Autonomous Farm Equipment Market

The battery electric tractors segment is the fastest growing segment. Europe holds the highest market share for the electric tractors, followed by North America. Electric farm tractors are majorly used in a variety of tasks, including crop maintenance, livestock care, vineyards, cattle farming, dairy industry, and data-driven farming. They are also used in power tools and machinery in remote areas. In Europe, the European union have imposed strict emission regulation and sustainability goals till 2030 for electrification. European region is emphasising the green deal project to reduce the greenhouse gas emission from agriculture by 50% till 2030 to which the demand for sustainable tractors have increased. Considering the trend for battery capacity, in Europe 51-100 kWh battery are used in small to medium sized farming, whereas >100 kWh battery is used in large size farming. The major players in Europe for electric tractors are Kubota Corporation, Solectrac, AGCO Corporation, CNH Industrial, and Monarch tractors. Companies like Kubota Corporation also offers lower HP tractor in Europe of 26 HP which are usually used in tasks like mowing and hauling.

North America is the second largest market for electric tractors, due to stringent emission set by the governing bodies. For instance, California's ambitious climate objectives have significantly accelerated the US adoption of battery electric tractors (BETs). These tractors are mostly used in vineyard farming, cattle farming, and dairy industry in US. Also, the government is promoting the scrappage policy, facilitated through the “California CORE” voucher program, which offers substantial financial incentives for farmers to transition to electric tractors. This voucher's range for electric tractors ranges from USD 16,147 for the e25G Gear model to USD 28,000 for the eUT+ Narrow model. In Asia Oceania, the demand for electric tractor is less which will increase in future. Hence these initiatives from government and increasing investments in sustainable practice from the OEMs is driving the market for battery electric tractor.

The Forwarders forestry equipment segment holds the largest market in forestry equipment. The North America holds the largest market share >55% globally due to presence for largest forest area. According to USDA Economic Research Service (ERS), more than 28% of forest land is available in US. This equipment is usually self-propelled vehicle which is primarily used to transporting the felled and processed logs from the harvesting site within a forest to a designated landing area near a road. This equipment finds its end application more in landing, roadside, or processing area. Key players in US who offers forestry equipment includes Deere & Company, Caterpillar, Komatsu, Tigercat, and TimberJack.

Europe is the second largest market for forwarders which contributes more than 30% of the market share in 2024. The use of forwarders is less in Europe which contributes 39% of forest land (i.e. 178 million hectares). The need for freight forwarders in Europe has increased due to the expansion of European commerce, leading to a greater demand for efficient cross-border transportation and logistics management. Projects like FBI4EU in Europe are enhancing the competitiveness of forest-based SMEs by promoting smarter policies, digital transformation, and green growth, which will support the increased use of forwarders. Hence this factor is driving the market for forwarders in Europe. The global demand for forwarders has declined from past 2 years, and is expected to decline till 2026, and then rise till forecast period. 

North America is Estimated to Second Fastest Growing Region in Autonomous Farm Equipment Market.

North America holds the second largest market for farm equipment with 2WD drive contributing more than 55%. In North America, US contributing more than 85% in the year 2024. The demand for 31-70 HP electric tractors is more in US while <30HP power output holds more than 55% of the market share in 2024. The demand for cereal combines by value side more in North America due to increase in cultivation of cereal products. Also, in rental equipment type, tractors with 31–70 HP tractors has higher demand due to affordability.