Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2019 - 2023 |
CAGR | 7.90 % |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
North America Agricultural Machinery Market Analysis
The North America Agricultural Machinery Market is expected to register a CAGR of 7.9% during the forecast period.
The agricultural machinery industry is experiencing significant transformation driven by farm consolidation and increasing adoption of agricultural technology. The sector has witnessed substantial growth in equipment sales, with the Association of Equipment Manufacturers reporting that North America saw sales of 360,000 units of tractors and combines in 2021, marking a notable increase of over 10% across nearly all segments. This trend reflects the broader shift toward larger, more efficient farming operations and the increasing need for high-capacity farm equipment to maintain productivity levels. The integration of smart farming equipment and precision agriculture equipment solutions has become increasingly prevalent, as farmers seek to optimize their operations and improve yield efficiency.
The industry is witnessing a remarkable shift toward conservation agriculture practices, which is reshaping equipment design and functionality requirements. According to the USDA, nearly 87% of all cropland acres in the United States are now farmed using some form of conservation tillage operations as of 2022. This transformation has led to increased demand for specialized farm equipment designed for minimal soil disturbance and precise application of inputs. Equipment manufacturers are responding by developing innovative solutions that combine multiple operations in single passes, reducing fuel consumption and soil compaction while maintaining optimal productivity levels.
The market is experiencing a significant evolution in equipment sophistication and capabilities, particularly in the realm of autonomous and semi-autonomous machinery. This trend is exemplified by recent innovations such as Vaderstad's introduction of prescription map tillage and E-Services for combined cultivators in September 2023, which represents a major step forward in agricultural automation technology. The integration of artificial intelligence and machine learning capabilities is becoming increasingly common, with manufacturers focusing on developing equipment that can make real-time decisions based on field conditions and crop requirements.
The industry is witnessing a strong push toward sustainable and efficient farming practices through technological innovation. In 2023, CNH Industrial launched the Patriot 50 Series sprayer and TridentTM 5550 combination applicator, showcasing the industry's commitment to developing more efficient and environmentally conscious agricultural machinery. According to CEMA Statistics, the registration of agricultural tractors exceeding 50 HP reached 162,377 units in 2021, indicating a robust demand for higher-capacity machinery. This trend is further supported by strategic partnerships, such as John Deere's collaboration with EGO in June 2023, which aims to advance electric and autonomous capabilities in agricultural equipment.
North America Agricultural Machinery Market Trends
Shortage of Labor in the Agriculture Sector
The agricultural sector in North America and Europe is experiencing a severe labor shortage crisis that is driving the adoption of agricultural machinery. The shortage is particularly acute in Canada, where the farm labor deficit is projected to double by 2029, potentially leading to a 123,000-worker shortage. This labor crisis has already had significant financial implications, with Canadian farmers incurring costs of approximately USD 2.9 billion during 2020-2021 due to labor shortages. The situation is compelling farmers to invest in automated and efficient agricultural machinery as a long-term solution to address their operational needs.
The declining agricultural workforce is evident across both regions, with employment in agriculture as a percentage of total employment decreasing from 1.73% to 1.63% in North America and from 4.34% to 4.13% in Europe from 2020 to 2021. This trend of decreasing agricultural labor availability, coupled with rising wage rates, is pushing farmers toward mechanization. The adoption of autonomous farm equipment, including tractors and combines, has become crucial for maintaining productivity and efficiency in farming operations, effectively compensating for the diminishing workforce while ensuring timely completion of agricultural tasks.
Government Support to Enhance Farm Mechanization
Governments across North America and Europe are implementing supportive policies and providing financial assistance to promote farm mechanization. A notable example is the Canadian government's investment of over USD 1 million in 2022 through the Ministry of Agriculture and Agri-Food, supporting companies like SomaDetect Inc. and Vivid Machines Inc. through the AgriScience Program. These initiatives are specifically designed to help producers improve farm management and operational efficiency through technological advancement and mechanization, demonstrating the government's commitment to modernizing the agricultural sector.
The support extends beyond direct funding to include various programs and policies that facilitate the acquisition of agricultural machinery. For instance, the US Farm Service Agency offers guaranteed and direct farm ownership and operation loans to family-size farmers who cannot secure commercial financing through traditional lenders. These government-backed financial support systems are crucial in enabling farmers to invest in modern agricultural technology, thereby increasing operational efficiency and productivity while reducing dependence on manual labor.
Rising Technological Advancements by Key Players
Major agricultural machinery manufacturers are continuously introducing innovative technologies and advanced features in their products to address evolving farming needs. In 2023, CNH Industrial launched the Patriot 50 Series agricultural sprayers and TridentTM 5550 combination applicator from Case IH, which offers enhanced efficiency and accuracy through advanced technology that keeps operators connected, informed, and in control. These technological innovations are transforming traditional farming practices by introducing precision agriculture capabilities and automated solutions.
The industry is witnessing a significant shift toward smart farming technologies, with companies investing heavily in research and development. For instance, in 2022, John Deere introduced See & Spray Ultimate, which enables targeted spraying of non-residual herbicides on weeds among corn, soybean, and cotton plants. This technology represents a breakthrough in precision agriculture, allowing farmers to reduce chemical usage while maintaining crop protection effectiveness. Additionally, manufacturers are incorporating artificial intelligence-based tools for data transmission and precise decision-making processes in cultivation, demonstrating their commitment to developing more sophisticated and efficient agricultural automation.
Segment Analysis: Type
Tractors Segment in North America and Europe Agricultural Machinery Market
The tractors segment continues to dominate the North America and Europe agricultural machinery market, accounting for approximately 48% of the total market share in 2024. This significant market position is attributed to the widespread adoption of advanced tractors across various agricultural operations. The segment's growth is driven by farmers' increasing preference for high-end tractors equipped with sophisticated technologies like GPS guidance systems and precision farming capabilities. Major manufacturers like Deere & Company, CNH Industrial, and AGCO Corporation are continuously introducing innovative tractor models with enhanced features such as improved fuel efficiency, better operator comfort, and advanced connectivity options. The demand is particularly strong for tractors in the 40-100 HP range, which offer versatility for both small and medium-sized farming operations.
Irrigation Machinery Segment in North America and Europe Agricultural Machinery Market
The irrigation equipment segment is projected to experience the fastest growth rate of approximately 8% during the forecast period 2024-2029. This accelerated growth is primarily driven by increasing water scarcity concerns and the need for efficient water management systems in agriculture. The segment is witnessing rapid technological advancements, particularly in precision irrigation solutions such as drip and sprinkler systems. Farmers are increasingly adopting these modern irrigation equipment technologies to optimize water usage and improve crop yields. The integration of smart technologies, including IoT sensors and automated control systems, is further enhancing the appeal of modern irrigation machinery. Additionally, government initiatives promoting water-efficient farming practices and sustainable agriculture are contributing to the segment's robust growth trajectory.
Remaining Segments in Type Segmentation
The other significant segments in the market include harvesting machinery, plowing and cultivating equipment, haying and forage machinery, and other types of agricultural equipment. The harvesting machinery segment maintains its position as the second-largest category, driven by the increasing mechanization of harvest operations. Plowing and cultivating equipment continues to be essential for soil preparation and maintenance, while the haying and forage machinery segment serves specialized farming needs. These segments are experiencing varying levels of technological advancement, with manufacturers focusing on improving efficiency and incorporating precision farming capabilities. The integration of autonomous features and smart technologies across these segments is reshaping traditional farming practices and contributing to the overall market growth.
North America Agricultural Machinery Market Geography Segment Analysis
Agricultural Machinery Market in North America
The North American agricultural machinery market demonstrates robust growth driven by increasing farm mechanization and technological advancement across the United States, Canada, and Mexico. The region benefits from extensive agricultural operations, well-developed infrastructure, and strong government support for modernizing farming practices. Labor shortages in the agricultural sector have accelerated the adoption of advanced farm equipment, while favorable government policies supporting farm mechanization have created a conducive environment for market expansion. The presence of major agricultural machinery manufacturers and their extensive dealer networks ensures widespread availability and after-sales support across the region.
Agricultural Machinery Market in United States
The United States leads the North American agricultural machinery market, leveraging its vast agricultural land and advanced farming practices. Agriculture contributes significantly to the country's economy, with approximately 40% of land used for agricultural purposes, including livestock grazing. The consolidation of farms has resulted in larger operational scales, driving the demand for high-capacity tractors and other agricultural implements. The country holds approximately 46% market share in the North American region, supported by robust distribution networks and the presence of major manufacturers. The trend of increasing machinery usage is evident in the rising adoption of smart cultivators and automated systems, with manufacturers continuously launching innovative products to meet evolving farmer needs.
Agricultural Machinery Market in Mexico
Mexico emerges as the fastest-growing market in North America, with a projected growth rate of approximately 7% during 2024-2029. The country's agricultural machinery market is experiencing rapid transformation driven by increasing food demand and the need for improved productivity. The government's supportive programs, including PROAGRO, have been instrumental in enabling farmers to purchase modern farm equipment. The expansion of major agricultural machinery manufacturers into Mexico, coupled with growing exports and strategic partnerships, has strengthened the market infrastructure. The country's focus on modernizing agricultural practices and increasing mechanization levels continues to create new opportunities for market growth.
Agricultural Machinery Market in Europe
The European agricultural machinery market showcases strong growth potential, characterized by high mechanization levels and continuous technological innovation across Germany, France, the United Kingdom, Spain, Italy, and Russia. The region's emphasis on precision farming and sustainable agricultural practices drives the adoption of advanced machinery. European manufacturers are at the forefront of developing innovative agricultural technology, supported by strong research and development capabilities. The market benefits from the European Union's Common Agricultural Policy (CAP) and various national initiatives promoting farm mechanization.
Agricultural Machinery Market in Germany
Germany maintains its position as Europe's largest agricultural machinery market, with approximately 24% market share in the region. The country's prominence is supported by its strong manufacturing base, superior engineering capabilities, and extensive export networks. German agricultural machinery is globally recognized for its precision engineering and innovative features. The country's farmers benefit from European Union subsidies for farm investment, enabling them to invest in modern machinery. The presence of major manufacturers and continuous technological advancements in areas like automation and precision agriculture equipment reinforces Germany's market leadership.
Agricultural Machinery Market in United Kingdom
The United Kingdom demonstrates the highest growth potential in Europe's agricultural machinery market, with an expected growth rate of approximately 8% during 2024-2029. The country's agricultural sector has increased its integration with technology to support sustainable agricultural practices, particularly in addressing labor shortages and improving operational efficiency. The UK government's focus on increasing farm mechanization to produce more with less environmental impact has been a key growth driver. The adoption of precision farming technologies in new tractors and other agricultural machinery has become increasingly prevalent, with 70-80% of new machinery equipped with these advanced features.
North America Agricultural Machinery Industry Overview
Top Companies in North America Agricultural Machinery Market
The agricultural machinery market in North America and Europe is characterized by intense innovation and strategic developments among major players like Deere & Company, CNH Industrial, Kubota Corporation, AGCO Corporation, and CLAAS Group. These companies are actively pursuing product innovations focused on agricultural automation, precision agriculture, and sustainable solutions, with a particular emphasis on electric and autonomous machinery development. The industry has witnessed significant operational transformations through digitalization initiatives and the adoption of smart manufacturing. Companies are expanding their presence through strategic partnerships, particularly in emerging technology segments like AI and agricultural robotics. Manufacturing facility expansions, dealer network strengthening, and research center establishments have become common strategies, while companies are also prioritizing after-sales service enhancement and customer support infrastructure development to maintain a competitive advantage.
Consolidated Market Led By Global Players
The agricultural machinery market demonstrates a highly consolidated structure dominated by multinational corporations with diverse product portfolios and extensive geographic presence. These major players leverage their established brand reputation, comprehensive distribution networks, and significant research and development capabilities to maintain market leadership. The market has witnessed strategic consolidation through mergers and acquisitions, particularly focused on acquiring technological capabilities and expanding regional presence. Companies are increasingly pursuing vertical integration strategies to control key components of their supply chain and enhance operational efficiency.
The competitive dynamics are shaped by the presence of both diversified industrial conglomerates and specialized agricultural equipment manufacturers. While global players dominate the high-end machinery segment, regional players maintain a significant presence in specific product categories and local markets. The industry has seen increased collaboration between established manufacturers and technology startups, particularly in developing next-generation farming solutions. Market entry barriers remain high due to substantial capital requirements, established dealer networks, and complex regulatory compliance needs.
Innovation and Service Drive Future Success
Success in the farm equipment market increasingly depends on companies' ability to integrate technological innovation with traditional equipment manufacturing expertise. Incumbent players must focus on developing comprehensive solutions that combine equipment, software, and services while maintaining strong dealer relationships and after-sales support networks. Companies need to balance investment in new technologies with maintaining competitive pricing structures, while also addressing growing demand for sustainable and environmentally friendly solutions. The ability to provide flexible financing options and comprehensive service packages has become crucial for maintaining market position.
For emerging players and challengers, success lies in identifying and exploiting specific market niches while building strategic partnerships to overcome distribution and service infrastructure limitations. Companies must navigate complex regulatory environments while addressing farmers' evolving needs for precision agriculture and data-driven solutions. The market shows relatively low substitution risk due to the essential nature of agricultural machinery, but companies must remain responsive to changing agricultural practices and environmental regulations. Customer concentration in certain segments necessitates strong relationship management capabilities and customized solution development approaches.
North America Agricultural Machinery Market Leaders
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Deere & Company
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AGCO Corporation
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Same Deutz-Fahr Deutschland GmbH
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CLAAS Group
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Kverneland Group
- *Disclaimer: Major Players sorted in no particular order
North America Agricultural Machinery Market News
- December 2022: CNH Industrial added new Automation and Autonomy Solutions to the Ag Tech portfolio in Phoenix, Arizona, and the USA. These New Driverless Tillage and Driver Assist Harvest solutions from Raven, and Baler Automation from Case IH and New Holland, can deliver automation and autonomous equipment enhancements and help solve farmers' most significant challenges to increasing productivity.
- 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.
- May 2022: AGCO acquired JCA Industries to increase engineering and software development capabilities and to accelerate the development of highly automated and autonomous machines.
- April 2022: Deere & Company and GUSS Automation formed a joint venture with an LLC in Kingsburg, Calif. Global Unmanned Spray System (GUSS) is a pioneer in semi-autonomous sprayers for orchards and vineyards.
- August 2021: John Deere introduced the new 6155MH Tractor that delivers all the field-proven performance and reliability of other M Series Tractors but in a high-crop configuration in California and Arizona.
North America 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
- 4.3 Market Restraints
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4.4 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 Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Tractor
- 5.1.1.1 Less than 40 HP
- 5.1.1.2 40 to 100 HP
- 5.1.1.3 Above 100 HP
- 5.1.1.4 4 WD Farm Tractors
- 5.1.2 Equipment
- 5.1.2.1 Plows
- 5.1.2.2 Harrows
- 5.1.2.3 Cultivators and Tillers
- 5.1.2.4 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
- 5.1.5.2 Balers
- 5.1.5.3 Other Haying and Forage Machinery
- 5.1.6 Other Types
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5.2 Geography
- 5.2.1 United States
- 5.2.2 Canada
- 5.2.3 Mexico
- 5.2.4 Rest of North America
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 AGCO Corporation
- 6.3.2 CLAAS Group
- 6.3.3 CNH Industrial NV
- 6.3.4 Deere & Company
- 6.3.5 Kubota Corporation
- 6.3.6 Kverneland Group
- 6.3.7 Morris Industries Ltd
- 6.3.8 Netafim Irrigation Inc.
- 6.3.9 Same Deutz-Fahr Deutschland GmbH
- 6.3.10 Vaderstad Industries Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Agricultural Machinery Industry Segmentation
The agricultural machinery industry is considered a part of the machinery industry that comprises the manufacturing of machinery required to support agriculture.
The North American agricultural machinery market is segmented by type (tractors, equipment, irrigation machinery, harvesting machinery, haying and forage machinery, and other types) and geography (United States, Canada, Mexico, and Rest of North America). The report offers market sizes and forecast in terms of value (USD million) for the above-mentioned segments.
Type | Tractor | Less than 40 HP | |
40 to 100 HP | |||
Above 100 HP | |||
4 WD Farm Tractors | |||
Equipment | Plows | ||
Harrows | |||
Cultivators and Tillers | |||
Other Equipment | |||
Irrigation Machinery | Sprinkler Irrigation | ||
Drip Irrigation | |||
Other Irrigation Machinery | |||
Harvesting Machinery | Combine Harvesters | ||
Forage Harvesters | |||
Other Harvesting Machinery | |||
Haying and Forage Machinery | Mowers | ||
Balers | |||
Other Haying and Forage Machinery | |||
Other Types | |||
Geography | United States | ||
Canada | |||
Mexico | |||
Rest of North America |
North America Agricultural Machinery Market Research FAQs
What is the current North America Agricultural Machinery Market size?
The North America Agricultural Machinery Market is projected to register a CAGR of 7.9% during the forecast period (2025-2030)
Who are the key players in North America Agricultural Machinery Market?
Deere & Company, AGCO Corporation, Same Deutz-Fahr Deutschland GmbH, CLAAS Group and Kverneland Group are the major companies operating in the North America Agricultural Machinery Market.
What years does this North America Agricultural Machinery Market cover?
The report covers the North America Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Agricultural Machinery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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North America Agricultural Machinery Market Research
Mordor Intelligence offers a comprehensive analysis of the agricultural machinery and farm equipment industry, drawing on decades of research expertise. Our detailed report covers the full range of agricultural equipment. This includes traditional tractors and combine harvesters, as well as advanced agricultural implements. The analysis also encompasses agricultural tools, harvesting machinery, and essential irrigation equipment. Additionally, it examines the growing role of agricultural drones and agricultural robotics in modern farming operations. This report PDF, available for immediate download, provides detailed insights into tillage equipment, planting equipment, and agricultural sprayers.
The report extensively covers emerging technologies, such as autonomous farm equipment and equipment for precision agriculture, highlighting the transformation brought by agricultural automation. Stakeholders gain valuable insights into equipment for smart farming, agricultural attachments, and crop protection equipment. It also includes a comprehensive analysis of livestock equipment and seeding equipment. Our research particularly benefits manufacturers, distributors, and investors by providing detailed analysis of agricultural technology adoption trends and the integration of agri machinery across North America. The report delivers actionable intelligence on agri equipment developments, supported by extensive primary research and data-driven insights.