Farm Equipment Market

The global farm equipment market is expected to grow from about USD 133.48 billion in 2026 to USD 181.67 billion by 2033, at a CAGR of around 4.5%, supported by long-term mechanization and technology upgrades. However, in the 2024–2025 period, the market was weak as farmers delayed purchases due to low crop prices, high interest rates, expensive financing, and higher operating costs, especially in the US and Europe. Industry bodies such as AEM and CEMA highlight that added pressure from rising logistics costs, geopolitical uncertainty, and strict EU CAP policies is also slowing equipment demand, while lower farm income (especially in the US in 2024) is reducing farmers’ ability to invest in new machinery.

However, the market outlook is expected to improve from mid to end of 2027 onward as interest rates ease, equipment prices stabilize, and financing becomes more affordable, supporting a gradual recovery in demand for tractors and farm equipment. Growth is likely to be driven not only by tractors but also by modern implements such as sprayers, balers, and tillage equipment, along with faster adoption of precision farming and smart agriculture technologies, marking a clear shift from a slowdown phase to a technology-led growth cycle in global farm mechanization.

To know about the assumptions considered for the study download the pdf brochure

The farm equipment market is mainly concentrated in Asia Oceania, Europe, and North America, which together represent the core global demand regions. The industry is led by major OEMs such as Deere & Company (US), AGCO Corporation (US), CNH Industrial (Netherlands), Kubota Corporation (Japan), and CLAAS (Germany). These players are increasingly expanding production and assembly facilities in the Asia-Oceania region to leverage lower manufacturing costs and meet growing demand for compact and mid-range tractors. This shift is also enabling Asia to function as a key export base for tractors shipped to Europe and North America, helping OEMs remain cost-competitive while strengthening global supply chain efficiency.

John Deere is primarily investing in digital farming and autonomous agriculture solutions to lead the global AgTech transformation, shifting its positioning from a traditional tractor manufacturer to a connected, software-driven machinery ecosystem leader. In January 2025 at CES 2025, the company accelerated this strategy by unveiling its second-generation autonomy platform built on AI, computer vision, and multi-camera sensing systems, reinforcing its focus on scalable autonomy across agriculture, construction, and landscaping. This digital push is further strengthened through the John Deere Operations Center, which integrates millions of acres of farm data into a unified cloud-based ecosystem, enabling precision farming, predictive insights, and equipment connectivity at scale.

The second key strategic pillar is rapid commercialization and field deployment of autonomy-enabled machinery. In February 2025, Deere introduced an advanced perception system for tillage automation, enabling select 8R and 9R tractors to operate autonomously in real-world field conditions, alongside retrofit autonomy kits designed to upgrade existing fleets. Throughout 2025, the company expanded real-farm deployments across tillage and field mapping applications, moving from demonstration to scaled usage within its connected ecosystem. By 2026, adoption momentum became evident with over 1 million acres reportedly operated using autonomous tractor systems in North America, highlighting strong commercial traction. Leveraging these developments, Deere is maintaining market dominance even in a challenging agricultural environment by transitioning tractors into upgradeable, software-defined platforms that generate recurring value beyond hardware sales.

CNH Industrial is strategically accelerating its transformation into a precision agriculture and autonomy-led farm equipment leader, with a strong focus on AI-enabled machinery, connected platforms, and integrated digital farming ecosystems across its Case IH, New Holland, and STEYR brands. In March 2025, the company strengthened its precision technology foundation by expanding its positioning and autonomy stack through assets such as Hemisphere GNSS and deeper integration of its Raven technologies platform, enhancing high-accuracy guidance, machine control, and scalable autonomy readiness across equipment lines. This reflects CNH’s broader strategy of building an in-house digital backbone to support next-generation autonomous farming systems rather than relying on standalone hardware innovation.

The second major strategic pillar is the deployment of AI-driven field automation solutions across core equipment segments. In June 2025, CNH launched next-generation AI-powered sprayer systems under its Case IH and New Holland brands, using real-time machine vision to identify crops, optimize spray application, and reduce chemical usage, directly improving productivity and sustainability outcomes. By late 2025, the company further advanced its autonomy roadmap with demonstrations of cab-less autonomous robot concepts and expanded digital farming capabilities powered by Raven technologies, signaling a long-term shift toward fully autonomous field operations. Moving into 2026, CNH continues scaling these capabilities across tractors, sprayers, and tillage equipment, while expanding connected fleet management and software-enabled services. Leveraging these developments, CNH is positioning itself as a fully integrated “connected farm ecosystem” player, where data-driven autonomy, precision agronomy, and software monetization collectively strengthen its competitiveness in a structurally evolving agricultural equipment market.

AGCO Corporation is increasingly executing a precision agriculture and retrofit-led autonomy strategy aimed at democratizing smart farming technologies across both mixed and non-proprietary equipment fleets. In August 2025 at the Farm Progress Show, the company strengthened this direction by showcasing next-generation tractors and precision solutions across its Fendt, Massey Ferguson, and PTx brands, with a strong emphasis on retrofit autonomy kits, AI-based crop protection systems, and connected farming architectures designed to operate seamlessly across heterogeneous farm equipment ecosystems. This reflects AGCO’s strategic focus on interoperability and scalability, enabling farmers to adopt automation without fully replacing existing machinery.

The second strategic pillar is the acceleration of its autonomy and AI-enabled field operations roadmap. In October 2025 at Tech Day 2025, AGCO highlighted advanced autonomous solutions, including the OutRun autonomous grain cart and tillage systems, AI-powered spraying technologies, and the rollout of the FarmENGAGE digital platform to enable centralized management of mixed fleets and farm data. In November 2025, the company further expanded its next-generation tractor portfolio, introducing upgraded Fendt series models, battery-electric tractor concepts, and AI-enabled “Talking Tractor” systems that enhance operator-machine interaction and decision support. Leveraging these developments, AGCO is positioning itself as a software-defined, retrofit-first agriculture leader, enabling gradual automation adoption while strengthening its competitiveness in a fragmented and rapidly digitalizing global farm equipment market.

Market Ranking

In the global farm equipment market, Deere & Company is a leading player, followed by CNH Industrial (Case IH, New Holland) and AGCO Corporation (Fendt, Massey Ferguson, Valtra) based on revenue scale, technology leadership, and global distribution strength. Deere & Company leads due to its strong dominance in North America, rapid shift toward AI-driven autonomous tractors, integrated digital ecosystem (Operations Center), and high-margin precision agriculture services, which create a powerful hardware + software model. CNH Industrial differentiates itself through its multi-brand global reach and strong presence in both North America and Europe, with aggressive investment in Raven autonomy, AI sprayers, and scalable precision farming platforms. AGCO, while smaller in scale, stands out as the most focused precision-agriculture specialist, driven by its Fendt premium brand, strong innovation in retrofit autonomy (PTx platform), mixed-fleet compatibility, and sustainability-led farming solutions, making it highly attractive in regions prioritizing efficiency and cost optimization.

Related Reports:

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, and Region - Global Forecast to 2033

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA : 1-888-600-6441
[email protected]