Farm Equipment Market: Global Industry Analysis and Forecast (2023-2029)

Farm Equipment Market was volume at 2.68 Billion units in 2022 and the market is expected to reach 3.72 Billion Units by 2029, at a CAGR of 4.8% during forecast period.
Farm Equipment Market Overview:
The Farm equipment consists of mechanical devices such as tractors and various attachments that are designed to be used in a variety of farming chores in order to save time and effort. These tools are simple to operate and aid with a variety of agricultural tasks such as primary and secondary soil tillage, cultivation, fertilizer spraying, insecticide, pesticide, and herbicide spraying, crop harvesting, and irrigation systems, water conservation management, and livestock farming. Farming methods need the use of agricultural equipment.To know about the Research Methodology :- Request Free Sample Report

The agricultural industry is transitioning from traditional farming to contemporary farming, which includes the use of modern Equipment. These instruments are necessary for increasing productivity and improving soil upkeep, and they are simple to use in farming. During this projected period, the demand for farm equipment will increase due to an increase in agricultural techniques for simple agro operations and to extend crop productivity.
Farm Equipment Market Dynamics:
The global agriculture equipment sector is projected to rise as the mechanization of various farming processes such as ploughing, harrowing, planting, harvesting, and tilling increases. Farmers' reliance on agriculture equipment grows as benefits from the use of mechanical equipment such as tractors, harvesters, and different attachments become more apparent. Furthermore, precision farming ensures the long-term viability of farming operations, boosts profitability, and protects land resources, all of which contribute to increased agricultural productivity. Various goods produced by prominent participants in the agriculture equipment sector aid farmers in various farming tasks such as sowing and harvesting, promoting the use of agriculture equipment even further. This has a substantial impact on the global agriculture equipment market's growth.

Furthermore, the world's rising population need increased food production. The adoption of automatic and semiautomatic agriculture Equipment Type to boost farm cultivation efficiencies can help to meet this demand. Agriculture equipment aids in the cultivation of more crops in less time and effort, resulting in increased food supply for the rising population. As a result, as the worldwide population grows, so does the demand for agricultural equipment, which propels the agriculture equipment market forward.

Farmers are encouraged to purchase farm equipment as a result of the establishment of farm loan waiver programmes. In several regions of the world, governments established various programmes to relieve farmers of their debts and stimulate farm mechanisation. For example, the US Farm Service Agency offers family-size farmers who are unable to receive commercial financing from a bank, a Farm Credit System institution, or other lenders guaranteed and direct farm ownership and operation loans. Land, cattle, equipment, feed, seed, and supplies can all be purchased with FSA loans. The government spends a lot of money each year on various subsidies to help the agricultural sector grow. Farm equipment such as tractors, combines, and harvesters are costly, making it difficult for farmers to purchase them with their limited resources. As a result, numerous governments have expanded their financial support in the form of subsidies and credits to encourage farmers to embrace modern farming equipment in order to boost food production.

The creation of improved items capable of handling various jobs has evolved from continuous R&D work. Complex mechatronic systems, for example, necessitate specific manufacturing and assembly methods. All of the stages required in designing, manufacturing, and distributing the equipment necessitate large investments, which are reflected in the cost of the Equipment available to farmers. Small farmers' unwillingness to invest a large sum of money leads to the poor penetration of farm equipment in developing countries. Farmers in developing countries like Asia and Oceania are hesitant to invest in costly Equipment. However, the adoption of farm equipment in North America and Europe is high due to the unavailability of labour and the high cost of farm labour.

Agricultural robotics that are technologically advanced, such as ground-based sensors, autonomous tractors, and flying drones, assist farmers in producing food at low costs to meet rising demand. Farmers are becoming more tech-savvy, and the adoption of GPS software products and telematics-equipped tractors is expected to boost agriculture Equipment sales in the future years. Furthermore, the increasing use of cost-cutting measures in agricultural equipment design is expected to provide major growth prospects for manufacturers. Market expansion is expected to be aided by an increase in the number of providers, as well as an increase in the number of government subsidies.

Furthermore, precision farming enables farming activities to be more sustainable, boosts productivity, and protects land resources, resulting in more developed agricultural production. Numerous items produced by major participants in the agriculture equipment business assist farmers in a variety of farming activities, such as planting and harvesting, facilitating the use of agriculture equipment. This has a substantial impact on the growth of the worldwide agriculture equipment market.
Farm Equipment Market Segment Analysis:
Tractors segment is dominating the market in terms of sales:
Tractors were the most popular product category in 2022, accounting for nearly 25% of total revenue. These vehicles are crucial farm Equipment that are utilized for a variety of tasks, both alone and in conjunction with other implements. Furthermore, because to increasing rates of mechanization and a growing population, the sale of tractors is likely to continue over the forecast period, putting significant pressure on food production and productivity.

Harvesters are expected to account for a share of over 21% in the agriculture equipment market by 2029 and expected to register a CAGR of more than 10% over the forecast period. This growth is attributed to the fact that farmers are increasingly preferring harvesters to increase production and limit dependency on farm labor. Furthermore, harvesters offer high productivity and fuel economy, which are some of the other factors anticipated to drive product demand through 2029.
Tractor expected to remain the fastest and largest in equipment rental market:
Tractors account for the majority of rental farm equipment. Companies are partnering with application developers to promote leasing and encourage farmers to use farm equipment at low costs. Due to increased farm mechanization and the rise of rental services, the rental market for tractors in emerging countries is likely to grow significantly throughout the forecast period. As a result, rising worries about agricultural productivity around the world, as well as expanding farm mechanization, would propel the tractor rental market forward during the projection period.
Farm Equipment Market Regional Insights:
As companies in Asia-Pacific have been launching new agricultural Equipment, the region is regarded one of the fastest-growing marketplaces. As a result, the region has dominated the industry with speedier advancements and product introductions. Rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane are among the crops for which the Chinese government is increasing farm mechanization. According to China's Ministry of Agriculture, combine harvesters are used to harvest 95.5% of the country's 80.0 percent of Wheatland. Increased focus on farm mechanization, as well as the government's goal of fully automating maize, wheat, and rice farms in the next ten years, may enhance sales and spur innovation.

North America held a share of over 22.0% in 2018 and is anticipated to exhibit strong growth by 2029. This is ascribed to introduction and utilization of machines with better fuel efficiency and improved features. Additionally, shortage of farm labor is expected to be one of the factors driving demand for farm equipment in North America.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the Market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Farm Equipment Market dynamics, structure by analyzing the Market segments and project the Farm Equipment Market size. Clear representation of competitive analysis of key players by Type, price, financial position, Type portfolio, growth strategies, and regional presence in the Farm Equipment Market make the report investor’s guide.
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 Farm Equipment Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 2.68 Bn .


Forecast Period 2023 to 2029 CAGR:
4.8%
Market Size in 2029:
US $ 3.72 Bn .


 Segments Covered:
by Drive Type
2 wheel drive
4 wheel drive


by Equipment Type
Tractors
Combines
Foragers
Balers
Loaders


by Automation
Automatic
Manual



Farm Equipment Market, by region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Players
1. Deere & Company
2. CNH Industrial NV
3. AGCO Corporation
4. Mahindra & Mahindra Limited
5. Kubota Corporation
6. Iseki & Co. Ltd
7. Escorts Limited
8. Daedong Industrial Co. Ltd
9. JC Bamford Excavators Limited
10. Lindsay Corporation
11. ARGO SpA
12. FotonLovol International Heavy Industries Company Ltd.
13. Kuhn Group
14. Landini
15. Netafim Limited
16. Valmont Industries Incorporated
17. Alamo Group Incorporated
FAQ’S:
1) What is the share of the Global Farm Equipment Market in 2022?
Answer: The Farm Equipment Market was accounted for 2.68 Billion units in the year 2022.

2) Which product segment is dominating the Farm Equipment Market?
Answer: Tractors is the dominating product segment in the market owing to increasing penetration of the equipment among the farmers across the globe and high work efficiency.

3) What are the key players in the Farm Equipment Market?
Answer: Deere & Company, CNH Industrial NV, AGCO Corporation, Mahindra & Mahindra Limited, Kubota Corporation, Iseki & Co. Ltd, Escorts Limited, Daedong Industrial Co. Ltd, JC Bamford Excavators Limited, Lindsay Corporation, ARGO SpA, Foton Lovol International Heavy Industries Company Ltd., Kuhn Group, Landini, Netafim Limited, Valmont Industries Incorporated, Alamo Group Incorporated

4) Which factor acts as the driving factor for the growth of the Farm Equipment Market?
Answer: Driving factors such as the mechanization of various farming processes including ploughing, harrowing, planting, harvesting, and tilling and increasing government initiatives for agriculture maintenance.

5) What factors are restraining the growth of the Farm Equipment Market?
Answer: natural calamities and increasing product prices in agriculture sector are the key factors restraining the market growth