Agriculture Equipment Market - Global Outlook & Forecast 2025-2030

The Agriculture Equipment Market was sized at 4,937.30 units in 2024, and is projected to reach 6,253.50 units by 2030, rising at a CAGR of 4.02%

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.

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

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.

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

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.

Key Company Profiles

• AGCO Corporation
• CNH Industrial
• John Deere
• Kubota Corporation
• Mahindra

Other Prominent Vendors

• Antonio Carraro
• 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

KEY QUESTIONS ANSWERED

1. How big is the global agriculture equipment market?
2. What is the growth rate of the global agriculture equipment market?
3. What are the significant trends in the agriculture equipment industry?
4. Which region dominates the global agriculture equipment market share?
5. Who are the key players in the global agriculture equipment market?