Agriculture Equipment Market Overview, 2024-29

Agriculture is one of the most important areas in the complicated weaving of global business. The worldwide agriculture equipment sector is a cornerstone of modern farming, propelling innovation, productivity, and sustainability across huge tracts of cultivated land. Agriculture, which has a millennia-long history, has evolved from humble beginnings to a sophisticated ecosystem of machinery, technology, and skill, laying the groundwork for human civilization. The global agriculture equipment sector includes a wide range of machinery and technology, from the simple plow to the cutting-edge precision farming systems of the twenty-first century.

Tractors, harvesters, planters, irrigation systems, and drones are just some of the diverse equipment deployed in contemporary agriculture, each designed to improve efficiency, reduce environmental impact, and maximize yield in a rapidly changing world. Furthermore, the global agriculture equipment business is inextricably linked to broader socioeconomic and environmental developments, ranging from the emergence of sustainable farming techniques to an increased emphasis on food security and rural development. As governments, businesses, and consumers cope with the consequences of climate change, resource scarcity, and population shifts, farm equipment makers must adapt and innovate to meet the demands of a fast-changing world. In this setting, the global agriculture equipment industry plays a critical role in the global economy, propelling growth, employment, and technical advancement across borders and cultures. Whether in Europe's fertile valleys, Africa's huge plains, or Asia's distant villages, agriculture equipment is a pillar of prosperity and progress, enabling farmers to cultivate the land and nourish communities in a sustainable and responsible manner.

According to the report “Global Agriculture Equipment Market Outlook, 2029”, the market is anticipated to cross USD 240 Billion by 2029, increasing from USD 174.26 Billion in 2023. The market is expected to grow with 5.64% CAGR by 2024-29. In several countries, governments encourage farmers to use agricultural equipment by offering loan waivers. They also provide funding to farmers to help them adopt sustainable agriculture techniques and increase production through the use of machinery, which contributes to market expansion.

Furthermore, the integration of technologically advanced agricultural robotics in farming, such as autonomous tractors and flying drones, to assist farmers in producing food at a low cost is driving market expansion. Furthermore, the increased demand for electric tractors to reduce air pollution and greenhouse gas emissions is indicating a promising market picture. Aside from that, prominent market players are heavily investing in R&D efforts to introduce self-propelled equipment into farming. The agriculture equipment market is at the forefront of technical innovation, with manufacturer’s constantly inventing new and advanced machinery and technology to satisfy the changing needs of farmers. This includes precision agriculture solutions, autonomous and robotic equipment, crop monitoring drones, and digital farming systems that use data analytics and artificial intelligence. Agriculture equipment manufacturers operate on a global scale, with production facilities, distribution networks, and sales operations spread across several continents. Key industry companies are located in the United States, Germany, Japan, China, and India, with sales and distribution channels that reach both developed and emerging markets across the world. The future of the agriculture equipment business looks bright, with continuing expansion projected as farmers strive to feed a growing global population while minimizing the effects of climate change and resource scarcity. Technological advancements, increased acceptance of digital farming solutions, and the advent of sustainable agriculture practices are all expected to fuel additional industry innovation and transformation.

Market Drivers

• Technological advancements and innovation: Technological innovations shape the trajectory of the global agriculture equipment market. The industry is experiencing tremendous innovation, with manufacturers using cutting-edge technology such as artificial intelligence, machine learning, robots, and data analytics to transform farming operations. These innovations enable farmers to operate with unparalleled precision, efficiency, and production. For example, GPS-guided tractors and autonomous drones improve field management, while sensors and IoT-enabled equipment provide real-time data on crop health and soil conditions. As the agriculture industry embraces digital transformation, agriculture equipment makers are at the forefront of developing next-generation solutions that enable farmers to maximize yields, reduce input costs, and improve sustainability.
• Government support and policies: Government assistance and policies play an important role in propelling the global agriculture equipment market. Governments all throughout the world recognize agriculture's critical role in providing food security, rural development, and economic stability. As a result, they pursue a variety of policies to encourage investments in agricultural infrastructure, automation, and modernization. These policies include subsidies, tax breaks, research grants, and credit schemes designed to encourage farmers to use sophisticated agricultural equipment. Furthermore, governments implement regulations and standards to encourage sustainable farming methods, reduce emissions, and protect the environment, all of which have an impact on the design and acceptance of agricultural equipment. The alignment of government policies with industry objectives fosters an environment in which agricultural equipment producers prosper and evolve in response to changing market demands.

Market Challenges

• Environmental sustainability pressures: With increased concerns about climate change, resource depletion, and environmental degradation, the agricultural equipment business is under increasing pressure to embrace sustainable practices and decrease its environmental footprint. This involves creating eco-friendly machinery with minimal emissions, encouraging precision agriculture techniques to maximize resource use, and incorporating renewable energy sources into equipment design. Manufacturers have difficulties integrating sustainability aims with commercial viability and satisfying the unique needs of farmers in various agroecological environments.
• Infrastructure and connectivity constraints: In many rural locations, particularly in developing nations, weak infrastructure and restricted access to energy, internet connectivity, and transportation networks make it difficult to adopt and use agricultural equipment. A lack of stable power sources can make it difficult to employ mechanized equipment, while poor connectivity restricts access to digital agricultural technologies and data-driven decision-making tools. Addressing infrastructure gaps and boosting rural connectivity are crucial for ensuring that agriculture equipment is deployed effectively and has the greatest impact on farm productivity and profitability.

Market Trends

• Technological advancements driving precision agriculture: Precision agricultural technologies are rapidly advancing, making them one of the most significant developments in the global agriculture equipment industry. GPS navigation systems, drones, sensors, and data analytics are transforming farming techniques by allowing farmers to precisely monitor and manage their crops. GPS-guided tractors and harvesters provide precise seeding, planting, and harvesting, eliminating overlap and improving crop yields. Drones equipped with multispectral sensors can provide real-time aerial imagery to monitor crop health, detect pests, and forecast yields. In addition, sensors integrated in soil probes, irrigation systems, and machinery capture data on soil moisture, nutrient levels, and equipment performance, allowing for data-driven decision-making and resource management. These technological improvements not only boost productivity and efficiency but also help sustainable agriculture practices by reducing input use and environmental impact.
• Rise of autonomous and robotics solutions: Another noteworthy development in the global agriculture equipment market is the growing use of autonomous and robotic technologies. Autonomous tractors, planters, and harvesters outfitted with artificial intelligence and machine learning algorithms may execute operations like planting, spraying, and harvesting with little human interaction. Weed control, fruit picking, and crop monitoring are all examples of jobs performed with robotics technologies, such as robotic arms and drones. These autonomous and robotic technologies have numerous advantages, including labor savings, increased operational efficiency, and less dependency on human labor. They also solve labor shortages in agriculture, particularly in areas experiencing demographic upheavals and diminishing rural populations.

COVID-19 Impacts

The COVID-19 pandemic has had profound and multifaceted impacts on the Agricultural Equipment industry, influencing various aspects of manufacturing, supply chains, demand dynamics, and the overall economic landscape. One of the immediate and widespread effects was disruptions in the global supply chain. Restrictions on movement and international trade, lockdowns, and workforce shortages disrupted the production and distribution of agricultural equipment. Many manufacturing facilities faced closures or reduced capacity due to health and safety protocols, leading to delays in the production and delivery of equipment.

The pandemic-induced economic uncertainties also influenced farmers' purchasing decisions, leading to shifts in demand patterns within the Agricultural Equipment industry. Farmers, facing uncertainties about market conditions and financial stability, became more cautious in their capital expenditures. Consequently, there was a noticeable impact on the sales of larger and more expensive equipment. Many farmers opted for cost-effective solutions, such as used or smaller-scale machinery, impacting the market dynamics for certain types of agricultural equipment. Furthermore, the restrictions on global mobility and travel disrupted the after-sales service and maintenance aspects of the Agricultural Equipment industry. Farmers faced challenges in obtaining spare parts, accessing technical support, and scheduling regular maintenance, which could potentially impact the overall performance and longevity of their equipment. The service disruptions highlighted the importance of resilient and responsive supply chains in maintaining the functionality of agricultural machinery. On the positive side, the pandemic underscored the critical role of agriculture in maintaining food security, and governments worldwide recognized the importance of supporting the agricultural sector. Stimulus packages and financial aid were directed towards farmers, incentivizing agricultural investments and equipment purchases. This injection of funds aimed to mitigate the economic impacts of the pandemic on the industry and ensure the continuity of agricultural operations.

Based on equipment type segment market is divided into tractors, harvesters, planting equipment, irrigation & crop processing equipment, spraying equipment, hay & forage equipment and others. Harvesters type is expected to grow at fastest rate in global agriculture equipment market.

Mechanization in agriculture is becoming increasingly popular worldwide as a means of improving efficiency, production, and labor savings. Harvesters serve an important role in automating crop harvesting, eliminating the need for manual labor, and enhancing operational efficiency. As farmers strive to mechanize their operations in response to manpower shortages, rising labor costs, and the desire to boost output, the demand for harvesters is likely to climb dramatically. Precision agriculture practices are becoming more common around the world, thanks to technological developments and the desire to maximize resource usage while minimizing environmental effects.

Harvesters outfitted with modern sensors, GPS guiding systems, and yield monitoring capabilities allow farmers to harvest crops with greater precision, optimizing yields and reducing waste. Integrating precision agriculture technologies into harvesters enhances their value proposition and drives demand for modern, technologically advanced equipment. The global agriculture sector is shifting toward larger-scale commercial farming operations, especially in rising nations and regions with good agro-climatic conditions. Commercial farmers and agribusinesses rely on efficient and high-capacity harvesting equipment to handle enormous land holdings and maximize yield. Harvesters can harvest crops swiftly and efficiently on a wide scale, making them vital in commercial agriculture and driving market growth. Continuous innovation and technological breakthroughs in harvester design, automation, and efficiency help drive market growth. Manufacturers are working to increase harvester performance, fuel efficiency, ease of operation, and precision harvesting capabilities. Automated guiding systems, real-time monitoring, and data analytics improve harvester functionality and value proposition, resulting in increased adoption among farmers looking to replace their equipment.

Based on engine power segment market includes below 30 HP, 30HP-100HP, 100HP-200HP, and above 200HP. 30HP-100HP segment is expected to grow at rapid pace in global agriculture equipment market. The application segment of market includes land development & seed bed preparation, sowing & planting, harvesting & threshing, weed cultivation, plant protection, and post-harvest & agro-processing.

The global agriculture landscape is diversified, including a variety of crops, climates, and farming processes. Tractors in the 30HP-100HP range meet the needs of farmers in a variety of industries, including grain production, horticulture, cash crops, livestock feed, and agroforestry. They can execute a variety of activities, including land preparation, planting, cultivation, spraying, and light transport, making them essential tools for agricultural enterprises around the world. Many countries are making considerable investments in mechanized agriculture to boost production, efficiency, and food security.

Tractors ranging from 30 HP to 100 HP play an important role in this mechanization effort, providing farmers with an inexpensive and efficient way to mechanize their operations. Governments, agricultural groups, and development agencies encourage automation programs to replace traditional manual labor and animal-powered methods. The demand for tractors in this range is expected to rise rapidly. Sowing and planting are critical steps in the agricultural production cycle, signaling the start of the growing season. Crop establishment requires proper sowing and planting procedures to ensure optimal germination, emergence, and early growth. Agriculture equipment facilitates these operations by giving farmers efficient and accurate instruments for seed distribution, spacing, and depth control. Crop yields, quality, and uniformity are heavily influenced by the accuracy and efficiency with which sowing and planting activities are executed. Farmers can use agricultural equipment such as seed drills, planters, and seeders to accomplish exact seed placement, spacing, and depth, resulting in optimal seed-to-soil contact and seedling emergence. Farmers that use current sowing and planting technologies can increase agricultural yields, improve crop quality, and increase overall profitability.

Based on report market includes five major regions North America, Europe, Asia-Pacific, South America and Middle East & Africa. Asia-Pacific region is expected to grow at fastest rate in global agriculture equipment market.

The Asia-Pacific region is home to some of the world's most populated countries, including China and India. Rapid population growth, combined with current urbanization trends, is driving demand for food and agricultural products. In order to fulfill this expanding demand, farmers in the region are implementing contemporary agricultural practices and investing in cutting-edge equipment to boost productivity and efficiency. Many governments in the Asia-Pacific area are actively encouraging agricultural modernization and mechanization through policy and investment incentives. Farmers receive subsidies, grants, and loans to help them purchase agricultural equipment and technology.

Furthermore, governments are investing in infrastructure development, R&D, and extension services to encourage the use of innovative farming practices. Precision agriculture, robotics, and digital farming solutions have advanced rapidly in the Asia-Pacific region, making it a hub of agricultural technological innovation. Farmers are increasingly using technologically advanced equipment and technologies to maximize inputs, eliminate waste, and increase crop yields. This includes GPS-guided tractors, crop-monitoring drones, and sensor-based irrigation systems. The availability of low-cost, scalable technology solutions is pushing up adoption rates in the region. The Asia-Pacific region offers a significant amount of fertile land available for agriculture. As the need for food and agricultural products grows, there is more pressure to increase agricultural production. Mechanized equipment enables farmers to cultivate larger amounts of land more efficiently, resulting in higher yields and agricultural output.

The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global agriculture equipment industry. CLAAS KGaAmbH acquired a minority stake of AgXeed B.V. which is a Dutch start-up in May 2021. This acquisition was aimed at developing and commercializing of autonomous agriculture machines. Major companies in the market have adopted acquisition, partnership and product launch as their key developmental strategies to offer better products and services to customers in the agriculture equipment market.

• In August 2023, Mahindra Tractors, a division of the Mahindra Group and the top tractor manufacturer in the world launched the Mahindra OJA tractors. Seven different models of these small 4WD tractors are available, with prices ranging from INR 5,64,500 for the OJA 2127 to INR 7,35,000 for the OJA 3140.
• In April 2023, H&R Agri Power acquired Kubota’s dealership located in McMinnville, Tennessee. The company’s 20th and 7th most important locations would broaden its market in this region. The newly acquired dealership would help to acquire a larger consumer base with dealership network expansion and diverse product offerings.
• In July 2023, Deere & Company announced the acquisition of Smart Apply, Inc. The company planned to leverage Smart Apply’s precision spraying to assist growers address the challenges associated with input costs, labor, regulatory requirements, and environmental goals.
• In July 2023, CLAAS KGaA mbH unveiled the company’s high-performance XERION 12 Series tractors. The two new tractor models are integrated with the highly efficient low-engine speed drive concept 2.0.
• In June 2023, JCB announced plans to introduce the company’s first electric wheeled loader with zero-emission and low-noise capabilities. The loader comes with options for wide or narrow wheels and tire options for agriculture or industrial deployment.
• In June 2023, Mahindra Group’s Swaraj Tractors unveiled the launch of a lightweight compact tractor named ‘Swaraj Target’. The tractor features first-in-class functionalities, matchless performance capability, and state-of-the-art technology to cater to the special needs of Indian farmers.
• In May 2023, Amazone announced new products as a part of its precision seeders business range. The new advanced trailed models, Precea 12000-TCC and 9000-TCC have been designed exclusively for large-scale farms & contractors.
• In April 2023, AGCO Corporation announced a strategic collaboration with Hexagon, for the expansion of AGCO’s factory-fit and aftermarket guidance offerings. The new guidance system was planned to be commercialized as Fuse Guide on Valtra and Massey Ferguson tractors.
• In April 2023, HORSCH announced the commencement of its new plant in Curitiba, Brazil. The plant includes the single grain seed drill assembly line and tillage machines line along with the development facility of crop care technology.
• In February 2023, Kubota Corporation announced the acquisition of a stake in Chouette. Chouette deploys AI technology to analyze captured images by cameras to identify tree vigor and diseases and develops optimal volume of sprays through exceptional algorithms.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Agriculture Equipment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment Type

• Harvesters
• Planting Equipment
• Irrigation & Crop Processing Equipment
• Spraying Equipment
• Hay & Forage Equipment
• Others

By Engine Power

• Below 30 HP
• 30 HP - 100 HP
• 100 HP - 200 HP
• Above 200 HP

By Application

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

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Agriculture Equipment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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