Farm Machinery and Equipment Market Report 2026

The farm machinery and equipment market size has grown strongly in recent years. It will grow from $235.59 billion in 2025 to $247.66 billion in 2026 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to mechanization of agricultural operations, expansion of commercial farming, rising labor shortages in agriculture, increasing crop productivity requirements, availability of diverse farm machinery types.

The farm machinery and equipment market size is expected to see strong growth in the next few years. It will grow to $312.44 billion in 2030 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to increasing adoption of smart farming technologies, rising focus on sustainable agriculture, expansion of large-scale farming operations, growing investments in autonomous equipment, increasing demand for data-driven farming solutions. Major trends in the forecast period include increasing adoption of autonomous farm equipment, rising demand for precision agriculture machinery, expansion of smart irrigation and spraying systems, growing use of high-capacity harvesting equipment, enhanced focus on fuel-efficient machinery.

The growing number of government initiatives promoting agricultural mechanization is expected to drive the growth of the farm machinery and equipment market. Agricultural mechanization involves the use of mechanical and technological equipment, machinery, and techniques to carry out farming tasks, enhancing efficiency, productivity, and sustainability in agricultural operations. Government programs support the market by providing subsidies, promoting mechanization, funding research, improving infrastructure, shaping trade policies, encouraging sustainability, and integrating modern equipment into rural development schemes. These initiatives motivate farmers to adopt advanced machinery, fostering agricultural modernization and higher productivity. For example, in September 2023, according to the Government of UK official handle, a UK-based government agency, nineteen innovative projects focused on automation and robotic technologies were allocated a share of £12.5 million ($0.016 billion) in government funding to enhance productivity, food security, and sustainable farming practices. Hence, the increasing government initiatives to promote agricultural mechanization are fueling the growth of the farm machinery and equipment market.

Major companies in the farm machinery and equipment market are concentrating on developing technologically advanced solutions, such as electric tractors, to optimize and enhance agricultural operations. An electric tractor is a type of agricultural vehicle powered by electric motors and batteries instead of conventional internal combustion engines, providing reduced emissions, lower operating costs, and quieter operation while performing various farming tasks. For example, in October 2023, Fendt, a Germany-based agricultural machinery company, unveiled its new electric tractor, the e107 V Vario, intended for use in vineyards, orchards, greenhouses, and urban settings. Equipped with a 100kWh battery, the e107 V produces 90 horsepower and can operate for 4 to 7 hours, with the capability to charge from 20% to 80% in just 45 minutes. It includes Fendt’s Vario transmission, the FendtONE operating system, and three operating modes - Eco, Dynamic, and Dynamic+ - to accommodate varying power requirements.

In August 2023, Brandt Industries Ltd., Canada-based grain handling products company acquired Wairarapa Machinery Services Ltd. in New Zealand for an undisclosed sum. This strategic move has broadened Brandt's footprint in the Greater Wellington region, facilitating improved access to parts and services. The acquisition strengthens Brandt's support infrastructure and enables increased community engagement. Wairarapa Machinery Services Ltd. specializes in agricultural machinery sales, services, and parts.

Major companies operating in the farm machinery and equipment market are John Deere, AGCO Corporation, CNH Industrial, Kubota Corporation, Mahindra & Mahindra Ltd., CLAAS KGaA mbH, Yanmar Co., Ltd., Escorts Limited, Bucher Industries, Fendt, SAME Deutz-Fahr Group, Iseki & Co., Ltd., Kioti Tractor, JCB Limited, Massey Ferguson, Zetor Tractors a.s., New Holland Agriculture, McCormick Tractors International Ltd., V.S.T. Tillers Tractors Ltd., Argo Tractors S.p.A., Kuhn Group, TAFE - Tractors and Farm Equipment Limited, Vermeer Corporation, Alamo Group Inc., Krone Group, HORSCH Maschinen GmbH, Amazone H. Dreyer GmbH & Co. KG, Hardi International.

Asia-Pacific was the largest region in the farm machinery and equipment market in 2025. North America was the second largest region in the global farm machinery and equipment market share. The regions covered in the farm machinery and equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the farm machinery and equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The farm machinery and equipment market consists of sales of combine harvester, rotavator or rotary tiller, plough or plow, tractor trailer, power harrow, leveler, water bowser, ripper machine, and disc harrow. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this farm machinery and equipment market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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