Agriculture & Farm Machinery Market Forecasts to 2030 - Global Analysis By Product, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Agriculture & Farm Machinery Market is accounted for $198.17 billion in 2023 and is expected to reach $350.79 billion by 2030 growing at a CAGR of 8.5% during the forecast period. Agriculture and farm machinery encompasses a wide range of tools and equipment utilized in various stages of farming activities, from planting to harvesting. They significantly enhance efficiency and productivity in agricultural operations, enabling farmers to manage large-scale farming more effectively. Agriculture and farm machinery significantly contribute to meeting the growing demands of food production while minimizing labor and maximizing output.

According to the 2019 Agricultural Policy Monitoring and Evaluation report by the Organization for Economic Co-operation and Development (OECD), farm policies in 54 countries, including OECD and EU nations, along with 12 key emerging economies, provided an average of USD 817 billion per year in direct support to farmers from 2019 to 2021.

Market Dynamics:

Driver:

Increasing demand for food production

With growing population levels worldwide, there is a heightened need for efficient and high-yield farming practices. Agricultural machinery enables farmers to enhance productivity, streamline operations, and meet the rising demand for food. Moreover, technological innovations, including precision farming techniques and advanced machinery, further bolster efficiency and output. This increasing demand not only fuels the adoption of farm machinery but also drives research and development efforts towards creating more efficient and sustainable farming solutions.

Restraint:

Complexity of technology

The complexity of technology in agriculture & farm machinery arises from the integration of various advanced systems like GPS, sensors, and automation. While these technologies offer significant benefits such as improved efficiency and productivity, their complexity presents challenges. Additionally, the rapid pace of technological advancements requires continuous learning and adaptation by farmers, posing barriers to adoption and potentially limiting market expansion in certain regions or among smaller-scale operations.

Opportunity:

Rising precision farming practices

Precision farming leverages advanced technologies such as GPS, IoT sensors, and data analytics to enable farmers to precisely manage field variability, optimize inputs, and enhance crop yields. This approach offers several benefits, including improved resource efficiency, reduced environmental impact, and enhanced profitability. As the agriculture sector increasingly embraces precision farming techniques to address challenges such as limited arable land and climate change, there is a corresponding surge in demand for farm machinery equipped with precision agriculture technologies, driving innovation and market growth in the sector.

Threat:

High initial investments

Agriculture & Farm Machinery necessitates high initial investments due to the advanced technologies and machinery involved, such as tractors, harvesters, and precision farming equipment. These investments cover the cost of purchasing machinery, infrastructure setup, and ongoing maintenance. Additionally, high initial investments increase the financial risk for farmers, potentially delaying or limiting the adoption of new technologies and impeding overall market growth in the agricultural machinery sector.

Covid-19 Impact

The covid-19 pandemic has had a mixed impact on the agriculture and farm machinery market. While disruptions in supply chains initially hindered manufacturing and distribution, increased demand for food production and the need for mechanization to offset labor shortages boosted sales. However, economic uncertainty led to cautious spending among farmers, affecting the adoption of new machinery. Additionally, fluctuating commodity prices and trade restrictions added further challenges. Overall, the pandemic highlighted the importance of resilient supply chains and accelerated trends towards automation and digitalization in agriculture.

The drone technology segment is expected to be the largest during the forecast period

The drone technology segment is estimated to have a lucrative growth. Drone technology in Agriculture & Farm Machinery revolutionizes farming practices by offering real-time aerial surveillance, crop monitoring, and precision spraying. Drones equipped with high-resolution cameras and sensors provide farmers with invaluable insights into crop health, pest infestations, and irrigation needs, enabling timely interventions to maximize yields and reduce resource usage. This innovative technology represents a significant advancement in agriculture, empowering farmers with data-driven decision-making capabilities for sustainable and productive farming practices.

The post-harvest processing segment is expected to have the highest CAGR during the forecast period

The post-harvest processing segment is anticipated to witness the highest CAGR growth during the forecast period. In post-harvest processing, agriculture & farm machinery plays a vital role in efficiently handling harvested crops, ensuring their quality, and preparing them for storage or distribution. Advanced technologies such as automated sorting systems and temperature-controlled storage facilities improve the efficiency and effectiveness of post-harvest processing operations, reducing waste and preserving the freshness and market value of agricultural produce.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing mechanization in farming practices, rising demand for food production, and adoption of advanced technologies. Countries like China, India, and Japan are witnessing robust growth in the agricultural machinery sector due to government support, modernization initiatives, and farm consolidation. Additionally, partnerships, mergers, and acquisitions among key players are shaping the competitive landscape in the region.

Region with highest CAGR:

In Europe, the agriculture & farm machinery market is characterized by a focus on sustainability, efficiency, and precision farming technologies. Countries like Germany, France, and the Netherlands are leading the way in the adoption of advanced agricultural machinery. Moreover, there's a growing emphasis on environmentally friendly practices and reducing carbon emissions in agricultural operations. Government subsidies and incentives for modernization initiatives are driving further growth in the sector, fostering innovation and competitiveness among market players.

Key players in the market

Some of the key players profiled in the Agriculture & Farm Machinery Market include AGCO Corporation, Bobcat Company, CLAAS Group, CNH Industrial, Deutz-Fahr, Escorts Group, Farmtrac, J.C. Bamford Excavators Limited (JCB), John Deere, Kubota Corporation, Kuhn Group, Mahindra & Mahindra, Same Deutz-Fahr Group, Tractors and Farm Equipment Limited (TAFE), Yanmar Co., Ltd., Krone Group, Iseki & Co. Limited, Agrostroj Pelhrimov Company, Rostselmash Limited and Zetor Tractors.

Key Developments:

In January 2024, AGCO announced the launch of FarmerCore, a transformative global initiative to deliver a next-generation farmer and dealer experience. The launch of the new end-to-end distribution model is a significant milestone in advancing AGCO's Farmer-First strategy and solidifying its commitment to helping farmers across the globe become more profitable, productive and sustainable.

In November 2022, Mahindra & Mahindra Farm Equipment Sector (FES), a part of the Mahindra Group, inaugurated its first dedicated farm machinery plant (non-tractor) in Pithampur, Madhya Pradesh. The plant provides access to a diverse supplier base, enabling the company to manufacture durable, high-quality, affordable and accessible 'Made in India, for India' farm machinery, marketed in both the Mahindra & Swaraj brands.

Products Covered:

• Tractors
• Harvesting Machinery
• Planting Machinery
• Irrigation Equipment
• Tillage Equipment
• Fertilizing & Pest Control Equipment
• Hay & Forage Equipment
• Grain Handling Equipment
• Other Products

Technologies Covered:

• Mechanical Harvesting & Threshing
• Biotechnology & Genetic Engineering
• Drone Technology
• Smart Irrigation Systems
• Precision Agriculture
• Telematics & IoT (Internet of Things)
• Other Technologies

Applications Covered:

• Greenhouse & Nursery
• Soil Management
• Post-Harvest Processing
• Crop Protection
• Livestock Farming
• Other Applications

End Users Covered:

• Large-scale Commercial Farms
• Small-scale Farms & Family-owned Farms
• Horticulture & Floriculture Businesses
• Agricultural Research Institutions & Universities
• Government Agricultural Agencies
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances