by Agriculture and farm machinery are integral part of agricultural equipment used for plowing, thinning, planting, fertilizing, pest controlling, harvesting and other farming operations. Tractors are primarily used for plowing, harvesting and other farming activities. Harvesters, planters and other machinery help to boost productivity and optimize crop yield. The introduction of machinery such as combine harvesters, tractors and threshers has helped reduce the manual effort required for farming activities.
The Global Agriculture and Farm Machinery Market is estimated to be valued at US$ 1220.73 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Agriculture and Farm Machinery Market are CNH Global NV., Yamabiko Corporation, Deere and Company, Mahindra & Mahindra Limited, CLAAS KGaA mbH, Same Deutz-Fahr, Bucher Industries AG., AGCO Corporation, Iseki & Co., Ltd, J.C. Bamford Excavators Limited (JCB), Kubota Corporation and Alamo Group, Inc. The growing population and rising demand for food has increased pressure on farmers to maximize crop yield. This has augmented demand for agricultural equipment globally. Agriculture and farm machinery producers are focusing on expanding their presence across Asia Pacific, Latin America, Middle East and Africa to leverage growth opportunities in these regions.
Market key trends
The Agriculture and Farm Machinery Market Demand is witnessing notable shift towards mechanization of farming operations. Companies are investing in development of efficient and automated machinery such as driverless tractors, unmanned aerial vehicles, robotic milking systems and autonomous harvesters.
Smart agriculture solutions leveraging technologies such as IoT, AI and cloud computing are gaining traction. For instance, smart water pumps and sprinklers can optimize water utilization based on soil moisture levels. Precision farming with application of GPS, GIS and related technologies helps optimize utilization of inputs and resources.
Porter’s Analysis
Threat of new entrants: High capital requirements for R&D and manufacturing act as a barrier for new companies.
Bargaining power of buyers: Large agricultural machinery manufacturers have significant bargaining power over individual buyers.
Bargaining power of suppliers: The availability of substitute components limits suppliers’ power.
Threat of new substitutes: New technologies like autonomous tractors pose a threat.
Competitive rivalry: The market is dominated by few large players and competition is high.
Geographical Regions
North America held the largest share of the market in 2024, with a value of over US$ 300 Mn, due to mechanization and adoption of advanced technologies in agriculture. The region is also home to major players such as John Deere and CNH Industrial.
Europe has traditionally been one of the largest Agriculture and Farm Machinery Markets Size and Trends due to high productive arable lands and the presence of leading manufacturers like CLAAS and Same Deutz-Fahr. The market value in Europe was estimated to be over US$ 280 Mn in 2024.
Asia Pacific is expected to be the fastest growing region during the forecast period, with China and India contributing significantly to market growth. This can be attributed to rapidly growing population, increasing disposable incomes, and government initiatives to support farm mechanization in countries such as India and China.
Japan accounts for a major share of the Asia Pacific market, owing to advanced agricultural practices and a high degree of mechanization. Market growth in South America is driven by countries such as Brazil and Argentina with extensive agriculture.
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
