Global Agriculture Equipment Market By Type (Agriculture Tractors, Harvesting Equipment, Irrigation & Crop Processing Equipment, and Others), By Application (Land Development, Threshing & Harvesting, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Agriculture Equipment Market size was valued at USD 166.9 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 6.4%.

A variety of agricultural equipment can be used to help in different farming activities, including tractors, harvesters, and plows. Utilizing agriculture equipment helps to achieve high crop yields in a shorter time frame and with minimal effort, increasing food production for the growing population.

Semi-automatic and automatic agriculture equipment can reduce the need for human labor, which in turn reduces farm labor costs. This increases crop production by reducing downtimes and allows precise operations. The demand for agricultural equipment is expected to rise as a result of increased mechanization in various farming activities like plowing, harvesting, planting, and tilling, which drives the growth of the global agriculture equipment industry.

Farmers are more dependent on agricultural equipment because they recognize the benefits of using mechanical equipment like harvesters, tractors, and other attachments. Precision farming allows farmers to be more sustainable in their farming activities, increase profitability and protect the land, which results in increased agricultural production.

Major players in the agricultural equipment market offer a variety of products that assist farmers in various farming activities, such as sowing and harvesting. Additionally, there is a growing demand for food cultivation, and semiautomatic & automatic agriculture equipment can help to meet this demand. The demand for agricultural equipment is increasing, which in turn drives the market growth in the sector.

Driving Factors

The Need For Increased Productivity To Meet The Food Demand

The market is gaining significant traction globally due to the growing population and the need for increased productivity to meet food demand. The market outlook for the next years is also being boosted by the growing purchasing power and rapid industrialization. The demand for fertilizing and planting equipment is on the rise as it replaces manual fertilizing and manual planting.

The segment of fertilizer and planting equipment is also expected to see remarkable growth. Self-propelled spreaders and sprayers are more efficient, faster, and cover a larger area every day. These machines help reduce costs and increase crop yields by ensuring the even distribution of nutrients.

Many types of sprayers are machine-operated with low-pressure, high-pressure, foggers, and air-carrying options. These sprayers can be purchased in manual, tractor-mounted, and aerial formats. The modern farmer will appreciate the benefits of a towed sprayer or vehicle-mounted sprayer, which allows for greater flexibility and productivity.

A number of countries have implemented initiatives to encourage the adoption of mechanization in agriculture. This will have a positive impact on the future demand for agricultural harvesters and tractors. Agriculture equipment is also increasingly being used in the forestry sector to transport various end products, including fresh-cut timber. The forestry industry is expected to provide significant sales opportunities in the future.

Restraining Factors

Skilled Labor and High Initial Cost Can Be An Hinderance

This equipment is expensive to purchase and install, so it needs a high initial cost. Additionally, the cost of using such mechanization can be high, which decreases farm profitability. Multi-machine operations can also increase complexity and require a skilled operator to oversee and manage them. Agriculture equipment can also increase the movement of heavy machinery across farmland. This can cause soil compaction, which could sometimes lead to crop or food product damage.

Modern farming equipment can encourage the farmer to use too many fertilizers and mechanized spreaders. This can lead to excessive use of chemical fertilizer that damages the crops. Delays and the inability to repair and service equipment properly can cause downtime, which can hinder the cultivation process. Heavy-duty machinery can have a high maintenance cost. Repairs also require large expenditures, which can negatively impact the farming business’ financial environment.

COVID-19 Impact Analysis

The global agricultural sector was affected by the COVID-19 pandemic in a wide and flexible way. The global economy has been affected by extreme poverty, in addition to the loss of life and the lack of essential goods caused by the national shutdown. This created a new type of crisis in agriculture, which is affecting not just agriculture but many other industries worldwide.

The agricultural equipment industry is a bridge in the food value chain. It provides essential equipment and supports maintenance as needed. Customers’ increasing interest in automation and equipment-based models has created favorable conditions for market growth. These products were in high demand even during the COVID-19 pandemic, which indicates that there are more opportunities.

By Product Type Analysis

Agriculture Tractor Segment Dominates The Market Of Agriculture Equipment Globally

Agriculture tractors, harvesting equipment, irrigation & crop processing equipment, soil preparation & cultivation equipment, agriculture spraying and handling equipment, and others are the type of agriculture equipment. The segment of agriculture tractors accounted for the largest share, with 32% of the global market.

Market growth is attributed to the introduction of efficient and eco-friendly tractors that provide better speed and lower costs of plowing. Farmland operators benefit from faster operation and higher efficiency due to the extensive improvement in operational speed. The application of mechanized products improves yield by ensuring uniform performance and quality.

Due to their effectiveness and lower overhead operating costs, the market will see a significant rise in sales of forage harvesters. To increase their market share, companies are focusing on developing new products.

For example, John Deere introduced forage harvesters that were equipped with rotary pickers for reliable, robust feeding. The HarvestLab 3000 sensor, which is located at the top end of the discharge nozzle, records precise readings of harvested ingredients and dry-out waste as the liquid moves down to it through the sapphire crystal lens. Claas KGaA GmbH also offers Claas Jaguar 25, which helps to cut and break corn evenly while generating high-quality silage.

By Application Analysis

The Land Development Segment Dominates The Market Growth.

The market can be divided by application into three segments: land development, threshing & harvesting, plant protection, and after-agro processing. The land development segment dominated the market with a 42% market share in 2022 and is growing because of the constant increase in farmland requirements across multiple regions.

Innovative technologies and the development of products that combine them with other technologies have transformed the way land is used. Global equipment sales are being driven by better distribution of fertilizers and the ability to plantations beyond farmland boundaries.

The land development segment continues to grow at a remarkable pace in terms of market growth. The market growth prospects are supported by a significant focus on farmland conservation and uplifting soil quality to increase farm yield and land fertility.

Key Market Segments

Based on Type

• Agriculture Tractors
• Harvesting Equipment
• Irrigation & Crop Processing Equipment
• Agriculture Spraying & Handling Equipment
• Soil Preparation & Cultivation Equipment
• Other Types

Based on Application

• Land Development
• Threshing & Harvesting
• Plant Protection
• After Agro Processing

Opportunities

The Rise In Demand For Precision Agriculture Machinery And Tools.

Precision farming is a method where farmers focus on increasing their production with limited resources. This technique allows farmers to observe, measure, and respond to the inter and intra-field variability in crops to make specific decisions to achieve their farming goals. Due to rising demand, the agricultural sector is constantly under pressure to produce higher yields.

Precision farming is anticipated to improve efficiency and production and reduce the gap between supply-demand. This farming technique will be able to address the problem of high demand for agricultural products in all geographies over the forecast period.

Precision farming allows farmers to optimize the use of water, soil, and fertilizers, leading to higher yields. OEMs have created drones that can be used to monitor large fields or plantations. The growth of the agricultural equipment market is expected to be boosted by the government’s increasing efforts to promote precision tools and the increased presence of distributors of precision agriculture equipment. The forecast period will see a rise in precision farming techniques and lucrative opportunities for global market players in the agriculture equipment market.

Trends

India’s Agriculture Is The Main Source Of Income And Raw Material For Many Industries.

India’s agriculture is the main source of income and raw materials for many industries. About half of the Indian population depends on it. Modern farm equipment is needed to increase the yield and reduce wastage.

According to the Ministry of Agriculture and Farmers Welfare (India), India produced more than 288 million tonnes of cereals at the end of 2022. These cereals include rice and wheat as well as barley, millet, and ragi. The country in South Asia was the second-largest global producer of wheat and rice.

Consequently, farmers are increasingly turning to farm mechanization in order to increase their yield. As African farmers seek to improve their farming operations and reduce costs, the market for farm machinery in Africa is expected to grow.

The African Union Commission (AUC) and the Food and Agriculture Organization of the United Nations(FAO) see agricultural mechanization in Africa as an essential action to achieve the “Zero Hunger Vision” by 2025.

The penetration rate of developing nations is low. The potential to increase the penetration of farm machinery, such as tractors, and increase the market size in the future farm mechanization market is great. Due to shifting workforce preferences from farm-oriented activities towards allied industries, India has a constant shortage of labor-intensive agricultural operations. The rapid urbanization of India is another reason for farm mechanization. As the population in agriculture shrinks, so is the workforce. According to data from the World Bank, the number of people working has declined over several years.

Regional Analysis

Asia Pacific Region Dominates The Market

Asia Pacific market dominates the global agriculture equipment market with a 37.5% market share. The rapid and efficient economic development of China and India as well as many countries in the ASEAN region, which contributes to the overall development of Asia Pacific, has aided market development. Another key factor in the region’s development is the increasing dependence of customers on mechanization.

Due to the heavy integration of digitalization, electrical drives, and control capabilities within equipment and machinery, the market for Asia Pacific is expected to dominate the market for the forecast period. China holds the largest share of the global agriculture equipment market size. This is due to huge opportunities for agricultural equipment makers.

To maintain their market share in Japan’s matured market, many well-known market players have adopted both organic and inorganic business strategies. They also plan to cash in on opportunities in India, South Korea, and Taiwan. To attract more customers, companies are constantly looking for innovative products and technologies to add to their product portfolio.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

Due to the presence of several prominent players as well as many small or medium-sized players around the world, there is a high level of competition in this market. The parameters OEMs are looking for include technological advances, availability, pricing, quality, and price.

Mergers and acquisitions (M&As) are used to increase market presence and expand customer base. CNH Industries N.V., for example, opened parts and service centers in Shanghai in September 2019 to help reduce product delivery time to the customers of New Holland Agriculture and Case IH brands of agricultural equipment.

CLAAS KGaAmbH also acquired a minority share in Dutch start-up AgXeed B.V. in May 2021. This acquisition was made to commercialize and develop autonomous agricultural machines. OEMs emphasize product development, which allows them to expand their product range, attract new customers and grow their customer base, in addition to M&A. John Deere, for example, introduced the 6155MH Tractor in August 2021. This tractor is reliable and has all the field-proven performance of the M series. It will help the company attract new customers.

Recent Developments

• March 2022: John Deere formed a joint venture company with SurePointAg Systems, a manufacturer of irrigation injection equipment and liquid fertilizer application systems. SurePoint will have access to Deere technologies that can increase productivity across a variety of products.
• August 2021: John Deere introduces the 6155MH tractor. It delivers the same field-proven reliability and performance as other M Series tractors.
• April 2021: New Holland Agriculture formed a strategic partnership with the Agricultural Division at Alamo Group. This division is a leading provider of implements, attachments, and tools compatible with New Holland’s mid-range and compact tractors.

Market Key Players

Listed below are some of the most prominent Agriculture Equipment industry players.

• AGCO Corporation
• Alamo Group Inc.
• China National Machinery Industry Corporation
• CNH Industrial N.V.
• CLAAS KGaA GmbH
• Deere & Company
• Kubota Corporation
• Mahindra & Mahindra Ltd.
• SDF S.p.A.
• Valmont Industries Inc.
• Other Key Players

Report Scope: