Agricultural Machinery Market - Forecast(2024 - 2030)

Report Code: AIR 0252 Report Format: PDF + Excel

Agricultural Machinery Market Overview:

The global agricultural machinery market size is $227.5 billion as of 2023 and is forecast to grow at a CAGR of around 6.1% going through 2024-2030. The agricultural machinery market is experiencing a transformative evolution driven by technological advancements, sustainability concerns, and a growing global population. As per the Food and Agriculture Organization of the United Nations, the global population will mark an astonishing 9.1 billion figure by 2050 witnessing a surge of 34%, and to feed these 9 billion mouths global agricultural expenses in developing countries would amount to $83 billion per annum.  To enhance efficiency and productivity in agriculture, the industry is witnessing a surge in the adoption of smart and precision farming technologies. Automation and data-driven solutions are becoming integral to modern farming practices, optimizing resource utilization and reducing environmental impact. To counterpart such unprecedented food production demand coupled with depleting arable land, efficient and mechanized agriculture is the main objective, and agricultural machinery is the tool to meet the objectives. Moreover, Sustainability is a key driver in shaping the future of agricultural machinery. There is a growing emphasis on developing eco-friendly equipment with reduced carbon footprints. Electric and hybrid tractors, powered by renewable energy sources, are becoming increasingly popular, aligning with global efforts to address climate change. Furthermore, the agricultural machinery market is witnessing a shift towards integrated farming systems. This involves combining various agricultural activities, such as crop cultivation and livestock management, to create synergies that enhance overall farm productivity, these are the factors propelling the agricultural machinery market growth in the forecast year.

Report Coverage

The report: “Agricultural Machinery Market Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Active Wheelchair Market.

By Automation- Fully automatic, Semi-automatic, and Manual.

By Machinery Type- Tractor, Soil Cultivation, Planting, Irrigation, Fertilization, Harvesting, Hay Making, Loader and Agriculture Robots.

By Material Type- Structured steel, Alloyed Steel, Cast Materials, Light Alloy, Wearing Materials, Structured Material, Aluminum, Iron and Glass.

By Geography: North America (U.S, Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Rest of South America) and Rest of The World (Middle East, Africa).

Key Takeaways

In 2023, APAC's Agricultural Machinery sector dominated with 43% revenue share, driven by robust demand in India and China due to modernization needs, population growth, fostering innovation and economic growth.

The global agricultural machinery market has been witnessing steady growth due to the increasing demand for food and the need for efficient and modern farming practices.

Tractors and harvesters remain pivotal in the agricultural machinery market. Technological advancements, such as autonomous tractors and smart harvesters, are gaining traction.

Government initiatives and subsidies for farmers to adopt modern machinery play a crucial role in the market. Policies promoting farm mechanization and modernization contribute to market growth.

Precision farming technologies, including GPS-guided tractors, drones, and sensors, continue to gain prominence. These technologies help farmers optimize crop yields, reduce waste, and enhance overall efficiency.


Agricultural Machinery Market Segment Analysis – By Automation:

Manual Segment dominated the Agricultural Machinery Market with a value share of approximately 43% in 2023. The manual segment of the agricultural machinery market plays a crucial role, driven by factors such as the utilization of natural forces, availability of cost-effective labor, and enhanced precision in tasks. In sub-continent countries like China and India, where manual labor is abundant, the demand for manual agricultural machinery is expected to surge. The reliance on natural forces and cost-efficient labor aligns with the economic landscape of these regions, fostering market growth. Moreover, the emphasis on precision in agricultural operations contributes to the increasing adoption of manual machinery, especially in tasks that require a delicate touch or intricate handling. As these factors converge, the manual segment is poised to witness substantial demand, reflecting the symbiosis between traditional practices, economic considerations, and the quest for operational accuracy in the agricultural machinery market.

Agricultural Machinery Market Segment Analysis – By Machinery Type:

Based on Machinery Type, the tractor segment has the largest revenue market share of 29% in 2023. This surge is primarily fuelled by the imperative need to address labor shortages and meet the escalating global food demand due to a burgeoning population. Tractors have emerged as a vital tool for enhancing agricultural productivity in response to these challenges. Moreover, in 2022, Europe registered approximately 215,000 tractors, with 59,300 falling below 37kW (50 hp) and 155,700 at 38kW and above. The European Agricultural Machinery Association (CEMA) estimates 165,200 of these to be agricultural tractors, while the remainder comprises diverse vehicles like quad bikes, side-by-sides, telehandlers, and other equipment. This data underscores a thriving market, fuelled by a dynamic agricultural landscape and a substantial demand for tractor production in the Machinery Market. Moreover, the emergence of electric tractors presents a promising growth opportunity for market participants. Electric tractors offer a range of benefits, including cost-effectiveness, eco-friendliness, and high efficiency. These attributes make electric tractors an attractive option for farmers looking to reduce their environmental impact while boosting productivity. As the demand for agricultural machinery continues to surge, the tractors segment is poised to maintain its dominance in the market. With ongoing advancements in technology and a focus on sustainable farming practices, tractors are expected to play a crucial role in meeting the growing global food requirements.

Agricultural Machinery Market Segment Analysis – By Geography

Based on Geography, the APAC Agricultural Machinery accounted for the dominant revenue share of 43% in 2023. The Agricultural Machinery Market in the Asia-Pacific (APAC) region is poised for significant growth, driven primarily by the substantial agricultural activities in countries like India and China. With a large portion of their population engaged in agriculture, there is a heightened demand for advanced machinery to enhance productivity and efficiency in the sector. China, with its vast agricultural landscape, also exhibits a robust demand for agricultural machinery. The rapid industrialization in the country has led to a shift in labor dynamics, making the deployment of mechanized solutions imperative for maintaining agricultural output. For instance, according to the National Bureau of Statistics of China In 2022, China's agriculture and related industries contributed 16.24% to the GDP, totaling $ 2724.91 billion an annual increase of 0.19 percentage points. In India, where agriculture plays a pivotal role in the economy, the demand for agricultural machinery has surged due to the increasing need to modernize farming practices. Factors such as rising population, shrinking arable land, and the government's focus on agricultural mechanization contribute to the heightened demand. The adoption of advanced technologies like precision farming and smart agriculture practices further propels the need for innovative machinery.  Also, Indian fiscal policy projects a 3.5% growth for the agriculture sector in FY 2022-23, indicating positive economic prospects for the country's farming industry, as per Invest India. Additionally, the increasing adoption of modern farming techniques and the shift towards larger-scale commercial agriculture contribute to the demand for technologically advanced machinery in the forecast year.

Agricultural Machinery Market Growth Drivers:

Government Support and Subsidies driving the market growth

Government support and subsidies have become pivotal factors propelling the growth of the Agricultural Machinery Market. Initiatives such as financial aid, tax incentives, and technology adoption programs incentivize farmers to invest in advanced equipment, enhancing productivity and sustainability. This support fosters a conducive environment for market expansion, driving demand for modern agricultural machinery as farmers seek to capitalize on these benefits to optimize their operations and meet the increasing global food demand. Some of the other factors indirectly but positively influencing the market are agriculture finance and agriculture insurance initiated by The World Bank to aid the financially fragile agriculture production sector participants. The World Bank Group is a leading financier of agriculture, In FY 2023, approved IBRD/IDA commitments for agriculture and related sectors reached $5.9 billion, with $3 billion dedicated to climate action within new agriculture and food projects, reinforcing sustainable development and resilience. Moreover, according to the Indian Directorate of Economics and Statistics, the Ministry of Agriculture's number of subsidized machines and equipment given to farmers rose from 1,378,755 in January 2022 to 1,388,314 by December 2022, indicating increased support for agriculture. Other prominent factors equipped with a tendency to support the agriculture machinery market for exponential growth are a rise in research and development by various economies sponsored by various organizations such as The World Bank Group, rise in disposable income of the urban population creating demand for higher quality and organic agricultural products, and reduction in global farmland, which require advanced agricultural machinery to meet copious loads of vigorous production.

Rising Agriculture Mechanization Rates in Developing Countries

The rising trend of agriculture mechanization in developing countries is significantly impacting the demand for agricultural machinery. Faced with challenges such as diminishing land availability, water scarcity, and a shrinking labor force, these nations are increasingly adopting mechanized solutions to enhance productivity and efficiency in agriculture. This shift is fuelling a robust demand for various agricultural machinery, including tractors, harvesters, irrigation systems, and precision agriculture tools. Farmers in developing countries are recognizing the need for modern technology to overcome traditional constraints and optimize resource utilization. The demand for tractors is surging as they become essential for plowing, planting, and cultivating large expanses of land swiftly. For instance, Sonalika International Tractors unveiled 5 new series, including an e-model, at the Global Partners Summit 200 in Gurugram, featuring compact designs and advanced emission control systems for global exports. With compact designs and advanced emission control systems, these innovations cater to rising agriculture mechanization rates in developing countries, driving increased demand in the market. Additionally, there is a growing interest in precision agriculture tools and irrigation systems, reflecting a desire for optimized resource management and sustainable farming practices. As these nations embrace mechanization, the agricultural machinery market is witnessing a substantial upswing, driven by the imperative to secure food production in the face of resource constraints.

Agricultural Machinery Market Challenges:

High Cost of Agriculture Machinery Limit the Market Expansion

The high cost of agricultural machinery stands as a formidable impediment to the growth of the agriculture machinery market. This cost factor encompasses the initial purchase price, maintenance expenses, and the overall financial burden on farmers. Small and medium-sized farmers, in particular, find it challenging to invest in modern, technologically advanced equipment due to their limited financial resources. Additionally, the evolving nature of agricultural technology necessitates constant upgrades, exacerbating the economic strain on farmers. High capital requirements for machinery contribute to a digital divide, limiting access to innovative tools that could enhance productivity and sustainability. Addressing this challenge requires concerted efforts from policymakers, industry stakeholders, and financial institutions to develop cost-effective solutions, subsidies, or financing options that can alleviate the financial burden on farmers, promoting the widespread adoption of modern agricultural machinery.

Agricultural Machinery Market Key Players Perspective:

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Agricultural Machinery market. Major players in the Agricultural Machinery Market are Deere & Company, Kubota Corporation, Mahindra and Mahindra Limited, AGCO Corporation., Iseki & Co. Ltd, Escorts Limited Source, Daedong Industrial Co. Ltd, JCB, Tractors and Farm Equipment Limited, Sonalika, among others

Recent Developments

In January 2023, John Deere commemorates its 25th anniversary in the industry by unveiling 7 new tractors and 3 implements in India, showcasing the latest Power and Technology 4.0 edition. The celebratory launch includes a special limited-edition tractor, the John Deere 5045 D Power Pro 4WD V3, alongside tailored solutions for specific crops, promising Indian farmers enhanced efficiency and productivity.

In August 2023, Mahindra and Mahindra unveiled 7 lightweight tractors under the OJA platform in Cape Town, South Africa, in partnership with Mitsubishi Mahindra Agriculture Machinery, Japan. Ranging from 20 hp to 40 hp, these models will soon be introduced in India, with larger utility tractors expected next year

In September 2022, AGCO Corporation introduced the latest Fendt 300 Vario tractors to North American farmers in early 2022, enhancing agricultural efficiency with advanced technology and performance.

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1. Agricultural Machinery Market - Overview
    1.1  Definitions and Scope
2. Agricultural Machinery Market - Executive Summary
    2.1 Key Trends by Automation
    2.2 Key Trends by Type of Material
    2.3 Key Trends by Type
    2.4 Key Trends by Geography
3. Agricultural Machinery Market - Comparative Analysis
    3.1 Company Benchmarking 
    3.2 Global Financial Analysis
    3.3 Market Share Analysis
    3.4 Patent Analysis
    3.5 Pricing Analysis
4. Agricultural Machinery Market - Start-up Companies Scenario (Premium)
    4.1 Key Start-up Company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Venture Capital and Funding Scenario
5. Agricultural Machinery Market – Market Entry Scenario Premium (Premium)
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Case Studies of Successful Ventures
6. Agricultural Machinery Market - Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porter’s Five Force Model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes 
7. Agricultural Machinery Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Agricultural Machinery Market – By Automation (Market Size -$Million/Billion)
    8.1 Fully-automatic
    8.2 Semi-automatic
    8.3 Manual 
9. Agricultural Machinery Market - By Type of Material (Market Size-$Million/Billion)
    9.1 Structured steel
    9.2 Alloyed steel
    9.3 Cast materials
    9.4 Light alloy
    9.5 Wearing materials
    9.6 Synthetic materials
    9.7 Aluminum
    9.8 Iron
    9.9 Glass
    9.10 Others 
10. Agricultural Machinery Market – By Type (Market Size -$Million / $Billion)
    10.1 Tractor
        10.1.1 Utility tractor
        10.1.2 Row crop tractor
        10.1.3 Orchard tractor
    10.2 Planting
        10.2.1 Seed drill
    10.3 Soil cultivation
        10.3.1 Cultivator
        10.3.2 Cultipacker
        10.3.3 Chisel plow
        10.3.4 Rotator
        10.3.5 Subsoiler
        10.3.6 Plough
        10.3.7 Roller
        10.3.8 Stone picker
        10.3.9 Others 
    10.4 Irrigation
        10.4.1 Drip irrigation
        10.4.2 Central pivot irrigation
        10.4.3 Sprinkler system
        10.4.4 Hydroponics
    10.5 Fertilization
        10.5.1 Fertilize drill
        10.5.2 Fertilizer spreader
   Liquid manure spreader
   Dry manure spreader
        10.5.3 Sprayer
        10.5.4 Biomass plant
        10.5.5 Others 
    10.6 Harvesting
        10.6.1 Grain cart
        10.6.2 Conveyor belt
        10.6.3 Cotton picker
        10.6.4 Farm truck
        10.6.5 Grain dryer
        10.6.6 Haulm topper
        10.6.7 Mower
        10.6.8 Rake
        10.6.9 Others
    10.7 Hay making
        10.7.1 Bale lifter
        10.7.2 Bale wrapper
        10.7.3 Baler
        10.7.4 Hay rake
        10.7.5 Hay tedder
        10.7.6 Hay Fork
        10.7.7 Others
    10.8 Loader
        10.8.1 Backhoe loader
        10.8.2 Skid steer loader
        10.8.3 Others
    10.9 Agricultural robots
    10.10 Others
11. Agricultural Machinery Market – by Geography (Market Size - $Million/$Billion)
    11.1 North America
        11.1.1 U.S.
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 U.K.
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia & New Zealand
        11.3.6 Rest of Asia-Pacific
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Chile
        11.4.4 Colombia
        11.4.5 Rest of South America
    11.5 Rest of The World
        11.5.1 Middle East
        11.5.2 Africa
12. Agricultural Machinery Market - Entropy
13. Agricultural Machinery Market – Industry/Segment Competition Landscape (Premium)  
    13.1 Market Share Analysis
        13.1.1 Global Market Share – Key Companies
        13.1.2 Market Share by Region – Key Companies
        13.1.3 Market Share by Countries – Key Companies
    13.2 Competition Matrix
    13.3 Best Practices for Companies
14. Agricultural Machinery Market – Key Company List by Country Premium (Premium)
15. Agricultural Machinery Market - Company Analysis
    15.1 Deere & Company,
    15.2 Kubota Corporation
    15.3 Mahindra and Mahindra Limited
    15.4 AGCO Corporation.
    15.5 Iseki & Co. Ltd 
    15.6 Escorts Limited 
    15.7 Daedong Industrial Co. Ltd
    15.8 JCB
    15.9 Tractors and Farm Equipment Limited
    15.10 Sonalika
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