Agricultural and Forestry Machinery Market

Agricultural and Forestry Machinery Market Size:

The global agricultural and forestry machinery market size reached USD 203.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 304.0 Billion by 2033, exhibiting a growth rate (CAGR) of 4.36% during 2025-2033. The increasing mechanization, the rising global food demand, technological advancements in machinery, growing government subsidies, increasing awareness of sustainable farming, precision agriculture, and efficient management, labor shortages in agriculture, and the rising need for productivity improvement are some of the major factors propelling the growth of the market.

Agricultural and Forestry Machinery Market Analysis:

• Major Market Drivers: The rising need for increased productivity and efficiency in farming and forestry operations represents the major driver of the market growth. The rising global food demand and limited arable land compel farmers to adopt mechanization. Technological advancements, like automation and GPS-enabled machinery, further enhance productivity.
• Key Market Trends: The widespread adoption of precision farming techniques and the increasing integration of smart technology represent the key trends in the market. Drones, GPS, and sensors are increasingly used for monitoring crop health and optimizing resource use. Sustainability is another key trend, with machinery designed to reduce emissions and conserve energy gaining popularity.
• Geographical Trends: Asia Pacific accounts for the largest region in the global agricultural and forestry machinery market. The increasing mechanization, the rising food demand, and government initiatives supporting modern families are driving the market growth across the region.
• Competitive Landscape: Some of the major market players in the agricultural and forestry machinery industry include AGCO Corporation, Caterpillar Inc., Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., China National Machinery Industry Corporation, Claas KGaA mbH, CNH Industrial N.V., Deere & Company, Komatsu Ltd., Kubota Corporation, Mahindra & Mahindra Limited, SDF Group, among many others.
• Challenges and Opportunities: The market faces several challenges including the high initial investment costs and limiting access for small-scale farmers. However, the market also faces various opportunities such as the growing demand for sustainable and precision farming practices. Innovations in smart and autonomous machinery offer the potential for increased efficiency.

Agricultural and Forestry Machinery Market Trends:

Increasing Mechanization

The need for higher productivity and efficiency in farming and forestry is pushing the adoption of modern machinery. According to industry reports, in 2023, it was predicted that achieving 75 to 80% mechanization in India would take approximately 25 years. While existing initiatives like the Sub-Mission on Agricultural Mechanization (SMAM) are promoting the adoption of modern equipment in farming, India must focus on prioritizing mechanization efforts specifically targeting small farms. As per India’s National Bank for Agriculture and Rural Development (NABARD), powered machines contribute 40-45 percent to various farm activities. Farm mechanization proves instrumental in reducing cultivation costs and enhancing productivity through efficient resource utilization, which is further expected to fuel the agricultural and forestry machinery market revenue.

Significant Technological Advancements

Innovations in automation, precision farming, and smart technologies are enhancing the efficiency and effectiveness of machinery. For instance, in August 2024, Mahindra Farm Equipment Sector, the world’s largest tractor manufacturer, is revolutionizing land preparation for Indian farmers with innovative rotavators. These rotavators are developed for every soil and crop type across the country. As a leading rotavator manufacturer in India, Mahindra offers a complete range of rotavators produced at its state-of-the-art facility in Nabha, Punjab. These rotavators save time and labor to prepare a perfect seedbed. They also effectively kill weeds and residues while helping to retain moisture. These advancements are expected to create a positive agricultural and forestry machinery market outlook.

Rising Global Food Demand

With a growing population and limited arable land, there is increased pressure to maximize output, thereby driving the demand for advanced agricultural equipment. According to the recently released National Institute of Transforming India (NITI) Aayog’s Working Group Report (WGR) titled “Crop Husbandry, Agriculture Inputs, Demand, and Supply” highlighted growth trends in the agricultural sector in terms of yield, production, and consumption of different types of food commodities, since the 1970s. Further, the WGR also projected the scenarios of demand and supply of various food commodities by the centenary year 2047, with a projected population of 1.6 billion. The study is aimed at evaluating the self-sufficiency and food security of India by the year 2047. For instance, fruits and vegetables are more responsive to income changes, and by 2047-48 their demand for direct consumption is likely to increase at a much faster rate; 2.43% and 3.18% respectively in the business-as-Usual (BAU) scenario. Their direct demand will be higher in the HIG scenarios. By 2047-48, India’s demand for vegetables will be in the range of 263-302 million tonnes, and fruits in the range of 62-75 million tonnes.

Agricultural and Forestry Machinery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on machinery type.

Breakup by Machinery Type:

• Agriculture Machines
  • Combine and Forage Harvesters
  • Field Sprayers
  • Tractors
  • Soil Cultivating Equipment
  • Milking and Poultry Machines
  • Haymaking Machines
  • Others
• Forestry Machines
  • Harvesters
  • Forwarders
  • Swing Machines
  • Skidders
  • Bunchers
  • Loaders
  • Others
     

Tractors among agriculture machines and skidders among forestry machines accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the machinery type. This includes agriculture machines (combine and forage harvesters, field sprayers, tractors, soil cultivating equipment, milking and poultry machines, haymaking machines, and others) and forestry machines (harvesters, forwarders, swing machines, skidders, bunchers, loaders, and others). According to the report, tractors among agriculture machines and skidders among forestry machines represented the largest segment.

The growth of tractors in the market is driven by their versatility, essential for plowing, planting, and transporting goods. The rising demand for increased farm productivity, labor shortages, and government subsidies for mechanization further boost tractor adoption, thus driving the agricultural and forestry machinery market growth. Technological advancements, such as GPS integration and automated systems, enhance efficiency and precision, making tractors indispensable for modern farming. The push for sustainable farming practices also drives the demand for energy-efficient and eco-friendly tractor models.

Skidders are essential in forestry for hauling logs from felling sites, driving their growth in the market. The need for efficient timber extraction, especially in rugged terrains, facilitates the demand for skidders. The rising global demand for wood products and timber fuels the expansion of logging operations, creating a strong market for skidders. Moreover, advancements in skidder design, including improved fuel efficiency and safety features, further enhance their appeal in modern forestry operations, thereby facilitating the agricultural and forestry machinery demand.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest agricultural and forestry machinery market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for agricultural and forestry machinery.

In the Asia Pacific market, the agricultural and forestry machinery sector is driven by rising mechanization, as farmers seek to improve efficiency and productivity due to labor shortages and growing urbanization. According to the agricultural and forestry machinery market forecast, the increasing food demand from a rapidly expanding population necessitates advanced machinery to maximize output which is further boosting the market growth. Government support, such as subsidies and modernization initiatives, further boosts machinery adoption. Additionally, technological advancements in precision farming, including GPS and automation, are gaining traction. For instance, in February 2024, the eighth edition of EIMA Agrimach India 2024, the international agricultural machinery exhibition organized by FICCI in collaboration with FederUnacoma, with the support of the Ministry of Agriculture and the Indian Council for Agricultural Research, opened in Bangalore at the GKVK University of Agricultural Sciences. EIMA Agrimach India 2024 will showcase live demonstrations of innovative equipment, demonstrating their efficiency and effectiveness. The event will provide platform for B2B, B2Gand B2C meeting, facilitating valuable networking opportunities for business and consumers, fostering partnerships and knowledge exchange. The event will also host Kisan Training lectures to empower farmers with the knowledge and skills to adopt new technologies and practices.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the agricultural and forestry machinery industry include AGCO Corporation, Caterpillar Inc., Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., China National Machinery Industry Corporation, Claas KGaA mbH, CNH Industrial N.V., Deere & Company, Komatsu Ltd., Kubota Corporation, Mahindra & Mahindra Limited, and SDF Group.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The market is highly competitive, with major players like John Deere, CNH Industrial, AGCO Corporation, and Kubota leading the industry. These companies focus on innovation, offering advanced technologies such as automation, precision farming, and eco-friendly machinery. Smaller regional players also contribute to market diversity. Competitive strategies include product diversification, mergers, and strategic partnerships. Additionally, companies are increasingly focusing on expanding in emerging markets like Asia Pacific, driven by rising mechanization and government support for modern farming practices. For instance, in December 2023, Erisha Agritech, an agricultural technology company in India, signed a memorandum of understanding (MoU) with Hyundai Agricultural Machinery, a leading Korean R&D-driven agricultural machinery company. The collaboration aims to introduce innovative harvesting solutions for key crops such as onion, potato, ginger, garlic, and cabbage in India through a joint venture manufacturing initiative.

Agricultural and Forestry Machinery Market News:

• In September 2023, John Deere and Yara joined forces to launch a partnership that will combine Yara’s agronomic expertise with John Deere’s precision technology and advanced machinery. The partnership will enable farmers to increase yields and optimize fertilizer use, helping them contribute to the ambition of the European Union’s Farm to Fork Strategy.
• In August 2024, AGCO Corporation, a global leader in the design, manufacture, and distribution of agricultural machinery and precision ag technology, announced the launch of new products and highlighted its many farmer-focused solutions at the 2024 Farm Progress Show in Boone, Iowa, on August 27-29. Alongside new tractors from its Fendt® and Massey Ferguson® brands, AGCO's exhibit will feature displays from PTx Trimble™, Precision Planting®, FarmerCore™ and a host of entertaining events throughout the show.

Agricultural and Forestry Machinery Market Report Scope:

Key Questions Answered in This Report:

• How has the global agricultural and forestry machinery market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global agricultural and forestry machinery market?
• What is the impact of each driver, restraint, and opportunity on the global agricultural and forestry machinery market?
• What are the key regional markets?
• Which countries represent the most attractive agricultural and forestry machinery market?
• What is the breakup of the market based on the machinery type?
• Which is the most attractive machinery type in the agricultural and forestry machinery market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global agricultural and forestry machinery market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the agricultural and forestry machinery market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global agricultural and forestry machinery market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the agricultural and forestry machinery industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.