Farm Machinery and Equipment Global Market Report 2024

The farm machinery and equipment market size has grown strongly in recent years. It will grow from $211.09 billion in 2023 to $225.51 billion in 2024 at a compound annual growth rate (CAGR) of 6.8%. The growth observed in the historical period can be attributed to several factors, including the mechanization of agriculture, the impact of the industrial revolution, population growth leading to increased food demand, government support, subsidies, and the agricultural boom post-war.

The farm machinery and equipment market size is expected to see strong growth in the next few years. It will grow to $288.89 billion in 2028 at a compound annual growth rate (CAGR) of 6.4%. Forecasted growth is fueled by precision agriculture, robotics, IoT, sustainable farming, and electric/hybrid machinery. Major trends include blockchain traceability, robotics for planting/harvesting, hydroponics/aeroponics, multi-functional implements, and remote monitoring/control systems.

The integration of Internet of Things (IoT) applications in farm equipment is poised to stimulate the market for farm machinery and equipment. With the global population projected to exceed 9 billion by 2050, there is a growing imperative for farmers to access advanced tools and methodologies that enhance agricultural output within constrained timeframes. In response to this demand, the adoption of new and sophisticated technologies becomes paramount for farmers to meet the needs of the expanding population. For example, the implementation of IoT-driven smart greenhouses allows for automated climate monitoring and control, optimizing factors such as light levels, pressure, humidity, and temperature. By leveraging IoT sensors, these smart greenhouses autonomously regulate actuators, enabling functions such as window operation, lighting control, heating, misting, and fan operation. Consequently, the integration of IoT facilitates increased production efficiency with reduced labor, thereby propelling the farm machinery and equipment market.

The farm machinery and equipment market is experiencing growth driven by an escalating number of government initiatives aimed at promoting agricultural mechanization. Agricultural mechanization involves the application of mechanical and technological equipment, machinery, and techniques to enhance efficiency, productivity, and sustainability in farming operations. Governments worldwide are actively supporting this market through initiatives that encompass subsidies, mechanization promotion, research funding, infrastructure improvement, trade policy influence, sustainability advocacy, and the integration of modern equipment into rural development programs. An illustration of this trend is evident in the UK, where, as of August 2022, the government is offering farmers and growers substantial funding incentives, up to $591,220 (£500,000), to invest in cutting-edge robotics and technology. This financial support is accessible through initiatives such as the Farming Futures Automation and Robotics competition, a component of the government’s $319.25 (£270) million Farming Innovation Program. Consequently, the increasing number of government initiatives endorsing agricultural mechanization is a key driver fueling the growth of the farm machinery and equipment market.

Anticipated as a burgeoning trend in the farm machinery and equipment market, eco-friendly electric tractors are gaining prominence. These tractors utilize electronic batteries, rechargeable through a standard socket, eliminating the need for environmentally harmful fuels that contribute to air pollution. Moreover, some models allow farmers to incorporate renewable energy sources such as wind or solar power to generate electricity for recharging tractor batteries. An illustration of this eco-friendly innovation is exemplified by Solectrac, a US-based tractor company that unveiled the e70N electric tractor in August 2021. This 70-horsepower, 4WD narrow tractor is tailored for substantial agricultural tasks in farms, orchards, and vineyards, boasting a commendable operational duration of up to eight hours on a single charge with its 60 kWh battery. Solectrac offers an optional swappable battery pack for an additional cost of $18,000, aligning with the company's commitment to meeting the rising demand for zero-emission, heavy-duty tractors in the agricultural sector. The adoption of such eco-friendly electric tractors is not only conducive to reducing emissions but also addresses concerns related to noise pollution.

Major industry players are actively developing autonomous solutions to fortify their market positioning in response to the dynamic landscape of the farm machinery and equipment market. Autonomous tractors, characterized by their self-driving or driverless capabilities, leverage advanced technologies including sensors, cameras, GPS, and artificial intelligence to execute diverse farming tasks without direct human intervention. A noteworthy example is Deere & Company, a prominent US-based tractor and machinery manufacturing company, which introduced the John Deere 8R autonomous tractor in January 2022. This cutting-edge tractor integrates multiple stereo cameras, GPS navigation, and geofencing features, enabling it to autonomously perform tasks such as tillage. The incorporation of autonomous technology not only holds the potential to enhance productivity but also addresses the evolving landscape of labor demands in the agricultural sector.

In August 2023, Brandt Industries Ltd., Canada-based grain handling products company acquired Wairarapa Machinery Services Ltd. in New Zealand for an undisclosed sum. This strategic move has broadened Brandt's footprint in the Greater Wellington region, facilitating improved access to parts and services. The acquisition strengthens Brandt's support infrastructure and enables increased community engagement. Wairarapa Machinery Services Ltd. specializes in agricultural machinery sales, services, and parts.

Major companies operating in the farm machinery and equipment market report are Pfizer Inc., Johnson & Johnson Services Inc., F Hoffmann-La Roche Ltd., Roche Holding AG, Novartis International AG, LG Life Sciences Ltd., LG Chem Ltd., Amgen Inc., Teva Pharmaceutical Industries Ltd., Sandoz International GmbH, Chugai Pharmaceutical Co. Ltd., Meiji Seika Pharma Co. Ltd., Sun Pharmaceutical Industries Ltd., Kyowa Kirin Co. Ltd., Dr Reddy’s Laboratories Ltd., 3SBio Inc., Celltrion Inc., Watson Pharmaceuticals Inc., Biocon Limited, Emcure Pharmaceuticals Ltd., Dong-A ST Co. Ltd., Intas Pharmaceuticals Ltd., JCR Pharmaceuticals Co. Ltd., BioSidus SA, Probiomed SA de CV, Polifarma SpA, Shenyang Sunshine Pharmaceutical Co. Ltd., Hospira Inc., Cilag AG, Mitsubishi Tanabe Pharma Corporation.

The Asia-Pacific was the largest region in the farm machinery and equipment market in 2023. North America was the second largest region in the global farm machinery and equipment market share. The regions covered in the farm machinery and equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the farm machinery and equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Key types of farm machinery and equipment include cultivators, rotators, chisel plows, harvesters, rollers, field sprayers and spreaders, irrigation systems, livestock equipment, tractors, and other variants. A chisel plow is a soil tillage device towed by a tractor or animal, designed to break and stir soil deep below the surface without turning it. These tools come in small, medium, and large capacities, operated manually, semi-autonomously, or fully autonomously. Applications for this equipment span spraying, water supply and conservation, cultivation, harvesting, seeding, weeding, livestock farming, and various other agricultural tasks.

The farm machinery and equipment market research report is one of a series of new reports that provides farm machinery and equipment market statistics, including farm machinery and equipment industry global market size, regional shares, competitors with a farm machinery and equipment market share, detailed farm machinery and equipment market segments, market trends and opportunities, and any further data you may need to thrive in the farm machinery and equipment industry. This farm machinery and equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The farm machinery and equipment market consists of sales of combine harvester, rotavator or rotary tiller, plough or plow, tractor trailer, power harrow, leveler, water bowser, ripper machine, and disc harrow. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this farm machinery and equipment market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.