Canada Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.37 Billion |
| Market Size (2029) | USD 12.08 Billion |
| CAGR (2024 - 2029) | 7.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Canada Agricultural Machinery Market Analysis
The Canada Agricultural Machinery Market size is estimated at USD 8.37 billion in 2024, and is expected to reach USD 12.08 billion by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).
- Rising mechanization in the Canadian agriculture sector coupled with the surge in farmers' income is likely to be the primary factor driving the growth. Furthermore, the extensive pressure to improve the productivity of agricultural land is anticipated to be fostered over the forecast period, which will directly promote the tendency of farmers or land operators toward the incorporation of agricultural machinery in farming.
- Additionally, technologically advanced agricultural robotics, like autonomous tractors, plowing and cultivating machinery, and sprayer irrigation machinery, help Canadian farmers produce food at low costs to fulfill the growing demand for food. Additionally, the launch of AI-based agriculture machinery products has led to a massive increase in farm mechanization, which is favoring market growth. For instance, in 2023, Ecorobotix, a Swiss agritech company, launched a precision sprayer, ARA, in Canada. This product is developed using AI technology and its unique ultra-high precision spraying system, which can recognize individual plants, classify them in real time, and spray weeds without affecting surrounding crops or soil.
- Furthermore, an increase in demand for large-capacity farm machinery due to a shortage in farm labor, favorable government subsidies for farm mechanization, and technological innovation to develop agricultural machinery are some of the factors driving the market growth. For instance, in 2023, the B.C. On-Farm Technology Adoption Program is funded through the Sustainable Canadian Agricultural Partnership, a five-year (April 1, 2023, until March 31, 2028), USD 3.5-billion investment by federal, provincial, and territorial governments to strengthen the competitiveness, innovation, and resilience of the agriculture. In addition, in 2020, the Canadian government introduced a program 'The Canadian Agricultural Loans Act', which provided farmers with a loan of around USD 500 thousand on the purchase of land or tractors.
Canada Agricultural Machinery Market Trends
Increasing Demand for Tractors Amid Declining Farm Labor
The need for sustainability in the management of farm operations induced the demand for highly developed and efficient machinery in recent years. According to the latest census of Statistics Canada, Industry consolidation and the aging of farmers have led to fewer farms and farm operators. For instance, the number of farms dropped by 1.9% from 2016 (193,492 farms) to 2021 (189,874 farms). Hence, to meet the increasing demand for food crops, farmers have been turning to self-propelled and tractor-mounted equipment. This, in turn, is likely to promote the growth of agricultural machinery during the forecast period. Additionally, in Canada, mechanization of farm practices is primarily guided by the economic principle that the use of automated tools instead of manual labor results in cost and higher yield benefits, which is likely to drive the demand for machinery.
Furthermore, the interest in farming is lost by individuals due to the heavy tasks performed in farming. This, in turn, surfaced a shortage of farm labor on the farm fields in the country. According to the Canadian Agriculture Human Resource Council, Canada's farm labor shortage is anticipated to double by 2029 and lead to a 123,000-worker shortage. During 2020-2021, the farm labor shortage cost around USD 2.9 billion for farmers in the country, and this shortage is anticipated to grow over the coming years. This led to increased demand for agricultural machinery, including tractors, in the country.
Besides, tractors are the leading segment in agricultural machinery in terms of revenue and quantities sold in Canada in the past years. The trend is projected to continue during the forecast period. Tractors, being one of the essential agricultural machineries, have witnessed a huge growth potential in the market. Farmers in this country are increasingly keen on purchasing high-end tractors to work on larger fields as part of their effort to improve crop yields and boost farm efficiencies. For instance, as per the Association of Equipment Manufacturers, the sales of Less than 40 HP Tractors were 1,162 Units, 40 to 100 HP tractors were 613 units and Greater than 100 HP were 383 units in 2023.
Harvesting Machinery is the Significant Segment by Type
The adoption of improved production techniques and increased farm mechanization has helped produce more food with fewer workers. Hence, the increasing food demand and labor costs have increased the demand for combined harvester usage across the countries of the region. The combine harvester automation is one of the rapidly evolving sectors of precision farming technology. Also, the acute farm labor crunch has surfaced in Canada in recent years. According to the Association of Equipment Manufacturers, in 2021, the sale of self-propelled combine harvesters was 131 units which increased by 160 units in 2023.
To meet the consumers’ needs, the players in the market are investing in continuous research and developmental activities and introducing advanced products. For instance, in November 2023, Massey Ferguson, a worldwide brand of AGCO introduced a host of new features and options to increase performance and efficiency across its range of MF IDEAL combine harvesters. Further, the government of Canada has formulated programs to support agricultural machinery, including harvesting machinery. For instance, in 2022, the Ministry of Agriculture and Agri-Food announced over USD 1 million in funding for SomaDetect Inc. and Vivid Machines Inc. through the AgriScience Program to help producers improve farm management and their bottom line. Such innovations are projected to induce the demand for agriculture machinery, including harvesting machinery, in the long run, thus also boosting the market over the coming years.
Canada Agricultural Machinery Industry Overview
The Canadian agricultural machinery market is consolidated, owing to the presence of a few prominent players, accounting for a higher share of the market. The key players in the market include Deere and Company, CLAAS KGaA mbH, AGCO Corporation, CNH Industrial NV, and Kubota Corporation. These players are strengthening their positions by launching agricultural machinery equipment that caters to the needs of farmers in this region. The main strategy adopted by the key players has been to invest in R&D to encourage innovation and maintain a strong market base.
Canada Agricultural Machinery Market Leaders
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Kubota Canada Ltd
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Deere & Company
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KUHN NORTH AMERICA, INC.
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CLAAS KGaA mbH
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CNH Industrial America LLC
*Disclaimer: Major Players sorted in no particular order
Canada Agricultural Machinery Market News
- November 2022: Kubota Canada Ltd, one of the country's leading tractor and compact equipment distributors, unveiled the M7-4 diesel tractor at the Agri-Trade Equipment Expo in Red Deer, Alberta, introducing farmers to the latest innovation to come out of Kubota's popular M7 series.
- October 2022: Kubota Canada Ltd opened its new Canadian corporate headquarters and distribution facility in the growing Pickering Innovation Corridor.
Canada Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Shortage Of Labor in The Agriculture Sector
4.2.2 Government Support to Enhance Farm Mechanization
4.2.3 Rising Technological Advancements by Key Players
4.3 Market Restraints
4.3.1 Heavy Initial Procurement Cost and High Expenditure on Maintenance
4.3.2 Security Concerns in Modern Farming
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Tractors
5.1.1.1 Less than 40 HP
5.1.1.2 40 HP to 99 HP
5.1.1.3 Greater than 100 HP
5.1.2 Plowing and Cultivating Machinery
5.1.2.1 Plows
5.1.2.2 Harrows
5.1.2.3 Rotovators and Cultivators
5.1.2.4 Other Equipment
5.1.3 Planting Machinery
5.1.3.1 Seed Drills
5.1.3.2 Planters
5.1.3.3 Spreaders
5.1.3.4 Other Planting Machineries
5.1.4 Sprayer
5.1.5 Irrigation Machinery
5.1.5.1 Drip Irrigation
5.1.5.2 Sprinkler Irrigation
5.1.5.3 Other Irrigation Machinery
5.1.6 Harvesting Machinery
5.1.6.1 Combine Harvesters
5.1.6.2 Other Harvesting Machinery
5.1.7 Haying and Forage Machinery
5.1.7.1 Mowers and Conditioners
5.1.7.2 Balers
5.1.7.3 Other Haying and Forage Machinery
5.1.8 Others Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 CLAAS KGaA mbH
6.3.2 Deere & Company
6.3.3 CNH Industrial NV
6.3.4 Kubota Corporation
6.3.5 AGCO Corporation
6.3.6 Same Deutz-Fahr
6.3.7 Yanmar Co. Ltd
6.3.8 Kuhn Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Canada Agricultural Machinery Industry Segmentation
Agricultural machinery relates to the devices and mechanical structures used in farming or other agriculture. For this report, the machinery used in agricultural operations has been considered. The report does not cover machinery used for industrial and construction purposes or multi-purpose tractors, machinery, and equipment used for both agricultural and non-agricultural operations.
The Canada Agricultural Machinery Market is segmented by Type into Tractors (Less than 40 HP, 40 HP to 99 HP, and Greater than 100 HP), Ploughing and Cultivating Machinery (Plows, Harrows, Rotavators and Cultivators, and Other Equipment), Planting Machinery (Seed Drills, Planters, Spreaders, and Other Planting Machinery), Sprayers, Irrigation Machinery (Drip Irrigation, Sprinkler Irrigation, and Other Irrigation Machinery), Harvesting Machinery (Combine Harvesters and Other Harvesting Machinery), Haying and Forage Machinery (Mowers and Conditioners, Balers, and Other Haying and Forage Machinery), and Other Types. The report offers the market size and forecasts for agricultural machinery in value (USD) for all the above segments.
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Canada Agricultural Machinery Market Research FAQs
How big is the Canada Agricultural Machinery Market?
The Canada Agricultural Machinery Market size is expected to reach USD 8.37 billion in 2024 and grow at a CAGR of 7.60% to reach USD 12.08 billion by 2029.
What is the current Canada Agricultural Machinery Market size?
In 2024, the Canada Agricultural Machinery Market size is expected to reach USD 8.37 billion.
Who are the key players in Canada Agricultural Machinery Market?
Kubota Canada Ltd, Deere & Company, KUHN NORTH AMERICA, INC., CLAAS KGaA mbH and CNH Industrial America LLC are the major companies operating in the Canada Agricultural Machinery Market.
What years does this Canada Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Canada Agricultural Machinery Market size was estimated at USD 7.73 billion. The report covers the Canada Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Canada Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Agricultural Machinery Industry Report
Statistics for the 2024 Canada Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Agricultural Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
