Agriculture Equipment Finance Market Report 2024

This Agriculture Equipment Finance market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The agriculture equipment finance market size has grown strongly in recent years. It will grow from $165.07 billion in 2023 to $175.93 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth during the historic period can be attributed to increased agricultural mechanization, government subsidies and support programs, a rising population and food demand, better credit accessibility, and the expansion of agribusinesses.

The agriculture equipment finance market size is expected to see strong growth in the next few years. It will grow to $228.02 billion in 2028 at a compound annual growth rate (CAGR) of 6.7%. The projected growth during the forecast period can be linked to a rising emphasis on precision agriculture, sustainability and environmental concerns, growth in the agricultural insurance market, the expansion of agritech startups, and enhanced farmer education and training. Key trends expected to influence this period include subscription-based models, the integration of data analytics, blockchain technology, digital tools, and the adoption of robotics and automation.

The growth in agricultural productivity is anticipated to drive the expansion of the agriculture equipment finance market. Agricultural productivity gauges how effectively inputs such as labor and capital are used to produce outputs such as crops and livestock. The increase in agricultural productivity is attributed to advancements in technology, enhanced farming practices, and improved crop management, which lead to higher crop yields and more efficient resource use. Agriculture equipment finance plays a crucial role by providing farmers with access to advanced machinery and technology, helping them improve operational efficiency, boost crop yields, and optimize resource use. For example, the Department for Environment, Food, and Rural Affairs, a UK government department, reported a 3.4% increase in agricultural productivity in the UK from 2021 to 2022. Consequently, the rising agricultural productivity is expected to drive the growth of the agriculture equipment finance market.

Key players in the agriculture equipment finance market are focusing on developing digital financing solutions to offer tailored financial options that enhance operational efficiency for farmers. Digital agriculture financing products are innovative solutions that use digital technologies to streamline loan applications, approvals, and management processes, making financing more accessible, efficient, and customized for agricultural needs. For example, in June 2024, Bank Alfalah Limited, a private bank based in Pakistan, introduced the Digital Agriculture Financing product to support small-scale farmers and entrepreneurs in the agriculture sector. This initiative enables customers to access dairy and equipment financing through a seamless digital process, marking a significant advancement in Pakistan’s financial sector. The product offers subsidized financing at a 2% rate, helping farmers establish sustainable income streams and contribute to the nation’s economic growth.

In January 2022, American Bank, N.A., a U.S.-based financial institution providing a range of banking services, acquired ACG Equipment Finance for an undisclosed amount. This acquisition aims to enhance American Bank's capabilities in equipment financing by integrating ACG Equipment Finance’s specialized services and expertise, thus offering customers a wider range of financing solutions and support. ACG Equipment Finance is a U.S.-based provider of equipment financing solutions for various sectors, including agriculture.

Major companies operating in the agriculture equipment finance market are JPMorgan Chase & Co., Agricultural Bank of China Limited, Wells Fargo & Company, Citigroup Inc., Deere & Company, BNP Paribas S.A., Barclays PLC, State Bank of India, Standard Chartered PLC, HDFC Bank Limited, ICICI Bank Limited, Commonwealth Bank of Australia, BlackRock Inc., Mahindra & Mahindra Limited, Rabobank Group, AGCO Corporation, Australia and New Zealand Banking Group Limited, National Australia Bank Limited, Adani Group, KeyCorp, IndusInd Bank Limited, IDFC FIRST Bank Limited, L&T Finance, Envision Capital Group, Argo Tractors S.p.A.

Asia-Pacific was the largest region in the agriculture equipment finance market in 2023. The regions covered in the agriculture equipment finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the agriculture equipment finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Agriculture equipment finance encompasses financial services designed to help farmers acquire, lease, or upgrade agricultural machinery and equipment. These services include loans, leases, and other financing options specifically crafted to address the needs of agricultural operations, aiming to boost productivity and efficiency in farming.

The primary forms of agriculture equipment finance are leases, loans, and lines of credit. A lease arrangement enables farmers and agribusinesses to use agricultural equipment for a set period while making regular payments. This setup provides access to the latest machinery without requiring a significant initial investment, which helps manage cash flow and stay current with technological advancements. The equipment typically financed includes tractors, harvesters, haying equipment, and other types, with distribution through brokers, agents, banks, and various other channels.

The agriculture equipment finance market research report is one of a series of new reports that provides agriculture equipment finance market statistics, including agriculture equipment finance industry global market size, regional shares, competitors with an agriculture equipment finance market share, detailed agriculture equipment finance market segments, market trends and opportunities, and any further data you may need to thrive in the agriculture equipment finance industry. This agriculture equipment finance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The agriculture equipment finance market includes revenues earned by entities through hire purchase agreements, equipment rental, balloon payment loans, and agricultural equipment insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

This product will be delivered within 3-5 business days.