Report ID: PMRREP3151
Number of Pages: 153
Format: PPT, PDF, EXCEL
Industry: Industrial Automation
Published Date: June-2024
Report Price $4900*
Buy NowThe global market for agricultural equipment is estimated to value at US$169.0 Bn by the end of 2031 from US$120.1 Bn in 2024. The market is predicted to secure a CAGR of 5.0% in the forthcoming years from 2024 to 2031.
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Attributes |
Key Insights |
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Market Size (2024E) |
US$120.1 Bn |
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Projected Market Value (2031F) |
US$169.0 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
5.0% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
4.5% |
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Agricultural equipment refers to machinery, tools, and implements designed specifically for use in farming and agricultural activities. This equipment is utilized across various stages of agricultural production, from land preparation and planting to cultivation, harvesting, and post-harvest processing.
Agricultural equipment plays a crucial role in modern agriculture by increasing efficiency, productivity, and sustainability while reducing labor and resource inputs. Agricultural equipment is used extensively by farmers globally to improve efficiency, reduce labor, and enhance productivity in modern farming operations.
The agricultural equipment market is expected to continue growing as farmers seek ways to enhance efficiency, productivity, and sustainability to meet the challenges of feeding growing global population while addressing environmental concerns.
The agriculture equipment market is exhibiting growing focus on automation and robotics. Automation technologies are streamlining farm operations, improving accuracy, and reducing labor costs from autonomous tractors and robotic harvesters to unnamed aerial vehicles for spraying and crop monitoring.
Sustainability is a growing focus in agriculture, driving demand for equipment and technologies that support environmentally-friendly farming practices. Conservation tillage equipment, precision irrigation systems, and cover crop seeders are examples of solutions that help farmers reduce environmental impact, conserve resources, and improve soil health.
The demand for agricultural equipment is expected to witness significant growth during the forecast period. This strong growth can be attributed to shifting of agricultural activities from animal or manual operations to automated methods.
Factors such as government initiatives, rising urbanization rate and time-saving properties are shifting the focus of farmers to mechanization and improving their investment power. Training programs conducted by the government for technicians, farmers, and machinery users is another important factor that is expected to further propel the demand for tractors over the forecast period.
Key Trends in the Market
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Get a Customized VersionGrowing Worldwide Population and Changing Dietary Preferences
The world's population is projected to reach nearly 10 billion by 2050, driving up the demand for food, feed, and fiber. Additionally, as incomes rise in developing countries, dietary preferences are shifting toward higher-value products such as meat and dairy, further increasing demand for feed grains and livestock. To meet this rising demand, farmers need to boost productivity and efficiency, leading to increased adoption of modern agricultural equipment.
Emergence of Smart Farming and Farm Management Systems
Smart farming technologies, including Internet of Things (IoT) devices, cloud computing, and farm management software, are transforming agriculture into a data-driven industry. These technologies enable farmers to collect, analyze, and leverage large volumes of data to optimize every aspect of their operations, from field-level management to machinery performance and supply chain logistics.
The integration of smart farming technologies with agricultural equipment allows for seamless data exchange and automation, improving operational efficiency, decision-making, and overall farm profitability.
Increasing Focus on Sustainable Agriculture
There is a rising demand for agricultural equipment and practices that promote sustainability with growing concerns about environmental sustainability, soil health, and water scarcity. Conservation tillage equipment, no-till planters, cover crop seeders, and precision irrigation systems are examples of technologies that help farmers conserve resources, reduce greenhouse gas emissions, and protect soil and water quality. As governments, consumers, and stakeholders push for more sustainable farming practices, the market for environment-friendly agricultural equipment is expected to grow.
Infrastructure and Connectivity Issues
Inadequate infrastructure, including roads, transportation networks, and rural electrification, can hinder the adoption and use of agricultural equipment in remote or underdeveloped areas. Poor infrastructure limits farmers' access to markets, machinery, spare parts, and after-sales support services, constraining the potential benefits of mechanization and modernization in these regions. Additionally, limited internet connectivity can impede the adoption of digital farming technologies and precision agriculture solutions.
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Digital Farming Platforms
Digital farming platforms that integrate machinery, sensors, software, and data analytics are poised to transform farm management practices. Manufacturers can develop comprehensive digital farming solutions that provide farmers with actionable insights, decision support tools, and predictive analytics to optimize operations and maximize yields. These platforms can enable seamless data exchange, connectivity, and automation across the entire agricultural value chain, driving efficiency and profitability for farmers.
The Development and Deployment of Autonomous and Robotic Agricultural Machinery
The development and deployment of autonomous and robotic agricultural machinery are poised to revolutionize farming practices. Autonomous tractors, drones, robotic harvesters, and weeding robots are among the innovative solutions being developed to automate various tasks on the farm. Manufacturers can seize opportunities in this space by investing in research and development to create reliable, cost-effective autonomous systems that enhance productivity and reduce labor requirements.
The Tractors Segment Created Significant Opportunity in the Market
The tractors segment by product type is estimated to create incremental opportunity 8.5 times that of the combine harvesters segment between 2016 and 2024. The tractors segment is projected to create a total incremental opportunity of more than US$ 20 Bn from 2016 to 2024. This segment is estimated to reach a market value of a little more than US$ 100 Bn by 2024 end, expanding at a CAGR of 3.4%.
The tractors segment is expected to be an attractive segment in terms of market share, owing to high sales in India and China (vs. sales of other equipment). The high sales of tractors can be attributed to their multipurpose features, as they are used as agricultural equipment in the months from February to April and for other transport and commercial purposes from May onwards.
The tractors segment is estimated to account for nearly three-fourth of the global agricultural equipment market share during the forecast period. This segment is estimated to account for a major share and dominate the global agricultural equipment market during the assessment period
In many countries, governments provide extensive support to farmers to purchase agricultural equipment to work more efficiently, which is expected to bolster the growth of the tractor segment in the global market. For instance, in India, the Rashtriya Krishi Vikas Yojana supports farmers to purchase agricultural equipment including tractors at subsidized rates. Many government authorities are undertaking initiatives to educate farmers about the benefits of using agricultural equipment in farming.
North America Agriculture Equipment Market to Grow Substantially
Many farmers in North America operate machinery fleets that require regular replacement and upgrading. As older equipment reaches the end of its service life or becomes obsolete, farmers seek to invest in newer, more efficient models with advanced features and technologies. This drive to modernize equipment fleets contributes to consistent demand for agricultural machinery in the region.
The tractor segment is estimated to gain more than 20 BPS between 2016 and 2024 and is predicted to expand at a CAGR of 3.3% over the forecast period in North America. Growing demand for tractors in the U.S. and Canada is expected to drive the North America agricultural equipment market.
The tractors segment is estimated to be an attractive segment in terms of market share and incremental opportunity, owing to strong demand in the United States. and Canada.
North America is at the forefront of agricultural technology innovation. The region has a strong presence of leading agricultural equipment manufacturers investing heavily in research and development to develop advanced machinery and precision agriculture technologies. Farmers in North America are eager to adopt these innovations to improve efficiency, productivity, and sustainability on their farms
Asia Pacific is Expected to Hold Notable Share in the Forthcoming Years
Asia Pacific is home to some of the world's most populous countries, such as China and India. There is a rising demand for food, which puts pressure on agricultural production with growing population.
Many countries in Asia Pacific are undergoing rapid agricultural mechanization as labor costs rise and rural labor availability declines due to urban migration. Farmers are increasingly adopting agricultural machinery to replace manual labor and boost productivity. This includes the adoption of tractors, harvesters, planters, and other mechanized equipment.
Asia Pacific region is witnessing a shift from subsistence farming to commercial agriculture, especially in countries with emerging economies. Large-scale commercial farming operations require modern agricultural equipment to increase efficiency and scale up production. As a result, there is a growing demand for high-capacity machinery and advanced technologies to support commercial farming enterprises.
Competition in the agricultural equipment market is driven by product differentiation and innovation. Manufacturers invest heavily in research and development to introduce new and advanced machinery equipped with innovative features, technologies, and functionalities. This includes precision agriculture technologies, autonomous machinery, telematics, and digital farming solutions aimed at improving efficiency, productivity, and sustainability on farms.
The agricultural equipment industry has witnessed significant consolidation through mergers, acquisitions, and strategic alliances. Large manufacturers often acquire smaller companies or form partnerships to expand their product portfolios, enhance their market presence, and access new geographical regions or market segments. This consolidation trend has led to the emergence of fewer but larger players with diverse product offerings and global distribution networks.
Top Industry Players Profiled in the Global Agricultural Equipment Market
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
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Emergence of smart farming and farm management systems is gaining traction in the market.
The market is estimated to record a CAGR of 5.0% in the forecast period from 2024 to 2031
A few of the leading players operating in the market are Deere & Company, CLAAS KGaA mbH, EXEL Industries, and Bucher Industries AG.
The digitalization of agriculture and the adoption of farm management solutions present key opportunity for the market players.
Asia Pacific is expected to hold notable share in the forthcoming years.
