The global agriculture equipment market size was valued at USD 139.0 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2019 to 2025. Adoption of modern technologies by farmers to increase farm yield and meet the soaring demand for food is expected to be a key factor driving the market. Traditional farming techniques such as plows, tillage, and seeders are now being replaced with various modern agricultural machinery. Advanced farming machinery such as spraying equipment, hay and forage equipment, harvesters, and irrigation and crop processing equipment is being used in various processes to enhance overall crop output and quality.
The global market is expected to witness significant growth over the forecast period owing to rising incorporation of innovative technologies in farm machinery. For instance, various farm machinery manufacturers are concentrating on integrating technologies such as Google Earth, GPS, and robotic systems into present equipment to improve productivity. Another key reason for the predicted growth is government subsidies and low rates offered to farmers in emerging countries to adopt agricultural machinery.
Agriculture equipment enable easy farming; it makes the process simpler and more profitable by enhancing crop quality and reducing labor cost. The market is expected to witness high growth over the forecast period owing to amalgamation of several novel technologies in this arena. Rise in global population is increasing the demand for food, thereby increasing pressure on agriculturists to innovate time- and cost-efficient methods of production. This is projected to spur the farm machinery market.
Technologically-advanced agricultural robotics, such as ground-based sensors, autonomous tractors, and flying drones, aid farmers in producing food at low costs to fulfill growing demand for food. Farmers are gradually becoming tech-savvy and adoption of GPS software products and tractors equipped with telematics are anticipated to spur sales of agriculture machinery over the forecast years. Furthermore, growing usage of cost-cutting strategies for designing farm equipment is projected to offer key growth opportunities players. An escalating number of suppliers, coupled with growing number of government subsidies, is predicted to offer growth avenues for market expansion.
Tractors emerged as the leading product category and contributed to over 25.0% of the total revenue in 2018. These vehicles are essential farm machinery used for several activities, both as a standalone equipment and in tandem with other implements. Additionally, sale of tractors is expected to continue over the forecast period owing to increasing rate of mechanization as well as growing population, thereby resulting in increased pressure on food production and productivity.
Harvesters are expected to account for a share of over 21.0% in the agriculture equipment market by 2025, registering a CAGR of more than 10.0% over the forecast period. This growth is attributed to the fact that farmers are increasingly preferring harvesters to increase production and limit dependency on farm labor. Furthermore, harvesters offer high productivity and fuel economy, which are some of the other factors anticipated to drive product demand through 2025.
The land development and seed bed preparation segment accounted for about 23.0% in 2018. Harvesting and threshing applications, on the other hand, are anticipated to exhibit the highest CAGR of more than 10.0% over the forecast period. The primary factor behind increasing demand for farm products across several applications, such as land development, plant protection, harvesting, and sowing and planting, is shortage of farm labor. Since agriculture is a labor-intensive and time-consuming process, labor employment has become expensive. This is further aggravated by the fact that there is scarcity of localized labor supply across the globe owing to shift of focus among people toward other jobs.
Tractors equipped with technologies such as Global Positioning System (GPS) for vehicle and row tracking help capitalize on increased agricultural yield. Agriculture machinery used for sowing and planting, weed cultivation, plant protection, harvesting and threshing, and post-harvest and agro processing aid in increasing agricultural yield.
Strong economic growth in developing countries such as China, India, and Middle Eastern countries is projected to drive the farm machinery industry. Asia Pacific is expected to emerge as the largest market and witness the fastest growth over the forecast period. China alone held over 30.0% of the regional revenue in 2018. Regional growth can be ascribed to low level of mechanization and large area of agricultural land. However, mechanization of various agricultural processes is evolving progressively in Asia Pacific, which is estimated to spur demand for agricultural machinery over the forecast period.
North America held a share of over 22.0% in 2018 and is anticipated to exhibit strong growth by 2025. This is ascribed to introduction and utilization of machines with better fuel efficiency and improved features. Additionally, shortage of farm labor is expected to be one of the factors driving demand for farm equipment in North America.
The global market is highly competitive owing to the presence of few prominent players, along with several medium- and small-scale players accounting for the market share. Key players in the market include John Deere, AGCO, Mahindra & Mahindra, CNH Industrial N.V., Iseki & Co., Ltd., and Kubota. These players compete on parameters such as quality and availability of products as well as technological advancements. Furthermore, mergers and acquisitions are being undertaken as an attempt to gain market share and expand their product portfolio.
For instance, in October 2017, AGCO Corporation announced the acquisition of Lely’s Hay and Forage division. The division includes a range of products, such as rakes, mowers, tedders, loader wagons, round balers, and tillage products. This acquisition was aimed at AGCO Corporation expanding its existing range of hay and forage products.Some of the prominent players in the agriculture equipment market include:
John Deere
AGCO
Mahindra & Mahindra
CNH Industrial N.V.
Iseki & Co., Ltd.
Kubota
Report Attribute |
Details |
Market size value in 2020 |
USD 156.12 billion |
Revenue forecast in 2025 |
USD 244.2 billion |
Growth Rate |
CAGR of 8.9% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD billion and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Netherlands; Spain; Denmark; Russia; China; India; Japan; Singapore; South Korea; Taiwan; Australia; Brazil; Mexico; UAE; Saudi Arabia; South Africa |
Key companies profiled |
John Deere; AGCO; Mahindra & Mahindra; CNH Industrial N.V.; Iseki & Co., Ltd.; Kubota |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global agriculture equipment market report based on product, application, and region:
Product Outlook (Revenue, USD Billion, 2014 - 2025)
Tractors
Harvesters
Planting Equipment
Row Crop Planters
Air Seeders
Grain Drills
Others
Irrigation & Crop Processing Equipment
Spraying Equipment
Hay & Forage Equipment
Others
Application Outlook (Revenue, USD Billion, 2014 - 2025)
Land Development & Seed Bed Preparation
Sowing & Planting
Weed Cultivation
Plant Protection
Harvesting & Threshing
Post-harvest & Agro Processing
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
North America
The U.S.
Canada
Europe
The U.K.
Germany
France
Italy
Netherlands
Spain
Denmark
Russia
Asia Pacific
China
India
Japan
Singapore
South Korea
Taiwan
Australia
Latin America
Brazil
Mexico
Argentina
Middle East & Africa
UAE
Saudi Arabia
South Africa
b. The global agriculture equipment market size was estimated at USD 146.2 billion in 2019 and is expected to reach USD 156.12 billion in 2020.
b. The global agriculture equipment market is expected to grow at a compound annual growth rate of 8.9% from 2019 to 2025 to reach USD 244.2 billion by 2025.
b. Asia Pacific dominated the agriculture equipment market with a share of 36.0% in 2019. This is attributable to the presence of large agricultural land and growing awareness among farmers regarding the need to enhance overall crop output and quality.
b. Some key players operating in the agriculture equipment market include AGCO Corporation, Agrocenter Ltd., Agromaster, AMAZONE Ltd., AMAZONE Ltd., APV – Technische Produkte GmbH, CLAAS KGaA mbH, CNH Industrial N.V, Escorts Group, Horsch Maschinen GmbH, and ISEKI & Co., Ltd.
b. Key factors that are driving the market growth include rising mechanization in farm practices and government support in form of subsidies, especially in developing economies.
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