Farm Equipment Market
Report ID: SQMIG20H2083
Report ID: SQMIG20H2083
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Report ID:
SQMIG20H2083 |
Region:
Global |
Published Date: February, 2026
Pages:
157
|Tables:
150
|Figures:
78
Global Farm Equipment Market size was valued at USD 153.2 Billion in 2024 and is poised to grow from USD 162.39 Billion in 2025 to USD 258.83 Billion by 2033, growing at a CAGR of 6.0% during the forecast period (2026-2033).
The global farm equipment market continues to show growth due to the rise of mechanization in agriculture, increasing demand for food globally, and labor shortages in rural areas. There are additional pressures on farmers due to the rapid change in population and changes in food consumption patterns that have increased the need to be more productive and efficient in their operations. As a result, farmers are adopting advanced machinery such as tractors, harvesters, planters, irrigation systems, and precision farming equipment to improve their productivity and efficiency. The new technologies like GPS-controlled farm machines, autonomous farm machinery, telematics, and data-driven systems are changing traditional farming methods into efficient, technology-based operations.
Many governments in emerging economies have also provided support to add mechanization in agriculture through different incentives (subsidies), low-interest loans, and rural development programs to further enhance market growth. The Asia-Pacific region represents a large percentage of the global agricultural machinery market due to the size of its agricultural land and the increase in farm mechanization in China and India. In addition, North America and Europe lead the worldwide agricultural machinery markets in adopting technology and high-value apparatus. The main obstacles to growth are the high initial capital costs and fluctuating commodity prices faced by farmers. The market is expected to further transition to smart, connected, and sustainable equipment to maximize yield; use fewer resources; and increase farm profitability moving forward.
How is IoT Improving Predictive Maintenance in the Farm Equipment Market?
By incorporating both data analytics along with anything that uses satellite technology such as Integrated Maintenance Systems (IMS) and Integrated Fleet systems (IF), the IoT is revolutionizing how predictive maintenance takes place in the agricultural equipment industry. The integration of these technologies allows for constant monitoring of condition on critical components found on agricultural equipment such as engine hydraulic systems; and the use of field diagnostic tools or overseeing service providers; combined with cloud computing; allows for trend analytics to provide early alert signs of problems with equipment. The current change within the industry from reactive service to preventative service has been changed through cooperation of OEMs, retrofit solutions manufacturers, and the use of fleet management solutions by allowing older and newer farmers to receive health information regarding their respective fleets. This will allow dealers to plan for parts/labour and allow the farmer to avoid equipment failures at harvest time. Examples of how this is taking place are John Deere along with precision ag solutions, outfitted to tractors and/or combines, have installed data modem kits and integrated their fleet management systems to convert condition or operational data into an actionable maintenance plan.
Market snapshot - (2026-2033)
Global Market Size
USD 153.2 Billion
Largest Segment
31–70 Hp
Fastest Growth
>250 Hp
Growth Rate
6.0% CAGR
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The global farm equipment market is segmented into power output, drive type, function, propulsion, equipment type, and region. Based on power output, the market is segmented into <30 Hp, 31–70 Hp, 71–130 Hp, 131–250 Hp and >250 Hp. Based on drive type, the market is segmented into two-wheel drive and four-wheel drive. Based on function, the market is segmented into smart implements, plowing & cultivating, sowing & planting, plant protection and fertilizing, harvesting & threshing and other functions. Based on propulsion, the market is segmented into battery electric, hybrid electric, and hydrogen. Based on equipment type, the market is segmented into tractors, combines, sprayers, balers, and other equipment types. Based on the region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The harvesting & threshing segment has the highest farm equipment market share, due to the importance of combining harvesters and threshers for increasing productivity and decreasing post-harvest losses. Harvesting requires a quick response, and by mechanizing it, farmers can depend less on labor and therefore become more operationally efficient. Commercial farmers that service large farm blocks use extensive amounts of harvesting machinery which plays a large part in the harvesting & threshing segment having the largest market share.
As per global farm equipment market forecast, the smart implements segment is the fastest growing in the market. Technologies such as GPS enabled equipment, sensor-based planting systems, automated sprayers, and Internet of Things (IoT) integrated machinery are progressively being adopted by farmers to optimize input uses (fertilizers, seeds, and water), to decrease operating costs, and increase yield per acre of farmland. Additionally, these new technologies have resulted in a greater awareness of sustainable farming practices and data-driven decision making by farmers, which also helps increase demand for intelligent implements.
As per global farm equipment market analysis, the four-wheeler drive segment dominates the market because of its high-power output, good traction, and capability of handling heavy and large farm operations. They are used in commercial farming, large landholdings, and mechanized farming where significant ploughing, heavy hauling, and multiple implement operations are required. Their capacity to be productive on uneven and worst-case scenario terrain enhances their position as dominant, specifically in North America and large farms in Europe and Latin America.
As per global farm equipment market outlook, the two-wheeler drive segment is also seeing continued growth with small- to moderate-sized farms utilizing compact tractors to fill their light-duty farming needs in developing agricultural markets, particularly in emerging economies, namely, India and Southeast Asia. Factors encouraging the adoption of compact tractors for small- to moderate-sized farms are the small size of landholdings, affordability, low operating costs, and government subsidies for compact tractors, which have helped spur the rapid growth of this segment.
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The Asia-Pacific region dominates the global farm equipment market regional outlook, due to a combination of structural agricultural demand; concentrated manufacturing capabilities; and rapid technology adoption across a wide variety of farming systems. There are both large producers (i.e., large-scale farmers) and small producers (i.e., smallholders) in the market, which help to create demand for a broad spectrum of farm machinery ranging from tractors to precision implements. An extensive supplier network, high levels of competition in component manufacturing, and an active investment strategy in both automation and telematics all contribute to improving the availability and overall cost competitiveness of farm equipment.
The Japan farm equipment market regional forecast is oriented toward precision farming, compact machinery and integrating robotics and sensor technologies. Major market drivers for farm equipment in Japan include well-established engineering companies and a continued emphasis on collaborative research and engineering between manufacturers and research institutions. Farms tend to utilize fewer employees than in other regions, and arable land is scarce; therefore, there is a strong incentive to mechanize and use specialized equipment in Japan.
The South Korea farm equipment market analysis is highly influenced by a rapidly growing adoption of technology, a strong emphasis on automation and significant use of electronics in the design and manufacture of agricultural machinery. The collaboration between farm machinery manufacturers and agricultural stakeholders has led to an accelerated rate of development for smart implements and precision products used in intensive farming systems. A robust aftermarket service infrastructure, complemented by effective training programs, has contributed to enhancing the quality of operators working with agricultural machinery.
The rapid growth of the farm equipment market trends in North America has been fueled by several factors including large scale farm consolidation and the growing emphasis on productivity among agricultural operations and adoption of new technologies on the farm. As a result, large scale operators are looking for high capacity, durable equipment, while manufacturers of specialty machinery participate in stimulating the market through serving the needs of service providers and custom operators.
The US farm equipment market revenue is characterized as a market for large quantities of machinery that can deliver high-quality results, as well as providing precision farming technology and integrated data management systems to support farming business processes. Large commercial operators and custom service providers will drive the demand for scalable equipment/implements to complete their work. Equipment is utilized and lasts longer with the assistance of dealer networks, various methods of financing, and after-market support for the equipment. The relationship between manufacturers and technology companies helps accelerate improvements in connectivity and automation while supply chain management supports the availability of products in different regions of agriculture and provide service to customers.
As per farm equipment industry analysis, the Canada market is influenced by a mix of both large farming operations and specialty producers in different regions that require machinery that is general-purpose and durable. A strong emphasis on efficiency and adaptability has assisted in the uptake of precision equipment and resilient machinery for all different climates. Large dealer networks and developed after-market support systems assist in providing agriculture producers with continuous uptime in their equipment regardless of the remoteness of the area. Manufacturers and aggrotech companies are collaborating with each other to develop modular products and tailored financing solutions for multiple segments of agriculture.
As per farm equipment market regional forecast, the development of new technologies will continue to be an important factor in advancing Europe’s position in the farming machinery industry. The strength of Europe's manufacturing base also plays a role in creating differentiation between products through technology-based differentiation. The importance of using low-emission machinery, energy-efficient systems, and compatibility with precision agriculture are all driving the innovation of suppliers. The fragmented structure of farmland creates a need for multifunctional modular equipment for smaller-sized farms. Suppliers are finding that aligning logistics and aftermarket networks is critical to ensuring that they can effectively deliver services in a timely manner across multiple countries. The increasing number of joint research and development projects and the strong working relationship between universities and manufacturers have resulted in significant progress in developing climate-resilient implements and digital platforms for agriculture.
The Germany farm equipment market penetration combines precision manufacturing, engineering excellence, as well as a supply network to provide high-performing implements. An emphasis on efficiency of operation, lower emissions, and compatibility with farm management software enhances product differentiation. Excellent vocational training, along with strong cooperation between manufacturers and research institutions, build trust for aftermarket service and standardization of components.
As per farm equipment market regional outlook, the UK markets a heavy emphasis on lightweight design, telematics, and modular implementation design to meet the needs of a fragmented market. Strong service networks and dealer partnerships facilitate the purchase of equipment by mixed farmers and contractors. The partnership among engineering companies, as well as agricultural research agencies, is a positive factor for the digital integration and testing of low-emission drivetrains.
The France farm equipment industry is characterized by a long-standing history of implement production, as well as a growing focus on sustainability and multi-functional machinery for both crops and livestock. Manufacturers of farm equipment devote much of their resources to allowing for flexibility and ergonomics of their operators to accommodate various regional needs. The relationship between research institutions and farm equipment manufacturers is an important factor in the continued development of low-emission drivetrains and the creation of web-based integrated digital tools. The use of dealer networks that refurbish equipment makes it available for ongoing use for cooperatives and farmers across France.
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Mechanization Adoption Increases Productivity
Precision Farming Technologies Drive Efficiency
High Capital Requirements Limit Adoption
Supply Chain Disruptions Impact Supply Availability
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OEM collaborations, strategic investments, and robotics alliances are driving electrification and autonomy competition in the global farm equipment industry. Established industry players acquire companies, including John Deere's acquisition of Bear Flag Robotics, while purchasers and venture capitalists support startups in scaling into service models for buyers. Startups are exploring niche technologies to differentiate in the market by using laser weeding tools or offering subscription-based autonomy that would allow them to win contracts in the field and achieve differentiation from other startups.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, mechanizing agriculture to increase productivity and allow larger and more consistent production is the primary driver of global farm equipment market growth. With mechanization serving as a second major driver through improved input efficiency through precision agriculture and digital solutions, all providing a basis for creating new services or subscription-based models. Although high capital costs have limited the uptake by smallholder farms, even though innovative ownership alternatives exist. The Asia Pacific region is the leading geography with its combination of broad demand, local manufacturing activity, and rapid technology adoption as driving factors. While the battery electric segment has led to the market-changing the way the farm value chain operates by providing lower operating costs, simpler drivetrains, and opening the door for the creation of new service ecosystems which provide a means for accelerating the rate of electrification and aftermarket revenues.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 153.2 Billion |
| Market size value in 2033 | USD 258.83 Billion |
| Growth Rate | 6.0% |
| Base year | 2024 |
| Forecast period | (2026-2033) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Farm Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Farm Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Farm Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Farm Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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Global Farm Equipment Market size was valued at USD 153.2 Billion in 2024 and is poised to grow from USD 162.39 Billion in 2025 to USD 258.83 Billion by 2033, growing at a CAGR of 6.0% during the forecast period (2026-2033).
Competition in the global farm equipment market is centering on electrification and autonomy, driven by OEM deals, strategic investments and robotics partnerships. Incumbents execute acquisitions such as John Deere’s purchase of Bear Flag Robotics while buyers and VC backers push scale ups into service models. Startups pursue niche tech such as laser weeding and subscription autonomy to win field contracts and lead differentiation. 'DEERE & COMPANY', 'CNH INDUSTRIAL N.V.', 'AGCO CORPORATION', 'KUBOTA CORPORATION', 'CLAAS KGAA MBH', 'MAHINDRA & MAHINDRA LTD.', 'ISEKI & CO., LTD.', 'ESCORTS KUBOTA LIMITED', 'SDF GROUP', 'YANMAR HOLDINGS CO., LTD.', 'Massey Ferguson', 'New Holland Agriculture', 'Case IH', 'JCB', 'Fendt', 'Valtra', 'Kuhn Group', 'McCormick Tractors', 'Challenger', 'Landini Tractors'
Widespread replacement of manual labor with modern tractors, harvesters, and implements enables farmers to cultivate larger areas with greater consistency, which raises output per unit of land and reduces seasonal bottlenecks. Improved equipment reliability and ease of use lessen labor constraints and allow timely operations, leading to more predictable crop cycles and expanded planting intensity. This operational efficiency encourages investment in additional machinery and services, stimulates supplier activity, and strengthens demand across the farm equipment value chain, driving sustained market growth.
The Asia-Pacific region dominates the global farm equipment market regional outlook, due to a combination of structural agricultural demand; concentrated manufacturing capabilities; and rapid technology adoption across a wide variety of farming systems. There are both large producers (i.e., large-scale farmers) and small producers (i.e., smallholders) in the market, which help to create demand for a broad spectrum of farm machinery ranging from tractors to precision implements. An extensive supplier network, high levels of competition in component manufacturing, and an active investment strategy in both automation and telematics all contribute to improving the availability and overall cost competitiveness of farm equipment.
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