Farm Equipment Market Size (2025 – 2030)

The Farm Equipment Market was valued at USD 180.02 billion and is projected to reach a market size of USD 280.02 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 9.24%. 

The farm equipment market comprises all the hardware and other machinery required to operate a farm. Tractors, Planting equipment, and harvesters are some of the key elements on a farm and thus they also dominate this market. The market is projected to expand rapidly as new innovative technology comes up and governments and farmers across the world are grappling with an ever-increasing demand for food, especially from Western nations. This has also tied in with the government wanting to secure supply lines after experiencing rising food costs because of the Russia-Ukraine war. Thus, farming subsidies across the globe are being expanded which in turn should translate to demand in the farm equipment market.

Key Market Insights:

• AGCO reported third-quarter earnings that fell short of expectations, with earnings per share dropping to 68 cents from $3.97 in the same period the previous year. The company attributes this decline to low commodity prices and high input costs, leading to reduced production and cautious spending among dealers and farmers.

• While there is certainly a slowdown in population growth in the West other countries around the world have a generously young population which will also drive up the demand for food and other farm products.

Farm Equipment Market Drivers:

Increasing demand from an ever-growing population and more innovative technology is driving the demand for the Farm equipment market.  

The escalating global population especially in the Asia-Pacific, necessitates increased agricultural output, thereby driving the demand for advanced farm equipment. To meet this growing food requirement, farmers are increasingly adopting innovative technologies to enhance efficiency and productivity. Global Tractor sales hit almost 2.5 million in 2024, showing a healthy rebound after a lackluster 2023. However, in an inflationary environment and fears of an oncoming trade war, there is a notable shift towards the used equipment market. Farmers are increasingly considering pre-owned machinery as a cost-effective alternative to new purchases, aiming to preserve working capital while maintaining operational efficiency. This trend is expected to keep used equipment prices stable, even as inventory levels normalize. Technological advancements continue to play a pivotal role in shaping the market. Innovations such as autonomous tractors and AI-driven crop management systems are gaining traction, offering solutions to enhance productivity and address labor shortages. For instance, at CES 2025, companies showcased fully autonomous tractors capable of precise chemical application, reflecting the industry's commitment to integrating cutting-edge technology into farming practices.

Government subsidies are also an important indicator of demand for farm equipment along with a growing expansion of commercial farming.

Farmers and farm equipment contractors rely heavily on subsidies from the government especially in Emerging market economies (EMEs) such as India, Brazil, etc. Many governments provide financial assistance through direct subsidies, low-interest loans, and tax incentives to encourage mechanization and improve agricultural productivity. Alongside this, the expansion of commercial farming is accelerating the adoption of advanced equipment, as large-scale farms require high-efficiency machinery such as GPS-enabled tractors, automated irrigation systems, and precision farming tools to maximize output.  Venture capital and private equity investments in agriculture technology startups are leading to rapid innovation in farm equipment. Companies are developing AI-powered machinery, smart irrigation solutions, and real-time crop monitoring systems, further fuelling market growth.

Farm Equipment Market Restraints and Challenges:

Climate change along with seasonal patterns of farming induces uncertain demand in the Farm equipment market.

The demand for farm equipment is uncertain because of climate change and shifting seasonal farming patterns, as weather patterns have a direct impact on agricultural cycles. Unseasonal frosts, floods, and droughts are instances of extreme weather conditions that can lower crop yields, cut farm earnings, and postpone choices to buy new machinery. In a similar vein, variations in temperature and rainfall patterns affect when to plant and harvest, which affects the demand for harvesting equipment, irrigation systems, and tractors. To reduce risks, farmers are progressively implementing climate-resilient machinery, such as AI-powered weather forecasting systems and precision tools for agriculture. However, because climate-related disruptions make it difficult for manufacturers to precisely estimate demand, the farm equipment market as a whole tends to be volatile.

Farm Equipment Market opportunities:

The farm equipment market offers significant opportunities driven by precision agriculture, sustainability, and automation. The rise of GPS-guided machinery, AI-powered analytics, and electric tractors is transforming farming efficiency. Government subsidies and equipment leasing models are making mechanization more accessible, especially in emerging markets. Autonomous solutions, like self-driving tractors and robotic harvesters, are gaining traction due to labor shortages. Additionally, the expansion of urban and vertical farming presents new avenues for innovation. The aftermarket sector, including maintenance and spare parts, also offers strong growth potential. Companies embracing these trends are well-positioned for success.

FARM EQUIPMENT MARKET REPORT COVERAGE:

Farm Equipment Market Segmentation - By Machinery Type

• Tractor

• Planting

• Irrigation

• Harvesting

An essential part of modern agriculture, tractors provide the power required for a range of farming tasks. Tractors accounted for a sizeable portion of the USD 107.7 billion global farm equipment market in 2024. By 2028, the market is projected to develop at a CAGR of 4.8% to reach USD 136.3 billion.

Crop development and water management depend on planting and irrigation equipment. Increased agricultural output has been a result of the growing use of effective irrigation systems and precision planting technologies.

Harvesting machinery plays a critical role in timely crop collection, reducing post-harvest losses, and improving efficiency. The global agricultural equipment market, which includes harvesting machinery, is expected to reach USD 281.77 billion by 2031, growing at a CAGR of 5.6% from 2024 to 2031.

Farm Equipment Market Segmentation: By Automation

• Automatic

• Semi-Automatic/ Manual

The farm equipment market is segmented by automation levels into fully autonomous and semi-autonomous/manual categories. In 2024, the fully autonomous segment accounted for approximately 35% of the market share. These machines, capable of performing tasks such as planting, spraying, and harvesting with minimal human intervention, enhance efficiency and productivity by operating continuously and addressing labor shortages. The global autonomous farm equipment market was valued at USD 68.15 billion in 2024 and is projected to reach around USD 121.81 billion by 2033, growing at a CAGR of 5.98%.

Conversely, the semi-autonomous/manual segment continues to hold a significant portion of the market. These machines require human operation or supervision but often incorporate automated features to assist with tasks. While fully autonomous equipment is gaining traction, semi-autonomous and manual machinery remain prevalent, especially in regions where technological adoption is gradual or where farming practices are less mechanized.

Farm Equipment Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

The global farm equipment market is segmented by region, with Asia-Pacific leading the market, accounting for 31.5% of the global share, valued at USD 66.60 billion in 2024. The region's dominance is driven by rapid mechanization in countries like China, India, and Japan, where rising food demand and government incentives fuel equipment adoption. The governments in Asia-Pacific are also increasing and encouraging investments in this particular farm sector. North America follows as a key player, benefiting from advanced agricultural technologies, precision farming, and the presence of major industry manufacturers. In Europe, modern farming practices, including the integration of robotics, GPS-enabled tractors, and automation, are driving growth, with Germany leading the market and the UK emerging as a fast-growing segment. Much of North America and Europe is also leading the way for the adoption of sustainable farm equipment.

Meanwhile, South America is witnessing increased adoption of modern equipment, especially in Brazil and Argentina, as farmers invest in efficiency to meet rising food demand. The Middle East and Africa region, though slower in mechanization, is experiencing growth due to government-backed agricultural initiatives aimed at enhancing food security.

COVID-19 Impact Analysis on the Farm Equipment Market:

COVID-19 first impacted the Farm Market through supply chain disorientation which led to massive delays in manufacturing and deliveries. Labor shortages also exacerbated the problems as farms were not operating at their full capacity which meant lower demand for Farm equipment. The supply of raw materials was further affected by restrictions on international trade and transportation, which increased production costs and created shortages of essential components like hydraulic systems and semiconductors. However, the market steadily recovered as governments provided financial assistance and stimulus plans to help farmers. As farmers looked to mechanize their operations to alleviate manpower shortages, the pandemic also hastened the use of automation and precision agriculture. Demand has surged in the market since COVID, driven by increasing agricultural investments, growing worries about food security, and a greater emphasis on technologically advanced and sustainable farming methods.

Latest Trends/ Developments:

Deere & Co has introduced new autonomous tractors equipped with advanced AI and computer vision systems, aiming to address labor shortages in agriculture. These machines can perform tasks such as soil tilling and spraying with minimal human intervention, enhancing efficiency and productivity.

Companies are showcasing innovations like AI-driven systems that detect crop diseases and optimize pesticide use, reducing chemical dependency and promoting sustainable farming practices. The concept of precision agriculture aims to improve crop quality and yield while minimizing environmental impact.

In November 2024, Väderstad inaugurated its U.S. headquarters in Wahpeton, reflecting its commitment to expanding its presence in the North American market. In February 2025, Geringhoff announced a $5 million expansion of its U.S. manufacturing facility, with completion expected by mid-year, to meet growing demand for its harvesting equipment.

AGCO corporation, one of the biggest manufacturing companies of farm equipment reported a fall in revenue in Q4 of 2024 as demand saw a sudden slump due to uncertainty regarding tariffs.

In 2025 so far Deere and Co. have raised 900 million so far in a fixed-rate senior notes offering. The company is gearing up for massive capital investment to revamp its manufacturing facilities.