U.S. Agricultural Equipment Market - Industry Analysis & Forecast 2023-2028

KEY HIGHLIGHTS

• The US has over 333.2 million food consumers and is the largest food market in North America. The country witnessed a massive increase in farm mechanization in terms of agricultural and industrial productivity.
• The agriculture equipment market in the US grew by 2.8% in 2022 from 2021. The increase in crop production and agricultural equipment sales was due to the favorable climate in 2022.
• The US government plans schemes and initiatives to facilitate credit and improve agriculture-related operations, which will contribute to the growth of the overall value chain of the market.

Segmentation By Equipment Type

• Tractors (Horsepower and Wheel-Drive)
• Planting Equipment (Seeder, Planter, and Transplanter)
• Tillage Equipment (Plough, Harrow, and Tiller)
• Harvesting Equipment (Tractor-Mounted Harvester, Trailed Forage Harvester, and Self-Propelled Combines)
• Mowing Equipment (Mower and Windrower)
• Sprayer
• Other Equipment (Loader and Baler)

Segmentation By Application Type

• Land Development and Seed Bed Preparation
• Sowing and Planting
• Plant Protection
• Harvesting and Threshing
• Post Harvesting

MARKET TRENDS & OPPORTUNITIES

Shortage of Agricultural Laborers

High Local Production Capacities in the U.S.

INDUSTRY RESTRAINTS

High Demand for Used & Rental Agricultural Equipment

SEGMENTATION INSIGHTS

INSIGHTS BY EQUIPMENT TYPE

• The planting equipment segment of the U.S. agricultural equipment market witnessed shipments of 85,148 units in 2022. The demand for planting equipment in the nation will rise as the agricultural industry expands. The conventional sowing technique has been replaced with planting machinery. In hand sowing, it can be challenging to distribute seeds with consistency and accuracy. Equipment for planting provides consistency in less time. Planting equipment has made work simpler, easier, and much more productive. The agriculture industry has seen a substantial increase in production and efficiency because of automation. The market for planting equipment is primarily driven by improved efficiency, simple processing, and enhanced production. Moreover, planting machinery features superior machine operating components and virtually eliminates manual labor.
• The U.S. harvesting equipment market is anticipated to expand at a CAGR of 2.65% during the forecast period. The main growth catalysts for the industry are the severe lack of farm labor, technological developments in agricultural equipment, and numerous government-backed subsidy policies promoting the purchase of harvesting equipment across the nation. The development of numerous cutting-edge farming technologies in harvesters, including increased electronic sensing to monitor yield load, cloud-based processing for output, and quality maps, among others, is a result of the requirement for high-quality harvest with increased yield and productivity. According to CEMA, precision farming technology has been discovered in 70-80% of newly sold harvesters and agricultural machines.

INSIGHTS BY APPLICATION TYPE

• The U.S. agricultural equipment market's sowing and planting segment is projected to grow at a CAGR of 3.92% during the forecast period. The main goal of sowing operations is to arrange the seed and fertilizer in rows at the correct depth and seed-to-seed spacing, cover the seeds with soil and apply proper compaction over the seed. For each crop and various agro-climatic conditions, variable row-to-row spacing, seed rates, seed-to-seed spacing, and depth of seed placement are advised to produce the highest yields.
• The land development and seed preparation segment of the U.S. agricultural equipment market witnessed shipments of 156,466 units in 2022. The most expensive farming step is preparing the seedbed and developing the land. From removing wild plants to loosening the soil with deep tillage tools like a rotavator and mold-board plow, there are several phases involved. It takes a lot of hard work to complete tasks like shifting soil from high points to low points, constructing farm roads or pathways, bundling, and leveling fields. The employment of large, self-propelled agricultural equipment such as crawler tractors, heavy-duty plows, high-horsepower tractors that can tow mold-board plows, rotary tillers, subsoilers, levelers, etc., is required by farmers for these tasks.

VENDOR LANDSCAPE

• John Deere, CNH Industrial, and AGCO dominated the U.S. agricultural equipment market with a collective market share of over 40% in 2022. These players focus on innovation to compete in the industry and invest in developing advanced agriculture equipment technology for precision farming and machine automation. The market has many established players that provide their products for use in open fields, vineyards, and others. The threat of new vendors in the region is quite low. This can be attributed to factors like the long replacement cycle of agricultural equipment and vendors improving their aftersales services, which increase customers’ loyalty toward existing brands.
• CNH Industrial, with its agriculture equipment brands Case IH and New Holland, introduced autonomous technology in agriculture equipment. The company has already incorporated auto-steering and telematics in its agriculture equipment. John Deere equipped many agriculture equipment models with GPS, image sensors, and telematics to assist navigation. The company also equipped its S700 with features to adjust harvesting equipment according to the state of crops autonomously.

Key Vendors

• John Deere
• CNH Industrial
• AGCO
• Kubota

Other Prominent Vendors

• SDF
• JCB
• CLAAS
• Mahindra
• Foton Motor
• KIOTI
• Sonalika
• Yanmar

KEY QUESTIONS ANSWERED:

• How big is the U.S. agricultural equipment market?
• What is the growth rate of the US agricultural equipment market?
• What are the expected units sold in the U.S. agricultural equipment market by 2028?
• Which application type holds the largest U.S. agricultural equipment market share?
• What are some significant trends in the U.S. agricultural equipment market?
• Who are the key players in the U.S. agricultural equipment market?