As per the report published by Kings Research, the global Agricultural Machinery Market was valued at USD 126.60 billion in 2023. The market is projected to reach USD 208.40 billion by 2031, growing at a CAGR of 6.52% from 2024 to 2031.
Agricultural machinery encompasses a wide range of equipment utilized in farming and agriculture, spanning from manual and power tools to tractors and various farm implements. These tools are employed across both organic and non-organic farming practices to enhance production efficiency. The utilization of agricultural machinery extends to incorporating hybrid seeds, employing technologically advanced equipment, and leveraging energy subsidies for irrigation, fertilization, and pest management.
The integration of electrification machinery in agricultural practices is driven by the need for more sustainable and environmentally friendly farming solutions. Electric-powered machinery offers reduced emissions, lower operating costs, and enhanced efficiency compared to traditional fuel-powered alternatives, thereby incentivizing its adoption among farmers.
Moreover, tractors remain a cornerstone of modern agriculture, facilitating various tasks such as plowing, planting, and harvesting. Factors such as increasing mechanization in farming, demand for higher productivity, and technological advancements leading to the development of more efficient and versatile tractor models are likely to augment the market.
Key Insights
- Based on type, the tractors segment is set to register a robust CAGR of 7.55% over the forecast period
- Based on automation, the manual segment generated the highest revenue of USD 89.53 billion by 2031
- By sales channel, the OEM segment is expected to witness the highest CAGR of 6.82% through the projected period
- On the basis of region, Asia Pacific is anticipated to witness the grow at a CAGR of 7.02% between 2024 and 2031
John Deere and GUSS Automation Launches Fully Electric Autonomous Herbicide Orchard Sprayer
February 2024: John Deere and GUSS Automation unveiled the groundbreaking Electric GUSS, the world's premier fully electric autonomous herbicide orchard sprayer, during the 2024 World Ag Expo held in Tulare, California.
Mahindra Tractors Launches CNG-Powered Vehicles
November 2023: Mahindra Tractors introduced its inaugural CNG mono-fuel tractor model on the widely recognized Yuvo tractor platform at Agrovision, Nagpur, which stands as Central India's largest Agricultural Summit.
Growing Use of Smart Agricultural Machinery in Precision Agriculture to Create Promising Opportunities for Market Expansion
The increasing adoption of smart agricultural machinery presents a significant opportunity for precision agriculture, thereby supporting the growth of the agricultural machinery market. Smart machinery, equipped with advanced sensors, GPS technology, and data analytics capabilities, enables farmers to monitor and manage their fields with unprecedented precision and efficiency.
These technologies allow for real-time data collection on soil conditions, weather patterns, crop health, and yield potential, empowering farmers to make data-driven decisions to optimize inputs and maximize productivity. By integrating smart machinery into precision agriculture practices, farmers can achieve more precise resource management, reduce waste, minimize environmental impact, and ultimately improve overall farm profitability and sustainability.
Europe to Witness Considerable Growth at the Highest CAGR of 6.30% Over the Estimated Timeframe
Europe is poised to emerge as the second largest market for agricultural machinery market, depicting a CAGR of 6.30% over the forecast period. This substantial growth is mainly attributed to several factors, including the region's advanced agricultural practices, high level of mechanization, and strong presence of leading agricultural machinery manufacturers. Europe boasts a well-developed agricultural sector characterized by large-scale commercial farming operations as well as smallholder farms, which driving the demand for a wide range of agricultural machinery and equipment.
Additionally, supportive government policies, subsidies, and incentives for farm mechanization contribute to the robust growth of the regional market. Moreover, Europe's focus on sustainable agriculture and precision farming practices has spurred investments in advanced agricultural technologies and machinery, positioning Asia Pacific as a major market for agricultural machinery.
Prominent Players Concentrating on Product Innovation to Drive Market Development
The global agricultural machinery market is fragmented with key players such as CLAAS KGaA mbH, Bucher Industries AG, Deere & Company, CNH Industrial N.V., AGCO Corporation, Kubota Corporation, J C Bamford Excavators Ltd., ISEKI & CO., LTD., Mahindra&Mahindra Ltd., Lindsay Corporation, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.