Farm Equipment Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Australia, France, Brazil - Size and Forecast 2024-2028

Farm Equipment Market Forecast 2024-2028

The farm equipment market size is forecast to increase by USD 41.12 million, at a CAGR of 5.47% between 2023 and 2028. The market's growth rate hinges on various factors, including the rising uptake of precision farming technologies, the increasing awareness and adoption of sustainable agricultural practices, and the consistent growth in the global population coupled with escalating food demand. Precision farming technologies, encompassing advanced sensors, drones, and data analytics, are transforming agricultural operations, and enhancing productivity and sustainability. Sustainable practices like organic farming and water conservation are gaining traction, driven by environmental concerns and consumer demand for eco-friendly products. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Moreover, the APAC market is being propelled by rising governmental initiatives aimed at promoting sustainable agricultural practices. AGCO Corp provides a range of farm equipment, including the Fendt 1100 Vario MT tractor, Fendt 1000 Vario tractor, Fendt Cutter Front Mounting, and Fendt Slicer disc mower. Similarly, Argo Tractors SpA offers farm equipment like the Landini 5 085 tractor, Landini MISTRAL2 tractor, and Landini Serie 5 tractor. These offerings underscore the industry's commitment to advancing sustainability and efficiency in agriculture across the APAC region.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamic

The market is driven by various factors such as the increasing demand for modern farming techniques and equipment among smallholder farms, the rising adoption of alternative fuel sources to reduce environmental impact, and the implementation of agro-based economies. Trends in the market include advancements in cultivation equipment and crop processing technologies, as well as the growing popularity of JFarm service platforms. Challenges faced by the industry include the high cost of farm equipment, reliance on fossil fuels, and the need for continuous innovation to meet evolving farming needs. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver - Increasing adoption of precision farming technologies

Precision farming technologies are a significant driver in the global market due to their ability to change agricultural methods, optimize farm operations, and increase productivity. In addition, precision farming comprises a variety of technologies, including GPS guidance systems, remote sensing, drones, and data analytics, which allow farmers to make data-driven decisions and manage their fields with precision.

Moreover, precision farming technology includes GPS-guided tractors and machinery. In addition, these systems employ satellite signals to correctly navigate fields, reducing overlap in activities, including planting, spraying, and harvesting. Therefore, farmers can save time, fuel, and resources while increasing overall productivity. Hence, such factors are driving the market during the forecast period.

Significant Market Trends - Growing adoption of small tractors by small and private farms, vineyards, and orchard owners

In several developing as well as developed countries, a significant number of farmers have small landholdings. Besides this, the number of private farms, vineyards, and orchards is also increasing across the globe. In addition, both these factors are leading to increasing demand for small tractors (less than 30 hp) as they can maneuver through tight spaces, which are typically encountered in small and private farms, vineyards, and orchards.

Moreover, small tractors are considered easy to maintain as they offer easy access to engine components and have simple and practical maintenance points. In addition, with their small size, these tractors provide enhanced performance and efficiency. Furthermore, they also allow the user to maintain traction, turn tightly, choose the best speed, and run hydraulics smoothly. Hence, such factors are driving the market during the forecast period.

Major Market Challenge - High initial investment in acquiring farm equipment

The high expense of purchasing contemporary and advanced farm equipment is a major challenge in the global market, especially for small-scale farmers and emerging countries. In addition, these farmers frequently suffer financial constraints and limited access to money, making it difficult to invest in costly machinery that can boost production and efficiency on their farms.

For example, small-scale farmers may find it prohibitively expensive to purchase a new tractor with advanced technologies such as GPS guidance, precision farming equipment, and automated controls. In addition, investing in specialist equipment such as combine harvesters, irrigation systems, or precision seeding machinery necessitates a significant financial outlay, which may be prohibitive for farmers with low means. Furthermore, developing markets frequently lack access to financing options or credit facilities that can assist farmers offset the initial costs of purchasing new equipment. Hence, such factors are hindering the market during the forecast period.

Market Segmentation by Type, Product, and Geography

The market is a dynamic sector driven by the needs of farmers and agricultural communities worldwide. Farm equipment manufacturers play a crucial role in developing innovative solutions to enhance farming applications and improve agricultural productivity. The JFarm service has revolutionized the industry, providing accessible and efficient solutions tailored to smallholder farms. In the 31—70 HP segment, modern tractors and harvesters offer versatility and power for various farm tasks, from tilling fields to harvesting crops. With a focus on sustainability, alternative fuel sources like ethanol and biodiesel are gaining traction, reducing reliance on fossil fuels and minimizing environmental impact. Crop processing and maintenance of cattle are facilitated by advanced cultivation equipment and feeding livestock technologies. The market also sees the influence of agro-based economies and farm loan waiver programs, supporting farmers and driving growth in the agricultural equipment and market segments. Mowers, backhoes, and harrow are vital tools for efficient farm operations, ensuring smooth seeding and spraying field processes.

Type Segment Analysis

The manual segment is estimated to witness significant growth during the forecast period. The manual segment of the global market is critical to agricultural activities, especially in regions with low mechanized equipment penetration. In addition, this section includes a variety of manually operated tools and implements that help farmers with vital operations such as planting, tilling, harvesting, and crop and livestock management.

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The manual segment was the largest segment and was valued at USD 53.34 billion in 2018. Moreover, in many developing countries small-scale farmers rely primarily on manual equipment due to reasons such as limited financial resources, small landholdings, and rough terrain. In addition, hand plows, scythes, sickles, and manual seeders are commonly employed in these areas for cultivation and harvesting. Furthermore, these tools are frequently inexpensive, simple to maintain, and adaptable to a variety of farming operations. Furthermore, manual equipment has improved in response to technology improvements, enhancing efficiency and ergonomics. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Product Segment Analysis

Based on the type, the market has been segmented into implement, combines, sprayer, and baler. The implement segment will account for the largest share of this segment. The implementation segment includes tractors, planting equipment, plowing, and cultivating equipment, with tractors having a significantly larger share. In addition, the demand for farm tractors will be driven by the rising preference for more sophisticated, larger, and more powerful models, many of which incorporate new technologies and amenities that contribute to their higher prices. Moreover, on the other hand, the demand for smaller, specialized tractors for specific applications is also rising, which will have a restraining effect on value gains in the market. Furthermore, smaller tractors, for instance, can fit into tight spaces and narrow rows in orchards and vineyards better than larger models. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 46% to the growth by 2028.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Several countries such as Japan, China, and India are among the major markets for farm equipment in APAC.  In addition, the Government of India, along with other international bodies, is involved in implementing strategies to improve soil health, water management, and irrigation, improved seed varieties and hybrids, and integrated pest management, credit financing, and farm mechanization. Moreover,  the Department of Agriculture and Farmers Welfare (DA and FW), under the Ministry of Agriculture, has spearheaded several programs to advance mechanization in India. In addition, Farm Machinery Training and Testing Institutes (farm equipment), accredited State Agricultural Universities (SAUs), Indian Council of Agricultural Research (ICAR)conduct performance testing to guarantee the quality of farm machinery and implements. Furthermore, in order to enhance farm input and farm power availability, the government offers farmers subsidies for the purchase of farm equipment. Hence, such factors are driving the market during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Bucher Industries AG: The company offers farm equipment such as Master 103 mounted ploughs, Master 113 mounted ploughs and Seedbed Finisher Disc Harrows 7305 through the subsidiary company Kuhn SAS.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Brohawk exports, CLAAS KGaA mBH, CNH Industrial NV, Deere and Co., Duravant LLC, ISEKI and Co. Ltd., J C Bamford Excavators Ltd., Kubota Corp., LEMKEN GmbH and Co. KG, Mahindra and Mahindra Ltd., Maschio Gaspardo Spa, SDF SpA, Sitrex spa, Sonalika International Tractors Ltd., Vaderstad AB, Yanmar Holdings Co. Ltd., and VST Tillers Tractors Ltd.

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook
  • Manual
  • Semi automatic
  • Automatic
• Product Outlook 
  • Implement
  • Combines
  • Sprayer
  • Baler
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing dynamic growth driven by various factors. One prominent trend is the implementation of IoT integration in agricultural operations, leading to increased efficiency and productivity. Hybrid & electric tractors are gaining traction due to stricter emission regulations and a growing emphasis on sustainability. Additionally, farm loan waiver programs and incentives are encouraging farmers to invest in modern agricultural equipment such as autonomous tractors, flying drones, and technologically advanced agricultural robotics.

Furthermore, the market is undergoing significant transformations driven by technological advancements and sustainability initiatives. Farm labor is becoming more efficient with the adoption of rental agricultural machinery and advanced tools like four-wheel drive tractors, enabling farmers to accomplish tasks with greater ease. The industry is witnessing a shift towards sustainable fuels such as ethanol and biodiesel to reduce dependency on fossil fuels and lower greenhouse gas emissions. Agro-tech innovations are revolutionizing agriculture equipment with enhanced capabilities for harvesting crops, tilling fields, feeding livestock, and managing fodder areas efficiently.

In addition, light-duty tractors with 31-70 HP are ideal for small-scale farming operations, aided by the Internet of Things (IoT) for precision agriculture. They are used for various tasks such as threshing, harvesting, plant protection, and spraying fields. Other equipment like cultivators, rakes, sprayers, chain saws, and brush cutters help in tasks like breeding cows, cultivating land, and removing weeds. These machines also play a role in reducing wastage in agriculture by efficiently cultivating land, smoothing hillocks, filling depressions and gullies, and combating soil erosion. The use of modern agriculture equipment offers benefits like low costs, reduced air pollution, and the ability to access hard-to-reach areas with self-propelled machines and enhanced high-power implements.

Market Scope
Report Coverage	Details
Page number	174
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.47%
Market Growth 2024-2028	USD 41.12 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	5.06
Regional analysis	APAC, North America, Europe, South America, and the Middle East and Africa
Performing market contribution	APAC at 46%
Key countries	US, China, Australia, France, and Brazil
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AGCO Corp., Argo Tractors SpA, Brohawk exports, Bucher Industries AG, CLAAS KGaA mBH, CNH Industrial NV, Deere and Co., Duravant LLC, ISEKI and Co. Ltd., J C Bamford Excavators Ltd., Kubota Corp., LEMKEN GmbH and Co. KG, Mahindra and Mahindra Ltd., Maschio Gaspardo Spa, SDF SpA, Sitrex spa, Sonalika International Tractors Ltd., Vaderstad AB, Yanmar Holdings Co. Ltd., and VST Tillers Tractors Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, South America, and the Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of market  companies

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