The "Agriculture Equipment Market - Global Outlook & Forecast 2025-2030" report has been added to ResearchAndMarkets.com's offering.
The Agriculture Equipment Market was sized at 4,937.30 units in 2024, and is projected to reach 6,253.50 units by 2030, rising at a CAGR of 4.02%.
The global agriculture equipment market is experiencing significant advancements, driven by the demand for efficiency, sustainability, and higher productivity in farming operations. Recent product launches across various equipment types, including tractors, irrigation systems, land preparation machinery, harvesting tools, and plant protection equipment, highlight the industry's innovative direction. These developments are reshaping the market to meet the diverse needs of agriculture worldwide.
The global agriculture equipment market is highly competitive, driven by the presence of established industry giants, regional players, and new entrants. Leading companies, such as John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, and Mahindra & Mahindra, dominate the global agriculture equipment market by focusing on technological innovation, product diversification, and geographic expansion. The market's competitive dynamics are further influenced by partnerships, acquisitions, and a strong emphasis on sustainable farming practices.
John Deere remains a dominant player, generating USD 61.5 billion in revenue in 2023, with nearly 60% coming from its agriculture division. Similarly, CNH Industrial and Kubota Corporation reported revenues of USD 22.5 billion and USD 21.3 billion, respectively, with significant contributions from their agriculture segments. Mahindra & Mahindra, a regional leader, caters to local markets with cost-effective products and maintains its position as the world's largest tractor manufacturer by volume, having sold over 390,000 tractors in 2023.
Technological innovation plays a pivotal role in the competitive landscape of the global agriculture equipment market. Companies are increasingly integrating GPS, IoT, and AI technologies into their machinery to enhance productivity and operational efficiency. John Deere's launch of its autonomous tractor in 2024, which incorporates AI-driven navigation and real-time crop analysis, represents a major leap in precision farming. AGCO Corporation's Precision Planting SmartFarmer, with a 25% adoption rate in North America in 2023, underscores the growing shift toward digital agriculture solutions to address productivity challenges.
Electrification is another key trend reshaping the global agriculture equipment market. Companies like Solectrac, Mahindra, and Yanmar are leading the transition toward electric and hybrid-powered agricultural machinery. Solectrac, for example, reported a 30% growth in 2023, driven by its electric tractors in North America. In India, Mahindra's e-Kaali electric tractor sold over 10,000 units within six months of its launch, supported by government subsidies. Yanmar's SmartAssist Remote electric tractor, launched in Japan, also saw a 15% increase in sales in its first year.
MARKET TREND & DRIVERS
Growth in Electrification and Sustainable Solutions
The agriculture equipment market is undergoing a transformation driven by electrification and sustainability. Key players like Monarch Tractor and Solectrac are leading with robust sales growth in electric tractors, while advancements in battery technology and precision farming tools are optimizing efficiency and reducing emissions. Government initiatives, such as the USDA's $500 million grants and India's subsidy programs, are further accelerating adoption. This dual focus on innovation and eco-friendly practices is reshaping the industry, positioning it for significant growth and alignment with modern agricultural demands.
Shift Toward Precision Agriculture
The global agriculture equipment market is experiencing a paradigm shift with the growing adoption of precision agriculture technologies. These advancements, including GPS-enabled tractors, autonomous machinery, and IoT-integrated systems, optimize resource use, enhance productivity, and reduce environmental impact. Key players like John Deere, Kubota, and CNH Industrial are driving innovation, while government incentives and rising adoption in emerging markets further fuel demand.
Growing Investment From Farm Equipment Manufacturers
Investment by farm equipment manufacturers is a key driver fueling the demand for farm equipment in the global market. Increased funding from major agricultural machinery producers enables the development of advanced technologies, enhancing productivity and efficiency in farming. For instance, John Deere's $3.5 billion investment in automation and electric machinery is a testament to the industry's focus on innovation. Similarly, AGCO's strategic acquisitions, such as the 2023 purchase of the precision agriculture firm Fendt, demonstrate how manufacturers are boosting their capabilities to meet the evolving demands of global markets.
INDUSTRY RESTRAINTS
Challenge From the Rental Agricultural Equipment
The increasing demand for rental agricultural equipment is becoming a key constraint in the global farm equipment market, potentially impacting new machinery sales. Farmers, particularly in regions with seasonal activities or smaller farm sizes, are opting for cost-effective rental solutions to access specialized machinery without significant capital investment. This trend, supported by improved equipment availability and favorable leasing terms, is particularly prominent among small and medium-sized farms, contributing to a decline in new equipment purchases and altering market dynamics.
Supply Chain Disruptions
The agriculture equipment market continues to face significant disruptions due to lingering supply chain issues, geopolitical tensions, and rising raw material costs. For instance, in 2023, John Deere reported production delays of up to six months, citing semiconductor shortages and higher steel prices as major factors. Similarly, CNH Industrial experienced a 5% decline in equipment sales in Q1 2023, while emerging markets like India grapple with logistical challenges and port congestion, further hindering machinery availability and market growth.
GEOGRAPHICAL ANALYSIS
APAC dominated the global agriculture equipment market share, accounting for over 58% in 2024. The Asia Pacific market is growing rapidly due to rising food demand driven by a population of over 4.7 billion. Governments in countries like China and India are offering subsidies to boost precision farming and modern agricultural technologies. Also, government initiatives like Japan's Smart Agriculture Project and Australia's "Ag2030" plan are driving innovation. These programs aim to enhance productivity and sustainability through robotics and digital technologies.
Furthermore, the North American agriculture equipment market is experiencing significant growth, driven by advancements in technology and increasing demand for efficient farming solutions. Government funding is a significant driver, with the USDA allocating over USD 500 million in 2023 to promote technologies like IoT and autonomous machinery. This has spurred innovation among startups and established firms. Also, private sector investments are fueling growth, with Deere & Company reporting a 15% sales increase in precision agriculture tools in 2023. Venture capital funding for platforms like Indigo Agriculture exceeded USD 2 billion.
The European agricultural equipment market is a key driver of the region's farming industry, providing advanced tools and technologies to enhance productivity and ensure sustainable farming practices. Government support is a key driver, with the European Commission allocating USD 1.5 billion under Horizon Europe for sustainable agricultural R&D in 2023.
The Latin American agriculture equipment market is growing due to rising food demand, driven by a growing population and urbanization. R&D investment is fueling market growth, with over USD 5 billion invested in agriculture equipment in 2023. Countries like Argentina and Chile are leveraging technology to improve crop yield and address climate change challenges. Also, the focus on sustainability is reshaping the sector, as Latin American farmers adopt technologies to reduce resource usage and waste. This is attracting investment and fostering partnerships between startups and major agricultural companies.
Furthermore, the Middle East and Africa (MEA) agriculture equipment market has been witnessing dynamic growth fueled by recent product innovations, strategic partnerships, and government-led incentives to enhance agricultural productivity. Technological innovations, such as precision farming are improving crop yields and water efficiency, particularly in water-scarce areas like Saudi Arabia and the UAE.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 264 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value in 2024 | 4937.3 Units |
| Forecasted Market Value by 2030 | 6253.5 Units |
| Compound Annual Growth Rate | 4.0% |
| Regions Covered | Global |
Market Opportunities & Trends
- Shift Toward Precision Agriculture
- Growth in Electrification and Sustainable Solutions
- Integration of Digital Technologies Supporting Agriculture Industry Growth
Market Growth Enablers
- Shifting Consumer Preference Toward Organic Food Products
- Growing Investment from Farm Equipment Manufacturers
- Expansion of Emerging Markets
Market Restraints
- Challenge from the Rental Agricultural Equipment
- Supply Chain Disruptions
Industry Overview
- Raw Material Sourcing
- Manufacturing and Assembly
- Distribution Channels
- End-user Market
- Logistics and Supply Chain Challenges
- Emerging Trends in the Supply Chain
- Regional Dynamics
Key Company Profiles
- AGCO Corporation
- CNH Industrial
- John Deere
- Kubota Corporation
- Mahindra
Other Prominent Vendors
- Antonio Carraro
- BCS Group
- Branson Tractor
- Captain Tractors Pvt. Ltd.
- CLAAS
- Iseki
- JCB
- KIOTI
- Lovol
- LS Tractors
- McCormick
- Same Deutz-Fahr
- TYM Corp.
- VST Tillers Tractors
- Yanmar
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