Agriculture Machinery Market Size, Share, Trends and Region - Global Forecast to 2032
The agriculture machinery market is expected to expand from USD 115.58 billion in 2025 to USD 152.79 billion by 2032, reflecting a CAGR of 4.1% over the forecast period. Market momentum is shaped by several key drivers, including the rising adoption of electric tractors, the growing presence of equipment rental programs, compliance with TREM V emission norms, escalating labor costs, and the increasing need for improved farm productivity. Additionally, advancements in precision farming technologies, favorable government subsidy structures, and the shift toward commercial farming are boosting demand for modern machinery and efficient irrigation solutions.
The tractor segment continues to dominate the farm equipment rental market. North America accounts for over 35% of the market in 2024, driven by the rising preference for renting tractors due to their high acquisition and maintenance costs. In the region, 31–70 HP tractors remain the most sought-after range. Leading rental providers such as Ag-Pro, Blanchard Machinery, Empower Rental Group, Pacific Ag Rentals, and Papertown Equipment Rental offer a variety of models. Pricing generally ranges from USD 330–350 for 25 HP, USD 350–380 for 50 HP, USD 370–400 for 75 HP, and USD 1100–1130 for 100 HP per day. OEMs are also entering the rental space—Deere & Company, for example, now provides rental solutions for daily use. Meanwhile, Solectrac launched an electric tractor rental program in June 2023 to encourage sustainable farming. Such initiatives are strengthening the rental business ecosystem globally.
The battery-electric tractor category represents the fastest-growing product segment. Europe leads this market, followed by North America. Electric farm tractors are being adopted across diverse applications such as crop management, animal husbandry, vineyard operations, dairy farms, and data-driven agriculture. They are also used with portable tools and auxiliary machinery in remote locations. Stricter EU emission norms and sustainability objectives for 2030 have accelerated the region’s transition to electric platforms. Under Europe’s Green Deal, agriculture-related emissions are targeted to be reduced by 50% by 2030, increasing demand for low-emission tractors. Battery trends show that 51–100 kWh units are preferred for small and medium farms, while >100 kWh systems cater to large operations. Major European players include Kubota, Solectrac, AGCO, CNH Industrial, and Monarch Tractor, with Kubota also offering 26 HP compact electric tractors suitable for mowing, hauling, and orchard use.
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North America is the next major market for electric tractors due to stringent regulatory norms. California’s aggressive climate policies have become a catalyst for accelerating electric tractor adoption in the U.S. Applications are concentrated in vineyards, cattle farming, and dairy units. Government support is a key factor—the California CORE voucher program provides generous incentives, offering farmers USD 16,147 (e25G Gear) to USD 28,000 (eUT+ Narrow) per electric tractor. Demand remains comparatively low in Asia Oceania but is anticipated to grow steadily with future regulatory and investment shifts. Overall, government-led electrification initiatives and OEM investments in sustainability are propelling the demand for battery-electric tractors.
The forwarders segment accounts for the largest share of the forestry equipment market.
In forestry machinery, the forwarder segment holds the highest market share. North America accounts for over 55% of global demand, supported by its vast forested area—over 28%, according to USDA ERS. Forwarders, which transport felled logs from harvest sites to landing areas, are commonly used in roadside and processing zones. Prominent suppliers in the U.S. market include Deere & Company, Caterpillar, Komatsu, Tigercat, and TimberJack.
Europe ranks second with more than 30% share in 2024, despite having a larger forest base (39%, or 178 million hectares). The region’s demand for forwarders is rising, supported by increasing cross-border trade and the need for efficient timber logistics. Projects such as FBI4EU are enabling digital transformation and sustainability initiatives for forest-based SMEs, contributing to stronger adoption of forwarders. The global demand for forwarders has been declining in the past two years and is projected to remain subdued until 2026, after which steady growth is expected.
North America is projected to be the second-fastest-growing region in the farm equipment market.
North America is projected to remain the second fastest-growing regional market for farm equipment. Two-wheel-drive (2WD) tractors dominate the region, holding over 55% share. The U.S. accounts for more than 85% of the regional market in 2024, with strong demand for 31–70 HP electric tractors, while tractors below 30 HP command over 55% share. North America also sees strong adoption of cereal combines, supported by the substantial cultivation of cereal crops. In the rental market segment as well, 31–70 HP tractors remain highly preferred due to their affordability and versatility.
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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
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