Australia Agriculture Equipment Market Research Report 2026-2031

The Australia Agriculture Equipment Market was valued at USD 2.36 Billion in 2025, and is projected to reach USD 2.73 Billion by 2031, rising at a CAGR of 2.46%.

IMPACT OF TARIFF

• Tariffs have increased input costs and exerted downward pressure on demand for new agricultural machinery. However, their overall impact on Australia’s farm equipment market has remained relatively limited, reflecting the sector’s strong reliance on imported machinery and the country’s generally low applied tariff regime.
• In the short term, higher prices have constrained farm investment, encouraged greater reliance on used equipment and rental services, and placed pressure on farm profitability. Over the longer term, while tariffs may offer some temporary protection to domestic manufacturers, their contribution to strengthening local production capacity has been modest.

AUSTRALIA AGRICULTURAL EQUIPMENT MARKET TRENDS

Technological Innovation and the Rise of Autonomous Farming

• The Australian agricultural sector is experiencing rapid transformation, driven by accelerating innovation and the widespread adoption of advanced technologies such as GPS guidance, precision farming systems, and telematics.
• Several leading original equipment manufacturers (OEMs) operating in Australia - including John Deere, AGCO, CNH Industrial, and Kubota - have already incorporated GPS and telematics into their latest tractor models.
• In 2025, John Deere also introduced its next generation of round balers for Australian farmers, designed to deliver improved performance, intelligent connectivity, and consistently high-quality bales.

Growing Prominence of Electric Agricultural Equipment

• The Australian agricultural industry is undergoing a steady acceleration in machinery electrification, supported by advances in technology, proactive government policy, and increasing cost and sustainability pressures across farm operations.
• Reduced carbon emissions, lower fuel costs, and government incentives are making this transition attractive. As battery technology improves, electric tractors will become more viable for mainstream farming.
• In May 2025, John Deere unveiled its E-Power tractor prototype in Australia, incorporating high-performance KREISEL batteries with patented immersion-cooling technology. The prototype provides a continuous 130-horsepower output with instant torque, making it well-suited for intensive agricultural operations.

Growing Usage of Alternative Fuels in Agricultural Tractors

• Traditionally, farmers have relied on manufacturer-built, diesel-powered tractors, as diesel engines deliver the high torque required for demanding field operations. However, advances in engine and machinery technology have improved efficiency, enabling modern equipment to perform the same tasks with lower power requirements.
• The government support increased in 2025, with substantial federal and state funding for low-carbon and renewable fuels, mainly focusing on long-term capacity development and providing limited immediate incentives for farmers.
• In 2024, New Holland unveiled a prototype LNG-powered T7 series tractor, positioned as a future solution for Australian farmers and designed to potentially operate on captured methane from livestock waste, supporting circular and sustainable farming systems.

AUSTRALIA AGRICULTURAL EQUIPMENT MARKET DRIVERS

Growth in Winter Crop Productivity

• Higher winter crop productivity in 2025-26 is expected to have a measurable impact on agricultural equipment demand in Australia in 2026. In Western Australia, winter crop production in 2025-26 is forecast to be the second-highest on record, largely due to above-average yields.
• Higher production of wheat, barley, canola, and lentils is mainly driven by better yields and, in some cases, slightly larger planted areas. As yields rise, more work is required from machinery on each hectare, especially during seeding, spraying, and harvesting.
• In South Australia and Victoria, crop production is improving after drought years. Production is expected to rise by 63% and 17% in 2025-26, which points to a return to more normal farming conditions.

Increased Investments Australian Agricultural

• In 2026, higher Australian Government spending on agriculture is supporting stronger demand for agricultural machinery. Government funding is improving farm profitability, giving farmers more confidence to invest, and making it easier to finance large equipment purchases.
• In 2025, the Australian Government committed $3.5 million to develop Feeding Australia: A National Food Security Strategy. The strategy will be developed with farmers and fishers, industry and the community. It aims to boost the productivity, resilience and security of our food system.
• Through the Natural Heritage Trust (NHT), the $302.1 million Climate-Smart Agriculture Program is encouraging farmers to adopt precision agriculture technologies, low-emissions machinery, and improved soil-management equipment.

Export Market Dynamics and Global Demand

• The value of Australian wheat exports is forecast to increase by 7% in 2025-26 to $9.7 billion, as higher export volumes offset lower global prices.
• Elevated output in Western Australia, Australia’s largest exporting state, is expected to underpin above-average export volumes in 2025-26, increasing reliance on high-capacity seeding, harvesting, and grain-handling machinery to manage larger crops within narrow seasonal windows.
• Canola export values are forecast to rise by 5% to $4.2 billion in 2025-26, with volumes increasing by 6% to 5.2 million tonnes.

INDUSTRY RESTRAINTS

Rainfall Deficiency and Prolonged Drought Conditions

• Australia’s agricultural productivity is being increasingly constrained by persistent rainfall deficiencies and deepening drought conditions, particularly across the country’s key food-producing regions
• Large parts of Tasmania, Victoria, South Australia, southern and inland New South Wales, and much of Western Australia recorded below-average rainfall in 2025, with long-term deficiencies dating back to February 2024 continuing to weigh heavily on farm output. Rice production, which is entirely dependent on irrigation within the Murray-Darling Basin, has contracted sharply.
• Conditions have continued to deteriorate through the irrigation season, with storage levels falling rapidly as irrigation demand peaks during summer, further tightening water allocations.

Declining Farmer Profitability and Commodity Price Weakness

• Rising inflation and elevated agricultural input costs are expected to remain a constraint on demand for agricultural equipment in Australia in 2026, primarily through their adverse impact on farm profitability and cash flows. Farmer margins are projected to weaken in 2025-2026 compared with 2024-2025, driven by a combination of softening commodity prices and persistently high input costs.
• Australia’s structural dependence on imported fertilizers further amplified cost volatility in 2025, exposing producers to global supply disruptions and geopolitical risks.
• Heightened geopolitical tensions contributed to sharp price increases, with urea prices peaking at around $603.6 per ton in early September 2025, around 21% higher than at the start of the year 2025.

AUSTRALIA AGRICULTURE EQUIPMENT MARKET SEGMENTATION INSIGHTS

• The agricultural machinery market is dominated by tractors, which are projected to hold the largest market share in 2025. This segment is expected to grow at a CAGR of 2.85%. Harvesting equipment, such as combine harvesters, accounted for a significant market share in 2025.
• Within the land preparation equipment segment, tillers and plows are key players, holding substantial market shares in 2025. This entire segment is anticipated to expand at a CAGR of 1.42% by 2031.
• In the seedling and planting segments, seed drills are expected to lead, capturing a market share of around 6% in 2025. This segment is projected to show significant growth by 2031.
• Combine harvesters hold a significant position within the Australian agricultural equipment market. Its popularity stems from several advantages, including faster harvesting speeds, suitability for high-capacity farms, reduced labour dependency, and minimized crop loss due to precise cutting mechanisms. In the broader harvesting equipment segment, combine harvesters are forecast to grow at a significant rate during the forecast period.
• Similarly, plant protection systems are evolving toward more targeted approaches. This includes the adoption of low-volume, camera-guided self-propelling sprayers and biologically friendly delivery systems. These advancements aim to reduce chemical usage and drift, thereby ensuring compliance with increasingly stringent environmental regulations.
• In the other equipment segment, mowers lead the segment with the largest market share in 2025. Meanwhile, balers with a value of around $54 million in 2025 are projected to grow at a significant rate during the forecast period.

AUSTRALIA AGRICULTURE EQUIPMENT MARKET GEOGRAPHICAL ANALYSIS

• New South Wales is the most diverse and strategically significant agricultural region, supported by a broad mix of broadacre cropping, cotton cultivation, and livestock farming. Market growth in the state is increasingly shaped by machinery replacement cycles and the adoption of precision agriculture technologies, rather than the expansion of equipment fleets.
• Victoria exhibits one of the highest levels of machinery use per hectare, reflecting its strong mixed farming base. Demand is primarily concentrated on compact and mid-range tractors, along with balers, mowers, and specialized planting equipment.
• In Queensland, the agricultural equipment market is heavily influenced by large-scale farming operations and the prominence of sugarcane and grain production. These characteristics generate strong demand for high-horsepower tractors, efficient sprayers, and specialized harvesting machinery.
• Western Australia is distinguished as a high-value but lower-volume market, dominated by expansive, export-focused broadacre farms. Although fewer units of equipment are sold compared with the eastern states, average transaction values are significantly higher due to strong demand for ultra-high-horsepower tractors, large seeders, and high-capacity combine harvesters.
• Winter crop production in South Australia is forecast to rise by 63% to 8.7 million tonnes in 2025-‍26. Production is forecast to rise in 2025-‍26 because of average to above average rainfall across most cropping regions in South Australia throughout October 2025.
• Tasmania is a prime location to produce cereal and seed crops such as hemp, vegetables, and grass seeds, along with other high-value crops such as canola and malting barley. The Tasmanian Institute of Agriculture (TIA) at the University of Tasmania has launched a new strategic plan for 2026-2031 focused on advancing sustainable agricultural growth and food production in Tasmania.

AUSTRALIA AGRICULTURAL EQUIPMENT MARKET VENDOR ANALYSIS

The agriculture equipment market in Australia is competitive and dominated by both global and strong domestic manufacturers. Companies like John Deere, CNH Industrial, Kubota, and AGCO hold a significant share of the market.

The top three companies thrive on innovation, strong dealer networks, and technology to attract Australian farmers across diverse operations from broadacre to mixed farming.

John Deere's 2025 Australian market strategy centers on unprecedented horsepower capabilities combined with advanced autonomy and an aggressive electrification roadmap.

Recent Developments in Australia Agriculture Equipment Market

• In November 2025, John Deere updated its 5EN specialty narrow tractor range in Australia, focusing on more power, better comfort, greater precision, and improved usability.
• In October 2025, John Deere unveiled the 9RX 830 at Australia’s largest field days, highlighting a major productivity boost for broadacre and row-crop farming. The 830-horsepower model leads a new high-horsepower 9RX series that also includes the 9RX 770 and 9RX 710.
• New Holland unveiled the T9 SmartTrax tractors equipped with PLM Intelligence™ for the 2025 model year - a high-horsepower, tracked 4WD tractor line designed for demanding agricultural work with advanced connectivity and performance features.
• Mahindra & Mahindra launched its next-generation OJA tractor range in Australia in September 2025, marking its 20th year in the market with models like the OJA 1123 HST, 1126 HST, and 2126 HST, offering advanced features like hydrostatic transmission, power steering, digital displays, and optional HVAC cabins, targeting lifestyle and small farm owners.
• In July 2024, Landpower and CLAAS Harvest Centre unveiled the CLAAS XERION 12 series high-horsepower tractor in Altona, Melbourne, signalling the arrival of the model in Australia.

WHY SHOULD YOU BUY THIS REPORT?

This report is among the few in the market that offer outlook and opportunity analyses forecast in terms of the following:

• Market Size & Forecast Volume (Units) 2022-2031
• Segmentation by Equipment Type
• Production and trade values
• Major current and upcoming projects and investments
• Competitive intelligence about the economic scenario, advantages, industry dynamics, and industry shares
• Innovative technologies
• Share by each equipment segment
• Company profiles of major and other prominent vendors
• Company profiles of distributors
• Market shares of major vendors

Key Company Profile

• John Deere
• AGCO
• CNH Industrial
• Kubota
• Mahindra & Mahindra

Other Prominent Company Profiles

• Silvan Australia
• Same Deutz-Fahr
• Class
• Kioti
• ISEKI
• Lovol Tractors
• YTO Group
• Zoomlion
• K-Line Ag
• KUHN Group
• JCB
• HARDI Australia
• AFGRI Equipment Australia
• RDO Equipment Australia
• Emmetts
• Terrequipe Pty Ltd
• Yanmar
• Inlon Pty Ltd
• On-Trac Ag

Segmentation by Equipment Type

• Land Preparation
  • Tillers
  • Plough
  • Harrow
• Agriculture Tractor
• Seedling & Planting
  • Planters
  • Seed Drillers
• Plant Protection
• Harvesting
• Other Equipment
  • Mowers
  • Balers
• Geography
  • Queensland
  • Western Australia
  • Victoria
  • New South Wales
  • Southern Australia
  • Tasmania
  • Northern Territory

KEY QUESTIONS ANSWERED

1. How big is the Australia agriculture equipment market?
2. What are the key trends in the Australia agriculture equipment market?
3. Who are the major players in the Australia agriculture equipment market?
4. What is the growth rate of the Australia agriculture equipment market?
5. Which region dominates the Australia agriculture equipment market?