Agricultural Equipment Market Forecasts to 2030 – Global Analysis By Equipment Type (Tractors, Harvesters, Planting Equipment, Irrigation & Crop Processing Equipment, Spraying Equipment, Hay & Forage Equipment and Other Equipment Types), Power Source (Die

Agricultural Equipment Market Forecasts to 2030 – Global Analysis By Equipment Type (Tractors, Harvesters, Planting Equipment, Irrigation & Crop Processing Equipment, Spraying Equipment, Hay & Forage Equipment and Other Equipment Types), Power Source (Diesel, Electric and Hybrid), Automation Level, Farm Size, Application and By Geography

According to Stratistics MRC, the Global Agricultural Equipment Market is accounted for $175.2 billion in 2024 and is expected to reach $261.4 billion by 2030, growing at a CAGR of 6.9% during the forecast period. Agricultural equipment is machinery that is used for farming operations, including tractors, plows, harvesters, and irrigation systems. The agricultural equipment market is experiencing robust growth, driven by technological advancements, increased automation, and rising global food demand. Innovations like precision farming and smart machinery are enhancing productivity and efficiency.

According to data from the World Bank's World Development Programme, the global average of agricultural machinery, measured as tractors per 100 square kilometers of arable land, was 200.8 in 2000 and increased to 228.5 by 2009.

Market Dynamics:

Driver:

Increasing demand for food

The growing global population and changing dietary habits are driving increased demand for food production. This necessitates higher agricultural productivity and efficiency, spurring adoption of advanced agricultural equipment. Farmers are investing in machinery like tractors, harvesters, and irrigation systems to boost crop yields and meet rising food requirements. The need for intensified agriculture on limited arable land further propels demand for equipment that can maximize output. This driver is pushing innovation in farm machinery and encouraging mechanization across both developed and developing agricultural markets.

Restraint:

Maintenance and repair costs

Modern farm machinery often incorporates complex technologies and components, requiring specialized skills and expensive parts for upkeep. These ongoing expenses can strain farmers' budgets, particularly for small and medium-scale operations. The need for regular maintenance to ensure optimal performance and prevent breakdowns adds to operational costs. Additionally, unexpected repairs can lead to downtime during critical farming periods, impacting productivity. This restraint may deter some farmers from investing in advanced equipment, slowing market expansion.

Opportunity:

Innovation in precision farming

Advancements in precision farming technologies present a significant opportunity for the agricultural equipment market. Innovations like GPS-guided tractors, drone-based crop monitoring, and IoT-enabled sensors allow for more precise and efficient farming practices. These technologies enable farmers to optimize resource use, reduce waste, and increase yields. The integration of data analytics and artificial intelligence in farm equipment enhances decision-making capabilities. As precision farming gains traction, there's growing demand for smart, connected agricultural machinery. This trend opens new avenues for equipment manufacturers to develop and market high-tech solutions, driving market growth and technological advancement in the sector.

Threat:

Competition from low-cost alternatives

The agricultural equipment market faces a threat from the availability of low-cost alternatives, particularly in developing regions. Cheaper equipment, often manufactured locally or imported from countries with lower production costs, can undercut established brands. While these alternatives may lack advanced features or long-term durability, their affordability makes them attractive to budget-conscious farmers, especially in emerging markets. This competition can pressure profit margins for premium equipment manufacturers and potentially slow the adoption of more advanced technologies.

Covid-19 Impact:

The Covid-19 pandemic significantly disrupted the agricultural equipment market. Supply chain interruptions caused production delays and shortages of key components. Lockdowns and social distancing measures impacted manufacturing and distribution. Economic uncertainty led to reduced farm incomes and delayed equipment purchases. However, the pandemic also highlighted the importance of mechanization and automation in agriculture, potentially accelerating long-term adoption of advanced farm equipment.

The tractors segment is expected to be the largest during the forecast period

Over the forecast period, the tractor segment is projected to dominate the agricultural equipment market due to its versatility and essential role in various farming operations. As the backbone of mechanized agriculture, tractors are used for plowing, tilling, planting, and transportation tasks. The segment's growth is driven by increasing farm mechanization, especially in developing countries. Technological advancements in tractor design, including precision steering, telematics, and fuel efficiency improvements, are enhancing their appeal. Furthermore, the trend towards larger farms in some regions also boosts demand for high-horsepower tractors, which is supporting market growth.

The small-scale farms segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the small-scale farms segment is anticipated to experience the fastest growth in the agricultural equipment market. This trend is driven by increasing awareness of the productivity benefits of mechanization, and the need to overcome labor shortages is also a contributing factor. Mechanization of small farms in developing countries, where the majority of agricultural operations are small-scale, Government initiatives promoting farm mechanization and improving access to credit for small farmers are fueling equipment adoption.

Region with largest share:

The North American region's dominance in the agricultural equipment market stems from its highly mechanized farming practices and large-scale agricultural operations. The region benefits from advanced technological adoption, strong research and development capabilities, and a well-established agricultural sector. High labor costs in North America drive the need for efficient, automated farming solutions. The presence of major equipment manufacturers and a supportive regulatory environment for precision farming technologies further solidify the region's market leadership. Additionally, government support for sustainable agriculture practices encourages investment in modern, environmentally friendly farm equipment.

Region with highest CAGR:

The Asia Pacific region is poised for the highest growth rate in the agricultural equipment market due to the rapid modernization of farming practices in countries like China and India. Increasing government support for farm mechanization, rising awareness about the benefits of modern equipment, and the need to improve agricultural productivity are key growth drivers. The region's large agricultural workforce transitioning towards mechanized farming methods contributes to market expansion. Additionally, increasing foreign investments and technology transfers are accelerating the uptake of advanced farm machinery in the region.

Key players in the market

Some of the key players in Agricultural Equipment market include John Deere & Company, AGCO Corporation, CNH Industrial N.V., Kubota Corporation, CLAAS KGaA mbH, Mahindra & Mahindra Ltd., SDF S.p.A., Bucher Industries AG, EXEL Industries, ISEKI & CO., LTD., Eicher Motors Limited, Valmont Industries, Inc., AMAZONEN-WERKE H. DREYER SE & Co. KG, HORSCH Maschinen GmbH, Escorts Kubota Limited, Yanmar Co., Ltd., Agromaster, and Morris Equipment Ltd.

Key Developments:

In June 2024, AGCO a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced the launch of AgRevolution's™ same-day delivery service for machinery parts. AgRevolution, an AGCO-owned, full-line agricultural equipment dealer operating in Kentucky, Illinois and Indiana, now offers farmers same-day delivery in as little as two hours for in-stock parts.

In March 2024, John Deere reveals new 9RX tractors, S7 combines. It is introducing the most powerful four-wheel drive production agriculture tractor ever built, surpassing Case IH’s 715 horsepower Steiger. With three new 9RX models, the 9RX 710, 9RX 770 and 9RX 830 that produce rated horsepower comparable to their model numbers, Deere’s expanded 9RX Series stuffs an incredible number of ponies under the hoods.

In August 2023, New Holland Agriculture, a brand of CNH Industrial, has commercially launched the world’s first accessible farm tractor. The TL5 ‘Acessível’ (Accessible in Brazilian Portuguese), produced at the Brand’s plant in Curitiba (PR), has been designed for people with lower limb disabilities, enabling them to work in fields independently.

Equipment Types Covered:
• Tractors
• Harvesters
• Planting Equipment
• Irrigation & Crop Processing Equipment
• Spraying Equipment
• Hay & Forage Equipment
• Other Equipment Types

Power Sources Covered:
• Diesel
• Electric
• Hybrid

Automation Levels Covered:
• Manual
• Semi-automated
• Fully Automated

Farm Sizes Covered:
• Small-Scale Farms
• Medium-Scale Farms
• Large-Scale Farms

Applications Covered:
• Land Development & Seed Bed Preparation
• Sowing & Planting
• Weed Cultivation
• Plant Protection
• Harvesting & Threshing
• Post-harvest & Agro-processing

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements