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Agriculture Equipment Market Size - By Machinery Type (Farm Tractor, Harvesting Machinery, Plowing & Cultivation Machinery, Planting & Fertilizing Machinery, Haying Machinery), Regional Insights & Global Forecast, 2023 - 2032

  • Report ID: GMI2845
  • Published Date: Aug 2023
  • Report Format: PDF

Agriculture equipment Market Size

Agriculture Equipment Market size was valued at USD 137.6 billion in 2022 and is predicted to register at a CAGR of 5.5% between 2023 and 2032. The world's growing population continues to drive the demand for increased food production. The Ministry of Agriculture & Farmers Welfare's third advance estimate predicts that India's total foodgrain production in 2022–2023 could reach a record 330.5 million tons, with record production of rice, wheat, maize, sugarcane, and oilseeds. Agriculture equipment, such as tractors, combine harvesters, and irrigation systems, help farmers meet this demand by enhancing their ability to cultivate larger areas and produce higher yields, significantly contributing to market growth.
 

Agriculture Equipment Market

The agriculture equipment market is closely tied to the overall economic conditions of the agriculture industry. Fluctuations in commodity prices, weather patterns, and global trade can impact farmers' income and purchasing power. During times of economic uncertainty or low crop prices, farmers might delay or reduce their investments in new equipment, affecting the demand for agricultural machinery and impacting the overall market dynamics.
 

However, a rising emphasis on sustainable and environmentally friendly farming practices has led to the development and adoption of equipment that supports practices like reduced tillage, organic farming, and efficient use of resources like water and fertilizers. Nearly 75 million hectares of agricultural land were managed organically by at least 3.4 million farmers, according to the 23rd edition of The World of Organic Agriculture, which was published by the Research Institute of Organic Agriculture FiBL and IFOAM - Organics International.
 

In 2020, sales of organic food and beverages in the world exceeded 120 billion euros. Agricultural equipment that contributes to sustainable practices is likely to see increased demand due to consumer and regulatory pressures, creating a favorable growth environment for the agriculture equipment market.
 

COVID-19 Impact

The COVID-19 pandemic had significant impacts on the agriculture equipment market. Disruptions in supply chains and manufacturing processes led to delays in production and delivery of machinery, affecting farmers' ability to access necessary equipment during critical planting and harvesting periods. Additionally, labor shortages and restrictions on movement posed challenges for field operations, prompting a growing interest in automation and robotics to maintain productivity. Instances like reduced availability of agriculture equipment parts and decreased purchasing power due to economic uncertainty further underscored the pandemic's impact on the market.
 

Agriculture Equipment Market Trends

Data-driven decision-making and precision farming will propel the market forward throughout 2023-2032. The integration of technology and data analytics is driving the trend toward precision agriculture. Modern agricultural equipment, such as tractors and harvesters equipped with GPS and sensors, enables farmers to gather data on soil conditions, crop health, and yield variability. This data can then be analyzed to make informed decisions about planting, fertilizing, irrigating, and harvesting, optimizing resource use, and increasing overall efficiency.
 

For instance, John Deere unveiled its 8R autonomous tractor in January 2022. The tractor uses six stereo camera pairs to provide 360-degree obstacle detection and distance estimation for objects in the field of view. By combining data from the cameras with data from other sensors, including GPS, obstacle avoidance, navigation, and localization are made possible.
 

Agriculture Equipment Market Analysis

 Agriculture Equipment Market, By Machinery Type

The agriculture equipment market from farm tractors segment is poised to grow at a CAGR of over 6% through 2032. The demand for farm tractors, including sub-compact utility tractors, compact utility tractors, and specialty tractors, is gaining momentum due to several factors. The trend towards smaller-scale and diversified farming operations has increased the need for versatile and efficient equipment that can handle various tasks.
 

For instance, sub-compact utility tractors are popular among hobby farmers and those with limited agriculture equipment for their adaptability in gardening and landscaping. Besides, advancements in technology have led to improved features and precision capabilities in compact and specialty tractors, enhancing their appeal to modern farmers. Lastly, the growing interest in sustainable farming practices has driven the adoption of specialized tractors for tasks like vineyard management and orchard care.
 

The agriculture equipment market from horsepower segment is further categorized into < 30 HP, 30 - 100 HP, 101 - 200 HP, and> 200 HP segments. The demand for farm tractors across various power categories is gaining momentum due to distinct agricultural needs. Tractors with <30 HP are sought after by small-scale farmers and hobbyists for tasks in compact agriculture equipment and light-duty operations. In the 30-100 HP range, versatility meets power, appealing to a wide range of farmers for general-purpose activities.
 

For specialized tasks and larger-scale farming, tractors in the 101-200 HP and >200 HP categories are in demand. For instance, large-scale commercial farming and heavy-duty tasks like plowing demand higher horsepower. This spectrum of demand reflects the diverse requirements of modern agriculture, driving the popularity of tractors in different power ranges.
 

Global Agriculture Equipment Market Share, By Harvesting Machinery,

The agriculture equipment market from combine harvester segment held around USD 12 billion in revenue in 2022. The integration of advanced technologies, such as precision farming, GPS, and data analytics, is becoming increasingly prevalent in harvesting machinery. This integration enhances efficiency, accuracy, and yield optimization by enabling real-time monitoring, automated adjustments, and data-driven decision-making. Precision harvesting involves using data-driven insights to harvest crops at their peak maturity, optimizing yield and quality. This trend aims to reduce waste, improve crop consistency, and maximize the value of each harvest.
 

 Asia Pacific Agriculture Equipment Market Revenue,

Asia Pacific agriculture equipment market accounted for 45% of the revenue share in 2022. Rapid urbanization has spurred the need for increased agricultural productivity to feed growing populations. Governments are investing in modernizing farming practices, incentivizing the adoption of advanced machinery. Moreover, the shift towards mechanization to address labor shortages and improve efficiency is driving equipment demand. Rising disposable incomes among farmers also contribute to higher investments in technology-driven agricultural equipment.
 

Agriculture Equipment Market Share

Major companies operating in the agriculture equipment market are:

  • Yanmar C Ltd
  • CNH Industrial NV
  • Zetor Tractors A.S
  • Escorts Ltd
  • Manitou Group
  • Kubota Corporation
  • Bucher Industries AG
  • Changzhou Dongfeng Agricultural Machinery Group Company Limited
  • Alamo Group Inc
  • SAME Deutz-Fahr Group S.p.A
  • Mahindra & Mahindra Limited
  • AGCO Corporation
  • Valmont Industries
  • Argo Tractors Agriculture equipment
  • Kuhn Group
     

Agriculture Equipment Industry News

  • 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.
     

The agriculture equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from volume (Units) 2018 to 2032, for the following segments:

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Market, By Machinery Type

  • Farm tractors
    • Type
      • Sub-compact utility tractor
      • Compact utility tractor
      • Specialty tractor
    • Horsepower (HP)
      • < 30 HP
      • 30 - 100 HP
      • 101 - 200 HP
      • > 200 HP
  • Harvesting machinery
    • Combine harvesters
    • Forage harvesters
    • Threshers
    • Reapers
  • Plowing & cultivation machinery
    • Ploughs
    • Harrows
    • Cultivators & tillers
  • Planting & fertilizing machinery
    • Seed drills
    • Planters
    • Spreaders
    • Sprayers
  • Haying machinery
    • Balers
    • Mowers-conditioners
    • Tedders & rakes
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Agriculture equipment market size reached USD 137.6 billion in 2022 and is set to record over 5.5% CAGR from 2023 to 2032, due to the growing population worldwide and the surging demand for food production.

The farm tractors machinery type segment is expected to expand at over 6% CAGR from 2023-2032, owing to the rising trend towards smaller-scale and diversified farming operations.

The combine harvester segment was valued at USD 12 billion in 2022, driven by the rising integration of advanced technologies, such as precision farming, GPS, and data analytics.

Asia Pacific recorded over 45% of the market share in 2022, attributed to the rapid urbanization and the surging need for increased agricultural productivity to feed the growing population across the region.

Agriculture Equipment Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 20
  • Tables & Figures: 368
  • Countries covered: 20
  • Pages: 288
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