Agriculture Equipment Market by Type (Tractors, Harvesting Equipment, Irrigation Equipment), Mode of Operation (Manual, Automatic), Power Source (Electric Equipment), Application (Sowing, Crop Protection, Harvesting, Irrigation) - Global Forecast to 2030

The growth of this market is driven by the shortage of agricultural laborers, the increasing need for mechanization of agricultural operations, the increasing government initiatives aimed at supporting farmers, and improved credit availability for agriculture equipment manufacturers. However, the high costs of advanced agriculture equipment and the rising fragmentation of land hinder the growth of this market.

The technological advancements and the increasing adoption of precision farming techniques are expected to create market growth opportunities. However, low awareness of advanced agriculture technologies is a major challenge for the players in this market. Additionally, digitalization in agriculture is a prominent trend in the global agriculture equipment market.

In precision farming, advanced technology and data analytics are used to optimize farming practices and improve crop yields. Precision farming includes the use of sensors, GPS, drones, and other tools to gather data on soil health, weather patterns, and plant growth, as well as software and analytics tools to interpret this data and provide insights to farmers.

Precision farming involves the use of real-time data and software analytics (using GIS and GPS satellite information) to increase the efficiency and productivity of agriculture, increase profit margins, and reduce environmental impact. The continuous advancements in agricultural technology contribute to the ongoing growth and expansion of precision farming. Precision farming technologies can increase crop yield by up to 70% (Source: According to an article published in the Journal of Applied Economic Sciences. Thus, the adoption of such technologies is expected to provide opportunities for the stakeholders operating in the agriculture equipment market.

As more farmers adopt precision farming practices, there is an increased demand for equipment and tools that support these practices. These equipment and tools include sensors, drones, GPS devices, and software that help farmers gather and interpret crop and soil data. The increasing adoption of precision farming has led to innovation in the agriculture equipment market, as companies continuously seek to develop new tools and technologies to support these practices. Companies are developing new sensors and drones that provide more detailed data on crop health and soil quality.

Precision farming requires more sophisticated and expensive equipment compared to traditional agriculture machinery. As more farmers adopt precision farming, there is a growing demand for advanced tools. Agriculture equipment manufacturers actively develop and improve machinery to meet this demand and support precision farming practices.

• In August 2021, Solectrac, Inc. (U.S.) launched its e70N tractor with 70 HP & 60 kWh for USD 75,000.
• CNH Industrial’s Design Center demonstrated a STEYR Konzept hybrid tractor at Agritechnica 2019.
• John Deere showcased an autonomous tractor concept with a rated electric-power output of 500 kilowatts – about 680 horsepower at a European dealer meeting in 2019.
•  In 2020, Kubota developed a fully electric driverless tractor, the X tractor. This tractor was designed for the company's Agrirobo automated technology program.
• Proxecto Engineering Services (India) decided to venture into the farming territory with its flagship product, hybrid agri vehicle (HAV), scheduled in 2020 to help farmers in India.
•  In October 2020, Fendt (Germany) launched the new 75-kW (100 hp.) electric tractor named Fendt e100 Vario with 10 hours operating capacity that can be recharged to 80% in just 40 minutes.
• Gridtractor (India) launched a tool to develop, implement, and maintain fleet electrification services for farms utilizing electric tractors and heavy farming equipment. The company helps farmers integrate electric charging and vehicle-to-grid (V2G) technology into their agricultural operations.

Overall, precision farming provides several opportunities for the stakeholders operating in the agriculture equipment market, from increased demand for precision farming tools to innovation and increased sales of advanced equipment.

In 2023, the Tractors Segment is Expected to Dominate the Agriculture Equipment Market

Based on type, the agriculture equipment market is mainly segmented into Tractors, Harvesting Equipment, Soil Preparation & Cultivation Equipment, Irrigation Equipment, Spraying Equipment, and Other Agriculture Equipment. In 2023, the Tractors segment is expected to account for the largest share of the global agriculture equipment market. The large market share of this segment is mainly attributed to factors such as the rising mechanization and adoption of precision farming, rising labor shortage, rising income of farmers, supportive government initiatives aimed at improving the agricultural sector, and technological advancement in tractors.

In 2023, the Semi-automatic Segment is Expected to Dominate the Agriculture Equipment Market

Based on mode of operation, the global agriculture equipment market is segmented into semi-automatic, manual, and automatic. In 2023, the semi-automatic segment is expected to account for the largest share of the global agriculture equipment market. The large market share of this segment is mainly attributed to the high demand for semi-automatic agriculture equipment due to their affordability and simplicity over automated agriculture equipment. Semi-automatic agriculture equipment is less expensive than automatic agriculture equipment, making it a more accessible option for small- and medium-sized farmers, mainly in low-income and emerging countries like China, India, and Brazil. Furthermore, the easy availability of this equipment and the presence of a large number of key manufacturers contribute to the growth of this segment.

However, the automatic segment is projected to register the highest CAGR during the forecast period of 2023–2030 due to technological advancements in agricultural equipment, growing adoption of precision agriculture, and acute shortages of skilled laborers/workers in the agriculture sector worldwide. In addition, the ongoing trend of vertical agriculture and the rising use of artificial intelligence and robotics technologies in the agriculture sectors are further expected to provide opportunities for the stakeholders operating in this market.

In 2023 the Non-electric Equipment Segment is Expected to Dominate the Agriculture Equipment Market

Based on power source, the global agriculture equipment market is segmented into non-electric and electric-powered agriculture equipment. The non-electric equipment segment is expected to account for the largest share of the global agriculture equipment market. The large market share of this segment is attributed to the benefits offered by non-electric powered agriculture equipment, such as affordability, wider product range, lower power requirements, the non-requirement of batteries, and increased portability.

However, the electric-powered agriculture equipment segment is projected to register the highest CAGR during the forecast period of 2023–2030. The growth of this segment is driven by the rising demand for renewable energy sources, the increasing need for electricity in developed and developing countries, and the growing adoption of automation and robotics in the agriculture industry.

In 2023, the Land Development & Seedbed Preparation Segment is Expected to Dominate the Agriculture Equipment Market

Based on application, the agriculture equipment market is mainly segmented into land development and seedbed preparation, harvesting & threshing, irrigation, sowing & planting, crop protection, and other applications. In 2023, the land development & seedbed preparation segment is expected to account for the larger share of the global agriculture equipment market. The large market share of this segment is mainly attributed to factors such as the increasing adoption of advanced cultivation techniques to reduce labor costs, the availability of technologically advanced equipment, and the benefits offered by advanced agricultural equipment during land development and seedbed preparation, such as high productivity and efficiency.

Asia-Pacific Dominates the Overall Agriculture Equipment Market, While North America Leads in Growth

Based on geography, the global agriculture equipment market is majorly segmented into five regions, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the global agriculture equipment market. The large share of this market is mainly attributed to the rising inclination towards mechanization and precision farming and the rising per capita income of the farmers in the region. Furthermore, the availability of loans and subsidies for purchasing agricultural equipment drives the growth of this regional market.

However, North America is expected to witness significant growth during the forecast period, mainly due to the growing demand for autonomous agriculture equipment due to the increasing labor costs, rising technological advancement and incorporation of robotic and global positioning systems (GPS) in agriculture equipment such as tractors and harvesters, and increased demand for high-capacity machinery due to large-size farms.

Scope of the Report:

Agriculture Equipment Market Assessment, by Type

• Tractors
  • 30-50 HP
  • Less than 30 HP
  • 51-100 HP
  • More than 100 HP
• Harvesting Equipment
  • Combine Harvesters
  • Forage Harvesters
  • Other Harvesters
• Soil Preparation & Cultivation Equipment
• Irrigation Equipment
  • Irrigation Equipment Market, by Type
    • Drip Irrigation
    • Sprinkler Irrigation
    • Other Irrigation Equipment
  • Irrigation Equipment Market, by Component
    • Tubing  
    • Sprinklers
    • Emitter/Drippers
    • Irrigation Valves
    • Filters
    • Irrigation Controllers
    • Other Components
• Spraying Equipment
• Other Agriculture Equipment

Agriculture Equipment Market Assessment, by Mode of Operation

• Semi-automatic
• Manual
• Automatic

Agriculture Equipment Market Assessment, by Power Source

• Non-electric powered Agriculture Equipment
• Electric-powered Agriculture Equipment

Agriculture Equipment Market Assessment, by Application

• Land Development & Seedbed Preparation
• Harvesting & Threshing
• Irrigation
• Crop Protection
• Sowing & Planting
• Other Applications

Agriculture Equipment Market Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • U.K.
  • Spain
  • Rest of Europe (RoE)
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America (RoLATAM)
• Middle East and Africa

Key Questions Answered in the Report-