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The US Agricultural Machinery Market size is forecast to increase by USD 10.17 billion, at a CAGR of 6.37% between 2023 and 2028. The market's growth trajectory is contingent upon various pivotal factors, including the accelerated uptake of cutting-edge agricultural equipment, augmented by robust US government backing and subsidies for the agricultural sector. Additionally, a persistent focus on ergonomics and ensuring operator comfort within agricultural machinery continues to drive market expansion. These elements collectively contribute to a dynamic landscape where technological advancements, government initiatives, and ergonomic considerations converge to fuel progress and innovation in the agricultural equipment sector, fostering sustained growth and market development in the foreseeable future. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
Moreover, AGCO Corp provides a range of agricultural machinery, including tractors, combine harvesters, hay and forage equipment, spreaders, sprayers, and more. Caterpillar Inc. offers agricultural machinery such as telehandlers, skid steer loaders, compact and small wheel loaders, mini excavators, and other related equipment.
Market Forecast 2024-2028
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The market is driven by factors such as the demand for advanced equipment due to large-scale farming and mechanization, initiatives like the Innovative Solutions Canada (ISC) program, and government support through farm loan waiver programs. Trends include increasing adoption of technological advancements like TREM Stage-IV emissions regulations and rising demand for pre-owned agriculture equipment. Challenges include the high cost of machinery, ensuring food security, and addressing the need for sustainable practices in the agriculture economy. 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.
The advanced agricultural machinery is equipped with cutting-edge technologies including GPS guidance systems, precision farming tools, telematics, and automation solutions. In addition, these technologies enable farmers to optimize inputs, enhance operational efficiency, and improve yield by precisely managing field operations including planting, Applying fertilizers, spraying, and harvesting.
Moreover, precision farming techniques, enabled by the use of advanced agricultural equipment, allow farmers to monitor and manage crop variability within fields more effectively. In addition, by using data-driven insights and real-time monitoring, farmers can make informed decisions regarding seed placement, irrigation, fertilizer application, and crop protection, resulting in higher yields, improved resource utilization, and reduced environmental impact. Furthermore, advanced agricultural equipment offers increased efficiency and productivity, allowing farmers to accomplish more work in less time. Hence, such factors are driving the market during the forecast period.
Data analytics and AI allow precision agriculture practices by providing farmers with actionable insights into field conditions, crop health, and yield potential. In addition, agricultural equipment that is equipped with sensors, GPS technology, and AI algorithms can collect and analyze data in real-time, allowing farmers to make data-driven decisions regarding planting, fertilizer application, irrigation, and pest management.
Moreover, data analytics and AI help farmers optimize crop yields by identifying factors that influence productivity, such as soil quality, moisture levels, and weather patterns. In addition, by analyzing historical data and monitoring current conditions, farmers can adjust their cultivation practices and inputs to maximize yield potential and profitability. Furthermore, AI-powered predictive maintenance solutions help farmers optimize equipment uptime and reduce downtime by identifying any potential issues before they occur. Hence, such factors are driving the market during the forecast period.
The high cost of agricultural machinery like tractors serves as a significant challenge to the growth of the market. In addition, for farmers, especially those operating small to medium-sized farms, the substantial upfront investments required to purchase tractors and related equipment can be prohibitive. Furthermore, the average cost of agricultural equipment, such as tractors, in the US is typically USD 30,000- USD 150,000, depending on factors such as size, horsepower, features, and brand.
Moreover, the high cost of agricultural equipment limits the ability of farmers to invest in modern mechanized farming equipment and technologies, thereby hindering their widespread adoption and market expansion. In addition, ongoing expenses such as fuel, maintenance, and repairs further exacerbate the financial burden associated with owning and operating advanced agricultural equipment like tractors. Hence, such factors are hindering the market during the forecast period.
The market is shaped by various factors, including Inflation Reduction Act measures aimed at stabilizing economic conditions. Organizations like KhetiGaadi provide innovative solutions, catering to regions like etHekwini Municipality where food security and arable land are key concerns. Large-scale farming operations rely on a skilled labor force and advanced mechanization facilitated by programs like the Innovative Solutions Canada (ISC) program. Entities such as MacAllister Rentals play a crucial role by offering pre-owned agriculture equipment, addressing challenges like the high cost of machinery in the agriculture economy. Government initiatives like the Rashtriya Krishi Vikas Yojana (RKVY) and Farm loan waiver programs support farm mechanization efforts, while companies like Mahindra's Farm Equipment Sector, CNH Industrial, and Kubota contribute with cutting-edge technological advancements in tractors and other agriculture machinery.
The land development and seedbed preparation segment is estimated to witness significant growth during the forecast period. The size of farms in the US has been growing due to factors such as enhanced economies of scale with increasing farm size and consolidation activities among farmers. In addition, larger farms require more machinery for land development and seedbed preparation to manage the increased acreage efficiently. Furthermore, farmers are constantly seeking ways to increase their agricultural yields and optimize land use.
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The land development and seedbed preparation segment was the largest segment and was valued at USD 11.26 billion in 2018. Moreover, agricultural machinery plays a crucial role in preparing land for intensive cultivation practices, such as precision farming, high-density planting, and controlled-environment agriculture. In addition, innovations in agricultural machinery, including GPS guidance systems, automated steering, variable rate technology, and precision planting equipment, have improved efficiency and accuracy in land development and seedbed preparation processes, leading to increased demand for modern agricultural equipment. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Based on the type, the market has been segmented into tractors, harvesting, haying machinery, planting and fertilizing machinery, plowing and cultivating machinery. The tractors segment will account for the largest share of this segment. Several farmers in the US are increasingly adopting advanced agricultural machinery that is embedded with cutting-edge technologies such as GPS-guided precision farming systems, automated steering, variable rate technology, and telematics. In addition, these technological advances enhance productivity, efficiency, and precision of farming operations, driving demand for modern tractors and equipment. Furthermore, the US agricultural sector faces challenges related to the availability of manpower, high cost of labor, and regulatory pressures. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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.
CLAAS KGaA mBH: The company offers agriculture machinery such as tractors, double roller drive for DISCO 3600 FRC, DISCO 9700 RC AUTO SWATHER, VARIANT net wrap system, TRION 740 and others.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
CNH Industrial N.V., Daedong Corp., Deere and Co., Doosan Corp., HORSCH Maschinen GmbH, J C Bamford Excavators Ltd., Kinze Manufacturing Inc., Kubota Corp., LS Tractor USA, Mahindra and Mahindra Ltd., The New York Blower Co., Vermeer Corp., Yanmar Holdings Co. Ltd., Zetor North America, EQUIPMENT TECHNOLOGIES INC., and GVM Inc.
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.
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.
The market thrives on the foundational pillars of food security and arable land optimization, facilitating large-scale farming endeavors. A crucial aspect is the labor force, which undergoes transformation due to increased mechanization catalyzed by technological strides. Initiatives like the Innovative Solutions Canada (ISC) program and entities such as Mahindra's Farm Equipment Sector and Claas Group contribute significantly to market evolution.
Further , the market is influenced by global factors such as developing countries seeking high adoption of technological advancements to enhance their agricultural economy. Initiatives like the Economic Survey and organizations like the Centre for Monitoring Indian Economy (CMIE) provide crucial insights, into the growing demand for agriculture machinery and equipment into market trends. Local entities like MacAllister Rentals and Farmkart contribute to the market by offering solutions such as pre-owned agriculture equipment and JFarm service respectively. Moreover, the agriculture economy mechanization of agriculture driven by the growing demand for agricultural products has fueled the need for agricultural machinery and equipment.
Moreover, government programs such as Farm loan waiver programs and schemes like Rashtriya Krishi Vikas Yojana (RKVY), overseen by the Ministry of Agriculture and Farmers’ Welfare, influence market dynamics. Compliance with emission regulations like TREM Stage-IV under the FAME scheme is crucial. Collaborative platforms like JFarm enhance Gross Domestic Product by promoting farm mechanization. Challenges like the high cost of machinery and lack of skilled professionals spur demand for advanced agriculture equipment. Technological innovations like IoT applications, GPS solutions, AI-based equipment, and flying drones streamline operations. International engagements with bodies like the Food and Agriculture Organization and the Organisation for Economic Co-operation and Development (OECD) ensure market sustainability. Domestically, entities like the Farm Service Agency and the Department of Agriculture provide vital support.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.37% |
Market Growth 2024-2028 |
USD 10.17 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.06 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGCO Corp., Caterpillar Inc., CLAAS KGaA mBH, CNH Industrial N.V., Daedong Corp., Deere and Co., Doosan Corp., HORSCH Maschinen GmbH, J C Bamford Excavators Ltd., Kinze Manufacturing Inc., Kubota Corp., LS Tractor USA, Mahindra and Mahindra Ltd., The New York Blower Co., Vermeer Corp., Yanmar Holdings Co. Ltd., Zetor North America, EQUIPMENT TECHNOLOGIES INC., and GVM Inc. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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