Agriculture and Farm Equipment/Machinery Market Report 2025

The agriculture and farm equipment/machinery market size has grown strongly in recent years. It will grow from $183.25 billion in 2024 to $193.84 billion in 2025 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to education and research, infrastructure development, industrialization of agriculture, advancements in crop science, rural labor scarcity.

The agriculture and farm equipment/machinery market size is expected to see strong growth in the next few years. It will grow to $248.85 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to rising global food demand, mechanization and automation, smart farming solutions, sustainable agriculture initiatives, precision agriculture adoption. Major trends in the forecast period include collaboration and integration, labor scarcity and efficiency, customization and adaptability, climate change adaptation, adoption of IoT sensors.

The rising demand for organic food is projected to drive growth in the agriculture and farm equipment/machinery market in the future. Organic food encompasses agricultural products cultivated and produced without the use of synthetic pesticides, fertilizers, genetically modified organisms (GMOs), antibiotics, or other artificial additives. Utilizing agriculture and farm equipment in organic food production enhances efficiency, enables precision farming, aids in weed and pest management, and promotes soil health. Additionally, over time, employing machinery can result in cost savings by boosting productivity and decreasing reliance on manual labor. For example, in May 2023, the Organic Trade Association (OTA), a US-based trade organization, reported that organic food sales in the US reached $60 billion in 2022 for the first time. Consequently, the growing demand for organic food is driving the expansion of the agriculture and farm equipment/machinery market.

Technological advancements are increasingly shaping the landscape of the agriculture and farm equipment/machinery market. Major industry players are at the forefront of pioneering cutting-edge technologies, exemplified by innovations like the Unnati drone spray service for farmers. Launched in May 2022 by Unnati, an India-based fintech-driven agriculture ecosystem platform, this service harnesses drone technology and artificial intelligence (AI) to deliver enhanced farming solutions. A notable feature of this service is the fleet of drones equipped with the capability to spray water, insecticides, and fertilizers over one acre of land in under eight minutes, thereby conserving up to 95% of water usage. These drones leverage high-precision spraying techniques and incorporate AI for optimized spray system utilization, ensuring safe application and minimizing exposure to harmful chemicals for farmers.

Major players within the agriculture and farm equipment/machinery market are directing their efforts towards pioneering product innovations, exemplified by the introduction of ISI marked agricultural equipment, to fortify their market positions and drive revenue growth. These advanced agricultural devices, as showcased by Balwaan Agri's launch in July 2023, significantly enhance farmers' capabilities, enabling them to achieve previously unattainable crop yields while promoting sustainable farming practices and bolstering overall agricultural productivity. This innovative range of equipment stands as a testament to extensive research and development, blending state-of-the-art technology with profound industry expertise. The primary aim of these cutting-edge solutions is to address farmers' challenges while striving for minimal environmental impact, empowering them to achieve superior outcomes.

In March 2023, Mahindra and Mahindra Ltd., an India-based automobile manufacturer, acquired M.I. T.R.A. (Micro Irrigation Technology Research Association) for an undisclosed amount. This acquisition aims to enhance Mahindra and Mahindra's product offerings and strengthen its position in the agricultural machinery market by leveraging innovative technologies to boost farmer productivity and sustainability. MITRA Agro Equipments Pvt. Ltd. is an India-based company specializing in the manufacturing and supply of agricultural equipment and machinery products.

Major companies operating in the agriculture and farm equipment/machinery market are Deere & Company, AGCO Corporation, Mahindra & Mahindra Limited, Kubota Corporation, CNH Industrial N.V., Escorts Kubota Limited, AGROSTROJ Pelhrimov a.s., China National Machinery Industry Corporation, J.C. Bamford Excavators Limited, SDF Group, Agromaster, Iseki & Co. Ltd., Exel Industries, CLAAS Group, Bucher Industries AG, Yanmar Co.Ltd., Kverneland Group, The Kuhn Group, Farmtrac Tractors Europe sp. z o.o., JOST Werke AG, Pöttinger Landtechnik GmbH, SAME DEUTZ-FAHR Italia S.p.A., McCormick Tractors International Limited, Tractors and Farm Equipment Limited, New Holland Agriculture, Case IH, Massey Ferguson Limited, Valtra, GRIMME Landmaschinenfabrik GmbH & Co. KG, Lemkem.

Asia-Pacific was the largest region in the agriculture and farm equipment/machinery market share in 2024. The regions covered in the agriculture and farm equipment/machinery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the agriculture and farm equipment/machinery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The agriculture and farm equipment/machinery market consists of sales of harvesters, soil preparation and cultivation, irrigation and crop processing, agriculture spraying equipment, hay and forage machines, and other agriculture and farm equipment/machinery. 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 market includes related services sold by the creators of the goods.

Agricultural and farm machinery encompass a diverse range of mechanized equipment designed to execute various tasks in the agricultural sector, including planting, harvesting, seeding, plowing, and pesticide application. The utilization of these tools provides farmers with strategic advantages, such as minimizing reliance on manual labor and optimizing farm yield.

The primary product categories within agriculture and farm equipment/machinery encompass tractors, rotavators, threshers and dehuskers, power tillers, power weeders, ploughs, balers, and seed drills. Tractors, a key component, facilitate various farm activities such as plowing, tilling, and sowing by attaching different implements. These large-wheeled vehicles play a crucial role in pulling farm machinery and providing the necessary power for other equipment to function effectively. Ownership models include individual ownership and rental arrangements. Applications of these machinery types span land development and seedbed preparation, sowing and planting, plant protection, harvesting and threshing, post-harvest processes, and agro-processing.

The agriculture and farm equipment/machinery market size has grown strongly in recent years. It will grow from $174.12 billion in 2023 to $184.69 billion in 2024 at a compound annual growth rate (CAGR) of 6.1%. The expansion observed in the historical period can be credited to factors such as advancements in education and research, infrastructure development, the industrialization of agriculture, progress in crop science, and challenges arising from rural labor scarcity.

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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