| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 159.73 Billion |
| Market Size (2030) | USD 207.78 Billion |
| CAGR (2025 - 2030) | 5.40% |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Agricultural Machinery Market Analysis
The Agricultural Machinery Market size is estimated at USD 159.73 billion in 2025, and is expected to reach USD 207.78 billion by 2030, at a CAGR of 5.4% during the forecast period (2025-2030).
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 Market Trends
Labor Shortage in the Agricultural Sector
The agriculture sector, traditionally reliant on labor, has witnessed a decline in employment in recent years. Educated youth are increasingly hesitant to undertake physically demanding agricultural work, leading to a labor shortage. This, in turn, has spurred the adoption of agricultural machinery in farming operations. For example, global employment in agriculture dipped from 27% in 2021 to 26% in 2022, as per World Bank data. Simultaneously, rising living standards have fueled a trend of rapid urbanization. Urban areas offer a plethora of job opportunities, enticing rural households to migrate. In India, for instance, the number of people employed in the agriculture sector dropped from 158.2 million in 2022 to 147.9 million in 2023, as highlighted by a survey by the Centre for Monitoring the Indian Economy (CMIE).
The Indian Council of Food and Agriculture projects a 25.7% decline in the percentage of agriculture workers in India by 2050. This mounting labor scarcity has spurred a surge in demand for agricultural equipment, as it helps expedite farm operations and bolsters the market's growth. In North America and Europe, a significant reliance on seasonal immigrant workers has emerged owing to dwindling domestic labor. This reliance has, in turn, driven up the cost of farm labor, prompting farmers to increasingly turn to cost-effective agricultural machinery.
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Asia-Pacific is Expected to Dominate the Market
China is one of the top producers of farming equipment across the world, with the most popular types of agriculture machinery being the large tractors and harvesting equipment that are highly automated and have high horsepower. Most of the agricultural machinery manufacturing is focused in provinces like Shandong, Henan, Jiangsu, Liaoning, and Zhejiang, with around 2,500 agricultural equipment manufacturers. Despite advancements in technology in the agricultural machinery sector, factors like a decrease in human resources, rising agricultural labor costs, and government initiatives for farm mechanization are predicted to drive the expansion of the market. According to data from the National Bureau of Statistics of China, China produced 5,253,595 large and medium-sized tractors in 2022, reflecting a slight rebound. The large and medium-sized tractors have gradually replaced small tractors.
In Asia-Pacific, India stands out as a key player driving growth in the agricultural machinery market, mainly due to its heavy reliance on agriculture and growing interest in adopting technology. According to the Indian government, Indian tractor exports increased by over 72%, reaching USD 1,025 million from 2019-2021. The primary destination for the export of tractors is the United States (25.2%), Nepal (7.3%), Bangladesh (6.5%), Thailand (5.4%), and Sri Lanka (5.3%). Also, the production and sales of significant players in the Indian market are growing. For instance, in India, in February 2022, Mahindra's Farm Equipment Segment sold 18,910 units. Also, in February 2022, the company sold 20,437 tractors (domestic + exports), compared to 28,146 units during the same month last year.
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Agriculture Machinery Industry Overview
The agricultural machinery market is consolidated, with key players accounting for most of the market share. Prominent players in the market are Deere and Co., CNH Industrial, AGCO Corporation, Kubota Corporation, and Claas Group. These companies are involved in various strategic activities such as product innovation, expansion, and partnership. Mergers and acquisitions are other prominent strategies used to expand geographical reach by acquiring assets, technologies, and the consumer base of other companies.
Agriculture Machinery Market Leaders
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Deere & Company
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AGCO Corporation
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Kubota Corporation
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CNH Industrial NV
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Claas Group
- *Disclaimer: Major Players sorted in no particular order
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Agriculture Machinery Market News
February 2024: John Deere and GUSS Automation launched the Electric GUSS, a fully electric autonomous herbicide orchard sprayer. This innovative machine allows growers to control multiple sprayers remotely and features a sport spraying weed detection system that reduces herbicide use and increases sustainability.
December 2023: Mahindra launched its first CNG tractor at the Agrovision Summit in India. This eco-friendly tractor offers power and performance comparable to a diesel tractor but with significantly reduced emissions and noise.
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.
| Type | Tractors | Horsepower | Less than 40 HP | |
| 40 HP to 99 HP | ||||
| Greater than 100 HP | ||||
| Type | Compact Utility Tractors | |||
| Utility Tractors | ||||
| Row Crop Tractors | ||||
| Plowing and Cultivating Machinery | Plows | |||
| Harrows | ||||
| Cultivators and Tillers | ||||
| Other Plowing and Cultivating Machinery | ||||
| Planting Machinery | Seed Drills | |||
| Planters | ||||
| Spreaders | ||||
| Other Planting Machinery | ||||
| Harvesting Machinery | Combine Harvesters-Threshers | |||
| Forage Harvesters | ||||
| Other Harvesting Machinery | ||||
| Haying and Forage Machinery | Mower-conditioners | |||
| Balers | ||||
| Other Haying and Forage Machinery | ||||
| Irrigation Machinery | Sprinkler Irrigation | |||
| Drip Irrigation | ||||
| Other Irrigation Machinery | ||||
| Other Types | ||||
| Geography | North America | United States | ||
| Canada | ||||
| Mexico | ||||
| Rest of North America | ||||
| Europe | Germany | |||
| United Kingdom | ||||
| France | ||||
| Rest of Europe | ||||
| Asia-Pacific | China | |||
| India | ||||
| Japan | ||||
| Australia | ||||
| Rest of Asia-Pacific | ||||
| South America | Brazil | |||
| Argentina | ||||
| Rest of Latin America | ||||
| Africa | South Africa | |||
| Rest of Africa | ||||
Type
| Tractors | Horsepower | Less than 40 HP | |
| 40 HP to 99 HP | |||
| Greater than 100 HP | |||
| Type | Compact Utility Tractors | ||
| Utility Tractors | |||
| Row Crop Tractors | |||
| Plowing and Cultivating Machinery | Plows | ||
| Harrows | |||
| Cultivators and Tillers | |||
| Other Plowing and Cultivating Machinery | |||
| Planting Machinery | Seed Drills | ||
| Planters | |||
| Spreaders | |||
| Other Planting Machinery | |||
| Harvesting Machinery | Combine Harvesters-Threshers | ||
| Forage Harvesters | |||
| Other Harvesting Machinery | |||
| Haying and Forage Machinery | Mower-conditioners | ||
| Balers | |||
| Other Haying and Forage Machinery | |||
| Irrigation Machinery | Sprinkler Irrigation | ||
| Drip Irrigation | |||
| Other Irrigation Machinery | |||
| Other Types | |||
Geography
| North America | United States |
| Canada | |
| Mexico | |
| Rest of North America | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| Australia | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Rest of Latin America | |
| Africa | South Africa |
| Rest of Africa |
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Agricultural Machinery Market Research FAQs
How big is the Agricultural Machinery Market?
The Agricultural Machinery Market size is expected to reach USD 159.73 billion in 2025 and grow at a CAGR of 5.40% to reach USD 207.78 billion by 2030.
What is the current Agricultural Machinery Market size?
In 2025, the Agricultural Machinery Market size is expected to reach USD 159.73 billion.
Who are the key players in Agricultural Machinery Market?
Deere & Company, AGCO Corporation, Kubota Corporation, CNH Industrial NV and Claas Group are the major companies operating in the Agricultural Machinery Market.
Which is the fastest growing region in Agricultural Machinery Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Agricultural Machinery Market?
In 2025, the Asia-Pacific accounts for the largest market share in Agricultural Machinery Market.
What years does this Agricultural Machinery Market cover, and what was the market size in 2024?
In 2024, the Agricultural Machinery Market size was estimated at USD 151.10 billion. The report covers the Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Agricultural Machinery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Page last updated on: April 17, 2025
Agricultural Equipment Industry Report
Statistics for the 2025 Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Agricultural Machinery analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
