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Industry Trends
Agriculture Equipment Market size exceeded USD 120 billion in 2021 and is projected to grow at 10% CAGR from 2022 to 2028. The global industry shipments are poised to cross 10 million units by 2028.
Favorable government initiatives aimed at supporting the development of the agriculture sector are driving the industry demand. Several government administrations globally are providing funds to their farmers to aid them in adopting sustainable agriculture practices and enhance productivity using machinery. In addition, financial support to farmers, such as loan waiver schemes through the regional government’s is supplementing the market growth.
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The COVID-19 pandemic compelled government administrations to enforce stringent lockdowns and travel restrictions in 2020. It hampered the logistics and production of agriculture equipment OEMs, affecting the overall sales. The implementation of strict travel restrictions further created labor shortage challenges for farm owners and obstacles in employing skilled manpower for performing various tasks in fields, thereby encouraging farmers to purchase agriculture equipment that helps increase operational efficiency and farm productivity. The agriculture equipment industry recovered in 2021 owing to improving economic conditions and the rise in adoption of farm mechanization techniques to help in increasing the agricultural productivity.
| Report Coverage | Details |
|---|---|
| Base Year: | 2021 |
| Market Size in 2021: | 120 billion (USD) |
| Forecast Period: | 2022 to 2028 |
| Forecast Period 2022 to 2028 CAGR: | 10% |
| 2028 Value Projection: | 225 billion (USD) |
| Historical Data for: | 2018 to 2021 |
| No. of Pages: | 400 |
| Tables, Charts & Figures: | 955 |
| Segments covered: | Machinery Type and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Rise in demand for energy efficient specialty tractors in the U.S.
The U.S. agriculture equipment market is estimated to expand at 7% growth rate through 2028 due to the growing use of specialty tractors. According to the U.S. Department of Agriculture (USDA), agriculture, food, and associated industries contributed USD 1.055 trillion to the U.S. GDP in 2020, accounting for 5% of the total GDP. Farm output contributed USD 134.7 billion or around 0.6% of the total GDP. The overall contribution of the agriculture industry is over 0.6% of the total GDP as agricultural-related industries rely on farm produce to contribute to the economy.
Manufacturers such as Deere & Company and Claas KGaA mbH are offering innovative specialty tractors with high-power to farm hard-to-access areas and handle a wide range of implements. The increasing development of modern machinery to boost agricultural efficiency and production is driving the market demand.
The industry is observing surge in number of farmers deploying digitally connected tractors to fuel productivity. Also, there is an increasing trend of small-scale farming by individuals. Companies are introducing compact tractors for heavy-duty jobs and tough applications.
Limited availability of skilled labor and high labor costs in Europe
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The Europe agriculture equipment market accounted for nearly 20% of the revenue share in 2021 and will register steady growth till 2028. The regional industry is witnessing high demand for agriculture equipment’s led by the increasing cost of farm labor and seasonal worker shortage.
Industry participants are focusing on improving the functionality of their agriculture equipment offerings to attain competitive positions and serve a wide range of customers in the region. Companies are adding additional features to their product lines to address labor scarcity problems.
OEMs are launching new product to sustain the competition
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Key agriculture equipment market players are Zetor Tractors, A.S.Yanmar Co., Ltd., Valmont Industries, Inc., SAME Deutz-Fahr Group S.p.A, Manitou Group, Mahindra & Mahindra Limited, Kuhn Group S.A., Kubota Corporation, Escorts Ltd., Deere & Company, CNH Industrial NV, CLAAS KGaA mbH, China National Machinery Industry Corporation, Changzhou Dongfeng Agricultural Machinery Group Company Limited, Bucher Industries AG, Argo Tractors SpA, Bamford (JC) Excavators Limited, Amazonen-Werke H. Dreyer GmbH & Company KG, Alamo Group Inc., and AGCO Corporation.
Industry leaders are investing in R&D to introduce advanced agriculture equipment and enhance their product offerings. To remain competitive in the market, OEMs are developing and manufacturing advanced agriculture equipment.
The agriculture equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2018 to 2028 for the following segments:
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
- Type
- 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
- South Korea
- Australia
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
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