Market Size of North America Agricultural Machinery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Agricultural Machinery Market Analysis
The North American agricultural machinery market is projected to register a CAGR of 7.9% during the forecast period.
- Increased farm consolidation, positive economic outlook, large production base, and greater government support through subsidies are driving sales of high-capacity agricultural machinery and equipment. 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 a sale increase of over 10% in nearly every segment of agricultural tractors and combines in the United States and Canada.
- The presence of extensive farmland has led to high demand for farm mechanization. Furthermore, the North American region is experiencing a rise in the use of smart combine harvesters equipped with monitoring technologies to boost farm production. Rising labor costs, the incorporation of robotic systems and GPS in tractors and harvesters, increased demand for high-capacity machinery due to large farms, and the increasing popularity of self-propelled machines are expected to drive market growth during the forecast period. The US-based agricultural machinery giant, John Deere, began enhancing the AI-based innovation process in tractors by acquiring an AI start-up, Blue River Technology. Such innovations are expected to drive the demand for technologically advanced tractors in the long term.
- Farmers in the country have been able to avail timely subsidies in the form of agriculture equipment loans at flexible interest rates and repayment schedules. This, in turn, has helped even small-scale farmers to invest on primary agricultural equipment. The US government extends loans for farm equipment through USDA Direct Operating Loans, USDA Operating Microloans, and USDA Guaranteed Operating Loans. The farmers inclinination toward technology due to easy loans and to enhance productivity has resulted in double-digit gains for various machineries, thus is fuelling the market growth in the region.
