacturers and suppliers in the Asia-Pacific region include Mahindra & Mahindra Ltd., Kubota Corporation, Escorts Limited, CNH Industrial N.V., and Yanmar Co., Ltd

North America agriculture equipment market accounts for 18% the global market. The U.S., especially, is known for commercial farms that often occupy thousands of acres apiece. This level of scale calls for high-end, technologically sophisticated equipment — something North America exports extremely well compared to other regions around the globe.

The average spending per equipment in North America vastly outstrips most parts of the world — a clear representation on how much they value quality and innovation as important features for their machines.

Recent developments 

• In 2022, Ever.Ag acquired Cainthus, a company deploying technology to help manage farms. This is an example of investors rolling up different technologies to create integrated data solutions for farm management.
• The USDA is partnering with states like Colorado in 2022 to incentivize voluntary adoption of climate-smart agriculture practices through programs focused on soil health, renewable energy, and more.
• The UK government's Farming Investment Fund is providing grants between £1,000 to £500,000 to support equipment purchases that improve productivity, slurry management, and animal health and welfare.

Top Players in Global Agriculture equipment market 

• AGCO Corporation
• Bellota
• China National Machinery Industry Corporation Ltd.
• CLAAS KGaA MBH
• CNH Industrial N.V.
• Deere & Company
• Escorts Limited
• Horsch Maschinen GmbH
• J.C. Bamford Excavators Ltd.
• Kubota Corporation
• Mahindra & Mahindra Ltd.
• MARUYAMA MFg., Co.Inc.
• Maschio Gaspardo S.P.A.
• Mater Macc S.p.A.
• Morris Industries Ltd.
• SDF S.p.A.
• TAFE
• Valmont Industries, Inc.
• Other Prominent Players

Market Segmentation Overview

By Equipment Type 

• Soil Cultivation Machinery
  • Cultivator
  • Cultipacker
  • Plough
  • Rotary Tiller
  • Harrow
  • Others
• Planting Machinery
  • Seed Drill
  • Broadcast Seeder
  • Seed cum fertilizer Drill
  • Fertilizing & Pest Control Machinery
  • Manure Spreader
  • Slurry Tank
  • Sprayer
• Irrigation Equipment
  • Centrifugal Pumps
  • Sprinklers
  • Others
• Harvesting & Threshing Equipment
  • Combine Harvester
  • Sickle
  • Mower
  • Reaper
  • Threshers
  • Tractors
  • Others

By Power Output

• <30 HP
• 31-70 HP
• 71-130 HP
• 131-250 HP
• >250 HP

By Drive Type

• Two-Wheel Drive
• Four-Wheel Drive

By Application

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

By Distribution Channel

• OEM
• Aftermarket

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Belgium
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
    • Thailand
    • Singapore
    • Vietnam
    • Indonesia
    • Malaysia
    • Philippines
    • Rest of ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America