Agriculture Equipment Market (2023-2030)
The Agriculture Equipment Market is projected to reach $199.7 billion by 2030, at a CAGR of 5.2% during the forecast period of 2023 to 2030.
- Published
- Jun 2023
- Pages
- 306
- Format
- PDF + Excel
- Report ID
- MR-690
- Base year
- 2022
- 2030 · FORECAST
- $199.7B
- 2030
- $199.7B
- CAGR 2023–2030
- 5.2%
2022 baseline · 2023–2030 forecast at 5.2% CAGR · hover a bar for the value
Key highlights
In 2023, the Tractors Segment is Expected to Dominate the Agriculture Equipment Market
In 2023, the Semi-automatic Segment is Expected to Dominate the Agriculture Equipment Market
In 2023 the Non-electric Equipment Segment is Expected to Dominate the Agriculture Equipment Market
In 2023, the Land Development & Seedbed Preparation Segment is Expected to Dominate the Agriculture Equipment Market
Asia-Pacific Dominates the Overall Agriculture Equipment Market, While North America Leads in Growth
Report summary
| Particulars | Details |
|---|---|
| Base Year | 2022 |
| Estimated Year | 2023 |
| Forecast Period | 2023–2030 |
| Market Size (2030) | USD 199.70 billion |
| CAGR (2023–2030) | 5.2% |
| Format | PDF, Excel & Cloud Portal · 306 pages |
| Segments Covered | By Type: Tractors 30-50 HP, Less than 30 HP, 51-100 HP, More than 100 HP, Combine Harvesters, Forage Harvesters, Other Harvesters, Irrigation Equipment Market, by Type Drip Irrigation, Sprinkler Irrigation, Other Irrigation Equipment, Tubing, Sprinklers, Emitter/Drippers, Irrigation Valves · By Mode of Operation: Semi-automatic, Manual, Automatic · By Power Source: Non-electric powered Agriculture Equipment, Electric-powered Agriculture Equipment · By Application: Land Development & Seedbed Preparation, Harvesting & Threshing, Irrigation, Crop Protection, Sowing & Planting, Other Applications |
| Countries Covered | Europe (RoE), Asia-Pacific (RoAPAC), Latin America (RoLATAM) |
| Key Companies | AGCO Corporation, AMAZONEN-WERKE H. DREYER SE, Technische Produkte GmbH, CLAAS KGaA, CNH Industrial N.V., HORSCH Maschinen GmbH, KUBOTA Corporation, Mahindra Ltd., Mascar SpA, Morris Equipment Ltd, Valmont Industries, Inc. |
Report overview
Segments covered: type, mode of operation, power source, application. Regions: Europe, Asia-Pacific, Latin America.
The growth of this market is driven by the shortage of agricultural laborers, the increasing need for mechanization of agricultural operations, the increasing government initiatives aimed at supporting farmers, and improved credit availability for agriculture equipment manufacturers. However, the high costs of advanced agriculture equipment and the rising fragmentation of land hinder the growth of this market.
The technological advancements and the increasing adoption of precision farming techniques are expected to create market growth opportunities. However, low awareness of advanced agriculture technologies is a major challenge for the players in this market. Additionally, digitalization in agriculture is a prominent trend in the global agriculture equipment market.
Shortage of Agricultural Laborers
The agriculture sector heavily relies on labor to carry out its various farm activities, and a significant number of laborers are required to perform agricultural operations. However, in many countries, a substantial portion of the population is aging, leading to a decline in the availability of young people willing to work in agriculture. Over the past decade, the global agriculture sector has witnessed a significant decrease in the availability of farm laborers. This trend is particularly notable in emerging economies such as China and India, which are experiencing rapid urbanization and industrialization. Furthermore, there has been a notable increase in the migration of farm workers from rural agricultural areas to urban areas seeking better opportunities. As a result, there is a labor shortage in countries where agriculture is a major industry.
In many developed countries, agricultural work is often perceived as low-status or undesirable. This perception challenges farmers in attracting workers to engage in agricultural activities. Countries with robust economies typically offer more diverse job opportunities in other sectors, leading to labor shortages in the agricultural sector. For instance, in 2018, the Canadian agriculture sector faced a shortage of 63,000 agricultural laborers. Projections indicate that this shortage is expected to reach an estimated 123,000 agricultural laborers by 2029 (Source: Canadian Federation of Agriculture [CFA]).
Similarly, in India, agriculture has experienced a significant decline in animate power (animal and human) utilization. The share of animate power in agriculture is estimated to decrease from 59.1% in 1991 to 25.7% by 2050. (Source: Vision 2050 Document of Central Institute of Agricultural Engineering, Bhopal).
The shortage of agricultural labor has resulted in the adoption of mechanized equipment among farmers to increase agriculture efficiency and crop productivity. As a result, the demand for agricultural equipment such as tractors, harvesters, irrigation systems, and other equipment is increasing globally. Agricultural equipment can be beneficial for tasks that are difficult, time-consuming, or require specialized skills. Thus, the rising labor shortage is driving the growth of the global agriculture equipment market.
Market dynamics
7 factors across 1 forceIn August 2021,
Solectrac, Inc. (U.S.) launched its e70N tractor with 70 HP & 60 kWh for USD 75,000.
CNH Industrial’s Design Center demonstrated a STEYR Konzept hybrid tractor
at Agritechnica 2019.
John Deere showcased an autonomous tractor concept
with a rated electric-power output of 500 kilowatts – about 680 horsepower at a European dealer meeting in 2019.
In 2020, Kubota developed a fully electric driverless tractor,
the X tractor. This tractor was designed for the company's Agrirobo automated technology program.
Proxecto Engineering Services (India) decided to venture into the farming territory
with its flagship product, hybrid agri vehicle (HAV), scheduled in 2020 to help farmers in India.
In October 2020,
Fendt (Germany) launched the new 75-kW (100 hp.) electric tractor named Fendt e100 Vario with 10 hours operating capacity that can be recharged to 80% in just 40 minutes.
Gridtractor (India) launched a tool to develop,
implement, and maintain fleet electrification services for farms utilizing electric tractors and heavy farming equipment. The company helps farmers integrate electric charging and vehicle-to-grid (V2G) technology into their agricultural operations.
Table of contents
12 chapters · 201 sections · 306 pages · click to expandSegmental analysis
| Segment | Largest share (2023) | Fastest growth (2023–2030) |
|---|---|---|
| By Type | Tractors | — |
| By Mode of Operation | Semi-automatic | Automatic |
| By Power Source | Non-electric Equipment | Electric-powered agriculture equipment |
| By Application | Land Development & Seedbed Preparation | — |
By Type
- The Tractors segment is expected to account for the largest share of the global agriculture equipment market.
- The large market share of this segment is mainly attributed to factors such as the rising mechanization and adoption of precision farming, rising labor shortage, rising income of farmers, supportive government initiatives aimed at improving the agricultural sector, and technological advancement in tractors.
By Mode of Operation
- The semi-automatic segment is expected to account for the largest share of the global agriculture equipment market.
- The large market share of this segment is mainly attributed to the high demand for semi-automatic agriculture equipment due to their affordability and simplicity over automated agriculture equipment.
- Semi-automatic agriculture equipment is less expensive than automatic agriculture equipment, making it a more accessible option for small- and medium-sized farmers, mainly in low-income and emerging countries like China, India, and Brazil.
- Furthermore, the easy availability of this equipment and the presence of a large number of key manufacturers contribute to the growth of this segment.
- However, the automatic segment is projected to register the highest CAGR during the forecast period of 2023–2030 due to technological advancements in agricultural equipment, growing adoption of precision agriculture, and acute shortages of skilled laborers/workers in the agriculture sector worldwide.
- In addition, the ongoing trend of vertical agriculture and the rising use of artificial intelligence and robotics technologies in the agriculture sectors are further expected to provide opportunities for the stakeholders operating in this market.
By Power Source
- The non-electric equipment segment is expected to account for the largest share of the global agriculture equipment market.
- The large market share of this segment is attributed to the benefits offered by non-electric powered agriculture equipment, such as affordability, wider product range, lower power requirements, the non-requirement of batteries, and increased portability.
- However, the electric-powered agriculture equipment segment is projected to register the highest CAGR during the forecast period of 2023–2030.
- The growth of this segment is driven by the rising demand for renewable energy sources, the increasing need for electricity in developed and developing countries, and the growing adoption of automation and robotics in the agriculture industry.
By Application
- The land development & seedbed preparation segment is expected to account for the larger share of the global agriculture equipment market.
- The large market share of this segment is mainly attributed to factors such as the increasing adoption of advanced cultivation techniques to reduce labor costs, the availability of technologically advanced equipment, and the benefits offered by advanced agricultural equipment during land development and seedbed preparation, such as high productivity and efficiency.
Geographic analysis
Asia-Pacific
Largest shareIn 2023, Asia-Pacific is expected to account for the largest share of the global agriculture equipment market. The large share of this market is mainly attributed to the rising inclination towards mechanization and precision farming and the rising per capita income of the farmers in the region. Furthermore, the availability of loans and subsidies for purchasing agricultural equipment drives the growth of this regional market. Asia-Pacific Dominates the Overall Agriculture Equipment Market, While North America Leads in Growth
North America
However, North America is expected to witness significant growth during the forecast period, mainly due to the growing demand for autonomous agriculture equipment due to the increasing labor costs, rising technological advancement and incorporation of robotic and global positioning systems (GPS) in agriculture equipment such as tractors and harvesters, and increased demand for high-capacity machinery due to large-size farms.
Competitive landscape
- AGCO Corporation
- AMAZONEN-WERKE H. DREYER SE
- Technische Produkte GmbH
- CLAAS KGaA
- CNH Industrial N.V.
- HORSCH Maschinen GmbH
- KUBOTA Corporation
- Mahindra Ltd.
- Mascar SpA
- Morris Equipment Ltd
- Valmont Industries, Inc.
Frequently asked questions
Agriculture equipment is the machinery and tools designed to perform various agricultural tasks, including land preparation, planting, cultivation, and harvesting agricultural produce. It includes a wide range of machinery, such as tractors, harvesters, seeders, sprayers, irrigation systems, and grain-handling equipment. The stakeholders in this market are manufacturers, distributors, dealers, and end-users of agricultural equipment.
OEMs (original agriculture equipment manufacturers) are in the business of designing, producing, and marketing their brand of agricultural machinery and equipment. The revenue from OEMs across the globe is included in the market size for agricultural equipment.
In the report, autonomous agriculture equipment refers to machinery and equipment capable of performing agricultural tasks without human intervention. These advanced machines leverage technologies such as GPS, sensors, artificial intelligence, and robotics to carry out operations like planting, spraying, and harvesting with high precision and efficiency.
This report provides detailed market insights, dynamics, and forecasts of the agriculture equipment market segmented by type, mode of operation, power source, application, and geography.
Cite this report
Meticulous Research. (2023). Agriculture Equipment Market - Global Opportunity Analysis And Industry Forecast (2023-2030) (Report No. MR-690). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/agriculture-equipment-market-5374