Agriculture Equipment Market size was valued at USD 170.84 Billion in 2024 and is set to cross USD 342.67 Billion by the end of 2037, registering more than 5.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of agriculture equipment is evaluated at USD 178.36 Billion.
The agriculture equipment market expansion is anticipated by the slated growth in the demand for better management of crops to improve the quality and quantity of food as there is a high demand for food worldwide. According to a 2023 published report by the Organization for Economic Co-Operation and Development (OECD), it is estimated that agricultural commodities would gain a growth share of about 1.3% per year for the next 10 years.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 170.84 billion |
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Forecast Year Market Size (2036) |
USD 342.67 billion |
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Regional Scope |
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Product (Tractors, Harvesters, Planting Equipment, Plowing & Cultivation Equipment, Spraying Equipment, Haying Equipment)
Tractors segment is expected to hold more than 35% agriculture equipment market share by 2037. The segment's tremendous growth rate can be augmented by the lack of human resources and the need for population growth to meet the world's nutritional requirements. Tractors are now essential for the agriculture sector to become more productive. According to the OECD in 2023, there is an expected fall in the employment landscape of Europe in the next decade of about 13%, with a huge decline for low-skilled workers. Moreover, over the coming years, advancements in automated material handling equipment should support the segment's expansion.
The agriculture equipment market value is expanding as a result of the growing acceptance of smart combine harvesters and the incorporation of smart actuators into already-existing harvesters. Farmers can better regulate harvesting applications and monitor grain flow with smart combine harvesters.
Application (Land Development & Seed Bed Preparation, Sowing & Planting, Weed Cultivation, Plant Protection, Harvesting & Threshing, Post-harvest & Agro-processing)
Lnd development & seedbed preparation segment in the agriculture equipment market is poised to register around 6% growth from 2024 to 2037. since there are fewer agricultural laborers in the world, and this shortage causes the country's development process to require more equipment. According to a report by the OECD in 2023, in Australia, the percentage of working people on farms was reduced by 5.5%, along with a reduction of about 20% in the number of farm managers.
Regarding developed nations, labor has become much less available, which has increased the need for this equipment, which is projected to grow rapidly over the next several years. In addition, more tractors will be used to develop the land. The advantages of using tractors include higher productivity and shorter processing times for these tasks. Throughout the slated period, the segments for threshing and harvesting will likewise expand strongly.
Our in-depth analysis of the global agriculture equipment market includes the following segments:
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Product |
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Application |
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APAC Market Statistics
Asia Pacific industry is predicted to account for largest revenue share of 43% by 2037. The landscape's substantial growth in the region is expected to be credited to the surge in labor costs in the agriculture industry coupled with poor working conditions in this region. According to a report by the International Labor Organization in 2022, only 7% of the total employed workers in agriculture were salaried in 2021, and this is an increase of about 0.1% since 2011. Furthermore, the majority of the workers were unpaid or in own-account work.
According to Chinese agriculture equipment market analysis, the number of large and medium tractors was valued at about 5 million in 2022, and this is an increase from 2021, which had a count of about 4 million.
According to a report published by OECD in 2020, there is about 11.8% of total agricultural land in Japan, owing to the country's mountainous topography.
North American Market Analysis
The North American region will also encounter a huge influence on agriculture equipment market demand during the forecast period and will account for the second position attributed to the presence of large farmlands, which fuel the demand for farm machinery. According to the United States Department of Agriculture's (USDA) National Agricultural Statistics Service, the average farm size increased from 444 acres in 2020 to 445 acres in 2021.
Through the United States Department of Agriculture Direct Operating Loans, Operating Microloans, and Guaranteed Operating Loans, the US government offers loans for farm equipment. Due to almost double easy loans and their desire to increase productivity, farmers are becoming more tech-savvy, which has led to gains for a variety of machinery.
To help farmers enhance farm management and their financial performance, the Canadian Ministry of Agriculture and Agri-Food announced in 2022 that SomaDetect Inc. and Vivid Machines Inc. received over USD 1 million in funding through the AgriScience Program.
Most of the companies are continuously collaborating, expanding, making agreements, and joining ventures for the growth of this sector and are estimated to be the major key players in this landscape.
Author Credits: Nilanjana Ray
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