Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 42.05 Billion |
| Market Size (2030) | USD 57.08 Billion |
| Growth Rate (2025 - 2030) | 6.30% CAGR |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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US Agricultural Machinery Market Analysis
The United States Agricultural Machinery Market size is estimated at USD 42.05 billion in 2025, and is expected to reach USD 57.08 billion by 2030, at a CAGR of 6.3% during the forecast period (2025-2030).
The United States agricultural machinery industry is experiencing significant transformation driven by farm consolidation and changing agricultural economics. The average farm size in the country reached 446 acres in 2022, reflecting a continued trend toward larger, more mechanized operations. This consolidation has created demand for higher-capacity and more sophisticated farm equipment to manage expanding agricultural operations efficiently. The shift toward larger farms has been accompanied by substantial increases in farm income, with total gross farm income reaching USD 604.1 billion in 2022, providing farmers with greater capital for machinery investments. These structural changes are reshaping equipment requirements and driving innovation in machinery design and capabilities.
The industry is witnessing rapid advancement in autonomous and precision farming technologies, transforming traditional agricultural practices. Leading manufacturers are introducing sophisticated machinery equipped with GPS systems, automated guidance, and precision application capabilities. This technological evolution is exemplified by major equipment manufacturers like Deere & Company, which generated approximately USD 52.5 billion in revenue in 2022, demonstrating the robust demand for advanced agricultural machinery. The integration of artificial intelligence and agricultural robotics in farming equipment is becoming increasingly prevalent, with manufacturers focusing on developing solutions that optimize operational efficiency while addressing labor challenges.
Strategic industry developments and consolidation are reshaping the competitive landscape. In March 2023, CNH Industrial's acquisition of Augmenta demonstrated the industry's focus on expanding technological capabilities in precision agriculture equipment. Similarly, the January 2023 partnership between DEUTZ AG and Daimler Truck AG for engine development highlights the industry's push toward innovation and sustainability. These strategic moves are creating new opportunities for product development and market expansion while fostering technological advancement across the industry.
The market is experiencing significant developments in machinery efficiency and productivity enhancement capabilities. In February 2023, CLAAS launched its new XERION tractor line with enhanced powertrain modifications and improved hydraulic flow, exemplifying the industry's focus on performance optimization. Manufacturers are increasingly incorporating features that enable precise application of inputs, reduced waste, and improved operational efficiency. These advancements are particularly crucial as farms seek to optimize their operations while managing rising input costs and environmental considerations. The industry's focus on efficiency improvements is driving innovation in smart farming equipment design and functionality, leading to more sophisticated and capable machinery solutions.
US Agricultural Machinery Market Trends
Technological Advancements Drive Market Growth
The United States agricultural machinery market is experiencing significant growth driven by rapid technological advancement and innovation in farming equipment. The integration of sophisticated technologies like GPS systems, autonomous farm equipment capabilities, and precision agriculture equipment features into tractors, spraying devices, and harvesting machines has revolutionized farming operations by enabling self-operated machinery with minimal human intervention and reduced error rates. This technological evolution is particularly evident in recent developments, such as John Deere's launch of a fully autonomous version of tractors called the 8R tractor in Las Vegas in 2022, specifically designed to help farmers address the growing skilled labor shortage while maintaining productivity.
The adoption of advanced agricultural machinery has demonstrated tangible benefits in crop production efficiency and operational outcomes. For instance, according to the U.S. Department of Agriculture, wheat production increased from 1.64 billion bushels in 2021 to 1.65 billion bushels in 2022, partly attributed to the implementation of precision agriculture equipment technologies. Major agricultural machinery companies are actively pursuing technological innovation through strategic acquisitions and developments, as exemplified by AGCO's acquisition of JCA Industries in 2022 to accelerate the development of highly automated and autonomous machines through enhanced engineering and software development capabilities.
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Shortage of Labor in the Agriculture Sector
The agricultural sector in the United States is facing a significant labor shortage crisis, driven by rapid urbanization and declining interest in farming among the workforce. According to World Bank data, the degree of urbanization increased from 80.7% in 2010 to 82.6% in 2020, reflecting a continuous migration trend from rural to urban areas. This demographic shift has resulted in a substantial decrease in agricultural employment, with the percentage of people employed in agriculture declining from 1.37% in 2018 to 1.31% in 2020, creating a pressing need for mechanization to maintain agricultural productivity.
The labor shortage has led to increased operational costs for farmers, as evidenced by the rise in daily wages for non-supervisory farm workers from USD 13.2 to USD 15.5 between 2018 and 2022, according to USDA data. This escalation in labor costs has compelled farmers to seek alternative solutions through agricultural automation and automated farming technologies. The trend is particularly pronounced in large-scale farming operations, where the combination of expanding farm sizes and diminishing labor availability has made mechanization not just an option but a necessity for maintaining operational efficiency and economic viability.
Government Support to Enhance Farm Mechanization
The United States government has implemented various supportive measures and initiatives to promote farm mechanization and enhance agricultural productivity. A significant example is the U.S. Department of Agriculture's (USDA) investment of USD 300 million in 2022 through a new organic transition initiative, which provides crucial financial support for purchasing machinery and other inputs, along with increased crop insurance aid and comprehensive technical assistance, including farmer-to-farmer mentorship programs. These government investments are particularly important for helping farmers adopt modern agricultural technology and automated machinery systems.
The support extends beyond direct financial assistance to include various financing schemes and subsidies that make agricultural machinery more accessible to farmers of all scales. The U.S. Farm Service Agency has established multiple programs, including Direct Farm Ownership loans and Direct Farm Ownership Down Payment Programs, specifically designed to assist family-size farmers who might otherwise struggle to access credit facilities for machinery purchases. Additionally, government support has fostered innovation in the agricultural technology sector, as evidenced by the emergence of startups like TerraClear, established in 2021, which focuses on increasing farm productivity through automated machinery solutions that enhance efficiency from planting through harvest.
Segment Analysis: Machinery
Tractors Segment in United States Agricultural Machinery Market
The tractors segment dominates the United States agricultural machinery market, commanding approximately 42% market share in 2024, solidifying its position as both the largest and fastest-growing segment. The segment's prominence is driven by the high labor costs in the country, which have accelerated the adoption of tractor-based farming operations. The integration of advanced technologies like GPS systems and autonomous capabilities in modern tractors has significantly enhanced their appeal to American farmers. Major manufacturers like John Deere have introduced fully autonomous tractors to help farmers cope with the worsening skilled labor shortage. Additionally, the government's support through various subsidies and flexible interest rate loans has made tractors more accessible to farmers of all scales. The segment's growth is further bolstered by the increasing average farm size in the United States, which reached 446 acres in recent years, necessitating more efficient and powerful farm equipment for operations.
Remaining Segments in United States Agricultural Machinery Market
The market encompasses several other significant segments, including harvesting machinery, plowing and cultivating machinery, planting equipment, haying and forage machinery, irrigation equipment, and other agricultural implements. Harvesting machinery represents the second-largest segment, driven by the extensive cultivation of commodity crops like corn and soybeans. Plowing and cultivating machinery plays a crucial role in soil preparation and maintenance, while planting equipment has seen increased adoption due to precision farming practices. The haying and forage machinery segment serves the robust livestock industry, while irrigation equipment has gained importance due to water conservation needs. Each of these segments contributes uniquely to the overall agricultural mechanization landscape in the United States, with manufacturers continuously introducing innovative features and technologies to enhance farming efficiency and productivity.
US Agricultural Machinery Industry Overview
Top Companies in United States Agricultural Machinery Market
The US agricultural machinery market is characterized by intense innovation and strategic developments from major players like Deere & Company, CNH Industrial, Kubota Corporation, and AGCO Corporation. Companies are heavily investing in product innovations focused on agricultural automation, precision farming technologies, and sustainable solutions, with numerous launches of advanced tractors, harvesters, and smart farming equipment. The industry has witnessed significant operational transformations through digitalization initiatives and manufacturing upgrades, particularly in response to changing farmer needs and technological advancements. Strategic partnerships and collaborations, especially in the robotics and autonomous machinery segments, have become increasingly common as companies seek to enhance their technological capabilities. Market leaders are also expanding their geographical presence through new technical centers, R&D facilities, and production sites across the United States, while simultaneously strengthening their distribution networks and after-sales support systems.
Consolidated Market with Strong Global Players
The US agricultural machinery market exhibits a consolidated structure dominated by well-established global manufacturers with extensive manufacturing capabilities and robust distribution networks. These major players leverage their international presence and technological expertise to maintain market leadership, while also benefiting from economies of scale and established brand recognition. The market has witnessed significant consolidation through strategic acquisitions and mergers, particularly focused on acquiring innovative technology startups and complementary product lines to enhance existing portfolios.
The competitive landscape is characterized by a mix of diversified industrial conglomerates and specialized agricultural equipment manufacturers, each bringing unique strengths to the market. While global players dominate the high-end machinery segment, several regional and specialized manufacturers maintain strong positions in specific product categories or regional markets. The industry has seen increased merger and acquisition activity, particularly targeting companies with advanced technologies in automation, precision farming, and sustainable solutions, reflecting the growing importance of technological capabilities in maintaining competitive advantage.
Innovation and Adaptability Drive Market Success
Success in the US agricultural machinery market increasingly depends on companies' ability to innovate and adapt to evolving farmer needs while maintaining operational efficiency. Incumbent players must focus on developing integrated solutions that combine traditional machinery with precision agriculture equipment, while also strengthening their dealer networks and after-sales support. Companies need to invest in research and development to stay ahead of technological trends, particularly in areas like autonomous operation, precision agriculture, and sustainable farming solutions, while maintaining competitive pricing strategies.
For new entrants and smaller players, success lies in identifying and serving niche market segments or specific regional needs while building strategic partnerships to overcome scale limitations. The industry's high entry barriers, including substantial capital requirements and established dealer networks, necessitate focused strategies for market penetration. Companies must also consider the increasing concentration of large-scale farming operations, which influences purchasing decisions and requires sophisticated product offerings. While substitution risk remains low due to the essential nature of farm equipment, regulatory requirements related to emissions and safety standards continue to shape product development and market strategies.
US Agricultural Machinery Market Leaders
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Deere & Company.
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CNH Industrial
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AGCO Corporation
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Mahindra Agriculture North America
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KUBOTA Corporation
- *Disclaimer: Major Players sorted in no particular order
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US Agricultural Machinery Market News
- April 2024: Oxbo, renowned for its expertise in specialty harvesting and controlled application equipment, has successfully acquired the entire portfolio of Westside Equipment Company, encompassing all its products and United States locations.
- February 2024: Great Plains unveiled the BD7410 box drill at the National Farm Machinery Show in Louisville, Kentucky. This new seeder features a narrow transport width and retains the same box, seed meters, and ground drive transmissions as the older BD7600 line. It also includes offset double disc blades, designed to slice through residue and fully penetrate the soil.
- February 2024: John Deere unveiled three new models from its autonomy-ready 9RX series at the Commodity Classic convention in Texas. The models, 9RX 710, 9RX 770, and 9RX 830, feature an impressive 830 horsepower, seamlessly blending raw power with advanced technology.
US Agricultural Machinery Industry Segmentation
Agricultural machinery is tools or machinery used for various purposes of agricultural operations such as planting, harvesting, fertilization, seeding, etc. Tractors combine harvesters, planting machinery, ploughs, tillers, and weeders are some of the farm machinery. The United States Agricultural Machinery Market is segmented by Tractors, Ploughing and Cultivating Machinery (Ploughs, Harrows, Cultivators & Tillers, and Others), Planting Machinery (Seed Drills, Planters, Spreaders, and Others), Harvesting Machinery (Combine Harvesters, Forage Harvesters, and Other Harvesters), Haying and Forage Machinery (Mowers, Balers, and Other), Irrigation Machinery (Sprinkler Irrigation, Drip Irrigation, and Others), and Other Agricultural Machinery. The report offers the market size and forecasts for sales in (units) and value in (USD) for all the above segments.
| Plowing and Cultivating Machinery | Ploughs |
| Harrows | |
| Cultivators & Tillers | |
| Others | |
| Planting Machinery | Seed Drills |
| Planters | |
| Spreaders | |
| Others | |
| Harvesting Machiney | Combine Harvesters |
| Forage Harvesters | |
| Other Harvesters | |
| Haying and Forage Machinery | Mowers |
| Balers | |
| Others | |
| Irrigation Machinery | Sprinkler Irrigation |
| Drip Irrigation | |
| Others |
Plowing and Cultivating Machinery
| Ploughs |
| Harrows |
| Cultivators & Tillers |
| Others |
Planting Machinery
| Seed Drills |
| Planters |
| Spreaders |
| Others |
Harvesting Machiney
| Combine Harvesters |
| Forage Harvesters |
| Other Harvesters |
Haying and Forage Machinery
| Mowers |
| Balers |
| Others |
Irrigation Machinery
| Sprinkler Irrigation |
| Drip Irrigation |
| Others |
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United States Agricultural Machinery Market Research Faqs
How big is the United States Agricultural Machinery Market?
The United States Agricultural Machinery Market size is expected to reach USD 42.05 billion in 2025 and grow at a CAGR of 6.30% to reach USD 57.08 billion by 2030.
What is the current United States Agricultural Machinery Market size?
In 2025, the United States Agricultural Machinery Market size is expected to reach USD 42.05 billion.
Who are the key players in United States Agricultural Machinery Market?
Deere & Company., CNH Industrial, AGCO Corporation, Mahindra Agriculture North America and KUBOTA Corporation are the major companies operating in the United States Agricultural Machinery Market.
What years does this United States Agricultural Machinery Market cover, and what was the market size in 2024?
In 2024, the United States Agricultural Machinery Market size was estimated at USD 39.40 billion. The report covers the United States Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States Agricultural Machinery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Page last updated on: November 17, 2024
