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The US agricultural machinery market size is forecast to increase by USD 10.17 billion at a CAGR of 6.37% between 2023 and 2028. The agricultural machinery market in the US is experiencing significant growth, driven by the rising adoption of advanced machinery that enhances productivity and efficiency on farms. This includes the integration of data analytics and artificial intelligence to optimize crop yields and reduce operational costs. However, high initial costs remain a challenge for many farmers, particularly for smaller operations. Additionally, emission regulations, such as TREM Stage-IV, are pushing manufacturers to develop more environmentally friendly machinery. Farmkart and JFarm Service, among others, are responding to these trends by offering financing solutions and leasing options under schemes like the FAME (Farm Bill Energy) scheme from CNH Industrial, enabling farmers to invest in modern machinery while managing their capital expenditures effectively.
The agricultural machinery market in the US is driven by the need for food security and the increasing trend towards large-scale farming. With limited arable land and a shrinking labor force, mechanization has become essential for efficient farming operations. CNH Industrial and Kubota are major players in the market, offering a range of tractors and agriculture equipment. The Inflation Reduction Act has also boosted the demand for agriculture machinery and equipment, providing incentives for farmers to adopt more mechanized farming practices. Pre-owned agriculture equipment is also gaining popularity due to its affordability. Farm mechanization is a key focus area for farmers to increase productivity and reduce costs.
Moreover, the emission regulations, such as Tier 4, have led to the adoption of more advanced tractors and machinery. The agriculture economy continues to grow, making the agricultural machinery market a significant contributor to the US economy.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The land development and seedbed preparation segment is estimated to witness significant growth during the forecast period. The agricultural machinery market in the US is experiencing significant growth due to the expanding size of farms and the subsequent need for advanced equipment to manage larger acreages efficiently. The Inflation Reduction Act in the US may further boost the demand for agricultural machinery as it includes provisions for agricultural conservation and infrastructure investments. Farmers are increasingly adopting modern technologies, such as GPS guidance systems, automated steering, variable rate technology, and precision planting equipment, offered by MacAllister Rentals, KhetiGaadi, and etHekwini Municipality, to optimize their land use and enhance agricultural yields. These advancements have led to increased efficiency and accuracy in farming practices, making agricultural machinery an essential investment for farmers.
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The land development and seedbed preparation segment was valued at USD 11.26 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising adoption of advanced agricultural machinery is the key driver of the market. Advanced agricultural machinery plays a crucial role in ensuring food security by enhancing productivity on arable land through large-scale farming operations. The integration of advanced technologies, such as GPS guidance systems, precision farming tools, telematics, and automation solutions, into agricultural machinery is transforming the sector. These technologies enable farmers to optimize inputs, increase operational efficiency, and improve yields. Precision farming techniques, facilitated by the use of sophisticated machinery, allow farmers to manage crop variability within fields effectively. By leveraging data-driven insights and real-time monitoring, farmers can make informed decisions regarding seed placement, irrigation, fertilizer application, and crop protection. This results in higher yields, improved resource utilization, and reduced environmental impact. CNH Industrial, among other key players, is at the forefront of providing farmers with advanced agricultural machinery solutions. The adoption of such machinery is expected to continue growing, driven by the need for labor force reduction and the pursuit of mechanization in agriculture.
The rising integration of data analytics and artificial intelligence with agricultural machinery is the upcoming trend in the market. The Agricultural Machinery Market in the US is witnessing significant growth due to the increasing focus on food security and the need to maximize productivity on arable land. Large-scale farming operations are increasingly relying on mechanization to optimize their operations and reduce their dependence on labor. CNH Industrial and other leading players in the market are responding to this trend by producing advanced agricultural machinery equipped with data analytics and AI capabilities. These technologies enable precision agriculture practices by providing farmers with real-time insights into field conditions, crop health, and yield potential. By analyzing historical data and monitoring current conditions, farmers can make data-driven decisions regarding planting, fertilizer application, irrigation, and pest management. This results in optimized crop yields, improved profitability, and enhanced food security. The use of data analytics and AI in agriculture is expected to continue gaining momentum as farmers seek to increase efficiency and reduce costs in the face of increasing global population and decreasing arable land.
High initial costs of agricultural machinery is a key challenge affecting the market growth. The agricultural machinery market in the US faces a challenge due to the high cost of equipment, particularly for small to medium-sized farmers. The average cost of machinery, such as tractors, ranges from USD30,000 to USD150,000, depending on factors like size, horsepower, features, and brand. This substantial investment impedes farmers from adopting modern mechanized farming technologies and expanding their market reach. Moreover, ongoing expenses, including fuel, maintenance, and repairs, add to the financial burden of owning and operating advanced agricultural machinery. Food security is a critical concern, and the limited access to mechanized farming equipment on arable land can hinder the productivity and efficiency of farming operations. Large-scale farming operations, which can afford the high costs, benefit from mechanization, while smaller farms often rely on labor-intensive methods. Companies like CNH Industrial provide agricultural machinery solutions, but the high cost remains a significant barrier for many farmers in the US.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
CLAAS KGaA mBH: The company offers agriculture machinery such as tractors, double roller drive for DISCO 3600 FRC, DISCO 9700 RC AUTO SWATHER, VARIANT net wrap system, TRION 740 and others.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The agricultural machinery market in the US is driven by the need for food security and the increasing trend towards large-scale farming. With a vast arable land and a significant labor force, mechanization has become a crucial aspect of American agriculture. The market is witnessing significant growth due to the adoption of advanced agriculture equipment, including IoT applications, GPS solutions, AI-based equipment, and flying drones. Precision agriculture is gaining popularity, leading to the increased demand for advanced farming equipment. The Inflation Reduction Act and the Farm Service Agency's FAME scheme are government initiatives that provide incentives for the purchase of new and pre-owned agriculture equipment.
Moreover, emission regulations, such as Tier 4 and Stage IV, are driving the demand for advanced and eco-friendly machinery. The agriculture economy's health is closely linked to the gross domestic product, and the mechanization of agriculture continues to play a significant role in its growth. Macallister Rentals, Khetigaadi, Ethekwini Municipality, Farmkart, JFarm Service, and Farm Service Agency are some of the farm service agencies that provide rental and maintenance services for agriculture equipment.
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Market Scope |
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Report Coverage |
Details |
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Page number |
139 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.37% |
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Market Growth 2024-2028 |
USD 10.17 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.06 |
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Key companies profiled |
AGCO Corp., Caterpillar Inc., CLAAS KGaA mBH, CNH Industrial N.V., Daedong Corp., Deere and Co., Doosan Corp., HORSCH Maschinen GmbH, J C Bamford Excavators Ltd., Kinze Manufacturing Inc., Kubota Corp., LS Tractor USA, Mahindra and Mahindra Ltd., The New York Blower Co., Vermeer Corp., Yanmar Holdings Co. Ltd., Zetor North America, EQUIPMENT TECHNOLOGIES INC., and GVM Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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