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North America Agricultural Machinery Market Size (2024 - 2029)

The North American agricultural machinery market is experiencing significant growth, driven by factors such as increased farm consolidation, a positive economic outlook, and substantial government support through subsidies. The demand for high-capacity machinery is rising due to the extensive farmland and the need for farm mechanization, alongside the adoption of smart technologies like GPS and robotic systems. The availability of flexible loans for agricultural equipment is enabling even small-scale farmers to invest in advanced machinery, further propelling the market's expansion.

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Market Size of North America Agricultural Machinery Industry

North America Agricultural Machinery Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 7.90 %
Market Concentration High

Major Players

North America Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Agricultural Machinery Market Analysis

The North American agricultural machinery market is projected to register a CAGR of 7.9% during the forecast period.

  • Increased farm consolidation, positive economic outlook, large production base, and greater government support through subsidies are driving sales of high-capacity agricultural machinery and equipment. According to the Association of Equipment Manufacturers (AEM), the total number of tractors and combines sold in 2021 in North America was 360,000 units. That year, there was a sale increase of over 10% in nearly every segment of agricultural tractors and combines in the United States and Canada.
  • The presence of extensive farmland has led to high demand for farm mechanization. Furthermore, the North American region is experiencing a rise in the use of smart combine harvesters equipped with monitoring technologies to boost farm production. Rising labor costs, the incorporation of robotic systems and GPS in tractors and harvesters, increased demand for high-capacity machinery due to large farms, and the increasing popularity of self-propelled machines are expected to drive market growth during the forecast period. The US-based agricultural machinery giant, John Deere, began enhancing the AI-based innovation process in tractors by acquiring an AI start-up, Blue River Technology. Such innovations are expected to drive the demand for technologically advanced tractors in the long term.
  • Farmers in the country have been able to avail timely subsidies in the form of agriculture equipment loans at flexible interest rates and repayment schedules. This, in turn, has helped even small-scale farmers to invest on primary agricultural equipment. The US government extends loans for farm equipment through USDA Direct Operating Loans, USDA Operating Microloans, and USDA Guaranteed Operating Loans. The farmers inclinination toward technology due to easy loans and to enhance productivity has resulted in double-digit gains for various machineries, thus is fuelling the market growth in the region.

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
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North America Agricultural Machinery Market Size Summary

The North American agricultural machinery market is experiencing significant growth, driven by factors such as farm consolidation, a positive economic outlook, and substantial government support through subsidies. The demand for high-capacity machinery is increasing due to the extensive farmland and the rising need for farm mechanization. Technological advancements, including the integration of smart combine harvesters, robotic systems, and GPS in tractors and harvesters, are further propelling market expansion. Companies like John Deere are enhancing their offerings by incorporating AI-based innovations, which are expected to sustain long-term demand for advanced agricultural machinery. The availability of flexible loans for farm equipment is enabling even small-scale farmers to invest in essential machinery, contributing to the market's growth.

The market is characterized by rapid technological developments, particularly in tractors, which are becoming indispensable for efficient farming amid rising labor costs and the growing average farm size. The need for sustainability and improved farm management is driving the demand for highly developed machinery. The United States and Canada are witnessing a shift towards more technologically advanced tractors, with shorter replacement cycles boosting sales. The market is consolidated, with major players like Deere & Company, AGCO Corporation, and CLAAS Group leading the way. These companies are innovating and collaborating to meet changing consumer demands and enhance agricultural productivity through automation and autonomy solutions.

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North America Agricultural Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 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 Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Tractor

        1. 2.1.1.1 Less than 40 HP

        2. 2.1.1.2 40 to 100 HP

        3. 2.1.1.3 Above 100 HP

        4. 2.1.1.4 4 WD Farm Tractors

      2. 2.1.2 Equipment

        1. 2.1.2.1 Plows

        2. 2.1.2.2 Harrows

        3. 2.1.2.3 Cultivators and Tillers

        4. 2.1.2.4 Other Equipment

      3. 2.1.3 Irrigation Machinery

        1. 2.1.3.1 Sprinkler Irrigation

        2. 2.1.3.2 Drip Irrigation

        3. 2.1.3.3 Other Irrigation Machinery

      4. 2.1.4 Harvesting Machinery

        1. 2.1.4.1 Combine Harvesters

        2. 2.1.4.2 Forage Harvesters

        3. 2.1.4.3 Other Harvesting Machinery

      5. 2.1.5 Haying and Forage Machinery

        1. 2.1.5.1 Mowers

        2. 2.1.5.2 Balers

        3. 2.1.5.3 Other Haying and Forage Machinery

      6. 2.1.6 Other Types

    2. 2.2 Geography

      1. 2.2.1 United States

      2. 2.2.2 Canada

      3. 2.2.3 Mexico

      4. 2.2.4 Rest of North America

North America Agricultural Machinery Market Size FAQs

The North America Agricultural Machinery Market is projected to register a CAGR of 7.90% during the forecast period (2024-2029)

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.

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