Agricultural Equipment Market

Agricultural Equipment Market Highlights

The global agricultural equipment market is expected to cross a value of USD 169.4 billion by the end of 2032. The market was valued at USD 123.6 billion in 2023 and is expected to expand at a CAGR of 4.7% between 2024-2032.

• Over the mid-term, the growing mechanization of agricultural operations is the primary factor anticipated to drive the global agricultural equipment market.
• The high cost of agricultural equipment is a major factor to challenge the market growth.
• The North America agricultural equipment market is projected to dominate the global market.

Agricultural Equipment Market Outlook

Machinery, tools, and devices that are designed and utilized in various agricultural activities for enhancing productivity, efficiency and yield in farming operations is known as agricultural equipment. These equipment are instrumental in performing tasks such as tilling, planting, cultivating, harvesting, irrigation, fertilizing, and pest control, among others.

According to our researchers at KD Market Insights, the growing mechanization of agricultural operations is one of the primary factors anticipated to drive the growth of the global agricultural equipment market. Agricultural companies around the globe are facing challenges with labor shortages and rising labor costs. By adopting automated agricultural equipment, companies can save huge amount of money. Our researchers have found that in the corn farms in the United States alone, agricultural companies can save up to USD 1.5 billion in value annually. Bucher Industries AG, AGCO Corp., and Deere & Company are some of the significant parties in the global market for agricultural equipment.

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Agricultural Equipment Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global agricultural equipment market are:

• Growing Demand for Food and Agricultural Products Worldwide: Backed by the rising population worldwide, which according to the United Nations reached 8 billion in mid-November 2022, the demand for food, feed, fiber, and biofuels are increasing globally, and is driving investment in the field of agriculture. Farmers globally are focused on increasing their agricultural output to meet the needs of this growing population, which is also driving the demand for machinery that can enhance yield, efficiency, and sustainability across diverse cropping systems and farming practices. Such a factor is therefore expected to drive the growth of the global agricultural equipment market during the forecast period.
• Increasing Adoption of Sustainable Agricultural Practices: Climate change is a major concern amongst everyone nowadays and farmers are also nowhere an exception. The rising awareness for environmental concerns is driving the need to adopt sustainable agricultural practices and technologies among the farmers. By utilizing agricultural equipment, farmers can support conservation tillage and focus on organic farming, crop rotation, and precision agricultural practices which are focused on lowering the environmental impact from agriculture, and also help to conserve natural resources.

Which Probable Factors Could Hamper the Growing Agricultural Equipment Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of agricultural equipment are:

• High Cost of Agricultural Equipment: One of the primary and most important factors anticipated to restrict the demand for agricultural equipment is the high cost of the equipment. Agricultural equipment, especially modern machinery and technology-driven tools, often require significant upfront investment. The high initial cost of purchasing agricultural equipment can be a barrier for small and medium-sized farmers, limiting their ability to invest in modern machinery and technology to improve productivity.
• Lack of Technical Skills to Operate the Equipment: Operating and maintaining modern agricultural equipment often require specialized technical skills and training. Lack of access to training programs, educational resources, and technical support services is therefore expected to hamper the demand for the equipment.

How is the Global Agricultural Equipment Market Segmented?

Our experts at KD Market Insights have segmented the global agricultural equipment market as:

What are the Probable Factors Influencing the North America Agricultural Equipment Market Forecast?

The North America agricultural equipment market is majorly driven by the need for replacing the aging fleet of agricultural equipment for newer and more efficient agricultural machineries. Additionally, the market growth in the region can also be attributed to the rapid technological innovations in agricultural equipment, which include precision farming technologies, autonomous machinery, and telematics. According to the statistics by the U.S. Department of Agriculture (USDA), about 27% of the farms in the U.S. used precision agriculture practices to manage crops or livestock. Besides this, the growing focus of the government of the region for making availability of support programs, subsidies, and financial incentives to promote modernization of agriculture, improvement of farm productivity, and to ensure food security are also projected to drive the demand for agricultural equipment in the region during the forecast period. According to the Organization for Economic Co-operation and Development (OECD), the United States and the European Union were known to provide 2/3rd of support among the OECD countries.

As per our analysts at KD Market Insights, the following five players lead the North America agricultural equipment market growth:

• John Deere
• AGCO Corporation
• CNH Industrial (Case IH, New Holland Agriculture)
• Kubota Corporation
• Massey Ferguson

Which Key Players Top the Global Agricultural Equipment Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global agricultural equipment market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with agricultural equipment market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global agricultural equipment market share:

• Bucher Industries AG
• AGCO Corp.
• Deere & Company
• EXEL Industries
• CLAAS KGaA mbH
• ISEKI & CO. LTD.
• CNH Industrial N.V.
• Krone UK Group
• Kubota Corporation
• LEMKEN GmbH & Co. KG
• Mahindra & Mahindra Ltd.
• Mitsubishi Mahindra Agricultural Machinery Co. Ltd
• SDF S.p.A.
• Tractor and Farm Equipment Limited (TAFE)

What are the Recent Developments Observed in the Agricultural Equipment Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global agricultural equipment market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, John Deere stated that it has launched its fully autonomous 8R tractor which features TruSet-enabled chisel plow, GPS guidance system, and six pairs of stereo cameras.

Further, New Holland Agriculture shared that it has designed a Straddle Tractor for use in narrow vineyards typical of premium wine-growing regions, such as Champagne, Medoc, and Burgundy.