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Agriculture Equipment Market Size By Product (Farm Tractor [By Product {Sub-compact Utility Tractor, Compact Utility Tractor, Specialty Tractor}, By Horsepower {< 30 HP, 31 - 100 HP, 101 - 200 HP, > 200 HP}], Harvesting Machinery [Combine Harvester, Forage Harvester, Thresher, and Reaper], Plowing & Cultivation Machinery [Ploughs, Harrows, Cultivators, and Tillers], Planting & Fertilizing Machinery [Seed Drills, Planters, Spreaders, and Sprayers], Haying Machinery [Balers, Mower-conditioner, Tedders, and Rakes]), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 - 2027

  • Report ID: GMI2845
  • Base Year: 2020
  • Report Format: PDF

Industry Trends

Agriculture Equipment Market size exceeded USD 100 billion in 2020 and is projected to grow at around 8% CAGR from 2021 to 2027. The global industry shipments are likely to exceed 8 million units by 2027 on account of the increasing demand for automated and advanced technologies in the agriculture sector.

Agriculture Equipment Market

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The growing development of advanced machinery to improve efficiency and productivity in farming is accelerating the market demand. For instance, in June 2021, XAG Co., Ltd., launched XAG R150, a JetSprayer system to pollinate fruit trees. The agriculture equipment features a liquid tank that autonomously sprays pollen onto each tree’s blossoms. It allows the operator to adjust the spray angle and spread from a distance by using a smartphone app. Similarly, with the advent of digitalization and connected technology in the agriculture sector, AI-based agriculture equipment is gaining immense popularity.

The rise in urbanization and increasing demand for packaged & high energy foods are contributing to the agriculture equipment market revenue. According to the Credit Suisse Group AG, an investment bank, the consumption of packaged foods in the U.S. was up by 20% in June 2020 compared to the same period in 2019. The changing lifestyles and long working hours have led to an increased consumption of packaged food among consumers. The growing adoption of packaged food has encouraged farms to invest in advanced agriculture equipment to speed up production and keep pace with the rapidly changing food preferences among consumers.

The increasing focus of government authorities on the development of the farming sector is providing lucrative market opportunities. Companies are also focusing on offering affordable farm equipment that is suitable for small farmers. For instance, in October 2020, Kubota Corporation launched the L60LE series deluxe compact tractor at an affordable price.

The ongoing COVID-19 pandemic negatively impacted the agriculture equipment market growth in 2020. The shutdown of manufacturing facilities resulted in delayed production and shortage of components & raw materials required to manufacture agriculture equipment. This also led to a significant decline in the financial performance of market participants. For instance, in August 2020, Deere & Company reported a revenue of USD 8.9 billion net sales in the third quarter of 2020, representing 11% decline compared to the third quarter of 2019. However, with the resumption of manufacturing activities and lifting of lockdown, the market gained traction in the second quarter of 2021.

Increasing demand for compact tractors coupled with the introduction of energy-efficient equipment

U.S. Tractor Market Size By Type

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The U.S. farm tractors market is poised to expand at around 7% CAGR through 2027 owing to the growing demand for compact tractors from famers to shift to small & efficient farm utility vehicles. Agriculture and mining are among the leading industries in the U.S. that are resulting in an increased demand for compact tractors. According to the U.S. Department of Agriculture (USDA), the agriculture, food, and related industries contributed about USD 1 trillion to the U.S. GDP in 2019.

The compact utility tractors of 20 - 40 HP range are being increasingly adopted by small-scale farmers due to their smaller size and low cost compared to the average agricultural tractors. Furthermore, the trend of farm mechanization, need for high productivity, and increasing labor costs are driving the adoption of compact tractors by small framers in the U.S. market.

The growing government focus on using energy-efficient equipment in the agriculture sector will positively influence the agriculture equipment market revenue. For instance, the U.S. EPA introduced the Tier 4 emission standards for off-road machines such as mining, construction & Agriculture Equipment, marine vessels, and workboats. Similarly, the Rural Energy for America Program (REAP) FY2021, provides funding to small businesses to use renewable energy systems. Such policies are encouraging market players to produce energy-efficient agriculture equipment for farmers.

Increasing expansion of agriculture land areas in Europe will boost market growth

Europe Agriculture Equipment Market Size By Country

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The Europe agriculture equipment market demand is anticipated to observe growth rate of more than 5% through 2027 led by the increasing labor costs across the region. According to the Office for National Statistics (ONS), labor costs in the UK increased to 112.80 points in the first quarter of 2021 from 112 points in the fourth quarter of 2020. This led farmers to shift toward automated equipment to replace manual labors and reduce costs. Also, the combined effect of pandemic and Brexit in the UK is encouraging farmers to shift toward automation technologies and robotics to accommodate the seasonal worker shortage.

Europe has witnessed high growth in the expansion of agriculture land areas over the past few years. The total area under organic farming in the EU covered almost 13.8 million hectares of agricultural land in 2019. Spain accounted for the largest share of organic farmland in the region with 2.35 million hectares, followed by France with 24 million hectares. Large-sized farms are increasingly adopting Agriculture Equipment to perform tasks more efficiently. Also, the increasing government support for the expansion of an agricultural land is accelerating the market demand for high-capacity machines.

Focus on launching new products remains a key trend among market players

Major players operating in the agriculture equipment market include CNH Industrial N.V., AGCO Corporation., Alamo Group Incorporated, Escorts Group, Bucher Industries AG, Claas KGaA mbH, ARGO SpA, Deere & Company, Foton Lovol International Heavy Industries Company Ltd., JCB Limited, Kubota Tractor Corporation, Kuhn Group, Tractors and Farm Equipment Ltd, Mahindra & Mahindra Ltd. Valmont Industries Incorporated, and Yanmar Company Limited.

Companies are introducing innovative products to remain competitive in the market. For instance, in January 2020, AGCO Corporation launched the Fendt Momentum planter for North American row crop producers. The modern design offers accuracy for seed placement and helps overcome planting conditions in emergency situations.

This agriculture equipment market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2017 to 2027, for the following segments:

Market, By Product

  • Farm tractor
    • By product
      • Sub-compact utility tractor
      • Compact utility tractor
      • Specialty tractor
    • By horsepower
      • < 30 HP
      • 30 - 100 HP
      • 101 - 200 HP
      • > 200 HP
  • Harvesting machinery
    • Combine harvester
    • Forage harvester
    • Thresher
    • Reaper
  • 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
    • South Korea
    • Australia
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
Authors: Preeti Wadhwani, Saloni Gankar

Frequently Asked Questions (FAQ) :

Global market for agriculture equipment worth over USD 100 billion in 2020 and will register nearly 8% CAGR between 2021-2027, says this GMI report.

It is estimated that U.S. farm tractors industry share will record around 7% CAGR over 2021-2027 due to increased preference for compact tractors with the adoption of small utility vehicles.

Europe agriculture equipment industry share is expected to witness over 5% CAGR through 2027 owing to high labor costs driving the need for automated machinery.

Escorts Group, JCB Limited, Kubota Tractor Corporation, CNH Industrial N.V., Mahindra & Mahindra Ltd., Alamo Group Incorporated and Bucher Industries are some of the major agriculture machinery manufacturers.

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Premium Report Details

  • Published Date: Jul 2021
  • Companies covered: 20
  • Tables & Figures: 1047
  • Countries covered: 20
  • Pages: 400

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