India Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.73 Billion |
| Market Size (2029) | USD 25.15 Billion |
| CAGR (2024 - 2029) | 8.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Agricultural Machinery Market Analysis
The India Agricultural Machinery Market size is estimated at USD 16.73 billion in 2024, and is expected to reach USD 25.15 billion by 2029, at a CAGR of 8.5% during the forecast period (2024-2029).
- India's agricultural sector is witnessing a surge in both production and demand. This upswing underscores the urgent need for farm mechanization, aimed at achieving output targets, optimizing input efficiency, and ensuring timely farm operations. In 2022, India set a record by producing 314.51 million tons of food grains. Yet, this impressive growth has come at a cost: rising input expenses and the depletion of natural resources, largely due to inefficient practices. Farm mechanization emerges as a solution, boosting productivity and comfort, and rendering agriculture more appealing to the younger generation. The India Brand Equity Foundation (IBEF) noted that India's mechanization rate for 2022-2023 stood at approximately 47%.
- Farm mechanization plays a pivotal role in several government initiatives. These include the Rashtriya Krishi Vikas Yojana (RKVY), the Mission for Integrated Development of Horticulture, the National Mission on Oilseeds and Oil Palm, and the National Food Security Mission (NFSM). Due to these initiatives, the distribution of agricultural machinery surged from 32,678 units in 2021 to a remarkable 294,800 units in 2023, as reported by the Ministry of Agriculture and Farmers Welfare. Tractors have long been the backbone of India's agricultural machinery landscape, and government subsidies and programs have further accelerated their widespread adoption.
India Agricultural Machinery Market Trends
Increasing Focus on Farm Mechanization
- In India, agriculture is the primary income source for nearly half the population and supplies raw materials to various industries. As the production of grains, cereals, and oilseeds rises, there's a growing demand for modern farm equipment. This equipment helps manage heavy harvesting operations, minimizes waste, and boosts yields. The Agricultural and Processed Food Products Export Development Authority (APEDA) reported that in the 2023-2024 financial year, India produced approximately 304.3 million metric tons of cereals, including rice, wheat, barley, millet, and ragi. Being the world's second-largest producer of rice and wheat, India is increasingly turning to farm mechanization to sustain its high yields.
- As workforce preferences shift from traditional farming to allied sectors, India faces a persistent labor shortage for intensive agricultural operations. This trend is exacerbated by rapid urbanization, with many moving to cities. World Bank data highlights this shift: employment in agriculture dropped from 45% in 2020 to 43% in 2022. Given this labor crunch, the demand for farm equipment is poised to rise in the coming years.
- Moreover, challenges like the need for timely farm activities and the narrow window for these operations underscore the urgency for mechanization. With mounting pressures to boost production amidst a steady labor shortage, the emphasis on farm mechanization is set to grow in the coming years.
Tractor Segment to Drive the Indian Agricultural Machinery Market
- India stands as one of the world's top producers of tractors, making the tractor segment the primary driver of the Indian agricultural machinery market. Tractors are pivotal in numerous agricultural tasks, from plowing and sowing to harvesting and transportation. Their rising adoption can be attributed to government subsidies, enhanced affordability, and a growing farmer awareness of mechanization's advantages. As reported by the Federation of Automobile Dealers Associations (FADA), tractor sales in India reached around 915 thousand units in 2023.
- The tractor segment's prominence in India's agricultural machinery landscape stems from its versatility across varied farming conditions. With the ability to operate numerous implements, tractors have become indispensable for farmers, regardless of scale. Affordable financing options have further broadened tractor accessibility. Highlighting this, the central government introduced the Pradhan Mantri Kisan Tractor Yojana in 2022, granting a 50% subsidy on tractor purchases. In 2024, the National Bank of Agriculture and Rural Development (NABARD) unveiled a scheme offering a 30% subsidy for tractor acquisitions.
- These government incentives have propelled tractor sales by 28.6% from 2020 to 2023, underscoring India's pivot towards mechanized farming. This shift is largely fueled by escalating labor costs and a quest for heightened efficiency. With continued government backing for agricultural modernization, the tractor market is poised for sustained growth. Coupled with rising farmer incomes and an expanding expanse of farmland, these factors are set to bolster the trajectory of Indian agriculture.
India Agricultural Machinery Industry Overview
The Indian agricultural machinery market is consolidated, with the significant players occupying the maximum share of the market. Renowned players like Mahindra & Mahindra Ltd, CNH Industrial NV, Tractors and Farm Equipment Ltd, Escorts Group, and Sonalika are significant players in the Indian agricultural machinery market. New product launches, partnerships, and acquisitions are the major strategies that leading companies adopt.
India Agricultural Machinery Market Leaders
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Mahindra & Mahindra Limited
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TAFE Motors and Tractors Limited
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International Tractors Ltd. (Sonalika)
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CNH Industrial N.V
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Deere & Company
*Disclaimer: Major Players sorted in no particular order
India Agricultural Machinery Market News
- August 2024: New Holland, a brand of CNH, launched the WORKMASTER 105 tractor in India. This 100+ horsepower (HP) model features a TREM-IV emission standard compliant engine, bringing advanced technology, quality, and performance to Indian customers. The tractor is equipped with an FPT Engine delivering 106 HP and includes features such as a 3,500 kg lift capacity, electro-hydraulic 4WD engagement, and an air-suspended seat with adjustable backrest.
- September 2023: Swaraj Tractors, a rapidly growing brand in the country and part of the Mahindra Group, introduced a new range of tractors in the 40 to 50 HP category. The company offers a best-in-segment six-year warranty for these tractors.
- April 2023: Mahindra Tractors, a division of Mahindra & Mahindra Ltd.'s (M&M) Farm Equipment Sector, has unveiled "OJA" as the brand name for its new range of future-ready tractors. The Mahindra OJA line will encompass four sub-tractor platforms including, Sub Compact, Compact, Small Utility, and Large Utility. This comprehensive range will include 40 models across various horsepower categories.
India 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 Government Initiatives Promoting Adoption of Agriculture Machinery
4.2.2 Increase in Agriculture Production
4.2.3 Growing Agriculture Labour Shortage
4.3 Market Restraints
4.3.1 High Costs of Machinery
4.3.2 Inadequate Training
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
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 50 HP
5.1.1.2 50 to 75 HP
5.1.1.3 76 to 100 HP
5.1.1.4 101 to 150 HP
5.1.1.5 Greater than 150 HP
5.1.2 Equipment
5.1.2.1 Plows
5.1.2.2 Harrows
5.1.2.3 Rotovators & Cultivators
5.1.2.4 Seed and Fertilizer Drills
5.1.2.5 Other Equipment
5.1.3 Irrigation Machinery
5.1.3.1 Sprinkler Irrigation
5.1.3.2 Drip Irrigation
5.1.3.3 Other Irrigation Machinery
5.1.4 Harvesting Machinery
5.1.4.1 Combine Harvesters
5.1.4.2 Forage Harvesters
5.1.4.3 Other Harvesting Machinery
5.1.5 Haying and Forage Machinery
5.1.5.1 Mowers and Conditioners
5.1.5.2 Balers
5.1.5.3 Other Haying & Forage Machinery
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere & Company
6.3.2 TAFE Motors and Tractors Limited
6.3.3 International Tractors Ltd (Sonalika)
6.3.4 Kubota Escorts Limited
6.3.5 Mahindra & Mahindra Limited
6.3.6 CNH Industrial N.V
6.3.7 Force Motors Ltd
6.3.8 VST Tillers Tractors Limited
6.3.9 AGCO Corporation (Massey Ferguson)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Agricultural Machinery Industry Segmentation
Agricultural machinery is the mechanical structures and devices used in farming or other agricultural purposes. The India Agricultural Machinery Market is segmented by type (tractors (less than 50 HP, 50 to 75 HP, 76 to 100 HP, 101 to 150 HP, greater than 150 HP), equipment (plows, harrows, rotovators and cultivators, seed and fertilizer drills, and other equipment), irrigation machinery (sprinkler machinery, drip irrigation, and other irrigation machinery), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), and haying and forage machinery (mowers and conditioners, balers, and other haying and forage machinery). The report offers market size and forecast in terms of value (USD) for all the abovementioned segments.
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India Agricultural Machinery Market Research FAQs
How big is the India Agricultural Machinery Market?
The India Agricultural Machinery Market size is expected to reach USD 16.73 billion in 2024 and grow at a CAGR of 8.5% to reach USD 25.15 billion by 2029.
What is the current India Agricultural Machinery Market size?
In 2024, the India Agricultural Machinery Market size is expected to reach USD 16.73 billion.
Who are the key players in India Agricultural Machinery Market?
Mahindra & Mahindra Limited, TAFE Motors and Tractors Limited, International Tractors Ltd. (Sonalika), CNH Industrial N.V and Deere & Company are the major companies operating in the India Agricultural Machinery Market.
What years does this India Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the India Agricultural Machinery Market size was estimated at USD 15.31 billion. The report covers the India Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Agricultural Machinery Industry Report
Statistics for the 2024 India Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. India 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.
India Agricultural Machinery Market Report Snapshots
