Farm Equipment Market – By Automation (Fully-automatic, Semi-automatic, Manual ), By Type (Tractor[Utility tractor, Row crop tractor, Orchard tractor], Planting, [Seed drill], Soil cultivation, [Cultivator, Cultipacker, Chisel plow, Rotator, Subsoiler, Plough, Roller, Stone picker, Others], Irrigation, [Drip irrigation, Central pivot irrigation, Sprinkler system, Hydroponics], Fertilization, [Fertilize drill, Fertilizer spreader, Sprayer, Biomass plant, Others], Harvesting, [Grain cart, Conveyor belt, Cotton picker, Farm truck, Grain dryer, Haulm topper, Mower, Rake, Others], Hay making, [Bale lifter, Bale wrapper, Baler, Hay rake, Hay tedder, Hay Fork, Others], Loader, [Backhoe loader, Skid steer loader, Others], Agricultural robots, Others), By Geography – Global Opportunity Analysis & Industry Forecast, 2024-2030

Farm Equipment Market Overview:

Farm Equipment Market Size is valued at $ 344 billion by 2030, and is anticipated to grow at a CAGR of 6.1% during the forecast period 2024 -2030. The global farm equipment market is experiencing steady growth, driven by increasing demand for mechanized farming and technological advancements. Key factors influencing market expansion include the need for higher crop yields, labor shortages in agriculture, and rising global food demand.

Tractors, harvesters, and planting equipment dominate the market, while automation and precision farming technologies are gaining traction. Leading manufacturers such as John Deere, AGCO, and CNH Industrial are focusing on innovations like GPS integration and smart farming solutions. Emerging markets in Asia-Pacific and Latin America present significant growth opportunities as modernization efforts ramp up in these regions.

Market Snapshot:

Farm Equipment Market - Report Coverage:

The “Farm Equipment Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Farm Equipment Market.

COVID-19 / Ukraine Crisis - Impact Analysis: 

• The COVID-19 pandemic significantly disrupted the global farm equipment market, with both immediate and long-term consequences. The onset of the pandemic resulted in supply chain interruptions, which led to delays in manufacturing and deliveries of essential agricultural machinery. As many production facilities were forced to shut down or operate with reduced capacity, the availability of raw materials like steel and other components decreased, leading to price hikes for equipment. Moreover, labor shortages, particularly in areas dependent on migrant workers, affected the ability of farms to operate at full capacity. However, the pandemic also drove some positive shifts in the industry. With increased demand for food and a shift toward automation and precision agriculture to minimize labor dependency, farmers began to invest in more efficient and technologically advanced machinery. Furthermore, government stimulus packages in several regions, including subsidies and financial aid, helped to support the purchase of farm equipment. Despite the challenges, the farm equipment market began to recover in 2021, with a focus on sustainability and innovation

• The ongoing Ukraine crisis has had a significant impact on the global farm equipment market, primarily due to disruptions in grain production and supply chains. Ukraine is one of the world’s largest grain exporters, and the conflict has severely affected its agricultural output, including wheat, corn, and sunflower oil. As a result, global agricultural markets faced shortages, and the demand for advanced farm machinery increased to boost local production capacities in other regions. Furthermore, the war led to soaring energy prices, increasing the costs of operating farm equipment, as fuel prices directly affect the cost of tractors and other machinery. The crisis also intensified the geopolitical uncertainty, leading to difficulties in international trade and access to key resources required for farm equipment manufacturing.

Key Takeaways:

• Automation Dominated the Farm Equipment Market

In 2023, the Manual Segment led the Farm Equipment Market, accounting for approximately 43% of the total market share. This segment plays a vital role, driven by factors such as the use of natural forces, availability of affordable labor, and the need for precision in agricultural tasks. In countries across the sub-continent, such as China and India, where manual labor is abundant, the demand for manual farm equipment is expected to rise. The reliance on natural resources and cost-effective labor aligns with the economic conditions of these regions, fueling market growth. Additionally, the increasing focus on precision in agricultural practices has led to greater adoption of manual machinery, particularly for tasks requiring careful handling or intricate operations. As these elements align, the manual segment is set to experience significant demand, reflecting a balance between traditional methods, economic factors, and the drive for precision in farm equipment operations.

• Machinery Type Dominated the Farm Equipment Market

In 2023, the tractor segment held the largest revenue market share of 29%, driven by the pressing need to address labor shortages and meet the rising global food demand fueled by a growing population. According to data from national authorities, 211,700 tractors were registered across Europe in 2023. Of these, CEMA reports that 158,100 were agricultural tractors, with 26,200 (17%) having a power output of 37kW (50 hp) or less, and 131,900 (83%) exceeding 38kW. The remainder included various vehicles, such as quad bikes, side-by-side utility vehicles, telehandlers, and other types sometimes classified as tractors. An overview of agricultural tractor registrations by country is provided in the annex. Additionally, the rise of electric tractors presents a significant growth opportunity for the market. These tractors offer numerous advantages, including cost-effectiveness, environmental sustainability, and high efficiency, making them an attractive choice for farmers seeking to reduce their ecological footprint while increasing productivity. As demand for farm equipment continues to grow, the tractor segment is expected to maintain its dominant market position. With ongoing technological advancements and an increasing focus on sustainable farming practices, tractors will remain pivotal in meeting the escalating global food demands.

• The growing demand from the electronics industry is expected to drive market growth.

The growing trend of agricultural mechanization in developing countries is significantly boosting the demand for farm equipment. As these nations face challenges such as limited land availability, water scarcity, and a declining labor force, they are increasingly turning to mechanized solutions to improve productivity and efficiency in agriculture. This transition is driving strong demand for a variety of farm equipment, including tractors, harvesters, irrigation systems, and precision agriculture tools. Farmers in these regions are recognizing the need for modern technologies to overcome traditional constraints and optimize resource use. Tractors, in particular, are in high demand, as they are vital for quickly plowing, planting, and cultivating large areas of land. For example, Sonalika International Tractors introduced five new series, including an e-model, at the Global Partners Summit 200 in Gurugram. These models feature compact designs and advanced emission control systems, catering to the increasing mechanization in developing countries and driving market growth. Additionally, there is a rising interest in precision agriculture tools and irrigation systems, reflecting a push for better resource management and sustainable farming practices. As these countries continue to embrace mechanization, the farm equipment market is experiencing significant growth, driven by the need to ensure food production amid resource limitations.

• Seasonal Demand and Market Volatility will hinder market growth.

The demand for farm equipment is highly seasonal, driven by planting and harvesting cycles. This seasonality poses a challenge for manufacturers and distributors in maintaining a consistent production and sales pipeline. During off-peak periods, manufacturers often experience a slowdown in demand, leading to inefficiencies in production planning and resource allocation. The agricultural industry is inherently vulnerable to external factors such as weather conditions, pest outbreaks, and global commodity price fluctuations. These factors directly influence farmers' purchasing power and willingness to invest in new equipment. For instance, a poor harvest season can lead to reduced income for farmers, thereby limiting their ability to invest in machinery for the next season. To address these challenges, companies in the farm equipment market must develop flexible business models, such as offering rental services or subscription-based access to machinery, ensuring steady revenue streams while catering to farmers' varying financial capabilities.

Key Market Players:

Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Farm Equipment Market. The top 10 companies in this industry are listed below:

1. Deere & Company,
2. Kubota Corporation
3. Mahindra and Mahindra Limited
4. AGCO Corporation.
5. Iseki & Co. Ltd
6. Escorts Limited
7. Daedong Industrial Co. Ltd
8. JCB
9. Tractors and Farm Equipment Limited
10. Sonalika

Scope of the Report:

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