Agricultural Machinery Market Size (2024 - 2029)

Agricultural Machinery Market Analysis

The Agricultural Machinery Market size is estimated at USD 151.55 billion in 2024, and is expected to reach USD 197.19 billion by 2029, growing at a CAGR of 5.40% during the forecast period (2024-2029).

Agricultural machinery has been growing steadily in Europe and North America during the study period. Rising mechanization in the regional agriculture sector and the surge in farmers’ income are likely to be a primary factor driving the growth. Moreover, as the push to enhance agricultural land productivity intensifies, it is expected to persist during the forecast period. This, in turn, is expected to drive farmers and land operators to adopt automation technologies in their equipment increasingly. While agriculture remains a key sector in the region’s economy, there has been a significant decrease in the number of individuals employed in this field. This has resulted in an annual labor shortage crisis for the agricultural industry. According to the World Bank, the employment rate in agriculture (% of total employment) in North America decreased from 1.73% in 2020 to 1.63% in 2021. Thus, the shortage of farm labor increased the wage rates in the industry, thereby raising the demand for farm machinery, which contributed to the market's growth during the forecast period.

Further, the need for sustainability in managing farm operations has induced the demand for highly developed and efficient machinery in recent years and is driving the growth of the market studied. For instance, according to the Association of Equipment Manufacturers (AEM), the total number of tractors and combines sold in 2021 in North America was 360,000 units. That year, there was an increase in sales of over 10% in nearly every segment of agricultural tractors and combines in the United States and Canada. Besides, the favorable programs of the country’s government to enable agricultural mechanization, offering support and financing for the purchase of agriculture machinery and equipment, and training for the operators of agricultural machinery have been driving the agriculture machinery market. For instance, in March 2022, the Government of Canada invested over USD 860,000 in agriculture machinery innovation and technology to tackle challenges in agriculture. These projects are supporting Canadian agricultural technology companies as they develop innovative solutions to help farmers reduce waste, conserve resources, and improve efficiency. Therefore, the increasing demand for agricultural machinery, with the rising farm mechanization, along with the technological advancements and innovations by the major players, are contributing to the market’s growth during the forecast period.

Agricultural Machinery Industry Segmentation

Agricultural machinery includes machines and tools used in fields for various farming activities, including harvesting, plowing, irrigation, and planting. The agricultural machinery market is segmented by Type into tractors, plowing and cultivating machinery, planting machinery, irrigation machinery, harvesting machinery, haying and forage machinery, and other types and by geography into North America, Europe, Asia-Pacific, South America, and Africa. The report offers the market size and forecasts in terms of value (USD) for all the above segments.