The agricultural equipment market comprises machinery used at various stages of farming such as planting, seeding, irrigation, harvesting, and post-harvest processing. Key equipment includes tractors, harvesters, planting equipment, and irrigation machinery that assist with tasks like cultivation, crop harvesting, and crop protection. Agricultural equipment helps improve crop yield by performing farming operations timely and efficiently.
Agricultural Equipment Market is estimated to be valued at USD 145.24 Bn in 2025 and is expected to reach USD 200.31 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 4.7% from 2025 to 2032.
Key Takeaways Key players operating in the agricultural equipment are AGCO Corporation, BucherIndustries AG, CLAAS KGaA mbH, CNH Industrial N.V., KUBOTA Corporation, ISEKI & CO.,LTD. and Tractors and Farm Equipment Limited. AGCO Corporation offers a wide range of tractors, combines and application equipment. CLAAS KGaA mbH manufactures agricultural machinery including harvesters, forage harvesters, tractors and balers.
Agricultural Equipment Market demand is driven by the growing population and rising global food demand, which is increasing the need for high-yielding varieties of crops and thereby boosting demand for agricultural equipment. Additionally, the shortage of farm labor in developing countries is positively impacting the adoption of automation technologies in agricultural equipment.Geographically, North America dominates the global agricultural equipment market owing to large scale farming activities in Canada and U.S. However, Asia Pacific is expected to witness fastest growth during the forecast period led by government support to modernize agricultural practices in China and India. Key players are also expanding globally through strategic partnerships and acquisitions to leverage growth opportunities.
Market key trends
Implementation of precision farming and autonomous technologies such as GPS, sensors and smart irrigation systems allows efficient crop monitoring and resource utilization. This trend enables yield optimization and cost reduction for farmers. Precision farming helps apply exact amounts of inputs like water and fertilizers variable rate based on field conditions. Autonomous tractors and harvesters guided by GPS and computer vision further enhances farm productivity with minimum human intervention.
Porter's Analysis Threat of new entrants: New companies need substantial capital investment in R&D, manufacturing plants and distribution networks to compete in this market. Established players have significant economies of scale and brand recognition.
Bargaining power of buyers:
Buyers have moderate bargaining power due to availability of substitute products and sensitivity to price. However, they value productivity and automation offered by modern equipment.
Bargaining power of suppliers:
Suppliers of raw materials like steel have some bargaining power due to limited availability of substitute materials. However, there is a threat of forward integration by manufacturers.
Threat of new substitutes:
the fact that, though precision farming tools offer alternatives, agricultural equipment maintains an advantage due to the scale of operations. Additionally, crop prices also determine the demand for mechanized equipment
Competitive rivalry:
Major global players compete intensely on technology, pricing and service support. However, demand-supply dynamics ensure availability of market share. Geographically, North America accounted for the largest share in 2021 led by U.S. due to large arable land and ongoing mechanization in the region. Asia Pacific is anticipated to be the fastest growing market during the forecast period driven by high population density and government initiatives for farm mechanization in countries like India and China.
Geographical Regions The North American region holds major market share in terms of value due to extensive acreage under cultivation in countries like United States. Mechanization remains crucial for large-scale farms to optimize productivity. The Asia Pacific region is projected to witness highest growth during the forecast period led by rapidly growing agricultural sector in India and China. Increasing population density necessitates farm mechanization for higher output to meet food demand. Government schemes promoting mechanized agriculture also fuel regional market growth.
Get this Report in Japanese Language農業機械市場
Get this Reports in Korean Language농업 장비 시장
Read More Articles Related to this Industry-Must-Know Tips for Improving Roof Safety and Security
About Author:Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.
(LinkedIn- https://www.linkedin.com/in/priya-pandey-8417a8173/)
The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.
Agricultural machinery means all those tools and machines which are used in farming work.
Such as equipment for protection of fields, harvesting and tillage equipment, and agricultural equipment that transports crops from one place to another such as tractor-trailers, trolleys, etc agricultural machinery is also included.
Agricultural machinery is also used to increase agricultural product production.Read more at - https://tinyurl.com/6bfu93fy
IoT plays a major role in smart agriculture.
Smart farming and agriculture involve the integration of advanced technologies into existing farming practices in order to increase production efficiency and the quality of agricultural products.
IoT in agriculture involves sensors, drones, and robots connected through the internet which function automatically performing operations and gathering data aimed at increasing efficiency and predictability.
There are many reasons to implement a smart agriculture solution.
Below you can find some advantages of IoT for agriculture.
Benefits of IoT for AgricultureReduced environmental footprintReduction of risksLow operation costsIncreased quality of productionAutomatic watering and irrigation
The Quality Farm Supply fully understands the relevance of agricultural equipment and its components in the farming industry and thus has been supplying the premium grade Tisco tractor parts along with accessories.
