Agriculture Equipment Market Size

Agriculture Equipment Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global agricultural equipment market is expected to reach a value of $ 238 billion by 2024 and $ 362,958 billion by 2032. The CAGR of the market is 5.3%. The main driving force for this market is the rising demand for food due to population growth and the need to increase agricultural productivity. The use of precision farming, automation and Internet of Things has changed the way of farming, leading to greater productivity and efficiency. The leading agricultural machinery companies, such as John Deere, AGCO and CNH Industrial, are investing in new solutions and entering into strategic alliances to expand their product offerings. Artificial intelligence and machine learning are now being integrated into the machines by John Deere, which shows the direction the industry is heading. Strategic alliances with technology companies are expected to play a major role in shaping the future of the market. As these trends continue, the agricultural machinery market is expected to grow steadily.

Regional Market Size

Regional Deep Dive

The agricultural machinery market is growing at a high rate in various regions of the world, driven by technological advancements, growing demand for food, and the need for sustainable farming practices. North America is characterized by high penetration of precision agriculture and strong presence of leading manufacturers. Europe is witnessing a shift towards automation and smart farming solutions, while the Asia-Pacific region is expanding rapidly due to growing agricultural activities and government initiatives to modernize farming practices. The Middle East and Africa are focusing on improving agricultural productivity with the help of new equipment, and Latin America is utilizing its large agricultural lands to enhance the usage of equipment.

North America

• The precision farming movement is growing. The leading companies are John Deere and AG Leader, which provide high-tech solutions to increase yields and reduce losses.
• In the United States, a program of the Department of Agriculture, known as the conservation innovation grant, is designed to encourage farmers to adopt conservation practices by investing in modern machinery that complies with the regulations of the environment.
• Consolidation of the farming industry is a growing trend, and the demand for larger, more efficient machinery is increasing.

Europe

• The Green Deal, which is aimed at promoting sustainable agriculture, is resulting in increased investment in the purchase of machinery and technology that are more energy-efficient and have a lower carbon footprint.
• The development of automation by companies such as AGCO and CNH Industrial, which have developed such things as driverless tractors and drones, will have a significant effect on the economy of farming.
• Farmers’ buying decisions are influenced by changes in the law on the use of pesticides and the new regulations on the protection of the environment.

Asia-Pacific

• In countries like India and China, the governments are taking steps to modernize agriculture. The Government of India has launched the Kisan Credit Card Scheme to help farmers buy modern agricultural equipment.
• Agro-tech companies such as DeHaat and AgroStar are promoting innovation in farm machinery and equipment, with a focus on cost-effectiveness and access for smallholders.
• The rapid increase in population, the growing urbanization, the need for more and more efficient farming methods, have led to the adoption of smart farming.

MEA

• In its Agenda 2063, the African Union puts emphasis on the transformation of agriculture, which means a greater use of modern equipment to increase the yields and ensure food security.
• The arid regions are now being irrigated by the aid of machines, such as the “smart agriculture” of the United Arab Emirates.
• Culture and traditions have a great influence on the market, and the younger generation is gradually embracing new agricultural methods.

Latin America

• Brazil’s agricultural sector is benefiting from government support for mechanization, which is aimed at increasing the use of modern machinery among local farmers.
• In Argentina the agribusiness boom is driving the need for sophisticated equipment, as farmers strive to increase productivity and compete in world markets.
• The climatic conditions of the region, which are unique, require the development of special machinery adapted to the local farming methods, and this in turn has created new markets.

Did You Know?

“The fact that about sixty per cent of the arable land of the world is in ten countries, highlights the critical importance of agricultural machinery in increasing the yield of these countries.” — Food and Agriculture Organization (FAO)

Segmental Market Size

The global agricultural machinery market is growing steadily, particularly in the precision farming segment, which plays a critical role in improving productivity and ensuring the future viability of agriculture. A number of factors are driving the market, including the increasing need for food security as the world population grows, advances in technology such as the Internet of Things and artificial intelligence, and supportive government policies encouraging sustainable farming practices. These factors are pushing farmers to adopt modern equipment that optimizes resource use and minimizes the impact on the environment.

The precision farming technology is already being used at large scale in North America and Europe, with John Deere and Agri-Leader Technology leading the way. These companies use the technology to monitor the soil, the state of the crop and the operation of the machinery, and are essential to the maximization of yield and efficiency. The growing trend for sustainable agriculture and government initiatives to reduce carbon footprints are accelerating the growth of precision farming. GPS-equipped tractors and drones are changing the face of the countryside and enabling farmers to make data-driven decisions that are more productive and sustainable.

Future Outlook

From 2024 to 2032, the market for agricultural equipment will grow from about $238 billion to $363 billion, at a CAGR of 5.3%. This growth will be based on the increasing demand for food production caused by the growing world population, which is expected to reach about 9.6 billion in 2050. In this way, the need for modern agricultural methods and more efficient farming equipment will increase, and the penetration of modern machinery and technology will increase in both developed and emerging markets.

“The main driving force for the development of the Agricultural Mechanization market is expected to be the technological advances in precision farming, automation and the integration of IoT into the machinery. These innovations not only enhance the productivity but also ensure sustainable farming, which is in line with the global climate change policies. Besides, the government initiatives and subsidies to modernize the farming methods will boost the adoption of the advanced equipment.” According to the report, “The growing trend of smart farming and the increased use of drones and robots will further shape the market and make it more efficient and farmer-centric.”