Agriculture Equipment Market

Agriculture Equipment Market Size

The global agriculture equipment market was estimated at USD 172 billion in 2024. The market is expected to grow from USD 186.5 billion in 2025 to USD 291.3 billion in 2034, at a CAGR of 5.1%, according to latest report published by Global Market Insights Inc.

The agricultural sector is increasing the adoption of mechanical solutions to improve productivity, reduce dependency on manual labor while bridging the gap for global food demand. Small and medium-sized farmers in emerging countries such as India are continuously investing in tractors, tillers, and harvesters. According to the Food and Agriculture Organization (FAO), mechanization has the potential to increase productivity by up to 30%, thus requires compact and utility tractors and multi-purpose implements. Manufacturers like John Deere, Mahindra & Mahindra, and Kubota are offering a wide range of mechanical solutions tailored to meet the needs of small and medium scale farmers.

Sustainability and climate resilience are becoming integral to modern agricultural practices with precision farming tools, such as GPS-enabled seeders and variable-rate fertilizer applicators aiding such practices. According to The International Energy Agency (IEA) the adoption of energy-efficient machinery in agriculture could reduce emissions by 20%, boosting demand for smart, sensor-equipped equipment.

Through the marketplace in equipment market, Agritech startups and digital platforms provide access to financing, rentals, and bundled services. In India, the agritech market is projected to grow at a CAGR of 18% during the forecast period, with mobile-first platforms bridging rural distribution gaps. With a shift towards digital demands, manufacturers are increasingly adopting omni-channel strategies and modular equipment designs. Companies such as Deere and Company have adopted omnichannel strategies to meet growing digital demands.

The livestock and horticulture sectors are shifting the demand for specialized equipment, including automated milking systems, greenhouse climate controllers, and orchard-specific tractors. High-precision, compact, and customizable machinery are the major requirements for such niche markets.

The growth of the adoption of equipment is also addressed by government subsidies and rural infrastructure development programs especially in rural regions. In India, the adoption of solar and electric farm equipment is promoted through schemes like PM-KUSUM and FAME, while the FAO’s climate-smart agriculture initiative advocates for low-emission machinery, such programs are shaping the future of agricultural equipment’s with focus on sustainability and automation.

Agriculture Equipment Market Trends

Driven by upcoming technologies such as the integration of AI, sensors and analytics, the agricultural equipment market is showing high growth. These innovations are helping in predictive maintenance, optimizing resource use, and enhancing decision-making, making farming operations more efficient and sustainable.

• AI-powered equipment offers real time data insights into several agricultural factors such as crop health, soil conditions and weather patterns improving farming methodologies. Companies like Deere & Company have been adding AI and machine learning into their equipment portfolio through AutoTrac and JDLink since 2019 to improve precision farming practices. Similarly, CNH Industrial has been developing autonomous tractors and smart implements, to meet the growing demand for advanced agricultural machinery.
  
• Technologies such as sensors and data analytics are increasingly being accessed by farmers due to their superior performance making real time monitoring possible, reducing downtime with prompt maintenance. AGCO Corporation and Kubota Corporation are continuously investing heavily in sensor-based technologies to improve their product portfolios and meet the needs of modern agriculture.
  

Agriculture Equipment Market Analysis

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Based on machinery, the agricultural equipment market is segmented farm tractors, harvesting machinery, plowing and cultivation machinery, planting and fertilizing machinery, haying machinery and others. The farm tractors segment held the major market share, generating a revenue of USD 89.9 billion in 2024.

The farm tractor segment shows high growth, driven by its important role in modern agriculture. Tractors help with essential tasks such as plowing, planting, and transporting goods, vastly improving efficiency and productivity. According to the Food and Agriculture Organization (FAO), global agricultural productivity needs to increase by 70% by 2050 to meet rising food demand, further showing the importance of mechanization.

• Technological advancements are very important for this growth, John Deere introduced autonomous tractors equipped with AI and GPS, to help in precision farming and reduce operational problems. Similarly, CNH Industrial has developed methane-powered tractors, meeting the growing demand for sustainable farming solutions.
  
• In small and medium sized farms compact and affordable tractor models are gaining popularity, especially in growing regions. According to the World Bank, smallholder farms account for 80% of the world’s food supply, showing the growing need for accessible and affordable agricultural equipment.
  
• Government initiatives and subsidies further help in the adoption of farm tractors. For instance, India’s Ministry of Agriculture and Farmers Welfare offers subsidies of up to 50% on tractor purchases under various schemes, encouraging mechanization among small and marginal farmers. Similarly, the U.S. Department of Agriculture (USDA) provides grants and loans to promote the adoption of advanced agricultural machinery, including tractors.
  
• The farm tractor segment plays an important role in the agricultural equipment industry, supported by continuous innovation and a diverse range of offerings. With increasing investments in precision farming technologies, sustainable practices, and region-specific models, the segment is well-positioned to address modern agricultural challenges. As global food demand rises, the segment is expected to sustain its growth trajectory, playing a pivotal role in ensuring food security worldwide.
  

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Based on the distribution channel, the agriculture equipment market is segmented into direct and indirect channels. The indirect segment held the largest share, accounting for 65.2% of the global agricultural equipment market in 2024.

• Indirect channels dominate due to the extensive network of local dealers and service centers, which are critical for selling, maintaining, and repairing agricultural machinery. According to the Association of Equipment Manufacturers (AEM), over 70% of agricultural machinery sales in rural areas occur through indirect channels, driven by easy access to the dealers, connectivity and after-sales support. Local dealers and service centers, including companies like John Deere, CNH Industrial, and AGCO Corporation, play a pivotal role in selling, maintaining, and repairing agricultural machinery via indirect means especially when it’s hard to connect with distant customers, leading to the dominance of indirect channels.
  
• Since such equipment’s are high investment purchase, farmers prefer sales through local dealers who generally have a good relationship with such individuals. The USDA reports that 65% of farmers rely on dealer recommendations tailored to local soil, crops, and climate conditions, which fosters confidence and loyalty among buyers.
  
• Authorized dealers predominantly channel government-backed subsidy schemes and procurement programs. The Food and Agriculture Organization (FAO) highlights that 80% of subsidy programs in developing nations mandate physical verification and dealer certification, underscoring the significance of offline dealer networks. Companies such as CLAAS and SAME Deutz-Fahr Group actively participate in these programs through their dealer networks.
  
• On-site demonstrations and training are essential for farmers to adeptly operate new machinery. The AEM emphasizes this, stating that 75% of farmers transitioning to precision farming equipment rely on dealers for crucial field trials and operator training. Companies like Massey Ferguson provide extensive support through their dealer networks to ensure successful implementation.
  

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North America Agriculture Equipment Market

North America market is expected to grow at a CAGR of 3.8% from 2025 to 2034.

• The U.S agricultural equipment market is expanding due to advancements in technology that are reshaping farming practices. These innovations allow farmers to improve efficiency, reduce operational costs, and enhance productivity. Additionally, the growing adoption of precision farming techniques and supportive government policies promoting sustainable agriculture are driving the demand for modern, eco-friendly equipment.
  
• The market is also benefiting from significant government support. According to the United States Department of Agriculture (USDA), federal programs such as the Environmental Quality Incentives Program (EQIP) provide financial and technical assistance to farmers adopting sustainable practices and advanced equipment. This support, along with tax incentives for purchasing energy-efficient machinery, is further driving market growth.
  
  

Asia Pacific Agriculture Equipment Market

Asia pacific agricultural equipment market is expected to grow at 3.4% during the forecast period.

• The region's vast population and diverse agricultural landscapes fuel the demand for advanced farming machinery. Extensive investments in research and infrastructure have propelled Asia Pacific to the forefront of agricultural innovation. With a rich tapestry of manufacturers catering to local needs, this region emerges as a key contributor to the global agriculture equipment industry.
  
  

Europe Agriculture Equipment Market

Europe agricultural equipment market holds the second largest share in 2024 and is expected to grow at 3.4% during the forecast period.

• The growth of the agricultural equipment market in Europe is driven by advancements in farming technologies, increasing adoption of precision agriculture, and government initiatives supporting sustainable farming practices. Additionally, the region's focus on improving agricultural productivity and addressing labor shortages further fuels market expansion.
  

Agriculture Equipment Market Share

• The top companies in the agricultural equipment market include Deere & Company, CNH Industrial, AGCO, Kubota and CLAAS and collectively hold a share of 47.5% share in the market. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broad customer base, and strengthen their market position.
  
• Deere & Company continues to lead in precision agriculture and smart machinery through consistent innovation. Its advanced tractors, combines, and digital platforms, such as the John Deere Operations Center, deliver exceptional performance, connectivity, and automation. By integrating AI, GPS, and data analytics, the company helps farmers improve productivity and sustainability in their operations.
  
• CNH Industrial aligns its equipment offerings with global agricultural needs, providing solutions through brands like Case IH and New Holland. The company excels in precision farming, autonomous technologies, and alternative powertrains. By supporting diverse farming systems with reliable machinery and digital tools, CNH strengthens its presence in both developed and emerging markets.
  
• AGCO Corporation maintains its competitive position with a farmer-focused approach and a strong portfolio of brands, including Fendt, Massey Ferguson, and Valtra. The company emphasizes smart farming technologies, modular equipment design, and sustainability. Through its Fuse digital platform and focus on agronomic integration, AGCO delivers customized solutions for a wide range of crop and livestock operations.
  

Agriculture Equipment Market Companies

Major players operating in the agriculture equipment industry include:

• AGCO
• Alamo Group
• Amazonen-Werke
• Argo Tractors
• Bucher Industries
• China National Machinery Industry Corporation (Sinomach)
• CLAAS
• CNH Industrial
• Deere & Company (John Deere)
• Escorts
• JCB
• Kubota
• Mahindra & Mahindra
• SDF Group
• Valmont Industries
  

Kubota Corporation is a prominent leader in the compact and mid-sized agricultural machinery market, widely recognized for its reliability, fuel efficiency, and operator-focused design. The company addresses diverse farming requirements by offering tractors, rice transplanters, and utility vehicles across key regions, including Asia, North America, and Europe. By prioritizing smart agriculture solutions, such as autonomous tractors and precision farming systems, Kubota actively supports sustainable farming practices while driving productivity improvements for small to mid-scale farmers.

CLAAS is a globally renowned manufacturer of high-performance agricultural equipment, celebrated for its advanced combine harvesters, forage harvesters, and tractors. The company’s dedication to engineering excellence ensures its machines deliver exceptional durability, precision, and adaptability to varying crop conditions. Additionally, CLAAS integrates cutting-edge digital technologies, such as telematics, yield mapping, and machine automation, to enhance harvesting efficiency and enable data-driven decision-making for modern farm management.

Agriculture Equipment Industry News

• In August 2025, AGCO Corporation introduced the Massey Ferguson 5M Series Utility Tractors for the North American market. Designed for versatility and ease of use, the 5M Series offers horsepower ranging from 85 to 120 HP, targeting livestock, hay, and general utility operations. The tractors feature modern styling, improved operator comfort, and advanced hydraulics for enhanced implement control. This launch strengthens Massey Ferguson’s position in the mid-range utility tractor segment.
  
• In August 2025, CNH Industrial unveiled the New Holland CR11, a next-generation combine harvester engineered for high-capacity, sustainable farming. Equipped with a 775 hp engine, 567-bushel grain tank, and Twin Rotor and TwinClean systems, it delivers exceptional throughput and 99.8% grain recovery. The SmartTrax system minimizes soil compaction, aligning with CNH’s environmental goals.
  
• In February 2025, John Deere India at the Power & Technology 6.0 event, unveiled its most powerful tractor yet, the 5130M. Boasting a robust 130 HP engine and a lift capacity of 3700 kgf, the 5130M is tailored for large-scale farming. Additionally, Deere introduced new implements, including the Precision Automatic Potato Planter and GreenSystem balers, underscoring its commitment to efficiency, durability, and the digital farming revolution.
  
• In September 2024, Kubota North America acquired Bloomfield Robotics, a U.S.-based AgTech startup specializing in AI-powered crop monitoring for specialty crops. The acquisition strengthens Kubota’s smart farming portfolio by integrating plant-level imaging, health diagnostics, and yield prediction into its machinery ecosystem. This move reflects Kubota’s strategic focus on digital transformation and precision agriculture to support more efficient, data-driven farming practices.
  

The agriculture equipment market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Machinery

• Farm tractors
  • Sub-compact utility tractor
  • Compact utility tractors
  • Specialty tractor 
• Harvesting machinery
  • Combine Harvester
  • Forage Harvester
  • Thresher 
  • Reaper 
• Plowing and cultivation machinery
  • Ploughs
  • Harrows
  • Cultivators & Tillers
• Planting and fertilizing machinery
  • Seed Drills
  • Planters
  • Spreaders
  • Sprayers 
• Haying machinery
  • Balers
  • Mower-Conditioner
  • Tedders & Rakes
• Others

Market By Power

• < 30 HP
• 31 - 100 HP
• 101 - 200 HP
• > 200 HP

Market, By Technology

• Manual
• Semi-Automated
• Fully Automated

Market, By Ownership model

• Owned Equipment
• Leased Equipment
• Rental Services
• Equipment-as-a-Service (EaaS)

Market, By Application

• Row Crops
• Fruits & Vegetables
• Vineyards & Orchards
• Livestock Farming
• Forestry
• Aquaculture

Market, By Distribution channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

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