Agriculture Equipment Market

Global Agriculture Equipment Market:

The global agriculture equipment market size reached USD 181.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 259.7 Billion by 2033, exhibiting a growth rate (CAGR) of 4.02% during 2025-2033.

Global Agriculture Equipment Market Analysis:

• Major Market Drivers: The growing awareness among farmers about the benefits of using agriculture equipment, along with the escalating demand for quality food across the globe, is primarily driving the growth of the global agriculture equipment market.
• Key Market Trends: The integration of technologically advanced agricultural robotics in farming, such as autonomous tractors and flying drones that help farmers produce food at low costs, is one of the significant key trends for the market.
• Geographical Landscape: The market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.
• Competitive Landscape: Some of the leading players in the global agriculture equipment market include AGCO Corporation, Agromaster Agricultural Machinery, Argo Tractors S.p.A., Bellota Agrisolutions, China National Machinery Industry Corporation, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, Escorts Limited, Iseki & Co. Ltd., JC Bamford Excavators Ltd., Kubota Corporation, Mahindra & Mahindra Limited and SDF Group, among others.
• Challenges and Opportunities: High costs of agriculture equipment, fluctuating raw material price, volatility of commodity price are some of the key challenges faced by the farmers and market operators. However, escalating demand for self-propelled machines across the globe and the emerging trend of contract farming are anticipated to offer lucrative growth opportunities to the overall market in the coming years. 

Global Agriculture Equipment Industry Trends:

Low Availability of Skilled Labor

The declining availability of arable land, low availability of skilled labor, and increasing food demand globally are some of the key factors propelling the adoption of agricultural machinery for efficient farming operations. Moreover, with elevating levels of urbanization, urban areas are providing a plethora of job opportunities and attracting rural households to migrate. This shift is resulting in a shortage of farm labor in various regions. For instance, according to the survey by the Centre for Monitoring Indian Economy (CMIE), in India, the number of people employed in the agriculture sector dropped from 158.2 million in 2022 to 147.9 million in 2023. Looking ahead, the Indian Council of Food and Agriculture projects a 25.7% decline in the %age of agriculture workers in India by 2050. In North America and Europe, the dependence on seasonal immigrant workers has emerged due to a decrease in domestic labor availability. This dependence has led to an increase in the cost of farm labor, prompting farmers to turn to more and more cost-effective agricultural machinery as a cost-saving measure.

Emergence of Precision Agriculture 

The rising popularity of precision agriculture is further catalyzing the agriculture equipment market growth. Precision agriculture involves the use of GPS-guided tractors, drones, and sensors for monitoring soil health, moisture levels, and crop conditions. Moreover, various key machinery manufacturers are introducing technologically advanced equipment to improve agriculture practices. According to ETNO, the number of IoT active connections in agriculture was expected to increase in the European Union over the years. It was recorded at 46.92 million connections in 2022 and is expected to reach 70.26 million by 2025.  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, in October 2023, Deere & Co. joined forces with two companies from Sweden to work on Sweden-based Delaval on the Milk Sustainability Center and Norway-based Yara to develop digital tools for precision agriculture. The partnerships aim to help farmers track livestock and fertilizer data so they can make smarter business decisions that are better for the environment.

Mechanization of Farms

The mechanization of farms plays a crucial role in sustainable agriculture. Agriculture equipment, including tractors, harvesters, and other cultivation equipment, assists in numerous farming activities. According to a 2022 report, 47% of agricultural operations in India were mechanized. In other developing countries, including China and Brazil, agricultural operations were 60% and 75%, respectively, mechanized. Moreover, in 2023, it was predicted that achieving 75–80% mechanization in India would take approximately 25 years. While existing initiatives like the Sub-Mission on Agricultural Mechanization (SMAM) are promoting the adoption of modern equipment in farming, India must focus on prioritizing mechanization efforts, specifically targeting small farms. Such circumstances offer lucrative growth opportunities to the overall market. Furthermore, farmers are gradually becoming tech-savvy, and the adoption of GPS software products & tractors equipped with telematics is anticipated to spur agriculture equipment sales.

Global Agriculture Equipment Industry Segmentation:

IMARC Group analyzes the key trends in each sub-segment of the global agriculture equipment market report and provides forecasts at the global, regional, and country levels from 2025-2033. Our report categorizes the market based on equipment type, application, and sales channel.

Breakup by Equipment Type:

• Agriculture Tractor
• Harvesting Equipment
• Irrigation and Crop Processing Equipment
• Agriculture Spraying and Handling Equipment
• Soil Preparation and Cultivation Equipment
• Others
   

Currently, agriculture tractors account for the majority of the global market share

Based on the equipment type, the global agriculture equipment market can be categorized into agriculture tractors, harvesting equipment, irrigation and crop processing equipment, agriculture spraying and handling equipment, soil preparation and cultivation equipment, and others. Currently, agriculture tractors account for the majority of the global market share.

Tractors play a crucial role in agriculture, serving as the backbone of modern farming operations. Moreover, various key market players are increasingly investing in research and development activities to launch technologically advanced tractors on the market. For instance, John Deere launched the new 6155MH Tractor, which delivers all-around performance and dependability that have been demonstrated in the field to be useful for cultivating, harrowing, or towing harvester trailers. Similarly, in June 2023, Mahindra & Mahindra Ltd launched India's new Sarpanch Plus Tractor series. This tractor comes with a 6-year warranty from Mahindra and has 2 HP (1.49 kW) more power, a higher maximum torque, and back-up torque to quickly cover more ground. Sonalika Tractors has launched its field-ready electric Tractor for the domestic market called Tiger Electric. Innovations like these in tractors are anticipated to further contribute to the adoption of this equipment in the coming years. 

Breakup by Application:

• Land Development
• Threshing and Harvesting
• Plant Protection
• After Agro Processing
   

Land development currently exhibits a clear dominance in the market

Based on the application, the global agriculture equipment market has been segregated into land development, threshing and harvesting, plant protection, and after agro-processing. Among these, land development currently exhibits a clear dominance in the market.

The segment is inclusive of tractors, levelers, and agriculture implements. Demand for agricultural tractors is escalating owing to numerous factors, including inflating the need for food, propelling the necessity to mechanize farm work, availability of technologically advanced tractors, and elevated levels of urbanization causing a shortage in labor, forcing farmers to adopt machinery. This is anticipated to contribute to the growth of the land development segment. The adoption of tech-driven agriculture machinery, such as robotics, is also anticipated to fuel the growth of the land development segment. 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. 

Breakup by Sales Channel:

• Original Equipment Manufacturers (OEM)
• Aftermarket
   

Currently, Original Equipment Manufacturers (OEM) hold the largest market share

Based on the sales channel, the global agriculture equipment market can be bifurcated into Original Equipment Manufacturers (OEM) and aftermarket. Currently, Original Equipment Manufacturers (OEM) hold the largest market share.

OEMs provide high-quality, reliable machinery and components directly to farmers and agricultural businesses. OEMs are responsible for designing and manufacturing equipment that meets specific quality standards. Farmers are heavily dependent on this equipment for their daily operations, so durability, reliability, and efficiency are crucial. As a result, various key market players are involved in merger and aquation activities to expand and offer improved agricultural machinery and equipment. For instance, recently, in March 2024, Ascenso Tires welcomed Douglas Duesing as an OEM Sales Manager in the North American market. He has experience of 10+ years working in Agriculture, Construction, and Mining OEMs. Douglas will be fully focused on OE1 and OE2 accounts in North America and will help get Ascenso tires on equipment.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia-Pacific currently dominates the global market.

On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.

China is one of the leading producers of farming equipment and holds the largest share of the agricultural machinery market. According to the National Bureau of Statistics of China, the country produced 5,253,595 large and medium-sized tractors in 2022. Moreover, the shortage of skilled labor, rising agricultural labor costs, and government initiatives for farm mechanization are projected to drive market expansion in the long run in the country. Moreover, in recent years, Japan has also faced challenges related to the growing area of abandoned farmland. Therefore, mechanization of agriculture is becoming essential for Japan to overcome the shortage of farm labor. Besides this, India produces a massive volume of tractors and exports tractors globally. Also, the production and sales volume of key players in the Indian market are growing, which indicates that the tractor market in India is growing. For instance, in India, in February 2022, Mahindra's Farm Equipment Sector sold 18,910 units. February 2022 saw 20,437 tractor sales (domestic + exports), compared to 28,146 units during the same month in the previous year. Such advancements are anticipated to contribute to the growth of this region in the coming years. 

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the agriculture equipment market companies, including AGCO Corporation, Agromaster Agricultural Machinery, Argo Tractors S.p.A., Bellota Agrisolutions, China National Machinery Industry Corporation, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, Escorts Limited, Iseki & Co. Ltd., JC Bamford Excavators Ltd., Kubota Corporation, Mahindra & Mahindra Limited and SDF Group.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Agriculture Equipment Industry News:

• February 2024: Mahindra introduced a pair of new tractors- subcompact, 1100 models with 20- to 26-horsepower engines and compact, 2100 models, mounting 23-26 hp engines. Constructed on two different chassis sizes, the new Mahindra compacts offer both cab and open station configurations. Air conditioning, with rear defrost, are features offered with the 2126 compact cab.
• November 2023: The Bihar Government of India launched Krishi Yantrikaran Yojna to provide subsidized agricultural equipment to farmers. The scheme covers 108 types of agricultural equipment, from trowels, spades, and sickles to pump sets, plows, harvesters, and more. 
• February 2023: Massey Ferguson tractors has launched its brand-new DYNATRACK Series, an innovative line of tractors that combine potent power with dynamic performance, smart technology, unrivaled usefulness, and versatility.

Global Agriculture Equipment Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the agriculture equipment market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global agriculture equipment market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the agriculture equipment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.