Report Overview
Featuring 200 tables and 93 figures – available in Excel and Powerpoint! Learn More This report includes data from 2011-2031 in 5 year intervals and tables featuring year-by-year data for 2018-2025. Scope
This study analyzes the global supply of and demand for agricultural equipment by major world region. Products covered include:
farm tractors, including pedestrian-controlled (also referred to as two-wheel or walking), wheeled (also called four-wheel), and crawler (or tracked) tractors harvesting machinery, including combine harvesters planting and fertilizing machinery haying machinery plowing and cultivating machinery livestock machinery other agricultural equipment (e.g., irrigation equipment, sprayers) separately sold parts and attachments (including aftermarket engines)
Forest machinery and certain other loosely related products – such as lawn and garden equipment and commercial lawn and turf care equipment – are excluded from the scope of this study.
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Key Takeaways
Global demand for agricultural equipment is forecast to increase 6.5% per year to $213 billion in 2026. However, growth in market value will be mostly the result of higher prices that have resulted from recent supply chain issues and raw material cost inflation. In unit terms, demand will increase just 1.1% per year off of a relatively healthy 2021 base. Real gains are expected to accelerate in the latter part of the forecast period as the global economy continues to normalize. Growth in this period will be bolstered by:
rising agricultural activity and higher agricultural commodity prices
farmers replacing aging machinery and investing in newly developed agricultural technologies as they face a variety of workforce issues
continuing government support for farmers around the world, ranging from direct subsidies to programs promoting advanced farming practices to machinery rental schemes (e.g., India)
government and industry initiatives designed to insulate farmers from the impact of climate change and reduce the environmental impact of farming
Rebound in China & Technological Advancement Drives Absolute Gains in Asia/Pacific Region
The Asia/Pacific region is expected to register above average growth and post the largest absolute gains of any region due primarily to a rebound in the Chinese agricultural equipment market. The use of more sophisticated equipment will support gains, as the Chinese government continues to focus on improving agricultural mechanization rates throughout the country. The shift to more advanced and machinery-intensive farming techniques will also drive gains in India, the region’s second largest market. In more mature regional markets such as Australia, Japan, South Korea, ongoing upgrades to state-of-the-art agricultural technologies will support demand.
More than Half of New Product Demand Concentrated in Tractor & Harvesting Equipment
Tractors and harvesting equipment sales are projected to climb nearly 7.0% per year between 2021 and 2026. The introduction of the next generation of machines, which will feature numerous advanced technologies, will drive growth in both segments. Newly developed harvesting equipment, for instance, is considerably more capable and reliable than older examples because of advanced sensors and the automation of key functions. Also, tractors – because of their versatility, compatibility with attachments, and suitability for numerous agricultural applications – will continue to be among the first machines that farmers purchase.
Historical Trends
Trends in the mature global agricultural equipment market tend to be highly cyclical because:
The agricultural sector is a critical component of every economy and among the first to develop.
More than three-fourths of global demand for farm machinery demand is concentrated in 20 nations, the majority of which are at later stages of economic development. Replacement product sales – which are highly cyclical – are the primary driver of growth in most mature markets, and they play a key role in large developing markets (e.g., China). Agricultural equipment have long lifespans, but are often replaced prematurely because of performance considerations.
Consequently, periods of strong growth that allows farmers to replace aging agricultural equipment and invest in new technologies are frequently followed by significant moderation. This is particularly true of the mature North American, European, and Asian markets where replacement product sales play a greater role in driving growth. Other factors can positively or negatively impact the global agricultural equipment market’s growth cycles, including:
economic conditions, levels of international trade and foreign investment, and fixed investment spending trends changes in the value of a country’s currency farming activity trends extent of government support for the agricultural sector agricultural commodity pricing trends, which significantly effect farm incomes increasing or decreasing availability of farm machinery, as well as changes in the cost thereof and access to financing options the introduction of new agricultural technologies, which can spur both new and replacement machinery sales and encourage the use of more advanced attachments and spare parts emissions regulations, technical and safety standards, and/or worker protections that affect the agricultural sector
Typical growth cycles lasts three to seven years in mature markets, although that range can vary. Developing nations frequently see prolonged periods of growth as operators begin to use agricultural equipment more intensively and shift toward more capable, higher-priced models. Replacement sales are a smaller driver of gains in these markets because the corresponding stocks of equipment are quite small and relatively new. At the same time, many of these nations have above average growth prospects and benefit from large inflows of foreign capital, both of which can sustain long periods of market growth.
Demand by Region
Through 2026, global demand for agricultural equipment is projected to expand 6.5% annually to $213 billion. However, growth in market value will be mostly the result of higher prices that have resulted from recent supply chain issues and raw material cost inflation. In unit terms, demand will increase just 1.1% per year off of a relatively healthy 2021 base. Real gains are expected to accelerate in the latter part of the forecast period as the global economy continues to normalize. Trends that will support growth during this period include:
higher agricultural commodity prices
farmers replacing aging machinery and investing in newly developed technologies to combat a variety of workforce issues (e.g., shortages of skilled operators, rising wages, new worker protections)
continuing governmental support for farmers around the world, ranging from direct subsidies to programs promoting advanced farming practices to machinery rental schemes (e.g., India)
government and industry initiatives designed to insulate farmers from the impact of climate change and reduce the environmental impact of farming
the adoption of new regulations (at various levels) that will cause farm equipment spending and agricultural sector mechanization rates to grow
the expansion of the global agricultural sector, aided by population growth and rising personal incomes around the world Additionally, global demand for parts and attachments will expand as the amount of farm machinery in use climbs. The shift to more sophisticated equipment will also drive demand for more expensive, high performance parts and attachments. Industrializing countries will generally represent the fastest growing markets for farm machinery; mechanization of their agricultural sectors to increase crop yields will cause demand for relevant equipment to rise considerably. Consequently, many of the world’s industrializing nations will post particularly strong increases, with Brazil, India, and Thailand accounting for some of the fastest gains. Replacement product sales are the primary drivers of growth in developed countries, which generally have heavily mechanized agricultural sectors. However, limited growth in the amount of land harvested in these areas will restrain farming activity and associated machinery demand gains in the long term. Additionally, many of these nations have large stocks of used equipment, the widespread availability of which tends to supplant demand for new models. Advances in replacement agricultural equipment sales will generally be supported by the development of more efficient and/or better performing equipment that can reduce costs and increase crop yields, which will ultimately increase profits for the farm. Increasing demand for more expensive models will contribute to market gains in dollar terms. Through 2026, the Asia/Pacific region is expected to register above average growth and post the largest gains, driven primarily by a significant rebound in China. Both developing and mature markets are expected to perform well. The growing use of more sophisticated, machinery-intensive farming techniques in industrializing nations – and inflows of foreign capital thereto – will drive product sales in many developing markets; in Australia, Japan, South Korea, and other countries with highly mechanized agricultural sectors, it will be among the most significant components of growth. Region-wide, governments in both developing and mature countries will continue to offer high levels of support for farmers.