U.S. Agriculture Equipment Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025

Description

The U.S. agricultural equipment market is poised for substantial growth, projected to rise from USD 39.4 billion in 2024 to USD 57.1 billion by 2032, registering a CAGR of 4.9% during the forecast period. This impressive expansion reflects the deep integration of agriculture into the national economy, with over 900 million acres-about 40% of the country's land-dedicated to farming activities. Amid a workforce of around 2.6 million agricultural laborers and rising concerns over labor shortages, the sector is turning toward innovation and automation.

Advanced technologies such as AI-powered autonomous machinery, precision farming tools, and electric and hybrid propulsion systems are reshaping the industry. Government-backed sustainability initiatives and the growing need to minimize greenhouse gas emissions-currently accounting for 11% of national GHGs-further propel market growth. From real-time analytics via IoT and GPS to smart self-driving tractors and drones, the market is embracing next-gen machinery to increase productivity, reduce costs, and maintain competitiveness in an evolving landscape.

Key Insights

Tractors represent the largest product category with a 40% share, driven by their essential role in plowing, tilling, planting, and transporting across all farm sizes. Leading manufacturers include John Deere, CNH Industrial, TAFE, and Kubota.

Precision agriculture equipment is the fastest-growing category, owing to increasing reliance on GPS guidance, data analytics, and AI-driven tools that enhance operational efficiency and sustainability.

Diesel propulsion maintains dominance with a 95% market share due to its power and reliability for large-scale operations, despite the growing popularity of electric and hybrid models, which are supported by government incentives.

Power output in the 30-100 hp range leads the market in 2024, appealing to small and mid-sized farms with cost-effective and versatile machinery for varied tasks.

Manual & mechanized systems retain a 40% market share as traditional equipment remains prevalent among smaller farms, though fully automated solutions are gaining traction rapidly.

Cereal & grains account for 50% of the crop-type segment due to the vast corn and wheat production. Mechanization is heavily used to support this output, backed by federal subsidies.

Large farms dominate the market with a 65% share, as they leverage high-power equipment, autonomous tools, and precision technologies to manage vast acreage and maximize yield.

OEMs hold an 85% share of the sales channel segment, thanks to trusted quality, warranties, and support services offered by brands such as AGCO, Kubota, and Trimble.

Regionally, the Midwest commands the largest share at 35%, driven by extensive grain cultivation in states like Iowa, Illinois, and Nebraska, and deep government investment in farm technology.

The West emerges as the fastest-growing region due to technology adoption and expanding specialty crop production supported by AI and robotics.

Labor shortages-exacerbated by restrictive immigration policies and a declining domestic workforce-are a key driver pushing automation adoption. Over 2.4 million farm jobs are open annually, with many remaining unfilled.

Autonomous machines such as robotic weeders and AI-based irrigation systems address productivity challenges, contributing to efficiency gains of up to 30% in pilot programs.

Between 2019-2024, labor constraints led to a 5-7% drop in crop output and 8-10% inflation in food prices. The rise in imports, especially of fresh fruits (60% from Mexico), reflects declining domestic production.

Market leaders like John Deere, CNH Industrial, and AGCO continue to invest in innovation. Notably, Deere introduced the F9 and F8 forage harvesters, and AGCO launched the MF 8S Xtra tractors (205-305 hp) in June 2025.

CNH Industrial enhanced sprayers with AI-based weed identification and input optimization, while Mahindra & Mahindra showcased a biogas-driven Yuvo Tech+ tractor in September 2025, emphasizing clean energy.

Kubota's acquisition of Bloomfield Robotics in 2024 highlights the industry's pivot toward AI-enhanced harvesting and yield prediction solutions, marking a strategic move in specialty crop farming.

Product Code: 13634

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Product Type
- 1.4.2. Market Size Breakdown, by Propulsion
- 1.4.3. Market Size Breakdown, by Power Output
- 1.4.4. Market Size Breakdown, by Automation Level
- 1.4.5. Market Size Breakdown, by Crop Type
- 1.4.6. Market Size Breakdown, by Farm Size
- 1.4.7. Market Size Breakdown, by Sales Channel
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by Product Type (2019-2032)
7.3. Market Revenue, by Propulsion (2019-2032)
7.4. Market Revenue, by Power Output (2019-2032)
7.5. Market Revenue, by Automation Level (2019-2032)
7.6. Market Revenue, by Crop Type (2019-2032)
7.7. Market Revenue, by Farm Size (2019-2032)
7.8. Market Revenue, by Sales Channel (2019-2032)
7.9. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Import/Export Policies
8.10. Compliance Requirements
8.11. Emerging Investment Areas
8.12. Major Ongoing Projects
8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by Product Type (2019-2032)
- 8.13.2. Market Revenue, by Propulsion (2019-2032)
- 8.13.3. Market Revenue, by Power Output (2019-2032)
- 8.13.4. Market Revenue, by Automation Level (2019-2032)
- 8.13.5. Market Revenue, by Crop Type (2019-2032)
- 8.13.6. Market Revenue, by Farm Size (2019-2032)
- 8.13.7. Market Revenue, by Sales Channel (2019-2032)

Chapter 9. Midwest Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Import/Export Policies
9.10. Compliance Requirements
9.11. Emerging Investment Areas
9.12. Major Ongoing Projects
9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by Product Type (2019-2032)
- 9.13.2. Market Revenue, by Propulsion (2019-2032)
- 9.13.3. Market Revenue, by Power Output (2019-2032)
- 9.13.4. Market Revenue, by Automation Level (2019-2032)
- 9.13.5. Market Revenue, by Crop Type (2019-2032)
- 9.13.6. Market Revenue, by Farm Size (2019-2032)
- 9.13.7. Market Revenue, by Sales Channel (2019-2032)

Chapter 10. West Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Import/Export Policies
10.10. Compliance Requirements
10.11. Emerging Investment Areas
10.12. Major Ongoing Projects
10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by Product Type (2019-2032)
- 10.13.2. Market Revenue, by Propulsion (2019-2032)
- 10.13.3. Market Revenue, by Power Output (2019-2032)
- 10.13.4. Market Revenue, by Automation Level (2019-2032)
- 10.13.5. Market Revenue, by Crop Type (2019-2032)
- 10.13.6. Market Revenue, by Farm Size (2019-2032)
- 10.13.7. Market Revenue, by Sales Channel (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Import/Export Policies
11.10. Compliance Requirements
11.11. Emerging Investment Areas
11.12. Major Ongoing Projects
11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by Product Type (2019-2032)
- 11.13.2. Market Revenue, by Propulsion (2019-2032)
- 11.13.3. Market Revenue, by Power Output (2019-2032)
- 11.13.4. Market Revenue, by Automation Level (2019-2032)
- 11.13.5. Market Revenue, by Crop Type (2019-2032)
- 11.13.6. Market Revenue, by Farm Size (2019-2032)
- 11.13.7. Market Revenue, by Sales Channel (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Agriculture Equipment Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)