The global farm equipment market is projected to grow from $39.95 billion in 2025 to $52.79 billion by 2032, at a CAGR of 4.1%, according to a new report by MarketsandMarkets.
The farm equipment market has declined from 2022 to 2024 and is expected to continue its trend through 2026–2027. According to a recent report published by the U.S. Department of Agriculture (USDA), the farm equipment market is primarily driven by a projected ~25% drop in net farm income for 2024, falling from $155 billion to $116 billion, which has made farmers hesitant to invest in new machinery. Additionally, high operational costs and increasing commodity prices have pressured farmer's budgets, leading to a 15-20% decrease in monthly U.S. tractor sales. Moreover, the demand for balers, sprayers, combines and the other equipment market also suffers as many farmers postpone purchases due to these financial constraints.
Similar trends and challenges have been followed in Europe and Asia due to increasing commodity prices, high operational costs and reduced farm incomes. For instance, the European tractor market saw an ~11.4% decline in sales in early 2024, while India's tractor sales also faced a downturn of ~8.7%. However, this trend might continue for 2-3 years, and in the future, the global agricultural equipment market is projected to grow significantly.
For more insights and to download a brochure of this report visit MarketsandMarkets.