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Farm Equipment Market - By Equipment (Tractors, Harvesting Equipment, Sprayers, Balers), By Power Source (Mechanical, Tractor-powered, Electric & Battery-powered), By Application, By End Users & Forecast, 2024 – 2032

  • Report ID: GMI8274
  • Published Date: Feb 2024
  • Report Format: PDF

Farm Equipment Market Size

Farm Equipment Market was valued at USD 102.8 billion in 2023 and is estimated to register a CAGR of over 4% between 2024 & 2032. The rising demand for food is a critical factor driving the industry growth. With the global population growing rapidly, there is increasing pressure to produce more food, prompting farmers to seek ways to expand their output and cultivate existing land more efficiently.

Farm Equipment Market

Farm labor is becoming increasingly scarce and expensive, forcing farmers to use mechanical methods to maintain or improve productivity rather than depending primarily on manual labor. Farming equipment provides solutions for a variety of tasks including soil preparation & planting, harvesting, and post-harvest management. In addition to this, modern farming equipment can minimize losses during harvesting, storage, and transportation, ensuring that more food reaches consumers. This factor also encourages investments in farming equipment that increase efficiency throughout the food value chain.

For instance, in November 2023, the World Food Program (WFP) underscored in its food security update that approximately 783 million individuals are confronting persistent hunger, primarily due to conflicts, economic disruptions, climate variability, and surging fertilizer costs. These factors are converging to create an unprecedented food crisis, emphasizing the magnitude of the current global hunger & malnutrition dilemma. This highlights the critical need to address the rising food demand by employing modern agricultural techniques and practices to enhance food production, thereby stimulating growth in the farm equipment market.

The growing mechanization in different farming activities is a significant factor in the farm equipment industry. Sowing, tilling, harvesting, and processing are all operations that equipment can complete faster and with fewer personnel, increasing total farm efficiency. Mechanization requirements vary depending on the crop and area. This increases the demand for a wide range of equipment, such as planters, harvesters & tillage tools, tailored to individual demands, opening market prospects for a variety of industries.

The high equipment cost is a major challenge in the farm equipment market, potentially slowing down its growth. The high cost of technologically advanced equipment, particularly complex models with integrated technology, poses a financial barrier for Small & Medium-sized Farmers (SMFs) and new entrants. This reduces market penetration and delays the introduction of newer, more efficient technology. Investing in expensive machinery puts a burden on farm finances, raising debt and lowering prospective profits. This reduces risk-taking abilities and limits farmer's capacity to invest in more important areas such as agricultural inputs or sustainable practices. By addressing the affordability issue through innovative solutions, supportive policies, and skill development initiatives, farm equipment can become more accessible to a broader range of farmers.

Farm Equipment Market Trends

The farm equipment industry has witnessed significant technological advancements. The integration of sensors, GPS, and data analytics into the equipment enables precise application of inputs such as fertilizers, water, and pesticides, resulting in optimal resource usage, reduced waste, and increased yields. Also, advancements in engine technology, material science, and design lead to more fuel-efficient, robust & dependable equipment, lowering operational costs and downtime. Autonomous tractors, robotic harvesters, and other automated technologies reduce labor costs, expand operational hours, and eliminate human error, resulting in higher agricultural output. Farmers may also use remote monitoring to watch equipment performance, receive alerts for possible faults, and alter settings in real time, enhancing operational efficiency & reducing risks. Overall, technological advancements represent a major growth driver in the farm equipment market, offering higher efficiency, productivity, and new market opportunities.

For instance, in November 2023, New Holland Agriculture, a subsidiary of CNH Industrial, introduced a prototype autonomous tractor at SIMA 2023, signaling a notable advancement in the farm equipment industry's progression toward automation. These autonomous tractors feature advanced technologies including LiDAR, radar, and cameras, underscoring the company's dedication to automation in agriculture.

Farm Equipment Market Analysis

Farm Equipment Market Size, By End Users, 2022 – 2032, (USD Billion)

Based on end users, the market is divided into individual farmers and commercial farms. The commercial farms segment accounted for a market share of around 43% and is projected to grow significantly till 2032. Commercial farms often cultivate bigger tracts of land, requiring a wide range and several equipment for efficient operations. This results in a higher need for tractors, harvesters, planters, and other equipment compared to smaller farms. Driven by profit margins and tight market demands, commercial farms prioritize efficiency and maximizing output. They are more likely to invest in modern equipment that includes automation, data-driven optimization, and precision agricultural capabilities, resulting in increased total equipment investments. In addition to this, Commercial farms often have easier access to loans, grants, and other financial resources than smaller farms. This enables them to invest in costly machinery that will considerably increase their manufacturing capacity and efficiency.

Farm Equipment Market, By Equipment, 2023

Based on the equipment, the market is categorized into tractors, harvesting equipment, sprayers, balers, and others. In 2023, the tractors segment will hold around 41% in the overall market. Tractors are designed to meet the demands of farmers of different sizes and landholdings, from small, compact versions for family farms to powerful, high-horsepower models for larger enterprises. Depending on the crop and its type, tractors can be used to pull harvesting equipment or gather and carry harvested goods. In addition to this, the flexibility tractors offer to attach and interchange equipment, such as planters, harvesters, mowers, and loaders, increases their utility & adaptability across different crops, agricultural techniques, and land sizes. Overall, the segment’s adaptability, multifunctionality, and critical involvement in core farming operations contribute considerably to its dominant position in the global market.

Asia Pacific Farm Equipment Market Size, 2022 -2032, (USD Billion)

Asia Pacific holds a market share of over 48% in 2023. The region is home to numerous highly populated countries, contributing to a substantial need for food production. This rising demand for food requires farmers to seek ways to expand their output and cultivate the existing land more efficiently. Along with this, many governments are actively investing in modernizing their agricultural sectors, providing subsidies and loans for farmers to purchase equipment. To address labor shortages and improve efficiency, government initiatives promote farm mechanization, propelling the demand for farming equipment. Furthermore, the region has enormous amounts of fertile land, which provides potential for agricultural expansion and rising equipment demand. Different regions cultivate a vast range of crops, requiring different types of equipment and broadening the market landscape. Overall, the Asia Pacific region presents a significant growth opportunity for farm equipment.

Farm Equipment Market Share

Deere & Company and KUHN SAS hold a significant market share of over 15% in the farm equipment industry. Companies in the farm equipment industry employ several key strategies to enhance their market foothold. KUHN SAS prioritizes continuous innovation to create state-of-the-art farm equipment solutions that meet the changing demands of agriculture. The company strives to set its products apart by integrating cutting-edge technologies such as precision farming systems, automation, and IoT connectivity. For instance, in November 2023, KUHN demonstrated many new precision farming solutions at Agritechnica 2023 including the new iXtra NIR sensor for real-time crop analysis, the Quantron C GPS sprayer for exact application, and the CCI 1200 terminal with enhanced user interface & data management features.

Deere & Company adopts digital transformation strategies to elevate the connectivity, intelligence, and effectiveness of its farm equipment portfolio. The company makes significant investments in telematics, IoT sensors, AI algorithms, and cloud-based platforms to facilitate remote monitoring, predictive maintenance & valuable insights for farm management. For instance, in October 2023, Deere unveiled a new “John Deere Connected Support” platform. This platform leverages AI and remote diagnostics to offer real-time machine health insights, proactive maintenance alerts, and remote troubleshooting for farmers, improving uptime & efficiency.

Farm Equipment Market Companies

Major players operating in the farm equipment industry are:

  • Alamo Group
  • Autonomous Solutions
  • AGCO
  • Case IH
  • Deere & Company
  • Kubota
  • Minsk Tractor Works
  • New Holland

Farm Equipment Industry News

  • In October 2023, AGCO acquired BLUELAB, a leading provider of data-driven insights & decision-support tools for farmers, which enabled it to enhance its precision agriculture portfolio. Through this acquisition, BLUELAB's expertise and technology were integrated into AGCO's current precision agriculture solutions, enabling the company to offer farmers a more extensive range of comprehensive solutions.
  • In September 2023, CLAAS and BASF joined forces to develop Smart Farming solutions. This collaboration merged CLAAS' agricultural machinery with BASF's digital farming platform, providing integrated solutions for data-centric crop management.

The farm equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and shipments (Units) from 2018 - 2032, for the following segments:

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Market, By Equipment

  • Tractors
  • Harvesting equipment
  • Sprayers
  • Balers
  • Others

Market, By Power Source

  • Mechanical
  • Tractor-powered
  • Electric & battery-powered

Market, By Application

  • Cultivation and soil preparation
  • Planting and seeding
  • Harvesting
  • Livestock

Market, By End Users

  • Individual Farmers
  • Commercial Farm

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

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


Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

Industry size for farm equipment was worth USD 102.8 billion in 2023 and is projected to expand at over 4% CAGR between 2024 and 2032 driven by the rising demand for food globally.

Farm equipment industry from the tractors segment accounted for 41% revenue share in 2023 and is expected to grow considerably by 2032 owing to their flexibility attach and interchange equipment, such as planters, harvesters, mowers, and loaders.

Asia Pacific industry for farm equipment held more than 48% revenue share in 2023 and is set to exhibit robust growth from 2024-2032 driven by the presence of several highly populated countries in the region.

Some of the top farm equipment companies are Alamo Group, Autonomous Solutions, AGCO, Case IH, CLAAS, Deere & Company, Kubota, KUHN SAS, Minsk Tractor Works, and New Holland.

Farm Equipment Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 300
  • Countries covered: 25
  • Pages: 220
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