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The global agriculture equipment market size was valued at USD 169.18 billion in 2022 and is projected to grow from USD 180.81 billion in 2023 to USD 296.61 billion by 2030, exhibiting a CAGR of 7.3% during the forecast period of 2023-2030. The Asia-Pacific dominated the agriculture equipment market with a share of 38.25% in 2022.
Agriculture equipment constitutes machines or fabricated elements that enhance land yield across agro-based economies globally. The equipment helps directly promote the inclination of farmers or land operators toward the integration of automation technologies into their traditional farming. Additionally, the increasing scarcity of human workforce and heavy expenditure on the maintenance of cattle on the job site in numerous countries have encouraged customers to leverage the benefits of modernized equipment in farming applications.
However, the economy’s downfall in the pandemic and expanded supply gap for fossil fuel across major developing and developed economies have shifted focus to alternative fuel sources such as ethanol and biodiesel. Thus, major agro-based economies, such as India, China, Canada, Mexico, South Africa, and others, have raised an initiative to replace fossil fuel needs with agro-based fuel. This subsequently boosted the demand for various equipment such as tractors, cultivation equipment, crop processing, and other equipment types across applications such as land development, threshing and harvesting, plant protection, and after agro-processing. Also, the latest IoT integration trend to traditional farming equipment is acting as a supplement, enhancing the tendency and valuation of the market size over the forecast period.
Supply Demand Imbalance Prompted Pricing Volatility and Short Term Disruption in Market
The COVID-19 pandemic led to a disruptive impact on the global agricultural sector and broadened exponentially with volatile prices of essential agro commodities. This has given a downturn momentum across the agricultural economy due to a reduction in operations in labor-intensive agriculture countries such as India and China. However, the post-pandemic rise of the supply-demand gap across the fossil fuel industry is elevating the demand for ethanol. Also, increasing IoT automation and the integration of wireless equipment models into product portfolios have created a favorable environment for market growth.
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Smart Farming Equipment and Industry 4.0 Integration to Create Lucrative Business Prospects
The agriculture industry is growing exponentially in the next few years with the rising population globally and the need for food to remain high. Therefore, to meet this requirement, agricultural manufacturers & farmers opt for the Internet of Things (IoT) for more yield from agriculture, boosting the economy globally.
According to the United Nations Organization, by 2050, the world's population will reach 9.7 billion, which will ultimately impact global agricultural production to grow about 69% in the span of 2010 to 2050.
Additionally, farmers have started installing major high-tech farming & agricultural technologies to develop efficiency and increase productivity in their fields. For instance, numerous farmland operators started utilizing equipment equipped with sensors that obtain topography data through maps of resources and capture soil nutrient measuring variables such as the temperature of the soil & acidity. This Industry 4.0 feature enrichment and integration helps farmers decide the productivity and crop yield by cultivating the right crop according to the weather and soil nutrients.
Increasing Equipment Technology Awareness and Favorable Government Policies to Propel the Market Growth
The growing adoption of semi-automatic and automatic machines for planting and fertilizers has raised the demand for advanced equipment globally. Additionally, self-propelled spreaders and sprayers are now delivering more efficiency resulting in faster operation covering huge span areas. These machines in the agricultural field ensure an even distribution of fertilizers and nutrients that help reduce overall operation cost and time and improve crop yields.
In addition, post-pandemic policies were introduced by government firms around the world to support the rapid adoption of agricultural mechanization. Also, to improve farmers’ potential income through sustainable alternatives such as ethanol procurement by the government for blending in several countries. This factor proactively pushes the demand for agriculture equipment such as tractors and combine harvesters during the study period. Moreover, agriculture equipment is increasingly used in the forestry industry for cutting and peeling, which will significantly gain sales prospects in the coming years.
Heavy Initial Procurement Cost and High Expenditure on Maintenance to Restrain Market Growth
Expanding agriculture & technological evolution across the agriculture industry raises input prices for equipment commissioning across farms. Furthermore, utilizing such mechanized agricultural equipment incurs a high operational & maintenance cost, resulting in low profitability from agricultural operations. The intricate machine’s involvement in farming operations raised the complexity for farmers, causing worries for skilled labor to manage and supervise operations.
Additionally, the rising use of agriculture equipment, which is getting heavier over time, increases soil compaction and might sometimes damage the crops or food products. Thus, using modern farming equipment encourages the farm operator to use mechanized fertilizer spreaders excessively, causing equipment breakdown or frequent maintenance. Unavailability and delays in repairing and servicing the equipment increase the downtime. This incurs a hefty maintenance cost and repair work and also requires massive expenditure, disturbing the financial balance of the farmers in maintaining operation cost. These factors in the market are possible restraints hindering the market growth over the forecast period.
Development of Novel Products and Increasing Product Diversity to Propel the Demand for Agriculture Tractors
Based on equipment type, the market is classified into agriculture tractors, harvesting equipment, irrigation & crop processing equipment, agriculture spraying & handling equipment, soil preparation & cultivation equipment, and others (hay & forage equipment, trailers).
The agriculture tractor segment is projected to grow exponentially across the equipment-type segment. The introduction of highly efficient and eco-friendly tractors enhances operational speed and reduced cost is considered a crucial factor driving the agriculture equipment market growth over the forecast period.
Additionally, the market is estimated to have a significant increase in the sales of forage harvesters due to their effective performance and reduction in the overhead operational cost. Manufacturers of agriculture equipment added novel products to their product portfolio to further strengthen their sales across the regional market. Also, prominent players in the market, such as John Deere, Kubota Corporation, and others, introduced more advanced forage harvesters that can deliver increased power and throughput. Moreover, adopting mechanized equipment for irrigation and crop processing, agricultural spraying, soil preparation, and other agriculture equipment across the industry provides uniform performance with low operation costs and increasing yield.
For instance, in August 2022, John Deere launched the new 9500 self-propelled forage harvester to deliver farmers more power, precision, and productivity.
Similarly, CLAAS JAGUAR 25, offered by Claas KGaA GmbH, helps to cut corn and break kernels while generating high-quality silage evenly.
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Land Development Segment to Experience Profound Growth Owing to its Demand Across Industrial Sector
On the basis of application, the market is subdivided into land development, threshing and harvesting, plant protection, and after agro processing.
The constant increment of agricultural land to fulfill the food consumable need of the growing population is expanding the application of land development significantly. The development and launch of products equipped with advanced technologies are transforming land utilization. Also, the need for better distribution of fertilizers and the potential need for field contours are also stimulating the sales of land development equipment in the global market. Considering industry growth, the land development segment is expected to contribute heavily across the application segment, which will expand the agriculture equipment market share notably. A substantial focus on increasing land fertility and farm yield is a decisive factor supporting plant protection, harvesting plant, and after-agro-processing equipment sales over the forecast period.
Asia Pacific Agriculture Equipment Market Size, 2022 (USD Billion)
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The Asia Pacific market was valued at USD 64.72 billion in 2022 and is projected to witness an impressive CAGR of 8.7% over the forecast period. Development across the market is owing to the economic stability and growth of China, India, and other agro-based countries within the ASEAN region, which collectively contributes to the development of the Asia Pacific market.
The market Asia Pacific is projected to expand exponentially, owing to the heavy integration of electrical drives, computer sensing, digitalization, agro-tech, and easy attachment capabilities of equipment and machinery to primary machinery such as tractors. China is assessed to hold the highest market share as a result of tremendous opportunities for agriculture equipment manufacturers. Many established and well-known market players are executing diverse product offerings that are highly efficient and powerful equipment models for the market of India, South Korea, Taiwan, and ASEAN countries. The companies are further trying to introduce innovative features and technologies to their product portfolio that will attract numerous consumers.
India to Develop with a Promising Pace Due to Increasing Equipment Subsidiaries by Government Authorities
The government of India is providing cost-effective subsidies and additional benefits to farmers that will instigate the procurement and application of modern agricultural equipment. Also, government commitment to propel agriculture mechanization across the agriculture sector is anticipated to encourage regional growth prospects. The growth-driving contribution of the agriculture sector in the country’s GDP development accentuates the importance of modernization in farming across the country.
The presence of prominent companies, such as AGCO Corporation, Alamo Group Inc., Deere & Company, and Valmont Industries, across the U.S. is aiding the North America market growth. Additionally, an explicit downfall of the labor force in agricultural fields and implicit efforts of these companies to acquire a prominent market share are leveraging the market. Players through technological development, strong investments across research and development operations, acquisitions, strategic partnerships, and joint ventures are pivotal factors boosting the development potential of North America.
The GCC accounts for a major share in the Middle East & Africa market, owing to the support by government agencies to elevate farming operations and incorporate modern farming techniques. Additionally, the government focuses on growing the agricultural sector to minimize the dependency on other nations for agricultural produce is a thriving demand for agricultural equipment. Financial aid by the Saudi Arabia Kingdom to farmers through funding and subsidies provides better sales of imported agriculture machinery across the Middle East & Africa region.
Moreover, Brazil is projected to have the highest market share across Latin America. In accordance with market developments, Brazil is foreseen to portray stable growth with financial aid and healthy agro-food demands across neighboring regions. The key growth factor of Mexico’s market is the flagship programs instituted by the government to provide easy leases and financing to small farmers.
After the outbreak of COVID-19 and the potential breakdown of the food ecosystem in Europe, the European Commission has proposed Farm to Bifurcate and adopt biodiversity strategies to streamline the food system in the region, making it more resilient and disruption-proof.
Furthermore, the aforementioned strategy provides directives for the removal of farmlands available for agricultural use by about 10% by the end of 2030. Therefore, operators may suppress the beef-up labor costs with farm equipment to retain the production pace of farmlands.
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Leading Players to Focus on Enhancing R&D Capacities to Expand their Horizon
The promising share of the established market leaders can be attributed to these players' diverse product portfolio offerings. The robust R&D infrastructure of these companies empowers them to develop and unveil modern products with the highest world standards in terms of operational efficiency and embedded technology. These companies are also working to identify on-demand machinery and manufacturing based on the current demand landscape of the market.
An Infographic Representation of Agriculture Equipment Market
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The research report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, equipment types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market growth in recent years.
CAGR of 7.3% from 2023 to 2030
Value (USD Billion)
By Equipment Type, Application, and Region
By Equipment Type
Fortune Business Insights says that the global market size was USD 169.18 billion in 2022 and is projected to reach USD 296.61 billion by 2030.
In 2022, the Asia Pacific market value stood at USD 64.72 billion.
The market is expected to grow at a CAGR of 7.3% during the forecast period (2023-2030).
The agricultural tractors segment is expected to be the leading segment in the market during the forecast period.
Increasing equipment technology awareness and favorable government policies are the key factors driving the market.
AGCO Corporation, Alamo Group Inc., China National Machinery Industry Corporation, CNH Industrial N.V., and CLAAS KGaA GmbH are the major players in the global market.
Heavy initial procurement costs and high expenditure on maintenance are expected to restrain the market growth.
The land development application is expected to drive the adoption of these machine tools.
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