Agriculture Equipment Market Size, Share & Trends Analysis Report By Product (Tractors, Harvesters), By Application (Harvesting & Threshing, Sowing & Planting), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global agriculture equipment market size was evaluated at USD 155.68 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.0% from 2022 to 2030. Increasing mechanization in the agriculture sector coupled with the surge in farmers’ income is expected to be a primary factor driving the growth. Favorable climatic conditions for food production and government support with loan waiver schemes for farmers of all income categories are also presumed to favor the market growth. Technologically advanced agricultural robotics, such as autonomous tractors and flying drones to help farmers produce food at low costs to fulfill the growing demand for food, are anticipated to be better prospects for market growth over the forecast period.

The COVID-19 outbreak caused a slight slump in the agricultural equipment market in 2020. The restrictions imposed by governments to curb the novel coronavirus led to the temporary shutdown of manufacturing facilities, leading to production delays. As a result, the industry was negatively impacted in the first half of 2020. Several players such as AGCO Industries, Deere & Company, and Kubota Corporation witnessed a decline in agriculture equipment sales in H1/2020. However, as governments opened up economies in H2/2020, the demand for agriculture equipment bounced back and witnessed double-digit growth, a trend that continued till H1/2021.

The sudden increase in demand for tractors, harvesters, and planters in H1 /2021 led to lower inventory levels for OEMs and their dealers in H2/2021. In addition, OEMs worldwide are currently experiencing a shortage of semiconductors and high commodity prices of steel, aluminum, and other raw materials. As a result, OEMs are unable to balance supply and demand, which may allow OEMs to increase their product prices ranging from 4% to 22% in the next few quarters of 2022, a trend that is expected to continue till 2023. However, strong crop production in Asian economies, notably in China and India, along with the need to replace aging equipment are expected to drive the growth of the market.

The high initial cost of agricultural equipment is anticipated to be one of the bottlenecks for adopting agriculture equipment, notably for small income farmers. The rental business is expected to be one of the new revenue streams for market growth to overcome such challenges. Companies such as KwippedInc.; JFarm Services (TAFE Corporate Communications); Mahindra & Mahindra Ltd. (TRRINGO.com); and MACALLISTER RENTALS are established players in the agriculture equipment rental business. Moreover, several start-ups are now engaged in developing applications that will help farmers connect among themselves. These applications will also help the farmers connect with rental companies in their vicinity.

Favorable government initiatives are anticipated to drive the growth of the market during the forecast period. For instance, the Russian government is attempting to trigger investment in capital purchases by proposing several subsidies for strategically significant sub-sectors including meat and milk production. The Ministry of Agriculture sanctioned 464 projects worth USD 4 billion, expected to receive government support food security and reduce the livestock imports. Moreover, factors such as lack of human resources and the availability of easy credit and funds are projected to spur the demand for tractors and other farm equipment in other emerging countries over the forecast period.

Product Insights

The tractor segment accounted for the largest revenue share of over 30% in 2021, attributed to the labor shortage and the growing population to meet the global food requirements, which has made tractors a prerequisite for increasing productivity in the agriculture industry. The promotion of farm mechanization and the increasing adoption of precision farming in regions such as the Asia Pacific and Latin America have also accelerated the growth. The emergence of electric tractors is anticipated to be a significant growth prospect for market participants. The growth is ascribed to the cost-effectiveness coupled with electric tractors' eco-friendly and high-efficiency attributes. However, a lack of energy density to cater to large field operations is expected to hamper their adoption over the forecast period.

The harvester segment is anticipated to reach around USD 58.0 billion by 2030, recording a CAGR of over 6.0% over the forecast period. Innovations in harvesting equipment are anticipated to favor the growth of the segment over the next few years. The rising popularity of smart combine harvesters and the integration of smart actuators into existing combine harvesters also contribute to market growth. Smart combine harvesters enable farmers to monitor the grain flow rate and better control harvesting applications. In light of these factors, farmers and contractors are inclined toward smart combine harvesters over conventional harvesters.

Application Insights

The land development and seedbed preparation segment accounted for over 20% of the revenue share in 2021 and is expected to expand at a significant CAGR of over 5.0% during the forecast period. The segment is inclusive of tractors, levelers, and agriculture implements. The demand for agricultural tractors is gaining traction owing to numerous factors such as the increasing need for food propelling the need to mechanize farm work, availability of technologically advanced tractors, and increased urbanization causing a shortage in labor, forcing farmers to adopt machinery. This is anticipated to contribute to the growth of the overall market.

The adoption of tech-driven agriculture machinery such as robotics is also expected to fuel the demand for the farm machinery market in the forthcoming years. Furthermore, the preference for smart agriculture equipment is gradually picking up pace in countries such as India, Australia, and Southeast Asia, which is currently an emerging market. Moreover, the region is witnessing substantial investments from agricultural OEMs and governments to promote smart agriculture initiatives. The varying climatic conditions across these countries and demand for cost-efficient equipment, particularly balers, are driving the demand for advanced agricultural equipment.

Regional Insights

North America was valued at USD 35.1 billion in 2021 and is expected to register a CAGR of over 5.0% during the forecast period. The growth is primarily driven by the abundance of large farmland, which has led to high demand for farm mechanization. Moreover, the region is witnessing increased adoption of intelligent combine harvesters equipped with monitoring tools to increase farm yield. Factors such as rising labor costs, the amalgamation of robotic systems and Global Positioning Systems (GPS) in tractors and harvesters, increasing demand for high-capacity machinery due to large farms, and the rising popularity of self-propelled machines are all expected to drive the regional market growth over the forecast period.

The Middle East and Africa region was valued at USD 10.1billion in 2021 and is expected to record a CAGR of 2.0% over the forecast period. South Africa, Saudi Arabia, and UAE are notable markets in the region. The arid and semiarid countries in the Middle East with low and variable rainfall are likely to witness increased demand for irrigated and crop processing equipment over the forecast period. Increasing Chinese investments in African countries are expected to boost the regional agriculture sector. The recent business expansion of New Hope Group, an investment firm, in Egypt is one such instance that suggests the increasing Chinese influence in the region.

Key Companies & Market Share Insights

The market is highly competitive due to the presence of a few prominent players and several medium or small-scale players worldwide. OEMs compete on parameters such as technological advancements, availability, price, and quality of products. Furthermore, Mergers and Acquisitions (M&A) are being undertaken as an attempt to improve market presence and to expand the customer base. For instance, in September 2019, CNH Industries N.V. opened new parts and service centers in Shanghai, China which helped reduce the product delivery time to the customers for New Holland Agriculture and Case IH agricultural equipment brands.

Similarly, in May 2021, CLAAS KGaAmbH acquired a minority stake in Dutch start-up AgXeed B.V. The acquisition was intended for the development and commercialization of autonomous agriculture machines. Besides M&A, OEMs also emphasize new product developments that enable them to strengthen their product portfolio, attract new customers, and increase the customer base, strengthening their presence in the market. For instance, in August 2021, John Deere introduced the new 6155MH Tractor, which delivers reliability and all the field-proven performance like the M series, envisage the company to attract a new customer base. Some of the prominent players operating in the global agriculture equipment market are:

• AGCO Corporation

• FlieglAgro-Center GmbH

• Agromaster

• Amazone Inc.

• APV GmbH

• Bellota Agrisolutions

• CLAAS KGaAmbH

• CNH Industrial N.V.

• Deere & Company

• Escorts Limited

• HORSCH Maschinen GmbH

• ISEKI & Co., Ltd.

• J C Bamford Excavators Ltd

• Quivogne CEE GmbH (Kiwon RUS LLC)

• Rostselmash

• KRUKOWIAK

• KUBOTA Corporation

• KUHN SAS

• LEMKEN GmbH & Co. KG

• Mahindra & Mahindra Ltd.

• MascarSpA

• MaschioGaspardo S.p.A

• MaterMacc S.p.A

• Morris Equipment Ltd

• SDF S.p.A.

• Tractors and Farm Equipment Limited (TAFE)

• Väderstad AB

• Valmont Industries, Inc

Recent Developments

• In July 2023, Deere & Company announced the acquisition of Smart Apply, Inc. The company planned to leverage Smart Apply’s precision spraying to assist growers address the challenges associated with input costs, labor, regulatory requirements, and environmental goals.

• In July 2023, CLAAS KGaA mbH unveiled the company’s high-performance XERION 12 Series tractors. The two new tractor models are integrated with the highly efficient low-engine speed drive concept 2.0.

• In June 2023, JCB announced plans to introduce the company’s first electric wheeled loader with zero-emission and low-noise capabilities. The loader comes with options for wide or narrow wheels and tire options for agriculture or industrial deployment.

• In June 2023, Mahindra Group’s Swaraj Tractors unveiled the launch of a lightweight compact tractor named ‘Swaraj Target’. The tractor features first-in-class functionalities, matchless performance capability, and state-of-the-art technology to cater to the special needs of Indian farmers.

• In May 2023, AMAZONE announced new products as a part of its precision seeders business range. The new advanced trailed models, Precea 12000-TCC and 9000-TCC have been designed exclusively for large-scale farms & contractors.

• In April 2023, AGCO Corporation announced a strategic collaboration with Hexagon, for the expansion of AGCO’s factory-fit and aftermarket guidance offerings. The new guidance system was planned to be commercialized as Fuse Guide on Valtra and Massey Ferguson tractors.

• In April 2023, HORSCH announced the commencement of its new plant in Curitiba, Brazil. The plant includes the single grain seed drill assembly line and tillage machines line along with the development facility of crop care technology.

• In February 2023, Kubota Corporation announced the acquisition of a stake in Chouette. Chouette deploys AI technology to analyze captured images by cameras to identify tree vigor and diseases and develops optimal volume of sprays through exceptional algorithms.

Agriculture Equipment Market Report Scope

Global Agriculture Equipment Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global agriculture equipment market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • 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 Million, 2018 - 2030)

  • Land Development & Seed Bed Preparation

  • Sowing & Planting

  • Weed Cultivation

  • Plant Protection

  • Harvesting & Threshing

  • Post-harvest &Agro-processing

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Netherlands

    • Spain

    • Denmark

    • Russia

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • South Korea

    • Taiwan

    • Australia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa

    • Rest of Middle East & Africa