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Canada Agricultural Machinery Market Size (2024 - 2029)

The Canada Agricultural Machinery Market is projected to experience significant growth, driven by increased mechanization in the agriculture sector and rising farmers' income. The need to enhance agricultural land productivity is encouraging the adoption of machinery, supported by advancements in technology such as autonomous tractors and irrigation systems. Despite challenges like high initial costs and maintenance expenses, factors such as a demand for large-capacity machinery, government subsidies, and technological innovations are contributing to the expansion of the market.

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Market Size of Canada Agricultural Machinery Industry

Canada Agricultural Machinery Market Summary
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

Canada Agricultural Machinery Market 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 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.

Type
Tractors
Less than 40 HP
40 HP to 99 HP
Greater than 100 HP
Plowing and Cultivating Machinery
Plows
Harrows
Rotovators and Cultivators
Other Equipment
Planting Machinery
Seed Drills
Planters
Spreaders
Other Planting Machineries
Sprayer
Irrigation Machinery
Drip Irrigation
Sprinkler Irrigation
Other Irrigation Machinery
Harvesting Machinery
Combine Harvesters
Other Harvesting Machinery
Haying and Forage Machinery
Mowers and Conditioners
Balers
Other Haying and Forage Machinery
Others Types
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Canada Agricultural Machinery Market Size Summary

The Canadian agricultural machinery market is poised for significant growth, driven by increasing mechanization in the agriculture sector and rising farmers' incomes. The demand for advanced agricultural robotics, such as autonomous tractors and specialized machinery for plowing, planting, and irrigation, is expected to enhance productivity and meet the growing food demand. Despite the high initial costs and maintenance expenses of such machinery, factors like labor shortages, government subsidies, and technological innovations are propelling market expansion. Programs like the Canadian Agricultural Loans Act have facilitated access to financing for farmers, further boosting the adoption of modern machinery. The need for sustainable and efficient farm operations has also led to a shift towards self-propelled and tractor-mounted equipment, as farmers seek to maximize yields from shrinking agricultural land.

Technological advancements in tractors and other agricultural equipment are revolutionizing Canadian farming practices. The integration of artificial intelligence and precision farming tools is enhancing decision-making and operational efficiency, particularly in challenging terrains. The shift from conventional to technologically advanced machinery, such as 4WD tractors and self-propelled combines, is driven by the need for better performance and reduced labor requirements. Government investments in agricultural technology and innovation are supporting the development of solutions that improve resource conservation and efficiency. Key players in the market, including Deere and Company, CLAAS KGaA mbH, and AGCO Corporation, are focusing on research and development to maintain a competitive edge and cater to the evolving needs of Canadian farmers.

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Canada Agricultural Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Shortage Of Labor in The Agriculture Sector

      2. 1.2.2 Government Support to Enhance Farm Mechanization

      3. 1.2.3 Rising Technological Advancements by Key Players

    3. 1.3 Market Restraints

      1. 1.3.1 Heavy Initial Procurement Cost and High Expenditure on Maintenance

      2. 1.3.2 Security Concerns in Modern Farming

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Tractors

        1. 2.1.1.1 Less than 40 HP

        2. 2.1.1.2 40 HP to 99 HP

        3. 2.1.1.3 Greater than 100 HP

      2. 2.1.2 Plowing and Cultivating Machinery

        1. 2.1.2.1 Plows

        2. 2.1.2.2 Harrows

        3. 2.1.2.3 Rotovators and Cultivators

        4. 2.1.2.4 Other Equipment

      3. 2.1.3 Planting Machinery

        1. 2.1.3.1 Seed Drills

        2. 2.1.3.2 Planters

        3. 2.1.3.3 Spreaders

        4. 2.1.3.4 Other Planting Machineries

      4. 2.1.4 Sprayer

      5. 2.1.5 Irrigation Machinery

        1. 2.1.5.1 Drip Irrigation

        2. 2.1.5.2 Sprinkler Irrigation

        3. 2.1.5.3 Other Irrigation Machinery

      6. 2.1.6 Harvesting Machinery

        1. 2.1.6.1 Combine Harvesters

        2. 2.1.6.2 Other Harvesting Machinery

      7. 2.1.7 Haying and Forage Machinery

        1. 2.1.7.1 Mowers and Conditioners

        2. 2.1.7.2 Balers

        3. 2.1.7.3 Other Haying and Forage Machinery

      8. 2.1.8 Others Types

Canada Agricultural Machinery Market Size FAQs

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.

In 2024, the Canada Agricultural Machinery Market size is expected to reach USD 8.37 billion.

Canada Agricultural Machinery Market Report Snapshots

Canada Agricultural Machinery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)