Agriculture and Farm Machinery Market Size, Share, and Trends 2024 to 2034

The global agricultural and farm machinery market size was estimated at USD 182 billion in the year 2022 and it is expected to reach around USD 297.86 billion by 2032 and registered growth at a compound annual growth rate (CAGR) of 5.1% during the forecast period from 2023 to 2032.

The demand for these agricultural equipments have increased in the recent years especially after the COVID-19 pandemic. Agricultural or farm equipments are the tools that are used by the farmers for performing various agricultural activities and operations. In the recent years the amount of automation has increased in these equipments and the usage of such automated agricultural equipments have led to an increased production in the agricultural sector. The use of the tools that have increased amount of automation has been a boon for the market. The integration of the GPS solutions and the Internet of Things applications in the agricultural machinery will increase the amount of production in this industry. All of these equipments are used in various functions like harvesting, threshing and land development.

Agriculture and Farm Machinery Market Growth Factors

In the recent years the number of technologies that are adopted in order to provide better machineries for the farming purposes having increased to a great extent. Increased use of the internet of things, artificial intelligence and the equipments that are enabled with GPS will lead to the growth of the market during the forecast period. All of these factors will play an instrumental role and provide better opportunities for the growth of this market during the forecast period. The availability and the usage of flying drones will also provide great opportunities for this market. The increased use of these modern equipments and their benefits have created more need for such equipments and the manufacturers in the industry are constantly engaged in coming up with better products and developing the existing products to meet the demand of the end users. 

Agriculture and Farm Machinery Market Scope

Agriculture and Farm Machinery Market Dynamics

Key Market Drivers

Increase in the number of initiatives taken by the government and easy financing 

• The government bodies of various nations across the world have increased their focus on providing less interest rates and lesser import duties. Many initiatives are taken by these government bodies in order to provide equipments that will help in making the processes of cultivation and soil preparation easier and faster. The use of these equipments will provide efficient farming techniques. The presence of various microfinance institutions across various nations and the number of banks that are available throughout these regions which offer credit in order to buy these agricultural equipments have also increased in the recent years.
• Favorable initiatives taken by the government to improve the credit facilities in the market will also increase the sales of these machineries and increase the use of these machineries by the farmers in the agricultural activities. All of these factors will provide good opportunities for the growth of the market during the forecast period.

Key Market Challenges

Rapid urbanization throughout the world

• The developing nations as well as the developed nations are seeing rapid urbanization. Due to the process of urbanization the amount of land available for growing crops has reduced. Fertile land or the land that can be plowed is reducing every year due to urbanization. The market growth of the agricultural machinery has reduced in the recent years as the farming area has reduced and the labor is also becoming expensive. As the construction of the houses and other industries have also grown to a great extent in many countries across the world the availability of the land for farming will reduce drastically.
• In the countries like Japan, China, Kuwait, Hong Kong, Singapore etc. has seen a major growth in the construction industry due to which the market growth is hampered to a great extent. The people that were engaged in the agricultural activities have entered other businesses and these people are seeking jobs due to which the availability of the labor force has also reduced for the agricultural industry and the use of these equipments will also reduce in the coming years.

Key Market Opportunities

Precision agriculture - Increased mechanization in the farm activities has a direct impact on the crop productivity as it helps in reducing the amount of time consumed on the agricultural activities and it also does not require a big number of laborers. When these factors are considered for the long-term production, it also helps in cutting down the costs. The output of the crop is also increased due to increased mechanization. Income generated through the farming activities also increases. Growing population across the world has led to an increased pressure in the agricultural sector as the need for the agricultural products has increased to a great extent.

Farmers across the world are engaged in making use of better equipment in order to increase their productivity with the limited land that is available for farming. The use of this technique which is used for the farming purpose would help in meeting the demands of the food products across the world. The increasing gap which exists between the demand and the supply will reduce to a great extent. Rotation of the crops is also easily possible for the farmers on the land which is available for farming with the help of mechanization.

Precision farming is a technology which helps in making efficient usage of land fertilizers, water and the equipments which are used for the agricultural activities. All of these factors will help in increasing the quality as well as the quantity of the products.

Research and developmental activities - The amount of money invested in the research and development activities have also increased in the recent years due to which electric tractors and hybrid tractors are launched in the market and they shall provide good opportunities for the growth of this market in the coming years. Increased adoption of these equipments in the agricultural industry will boost the market growth.

Equipment Type Insights

On the basis of the type of equipment, the agricultural tractor segment will have a larger market share in the coming years. Research and developmental activities are instrumental in providing developed products in the market which are complementing the food production capacities. Autonomous tractors are also in good demand that help in performing functions like plant protection harvesting and making use of these tractors for preparing the land especially when it comes to the hilly areas.

The harvesting equipment will also have a greater demand in the coming years due to which this segment will grow well. The preference for these equipments has grown in the recent years and the farmers are making use of these equipments in the agricultural activities. The need for the handling equipments and forage equipments will also grow in the coming years due to which the market is expected to see a favorable growth during the forecast period.

Application Insights

On the basis of application, the segment of land development will have a larger market share in the coming years. As the laborers across the world which are engaged in the farming activities have reduced and the shortage of these people will lead to an increased adoption of the equipments that are used in land development process. When it comes to the developed nations the availability of these laborers has reduced to a great extent and it has created more demand for these equipments and it shall continue to grow well in the coming years.

The use of the tractors for developing the land will grow in the coming years. The benefits associated with the use of the tractors is the increased efficiency and reduced time needed for these activities. The harvesting and the threshing segment will also grow well during the forecast period. As the need for the equipments which are associated with the functions of irrigation have also increased in the recent years the need for these tools will grow during the forecast period.

Agriculture and Farm Machinery Market Share, By Region, 2022 (%)

Regional Insights

The Asia Pacific region will have a leading position during the forecast period. In the recent years this region has shown a strong growth in the economy due to which the demand for these equipments will also increase during the forecast period. The growth of few nations like Taiwan, India and China is considerable. In the coming years India will prove to be a nation which will provide maximum opportunities for the growth of this market. The need for the agricultural tractors has grown drastically in India and this will continue to grow well during the forecast period. As the farmers in this region are seeking ways to increase their productivity the need for these equipments will grow well. Mechanization process will also help in the growth of the market during the forecast period.

The number of tools that are introduced in the Asia Pacific region will prove to be another opportunity for the growth of this market. Considerable growth will also be registered in the North American region in the coming years which is mainly due to the increased use of these equipments which are available in the market and provide better fuel efficiency as compared to the equipments which are introduced in the other parts of the world. Integration of the GPS system and robotic systems in these tractors or the equipments which are used to perform various functions in the agricultural sector will lead to the growth of the market in the coming years.

Key Market Development

• AGCO corporation entered into an agreement with BASF GmbH in the year 2021 In order to increase the efficiency of the agricultural products and to provide environmental sustainability.

Agriculture and Farm Machinery Market Companies

• Deere and company
• AGCO corporation
• Kubota corporation
• Mahindra and Mahindra limited
• Sonalika group

Segments Covered in the Report

By Equipment Type

• Agricultural tractors
• Irrigation and crop processing equipment
• Harvesting equipment
• Spraying and handling equipment
• Cultivation and soil preparation equipment

By Application

• Land development
• Threshing and harvesting
• After agro processing
• plant protection
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)