Home > Agriculture > Agri Machinery & Tech > Agri Equipment > Agriculture Equipment Market
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.
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.
Report Attribute | Details |
---|---|
Base Year: | 2022 |
Agriculture Equipment Market Size in 2022: | USD 137.6 Billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 5.5% |
2032 Value Projection: | USD 255 Billion |
Historical Data for: | 2018 - 2022 |
No. of Pages: | 288 |
Tables, Charts & Figures: | 368 |
Segments covered: | Machinery Type, and Region |
Growth Drivers: |
|
Pitfalls & Challenges: |
|
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.
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.
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.
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.
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 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.
Major companies operating in the agriculture equipment market are:
Click here to Buy Section of this Report
Market, By Machinery Type
The above information has been provided for the following regions and countries: