Canada Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Canada Agricultural Machinery Market Report has been segmented by Type into Tractors (Less than 40 HP, 40 HP to 99 HP, Greater than 100 HP), Ploughing and Cultivating Machinery (Ploughs, Harrows, Rotavators and Cultivators, and Other Equipment), Planting Machinery (Seed drills, Planters, Spreaders, and Other Planting Machineries), Sprayers, Irrigation Machinery (Drip Irrigation, Sprinkler Irrigation, and Other Irrigation Machineries), Harvesting Machinery (Combine Harvesters and Other Harvesting Machinery), Haying and Forage Machinery (Mowers and Conditioners, Balers, and Other Haying and Forage Machineries), and Other Types.

Market Snapshot

Canadian Agricultural Machinery Market Overview
Study Period: 2016 - 2026
Base Year: 2021
CAGR: 4.5 %
Canadian Agricultural Machinery Market Key Players

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Market Overview

The Canadian agricultural machinery market is projected to record a CAGR of 4.5% during the forecast period (2021-2026).

The COVID-19 pandemic has certainly caused uncertainty in farm income and agricultural equipment purchase for the year. Although in the first six months of 2020, COVID-19 became a major headwind for the Canadian economy, total farm equipment sales increased in July 2020 compared to 2019 (Year-to-Date). The increase was mainly driven by higher sales of under-40 horsepower tractors, which were up by 42.1% in July 2020 versus July 2019. This is possibly due to people spending more time at home and working on their yards.

An increase in demand for large-capacity farm machinery due to shortage in farm labor, favorable government subsidies for farm mechanization, and technological innovation to develop innovative agricultural machinery are some of the factors driving the market growth. Among all the categories of agricultural machineries, combine and tractor sales (including 2WD tractors which have seen relatively stable sales) are projected to continue to grow steadily throughout the forecast period.

CLAAS KGaA mbH, Deere & Company, CNH Industrial NV, and Kubota Corporation are some of the major players who are operating in this market. These players are strengthening their positions by launching agricultural machinery equipment that cater to the needs of farmers in this region.

Scope of the report

For the purpose of this report, the machineries used in agricultural operations have been considered. The report does not cover machineries used for industrial and construction purposes, or multi-purpose tractors, machineries, and equipment, used for both agricultural and non-agricultural operations. The market is segmented by type into tractors (less than 40 hp, 40 hp to 99 hp, greater than 100 hp), plowing and cultivating machinery (plows, harrows, rotavators and cultivators, and other equipment), planting machinery (seed drills, planters, spreaders, and others), sprayers and irrigation machinery (drip irrigation, sprinkler irrigation, and others), harvesting machinery (combine harvesters, other harvesting machinery), haying and forage machinery (mowers and conditioners, balers, other haying and forage machinery), and other types.

Less than 40 HP
40 HP to 99 HP
Greater than 100 HP
Ploughing and Cultivating Machinery
Rotovators and Cultivators
Other Equipment
Planting Machinery
Seed Drills
Other Planting Machineries
Irrigation Machinery
Drip Irrigation
Sprinkler Irrigation
Other Irrigation Machineries
Harvesting Machinery
Combine Harvesters
Other Harvesting Machineries
Haying and Forage Machinery
Mowers and Conditioners
Other Haying and Forage Machineries
Others Types

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Key Market Trends

Increasing Demand of Tractors and Combines amid declining Farm Labor

The need for sustainability in the management of farm operations has induced the demand for highly developed and efficient machinery in recent years. According to Statistics Canada, the number of farms has witnessed a declining trend in recent years with 193,492 farms in 2016 as compared to 205,730 farms in 2011. Moreover, the number of farm operators has decreased from 293,925 in 2011 to 271,935 in 2016. Hence, to meet the increasing demand for food crops, the farmers have been turning to self-propelled and tractor-mounted equipment. This, in turn, has promoted the growth of agricultural machinery during the forecast period.

Additionally, in Canada, mechanization of farm practices, primarily guided by the economic principle that the use of automated tools instead of manual labor results in cost and higher yield benefits, is likely to drive the demand for machinery.​Farm equipment sales surged in July 2020 relative to 2019, as the economy continued to re-open after the COVID-19 lockdown, and farmers took delivery of their new equipment. According to the Association of Equipment Manufacturer's tractors and combines, retail sales increased from 13,673 to 14,325 units during 2019-2020 July, Year-to-Date. On the other hand, sales of combines declined from 838 to 697 during the same period.

Canadian Agricultural Machinery Market Key Trends

Technological Development in Agricultural Machinery

The rapid technological innovations in tractors are currently revolutionizing the technological development in Canadian farming. Farm costs are inevitable with the increasing demand for food crops, thus, making tractors a key part of efficient farming. The wave of modern technology has already been witnessed in tractors with the application of Artificial Intelligence-based tools for data transmission, for precise decision-making processes in cultivation. Such innovations are expected to induce the demand for technologically developed tractors, in the long run, thereby boosting their market growth.

John Deere in alliance with an innovator of intelligent control systems, developed precision spaying of specialty crops. The Smart-Apply Intelligent Control System, which uses Light Detection and Ranging (LiDAR), is an add-on kit for air-blast sprayers that are towed behind a John Deere tractor. The company has entered into a distribution agreement with Smart Guided Systems to sell and support its Smart-Apply Intelligent Control System through the John Deere dealer channel in Canada.

Furthermore, Cognitive Agro Pilot’s system uses artificial intelligence systems that are being introduced into combine threshing systems, to enable the machines to automatically self-adjust to minimize losses and improve grain quality without operator input. Cognitive Agro Pilot is an autonomous driving technology, created out of a joint venture of Sberbank and the Cognitive Technologies group of Russia. The product is expected to be available in Canada by the end of 2021.

Canadian Agricultural Machinery Market Growth by Region

Competitive Landscape

The Canadian agricultural machinery market is consolidated, owing to the presence of a few prominent players, accounting for a higher share in the market. The key players in the market include Deere and Company, AGCO Corporation, CNH Industrial NV, and Kubota Corporation. The main strategy adopted by the key players has been to invest in R&D to encourage innovation and maintain a strong market base.

Recent Developments

In 2020, CLAAS of America launched a pair of Lexion 6000 Series straw walker combines -- the Lexion 6800 and Lexion 6900 in 2020. CLAAS designed the 6000 Series combines for markets in western Canada. The equipment provides increased harvest efficiency and productivity, saving fuel and grain.

In 2018, Lozova Machinery, an agricultural machinery manufacturer, entered into the Canadian market, through an agreement with Higginson Farm Equipment- a Canadian distribution company. This partnership is expected to allow direct delivery of different types of agricultural machinery to the country.

Table of Contents


    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Tractors

        1. Less than 40 HP

        2. 40 HP to 99 HP

        3. Greater than 100 HP

      2. 5.1.2 Ploughing and Cultivating Machinery

        1. Ploughs

        2. Harrows

        3. Rotovators and Cultivators

        4. Other Equipment

      3. 5.1.3 Planting Machinery

        1. Seed Drills

        2. Planters

        3. Spreaders

        4. Other Planting Machineries

      4. 5.1.4 Sprayer

      5. 5.1.5 Irrigation Machinery

        1. Drip Irrigation

        2. Sprinkler Irrigation

        3. Other Irrigation Machineries

      6. 5.1.6 Harvesting Machinery

        1. Combine Harvesters

        2. Other Harvesting Machineries

      7. 5.1.7 Haying and Forage Machinery

        1. Mowers and Conditioners

        2. Balers

        3. Other Haying and Forage Machineries

      8. 5.1.8 Others Types


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 CLAAS KGaA mbH

      2. 6.3.2 Deere & Company

      3. 6.3.3 CNH Industrial NV

      4. 6.3.4 Kubota Corporation

      5. 6.3.5 AGCO Corporation

      6. 6.3.6 Same Deutz-Fahr

      7. 6.3.7 Yanmar Co. Ltd

      8. 6.3.8 Kuhn Group



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Frequently Asked Questions

The Canada Agricultural Machinery Market market is studied from 2016 - 2026.

The Canada Agricultural Machinery Market is growing at a CAGR of 4.5% over the next 5 years.

Kubota Canada Ltd, Deere & Company, KUHN NORTH AMERICA, INC., CLAAS KGaA mbH, CNH Industrial America LLC are the major companies operating in Canada Agricultural Machinery Market.

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