Planting Machinery Market Size

Planting Machinery Market Size

Planting Machinery Market was valued at USD 17 billion in 2022 and is estimated to register a CAGR of 7.5% between 2023 and 2032. With the global population steadily increasing, there is a growing demand for food production, driving the market demand for plant machinery.

According to Farm Facts Book 2021 by American Farm Bureau Foundation for Agriculture (AFBFA), a single U.S. farm annually provides sustenance for 166 people in the United States and worldwide. With the global population projected to rise by 2.2 billion by 2050, farmers will need to increase food production by approximately 70% compared to current levels to meet the growing demand. Modern planting machinery allows for more efficient and timely planting, contributing to higher crop yields. As a result, the need to meet the rising global food demand will propel the demand for advanced planting equipment, thus stimulating the planting machinery industry growth.
 

Government support and subsidies for the agriculture sector could significantly boost the market outlook. As per The Food Security Portal (FSP), facilitated by IFPRI and receives support from the European Commission, global government support for agriculture totals approximately USD 600 billion annually. Many governments around the world provide financial incentives to farmers to invest in modern agricultural equipment, including planting machinery. For instance, in April 2023, China's financial regulatory body approved a fresh allocation of subsidies amounting to USD 1.46 billion.
 

These subsidies aim to bolster the acquisition of agricultural materials, ensuring the success of the ongoing spring plowing season in 2023 and fostering the initiatives of farmers. The newly allocated subsidies will be distributed directly to actual grain producers, encompassing individual farmers, contracted farmers, households with farmland, agricultural corporations, enterprises, and individuals and institutions throughout the entire agricultural business supply chain. These subsidies aim to promote the adoption of advanced technologies, improve farm productivity, and enhance overall agricultural sustainability.
 

The size and fragmentation of farms can impact the adoption of planting machinery. In regions where farms are small or fragmented, it may be logistically challenging for farmers to justify the investment in large-scale planting machinery. The suitability of certain equipment for smaller farm operations, as well as the availability of space for maneuvering large machines, can limit the widespread adoption of planting machinery in certain agricultural landscapes.