Africa Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.27 Billion |
| Market Size (2029) | USD 3.09 Billion |
| CAGR (2024 - 2029) | 6.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Agricultural Machinery Market Analysis
The Africa Agricultural Machinery Market size is estimated at USD 2.27 billion in 2024, and is expected to reach USD 3.09 billion by 2029, growing at a CAGR of 6.40% during the forecast period (2024-2029).
Over the years, agricultural mechanization has become an integral component of agricultural development in the rest of the African countries, resulting in the evolution of agricultural machinery hire services. The expansion of agricultural productivity through increased investment into the segment for farm mechanization by the government has increased the adoption of autonomous agricultural machinery. Furthermore, the increasing trend toward sustainable mechanization, the growth of medium-sized farms, and the adoption of innovative technologies drive the market in the region. However, the reliance on traditional implements and the low income in certain African countries may hinder the market's growth.
Tractors dominated the agricultural machinery market. According to the South African Agricultural Machinery Association (SAAMA), in October 2022, tractor sales of 1,268 units were almost 48.1% more than the 856 units sold in October 2021. Year-to-date tractor sales were almost 30% up from last year. Thirty-four combine harvesters were sold in October 2022, a drop of 24.4% compared to October 2021. On a year-to-date basis, combine harvester sales witnessed an increase of 25% from last year. Individual ownership, collective ownership, fee-based service delivery, and leasing are the types of machinery usage systems followed in the region.
Africa Agricultural Machinery Market Trends
This section covers the major market trends shaping the Africa Agricultural Machinery Market according to our research experts:
Increasing Focus on Sustainable Mechanization
Even though Sub-Saharan Africa has the highest global area of uncultivated arable land, productivity lags far behind other developing regions. Also, yields are only about half the international average, far below the growth levels needed to keep pace with food demand driven by population expansion. However, mechanization may dramatically improve the yield gap. Therefore, the focus on sustainable agricultural mechanization has been a prime developmental goal in the African region. Furthermore, in 2018, FAO and the African Union launched the Framework for Sustainable Agricultural Mechanization for Africa (SAMA), setting out a long-term vision and national and regional priorities, emphasizing cooperation with the agricultural machinery industry. Interventions could aim to move smallholders from hand-tool-based labor to innovative technologies. Sustainable mechanization relieves labor shortages, cuts working time, raises productivity, and encourages youth into agriculture to create jobs.
In 2021, the European Agricultural Machinery Industry Association (CEMA) and the Food and Agriculture Organization of the United Nations (FAO) renewed their memorandum of understanding (MoU) on sustainable agricultural mechanization until 2025, which includes a focus on African countries.
Tractors Segment Dominates the Market
According to the research survey conducted by Agri evolution Alliance, Africa holds great market potential for agricultural machines, including tractors. The government's increasing support to develop this market is expected to drive this sector. For instance, the Ghana government provides subsidized tractors to entrepreneurs who run 89 centers that rent out and service tractors. In major parts of Africa, tractor sales were affected due to uncertainty regarding crop yields and exchange rates.
Additionally, issues concerning land restitution and farmworkers' shares in farms added to the farmers' uncertain conditions. According to the latest report published by the South African Agricultural Machinery Association (SAAMA), tractor sales increased by 15.5% in September 2022 compared to September 2021. Tractor sales amounted to 6,479 units in September 2022, up from 5,610 units in September 2021. However, the region is currently facing major constraints that hamper the market's growth. One such limitation is the private sector's involvement, which is severely hampered by government resistance and corruption, affecting the imports of tractors.
Africa Agricultural Machinery Industry Overview
The African agricultural machinery market is relatively consolidated. The major players in the market include Deere & Company, AGCO Corporation , CNH Industrial NV, Claas KGaA mbH , and Mahindra & Mahindra Ltd. Major players in the market have extended their product portfolio and broadened their businesses to maintain their positions in the market. Expanding the product portfolio by introducing new and innovative products into the market is the most adopted strategy by these companies.
Africa Agricultural Machinery Market Leaders
AGCO Corp.
CNH Industrial America LLC
Claas GmBh
Mahindra and Mahindra Ltd
Deere & Company
*Disclaimer: Major Players sorted in no particular order
Africa Agricultural Machinery Market News
- August 2022: As part of plans to support and boost the cotton industry in South Africa, the Department of Science and Innovation (DSI) and its entity, the Technology Innovation Agency(TIA), have together supplied farmers with two cotton baler machines to put an end to manual cotton baling.
- May 2022: At NAMPO, South African Agriculture Trade Show, AGCO introduced their new and improved Fendt One tractor models 1000 and 200 series, along with Fendt Ideal Combine 10T, which is said to be of higher efficiency and lower maintenance to help the farmers. They will also exhibit their high-end models in the show.
- May 2022: The auto and truck parts manufacturer, Bridgestone, entered the South African agriculture market with a new range of ultra-high performance tires designed specifically for tractors and combine harvesters.
Africa Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Tractors
5.1.2 Plowing and Cultivating Machinery
5.1.3 Planting and Fertilizing Machinery
5.1.4 Harvesting Machinery
5.1.5 Haying and Forage Machinery
5.1.6 Irrigation Machineries
5.1.7 Other Product Types
5.2 Geography
5.2.1 South Africa
5.2.2 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Tractors and Farm Equipment Limited (TAFE)
6.3.2 Claas KGaA mbH
6.3.3 AGCO Corporation
6.3.4 Mahindra & Mahindra Ltd
6.3.5 Kubota Agricultural Machinery
6.3.6 Deere & Company
6.3.7 Kverneland AS
6.3.8 CNH Industrial NV
6.3.9 J.C. Bamford Excavators Limited
6.3.10 Kuhn Group
6.3.11 Escorts Group
6.3.12 Lindsay Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Africa Agricultural Machinery Industry Segmentation
Agriculture machinery and equipment are the farm equipment, machines, and farmer tools that increase agricultural crop productivity and food output. It accomplishes regular agriculture tasks that help boost food crop production and alleviate poverty.
The African agricultural machinery market is segmented by type (tractors, plowing and cultivating machinery, planting and fertilizing machinery, harvesting machinery, haying and forage machinery, irrigation machinery, and other product types) and geography (South Africa and the Rest of Africa). The report offers the market size and forecasts in terms of value (USD million) for all the above segments.
| Product Type | |
| Tractors | |
| Plowing and Cultivating Machinery | |
| Planting and Fertilizing Machinery | |
| Harvesting Machinery | |
| Haying and Forage Machinery | |
| Irrigation Machineries | |
| Other Product Types |
| Geography | |
| South Africa | |
| Rest of Africa |
Africa Agricultural Machinery Market Research FAQs
How big is the Africa Agricultural Machinery Market?
The Africa Agricultural Machinery Market size is expected to reach USD 2.27 billion in 2024 and grow at a CAGR of 6.40% to reach USD 3.09 billion by 2029.
What is the current Africa Agricultural Machinery Market size?
In 2024, the Africa Agricultural Machinery Market size is expected to reach USD 2.27 billion.
Who are the key players in Africa Agricultural Machinery Market?
AGCO Corp., CNH Industrial America LLC, Claas GmBh, Mahindra and Mahindra Ltd and Deere & Company are the major companies operating in the Africa Agricultural Machinery Market.
What years does this Africa Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Africa Agricultural Machinery Market size was estimated at USD 2.13 billion. The report covers the Africa Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Agricultural Machinery Industry Report
Statistics for the 2024 Africa Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Agricultural Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
