Farm Equipment Market worth $52.79 billion by 2032 | MarketsandMarkets
DELRAY BEACH, Fla., March 7, 2025 /PRNewswire/ -- The global farm equipment market is projected to grow from USD 39.95 billion in 2025 to USD 52.79 billion by 2032, at a CAGR of 4.1%, according to a new report by MarketsandMarkets. The farm equipment market has declined from 2022 to 2024 and is expected to continue its trend till 2026–2027. According to a recent report published by the United States Department of Agriculture (USDA), the farm equipment market is primarily driven by a projected ~25% drop in net farm income for 2024, falling from USD 155 billion to USD 116 billion, which has made farmers hesitant to invest in new machinery. Additionally, high operational costs and increasing commodity prices have pressured farmer's budgets, leading to a 15-20% decrease in monthly US tractor sales. Moreover, the demand for balers, sprayers, combines, and the other equipment market also suffers as many farmers postpone purchases due to these financial constraints. Similar trends and challenges have been followed in Europe and Asia due to increasing commodity prices, high operational costs, and reduced farm incomes. For instance, the European tractor market saw an ~11.4% decline in sales in early 2024, while India's tractor sales also faced a downturn of ~8.7%. However, this trend might continue for 2-3 years, and in the future, the global agricultural equipment market is projected to grow significantly.
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"Cereal Combines segment holds the largest market during the forecast period."
A cereal combiner, also known as a combine harvester, offers several advantages including: significantly increased harvesting efficiency, reduced labor requirements, simultaneous cutting, threshing, and grain separation, minimizing crop losses, time savings, and the ability to harvest large areas quickly. The North America is the largest exporter of cereal which is dominated by US with 13.9% of market share in export according to report OEA world.org published in 2023. Being the largest export for cereal, US also holds the largest market due to strong cultural of cereal breakfast. The major key players in US afor cereal combines are Deere & Company, CLAAS KGA, and Massey Ferguson. In US, Kellogg's is the established player who has biggest market for ready-to-eat cereals. Considering the sale trend for cereal combines in North America, it experienced a drop in sales in past 2 year due to increase in interest rates. The federal funds raised by 1.5–1.75% in 2022, to which the interest rates climbed to 8.5%, which affected the purchasing power of farmers for tractors and cereal combines. This trend is continued in 2024 and is expected to remain till 2026 until the interest rate decreases after which the sales might increase steadily.
Followed by North America, Asia Oceania holds the largest market for cereal in the world. Where China produced ~652.29 million tons of cereals in 2024 and has the highest demand for cereal combines. According to OEC world, China exports cereal to major countries like South Korea, Vietnam, Cote d'Ivoire, Guinea, Guinea-Bissau. Key players like, Wuhan Wubota Machinery Co., Ltd., Shandong Jianghua Machinery Manufacturing Co., Ltd., and Jiangxi Yongji Agricultural Machinery Co., Ltd are the major manufacturer of cereal combines in China. These key players are providing advanced AI, sensors, and precision farming application in cereal combiners to increases their yield. This advancement will reduce the dependence on labor and will drive the market.
">250 HP segment to grow fastest over the forecast period."
>250 HP tractors have comparatively higher demand in Europe than other regional markets owing to the rising need of increased farm mechanization rate with ever-growing labor wages and skilled farmers shortage in the region. This situation becomes more crucial for the farmlands meant for commercial & contract farming with large-scale crop production. According to EU Agricultural Outlook 2024, there were about 9.1 million farms in the EU, where each farmer nearly holds 17.8 hectares of farmland. Germany, France, and UK have expansion farming lands due to which some European farmers are inclined towards higher HP tractors to carrying various tasks like plowing, tilling, and harvesting across vast acres of agriculture lands for effective farming output. Additionally, these powerful tractors are mostly installed with advanced technologies such as and GPS guidance systems, auto-steering, and telematics among others to provide more accurate fieldwork, resulting in improved productivity and operational flexibility. Due to which, some of the global and regional OEMs offer a comprehensive range of >250HP tractors with several high-end features and customization options. For instance, New Holland has a broad portfolio of >250 HP tractors such as T9.470, T9.520, T9.580, T9.615, T9.655, and T9.700, T8.320 etc. which provides PLM Intelligence for precision farming with a 12-inch InfoView instrument cluster. Adding more, Deere & Company provides 6M is a 250 HP tractor which comes with AutoTrac with Universal Display and a JDLink standard display, which helps precision farming. Hence, with the increase in contract farming and shortage in labor, the demand for >250 Hp tractors will increase.
"Asia Oceania is estimated to be the dominant regional market."
Asia Oceania dominates farm equipment with a market share of >50% in 2025 even though the promising markets like China, India and Japan had noticed a deep in past 2 years. According to a report published by The International Monetary Fund in August 2024, the Asia Oceania market for farm equipment declined in 2023 - 2024 primarily due to various factors such as falling farm incomes globally, leading to reduced purchasing power for farmers, increased labor costs due to rural migration, high initial cost of modern machinery, and a trend towards delaying large equipment purchases due to economic uncertainty, causing farmers to prioritize maintaining existing equipment over buying new ones. The Indian market held more than 60% in 2024 within Asia Oceania region which was dominated by the major key players like Mahindra and Mahindra, Sonlaika, TAFE, and Escort Kubota Corporation. The Indian market has the market share more than 80% for 31-70 HP tractors due to small and medium farm field. The OEMs present in this country are actively investing in India for setting a new manufacturing plant for tractor and engines to lower the manufacturing cost. For instance, in January 2024, CNH Industrial started developing a new engine plant in Noida which will following Tier-IV and TREM-V regulations and in May 2024, Escorts Kubota invested USD 0.5 billion for developing new manufacturing facility in Uttar Pradesh etc. This investment from the company was made to cater the domestic demand and export the tractors in international market according to demand. Moreover, Indian tractors are majorly exported in Germany, Bangladesh, Turkey, Thailand, South Africa, and Sri Lanka due to high demand with lower pricing. With the speculated introduction of TREM V regulation from mid of 2026, these tractors especially above 50 HP would become complaint for region like EU which will have a positive exports outlook for regional tractor suppliers.
China is the next dominating country from Asia Oceania, where the demand for <30 HP tractors hold the more than 60% of the market due to low farmland availability with the farmers. Considering the sales trends, even China was observed with drop in sales for tractors and other farm equipment's due to decline in agriculture income and increasing commodity prices.
Key Market Farm Equipment Industry:
Prominent players in the Farm Equipment Companies include as Deere & Company (US), AGCO Corporation (US), CNH Industrial (Netherlands), Kubota Corporation (Japan), CLAAS KGAA (Germany), Mahindra & Mahindra (India), ISEKI & Co., Ltd. (Japan), Escorts Kubota Limited (Idia), SDF Group (Germany), and Yanmar Holdings Co., Ltd (Japan).
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This report provides insights on:
- Analysis of key drivers (Government support with farmer loan waivers/credit finance, OEM/sales incentives to support dealer services and rental operations, Contract farming, and Increase in farm mechanization), restraints (Growth of rental market, High equipment cost in emerging economies), opportunities (Growing adoption of precision agriculture, Increasing R&D and adoption of electric tractors), and challenges (Rapidly changing emission norms and mandates) influencing the growth of the farm equipment market.
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the farm equipment market
- Market Development: Comprehensive information about lucrative markets – the report analyses the farm equipment market across varied regions.
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the farm equipment market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Deere & Company (US), AGCO Corporation (US), CNH Industrial (Netherlands), Kubota Corporation (Japan), and CLAAS KGAA (Germany), Mahindra & Mahindra (India), ISEKI & Co., Ltd. (Japan), Escorts Kubota Limited (Idia), SDF Group (Germany), and Yanmar Holdings Co., Ltd (Japan) and among others in the farm equipment market.
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