Agriculture Equipment Market

The tractors segment continues to dominate the farm equipment rental market, with North America accounting for the largest share (over 35% in 2024). Farmers frequently rent tractors due to their high upfront purchase cost and the significant maintenance expenses associated with ownership. In the North American region, tractors within the 31–70 HP range are the most widely rented, catering to diverse field operations across crop and livestock farms.

Prominent rental providers such as Ag-Pro, Blanchard Machinery, Empower Rental Group, Pacific Ag Rentals, and Papertown Equipment Rental offer a wide range of tractors. Daily rental prices include 25 HP tractors at USD 330–350, 50 HP at USD 350–380, 75 HP at USD 370–400, and 100 HP at USD 1100–1130, giving farmers flexible cost options. OEMs are also expanding into this space—Deere & Company has launched rental programs for daily-use equipment, while Solectrac, in 2023, introduced an electric tractor rental initiative to promote sustainable agriculture. These efforts collectively strengthen the growth of the rental business across the farm equipment sector.

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Battery Electric Tractors: Fastest-Growing Segment

The battery electric tractor segment is emerging as the fastest-growing category worldwide. Europe leads the market, followed closely by North America. Electric tractors are increasingly used for vineyard operations, dairy farming, livestock management, crop cultivation, and remote power-tool support. Their adaptability to both small and large farms makes them an attractive alternative to diesel-based models.

Europe’s strong momentum is driven by strict emission norms, long-term sustainability goals for 2030, and the EU Green Deal, which aims to significantly reduce greenhouse emissions from agriculture. In the region, 51–100 kWh batteries are commonly used in small- to medium-sized farms, while >100 kWh options are preferred for larger operations.

Key players include Kubota, Solectrac, AGCO, CNH Industrial, and Monarch Tractor. Kubota also offers lower HP options (e.g., 26 HP) for tasks such as hauling and mowing, catering to diversified farm requirements.

In North America, demand is expanding due to strong regulatory pressure and proactive state-level programs. In the US, California’s climate targets have accelerated the adoption of battery electric tractors (BETs), particularly in vineyards, dairy farms, and cattle operations. The state’s “California CORE” voucher scheme further promotes adoption by offering substantial financial incentives—ranging from USD 16,147 for the e25G Gear model to USD 28,000 for the eUT+ Narrow model. While the Asia Oceania region currently has a lower adoption rate, demand is expected to climb significantly in the coming years as sustainability investments increase.

Forwarders Lead the Global Forestry Equipment Market

The forwarders segment represents the largest share of the forestry equipment market, with North America holding more than 55% of global demand due to its expansive forest area. As per the USDA Economic Research Service, over 28% of US forest land supports timber activities, creating strong demand for forwarders—self-propelled vehicles used to transport logs from harvesting sites to roadside landing areas.

Key US-based manufacturers include Deere & Company, Caterpillar, Komatsu, Tigercat, and TimberJack.

Europe holds the second-largest share, accounting for more than 30% of the global market in 2024. While European forests cover approximately 39% of the region, the use of forwarders is still growing, supported by expanding cross-border forestry operations and logistics needs. EU initiatives such as FBI4EU are enhancing digital transformation and sustainability in the forestry sector, encouraging wider adoption of modern forestry equipment. Although global demand for forwarders has declined over the past two years, the market is expected to rebound after 2026.

North America: Second Fastest-Growing Region in the Farm Equipment Market

North America remains one of the strongest markets for farm equipment, driven by high mechanization levels and strong adoption of mid-range tractor categories. The region’s 2WD tractors account for more than 55% of the market, with the US contributing over 85% in 2024.

Electric tractors in the 31–70 HP range are gaining popularity, while <30 HP tractors represent more than 55% of market share due to affordability and suitability for small-scale and specialty farming. Demand for cereal combines is also high, driven by increased cereal crop cultivation.

In the rental equipment category, 31–70 HP tractors show the strongest demand, aligning with their versatility for both small and large farm applications.

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Related Report

Farm Equipment Market by Power (<30, 31-70, 71-130, 131-250, >250HP), Type (Tractors, Balers, Sprayers, Harvesters), Function, Tractor Drive Type, Forestry Machinery, Electric Tractor, Type & Propulsion, Rental, & Region - Global Forecast to 2032