The Australia Agricultural Machinery Market Report is Segmented by Machinery Type (Tractors, Ploughing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying and Forage Machinery, Irrigation Machinery, Other Types). The Market Forecasts are Provided in Terms of Value (USD).

The total market size for agricultural equipment in Australia has fallen steadily over the past three years from a high of approximately *** billion U.S. dollars in 2018 to approximately *** billion U.S. dollars in 2020. Figures are expected to rebound slightly, however, with a total market size of roughly *** billion U.S. dollars forecast for 2021.

Agricultural machinery manufacturers have faced fluctuations in demand in recent years as the industry remains highly sensitive to agricultural conditions and farmer investment cycles. Heightened rainfall over the three years through 2022-23 drove up sales to downstream markets, particularly farmers who needed agricultural machinery to accommodate higher crop output. The onset of El Niño conditions in 2023-24 then reduced annual rainfall levels, weakening crop production and ultimately reducing requirements for agricultural machinery. Overall, industry revenue is anticipated to have inched downwards at an annualised 0.5% over the five years through 2025-26. Climbing interest rates have tempered private capital expenditure on agricultural machinery as government tax reliefs to incentivise spending ended. Unfavourable conditions in downstream markets have contributed to an expected decline in industry by 1.2% in 2025-26, when revenue will total an estimated $3.13 as farm income slumps. Import competition has continued intensifying over the long term. Overseas manufacturers that benefit from lower overhead costs and extensive economies of scale have boosted imports, exerting price pressure on local manufacturers and constraining profitability. Established brands with advanced manufacturing systems have ensured that import competition remains fierce, especially for standardised products like tractors. Domestic agricultural machinery manufacturers are shifting towards creating niche and value-added products to counteract these pressures. Unable to compete on standardised machinery, Australian manufacturers have created a market of modifications, where they tailor international products to be more durable to the harsh Australian climate. The differentiation has given manufacturers more control over price, stabilising profit margins. Volatile operating conditions will remain a defining feature of agricultural machinery manufacturing because of the unpredictable markets and weather factors that influence agricultural production. Expanding farm incomes are poised to bolster investment in agricultural machinery over the next few years. Few signs of significant manufacturing investment from major international manufacturers illustrate the weak sentiment in the Australian industry. As overseas production capabilities advance and economies of scale tip further away from domestic manufacturers, imports will consume a greater share of domestic demand. Overall, industry revenue is forecast to edge upwards at an annualised 0.1% through the end of 2030-31, to 3.14 billion.

The Australia agricultural machinery market size reached a value of approximately USD 3.22 Billion in 2024. The market is assessed to grow at a CAGR of 7.70% between 2025 and 2034, reaching a value of nearly USD 6.76 Billion by 2034.

The Asia-Pacific Agricultural Machinery Report is Segmented by Product Type (Tractors by Horsepower and Type, Plowing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying and Forage Machinery, Irrigation Machinery, and Other Types) and Geography (China, India, Japan, Australia, and Rest of Asia-Pacific). The Market Forecasts are Provided in Terms of Value (USD).

Australian Agricultural Machinery Market Outlook 2031

The Australian agricultural machinery market size was USD 3.26 Billion in 2022 and is expected to reach USD 6.15 Billion by 2031 expand at significant CAGR 7.3% during forecast period 2023–2031. Growth of the market is attributed to minor utilization of land resources, increasing demand for high-quality agricultural products, and government initiatives in agriculture sector.



Agricultural machinery relates to the mechanical devices and structures used in farming and other agriculture. There are several types of agricultural equipment like hand tools and power tools to tractors, harvesting machinery, planting machinery, and irrigation machinery that are used to operate and tow on farms.

The covid-19 pandemic affected the demand and supply of Australian agricultural machinery market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Australian Agricultural Machinery Market Trends, Drivers, Restraints, and Opportunities

• Rising prices of contractor services is projected to boost the market in the coming years.


• Rapid development in agriculture sector is major factor fuelling the market during the forecast period.


• lack of awareness regarding the benefits of using agriculture equipment<span style="font-size:1

The Australia agricultural equipment market is expected to grow with more than 6% CAGR from 2024 to 2029.

Market Size statistics on the Agricultural Machinery Manufacturing industry in Australia

The Australia Agricultural Machinery Market size was valued at USD 4.11 Million in 2023 and is projected to reach USD 7.14 Million by 2032, exhibiting a CAGR of 8.20 % during the forecasts periods. Recent developments include: August 2023: John Deere launched John Deere 1 Series Round Balers in the Australian market. It has the Bale Doc technology to document bale moisture and weight in near real-time., August 2022: John Deere launched a 9000 Series Self-Propelled Forage Harvester to deliver more power, precision, and productivity and provide farmers and contractors with 10% more productivity and 10% less fuel usage per ton harvested., May 2022: John Deere introduced a new range of P600 Precision Air Hoe drills to deliver up to a 15.5% larger working width and 24% weight reduction compared to the P500 to decrease compaction, labor time, and fuel consumption while optimizing productivity and seed to soil contact.. Key drivers for this market are: Declining Labour Availability and Rising Cost of Farm Labour, Rapid Technological Advancements by Key Players. Potential restraints include: High Cost of Agricultural Machinery and Repair, Data Privacy Concerns in Modern Farming. Notable trends are: Rising Preference for Farm Mechanization.

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Agricultural Machinery Market Size 2025-2029

The agricultural machinery market size is forecast to increase by USD 50 billion, at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by various factors. Notably, government subsidies aimed at promoting the agricultural sector have fueled the demand for advanced machinery. Farmers are increasingly investing in modern agricultural equipment to enhance productivity and efficiency. Another key trend is the rising popularity of small tractors, which cater to the needs of small and medium-sized farms. This segment is witnessing robust growth due to its affordability and versatility. However, the market also faces several challenges. One major obstacle is the high initial investment required for purchasing agricultural machinery. This can limit the adoption of advanced technology among small-scale farmers. Additionally, the lack of skilled labor and maintenance facilities in rural areas can hinder the effective use and longevity of these machines. Companies seeking to capitalize on market opportunities must address these challenges by offering flexible financing options, training programs for farmers, and establishing robust after-sales support networks. By doing so, they can effectively navigate the complexities of the market and secure a competitive edge.

What will be the Size of the Agricultural Machinery Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, driven by advancements in technology and shifting market dynamics. Soil sensors and precision farming techniques are revolutionizing crop management, providing real-time data for optimized irrigation and nutrient application. Baling presses and grain storage solutions are adapting to meet emission standards, ensuring sustainable agricultural practices. Attachment compatibility and service networks are becoming increasingly important for seamless integration of various machinery components. Variable rate technology and material sourcing are streamlining farming operations, while irrigation systems and precision farming methods are enhancing crop yields. Manufacturing processes are leveraging machine learning and AI to improve efficiency and reduce operating costs. The market's unfolding patterns are also influencing financing options and farm management software, enabling farmers to make data-driven decisions. Fuel efficiency and engine power are key considerations for machinery selection, as is data security and maintenance cost. Agricultural drones and GPS guidance are transforming remote sensing and field monitoring, while safety features and hydraulic systems are ensuring operator comfort and machine reliability. The ongoing evolution of agricultural machinery is shaping the industry, with continuous innovation in power transmission, dealer support, and parts distribution.

How is this Agricultural Machinery Industry segmented?

The agricultural machinery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeTractorsHarvesting machineryHaying machineryPlanting and fertilizing machineryPlowing and cultivating machineryApplicationLand development and seedbed preparationSowing and plantingHarvesting and threshingOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKAPACAustraliaChinaIndiaJapanSouth KoreaRest of World (ROW)

By Type Insights

The tractors segment is estimated to witness significant growth during the forecast period.The market encompasses a range of equipment essential for modern farming operations. Forage harvesters, seed drills, and grain dryers are among the key machinery types. Smart farming practices, such as precision seeding, yield monitoring, and variable rate technology, are increasingly adopted to optimize crop production. Aftermarket parts and dealer support ensure the longevity of machinery, while remote sensing and connected agriculture enable real-time monitoring and data analytics. Power transmission systems, engine technology, and fuel efficiency are critical factors influencing machinery performance and operating costs. Financing options and farm management software facilitate equipment acquisition and streamline operations. Emission standards and safety features are crucial considerations for manufacturers. Soil sensors, irrigation systems, and material sourcing are integral to optimizing farm productivity. Manufacturing processes, parts distribution, and service networks ensure efficient machinery production and maintenance. Machine learning and AI in agriculture enhance productivity and reduce labor requirements. Fuel efficiency, operating cos

Australia Agricultural Equipment Leasing Market is valued at USD 1.5 billion, driven by modern farming tech, rising ownership costs, and government incentives for sustainable practices.

The report on Australia Agricultural Machinery covers a summarized study of several factors supporting market growth, such as market size, market type, major regions, and end-user applications. The report enables customers to recognize key drivers that influence and govern the market.

Farm and construction machinery wholesalers have faced difficult market conditions over the past five years. Demand for industry machinery highly depends on the performance of downstream markets, like agriculture and construction. Over the past five years, crop production has fluctuated because of erratic rainfall, which has pressured farmers' incomes and how much they can spend on new equipment. Favourable weather during 2021-22 and 2022-23 boosted crop yields, which raised farmers’ incomes. Surging agricultural demand during this period supported industry revenue growth. Government schemes initiated during the pandemic to ease the financial burden on small businesses allowed them to deduct the full cost of eligible assets until June 2023. Such businesses were incentivised to purchase agricultural and other construction machinery, supporting industry revenue over 2020-21 and 2021-22, but this has constrained the need for new agricultural machinery in recent years. Major statewide infrastructure projects, like Victoria’s Big Build and Inland Rail, have driven demand for construction machinery, aiding industry revenue. However, the industry’s revenue has suffered from retailers bypassing wholesalers and purchasing machinery directly from manufacturers. Industry revenue is expected to have fallen at an annualised 4.8% over the five years through 2025-26 to $21.9 million. This includes an anticipated 6.1% plummet in 2025-26. The industry’s profitability has also shrunk as wholesalers have grappled with high wage costs and rising freight expenses. Farm and construction machinery wholesalers will contend with volatile demand from farmers in the coming years, as unpredictable weather conditions continue to influence their incomes. The completion of major civil infrastructure projects in 2025-26, like Melbourne’s Metro Tunnel project, will ease demand from the construction sector. Meanwhile, reduced export values for key minerals will contract demand from the mining sector. A rising population, driven by migration and natural increases, will bolster demand for infrastructure, new housing and institutional buildings like hospitals and schools. Dwelling commencements are on track to rise, and residential building construction, aided by lower interest rates, is increasing, which will support industry revenue growth. Wholesalers that focus on aftermarket activities like servicing and repair are set to be insulated from the effects of wholesale bypass and unpredictable downstream demand. Industry revenue is projected to grow at an annualised 2.4% over the five years through 2030-31 to $24.6 billion.

In Australia Farm Equipment Market, Large-scale farms are investing in high-capacity and multifunctional machinery to improve productivity.

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Farm Equipment Market Size 2024-2028

The farm equipment market size is valued to increase by USD 41.12 billion, at a CAGR of 5.47% from 2023 to 2028. Increasing adoption of precision farming technologies will drive the farm equipment market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 46% growth during the forecast period.
By Type - Manual segment was valued at USD 53.34 billion in 2022
By Product - Implement segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 50.44 billion
Market Future Opportunities: USD 41.12 billion
CAGR from 2023 to 2028 : 5.47%

Market Summary

The market is experiencing significant growth due to the increasing adoption of advanced technologies such as precision farming. This trend is driven by the need for higher operational efficiency, improved crop yields, and reduced environmental impact. One area of particular growth is the adoption of small tractors by small and private farm owners, including those in the agriculture sectors of vineyards and orchards. While the initial investment in acquiring farm equipment can be substantial, the long-term benefits include increased productivity, reduced labor costs, and improved compliance with regulations. For instance, a farm in the Midwest United States implemented a supply chain optimization strategy by investing in automated farm equipment.
This investment led to a 15% reduction in equipment downtime, translating to an annual cost savings of over USD50,000. The implementation of this technology also improved compliance with regulations related to food safety and labor laws, ensuring the farm's continued eligibility for lucrative contracts with major food retailers. As the agricultural industry continues to evolve, the adoption of advanced farm equipment will remain a key driver of growth and competitiveness.

What will be the Size of the Farm Equipment Market during the forecast period?

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How is the Farm Equipment Market Segmented ?

The farm equipment industry 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.

Type

  Manual
  Semi automatic
  Automatic


Product

  Implement
  Combines
  Sprayer
  Baler


Geography

  North America

    US


  Europe

    France


  APAC

    Australia
    China


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The manual segment is estimated to witness significant growth during the forecast period.

The market encompasses a broad spectrum of technologies and tools, with agricultural mechanization at its core. Precision agriculture, fueled by smart farming sensors, agricultural drones, and weather forecasting models, is revolutionizing modern farming practices. GPS-guided machinery, harvesting equipment, autonomous tractors, and precision spraying technology are transforming farm operations, enhancing efficiency and reducing machinery downtime. Sustainable farming practices, such as irrigation systems and soil moisture sensors, promote optimal crop health and yield. Farm automation systems, crop management software, yield monitoring systems, and field mapping software facilitate data acquisition and sensor data integration. Agricultural robotics and livestock management systems streamline farm processes, while equipment utilization metrics and machinery maintenance scheduling optimize resource allocation.

Water resource management and fuel efficiency analysis contribute to sustainable farming strategies. Remote sensing technology and data analytics platforms enable variable rate technology and soil nutrient analysis, further boosting farm productivity. Despite the advancements in farm equipment technology, the manual segment remains critical, particularly in regions with low mechanized equipment penetration. Manual tools, such as hand plows, scythes, sickles, and manual seeders, are essential for small-scale farmers due to their affordability, ease of use, and adaptability.

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The Manual segment was valued at USD 53.34 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 46% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the Asia-Pacific region, the markets experience significant growth due to increasing government initiatives supporting sustainable agricultural practices. India is among

Europe Agricultural Machinery Market Outlook 2031:

The Europe agricultural machinery market size was valued at USD 2.29 Billion in 2022 and is projected to reach USD 5.40 Billion by 2031, expanding at a CAGR of 10% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing mechanization of various farming activities.



The agricultural machinery industry produces and maintains tractors, machineries, and equipment used in agriculture. The introduction of new subsidies to the farmers and loan schemes for adapting modern methods is significantly driving the growth of the market. The recent development in farm mechanization for irrigation and harvesting of crops are responsible for increasing agricultural yields andhelping in keeping the labor costs low.



Government efforts to bring in farmers to the industrial fold by assuring timely assistance with crop seeds, fertilizers, and right prices for the crops, has influenced the agricultural industry drastically.

Farm monitoring platforms have gained prominence with the evolution of IoT projects in farming and agriculture sector. The efficient use of data owing to the technological advancement for improving farming practice has drastically changed the traditional methods of farming.



Additionally, the increasing adoption of farm control monitoring system for allowing farmers to have overall control of their equipment have helped farmers in multiple ways. The livestock monitoring and control of rain gauges and irrigation gates have helped in saving resources and excessive maintenance costs.



The COVID-19 pandemic had a significant impact on the growth of various industries including agricultural industry. The outbreak of coronavirus disease had witnessed world-wide lockdowns. The stringent regulations had affected the supply chain of agriculture equipment and foiled the plans of various procurements for cultivation. Therefore, the pandemic situation has hampered the growth of the agricultural machinery market.

The global farm equipment market size is projected to grow from USD 120.39 billion in 2025 to USD 182.40 billion by 2033, exhibiting a CAGR of 5.33%.
Report Scope:

The Australia tractors market witnessed sales of 10.25 thousand units in 2024 and is expected to reach 11.37 thousand units by 2030, growing at a CAGR of 1.74%.

The United States haying and forage machinery market size is projected to expand at a significant CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the rise in global forage demand, which is rising forage cultivation.



An agricultural equipment that gathers forage crops to create feedstock is known as hay and forage machinery. Feedstock includes grass, maize, and hay that has been cut into small pieces and compacted in a storage silo, silage bunker. Agriculture businesses rely extensively on equipment to increase feed quality, productivity, cost-effectiveness, and operations such as drying rate. Variety of machinery including conditioner mowers and sickle bar mowers are preferred among farmers due to their benefits.

Machines with automated steering and advancements are used to boost production and profitability. Precision farming contributes to the long-term viability of the farm and increases the flexibility of these technologies. A manpower shortage in the agricultural industry due to high labor costs has increased demand for agricultural machinery, such as haying and forage machinery. The COVID-19 outbreak has caused thousands of illnesses in the US, which has been labeled a global health emergency by the World Health Organization. The haying and forage machinery market has been impacted by the pandemic; however, it is expected to recover by end of 2021.

Market Trends, Drivers, Restraints, and Opportunities

• Rising adoption of precision farming technology is estimated to drive the market growth.


• Increasing demand for automation in farming industry is anticipated to boost the market expansion during forecast period.


• Implementation of strict government policies is expected to drive market growth.

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Planting Equipment Market Size 2024-2028

The planting equipment market size is forecast to increase by USD 6.62 billion at a CAGR of 7.19% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. The increasing emphasis on precision farming techniques, particularly In the cultivation of wheat, oilseeds, cotton, and fruits and vegetables, is driving market demand. Precision farming enables farmers to optimize resource usage and improve crop yields, making it a popular choice for modern agriculture. Additionally, the adoption of robotics and automation in planting processes is gaining traction, further boosting market growth. However, challenges such as the decreasing availability of agricultural land and the high initial investment costs for advanced planting equipment pose significant hurdles to market expansion. Despite these challenges, the market is expected to continue its upward trajectory, fueled by government support for agricultural practices and the growing number of mergers and acquisitions In the sector.

What will be the Size of the Planting Equipment Market during the Forecast Period?

Request Free SampleThe market encompasses a range of modern farm machinery designed for the sowing and planting of seeds in designated rows within a field of crops. This essential agricultural industry equipment includes seed drills, seed metres, fluted rollers, and furrow openers, which facilitate the efficient and precise execution of the planting process. The market's growth is driven by the ongoing advancements in farming technology, as cutting-edge planting tools continue to streamline farming tasks and minimize the reliance on physical labour. The conventional sowing technique using hand sowing has largely been replaced by mechanized methods, with the farming industry increasingly relying on specialized machinery to optimize crop yields and reduce operational costs.The seeding process is a critical aspect of agricultural services, and the market for planting equipment is expected to maintain its significance as farmers continue to seek innovative solutions to enhance productivity and improve overall farm efficiency.

How is this Planting Equipment Industry segmented and which is the largest segment?

The planting equipment industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. TypeMechanicalAutomaticProductSeed drillsPlantersAir seedersGeographyAPACChinaNorth AmericaUSEuropeFranceSouth AmericaBrazilMiddle East and Africa

By Type Insights

The mechanical segment is estimated to witness significant growth during the forecast period. The market is experiencing steady growth due to various factors. Government initiatives, such as favorable financing schemes for farmers investing in modern farm machinery, are driving market expansion. Additionally, the shift towards mechanized farming, particularly In the agriculture industry, is increasing the demand for advanced planting tools. These include seed drills, seed metres, fluted rollers, and furrow openers, which improve efficiency and ensure uniform seed distribution. Precision farming techniques, utilizing cutting-edge features like machining centres and robotic systems, are also gaining popularity. The market encompasses a wide range of machinery, including air seeders, seed drills, planters, and trans planters, catering to various cultivable lands, such as those used for oilseeds and pulses, fruits and vegetables, and other crops.Despite the heavy investment required for these machines, the potential for improved machine performance and increased farming productivity is attracting farmers. However, the lack of finance remains a challenge for some farmers, limiting their ability to invest in mechanized planting equipment. Overall, the market is poised for growth, with technological advancements and government support providing significant opportunities.

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The Mechanical segment was valued at USD 6.03 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in APAC is significant, with China, India, Japan, and Australia being key regions. Government initiatives promoting sustainable agricultural practices are driving market growth. For instance, the Indian government, in collaboration with international organizations, focuses on enhancing soil health, water management, irrigat