North America Agricultural Implements Market - 2025-2032

North America Agricultural Implements Market reached US$ 12,179.59 million in 2024 and is expected to reach US$ 16,824.02 million by 2031, growing with a CAGR of 4.2% during the forecast period 2025-2032.

The market for agricultural implements in North America is gradually being characterized by increasing technological complexity as well as the usage of autonomous subsystems and artificial intelligence (AI)-based algorithms. Furthermore, many manufacturers are designing their own proprietary attachments and components, which is preventing interoperability with machinery from other brands.

Planting equipment had the highest market share in 2023, corresponding to nearly 49.65% of the total market. One of the major reasons for the high market share is the relatively high cost of planting equipment, which is amongst the most expensive of the farming equipment. Conventional implements had the highest market share of 72.72% in 2023. However, autonomous implements are expected to have the highest increase in their market share, from 21.38% in 2023 to 26.89% in 2031.

Grain had the highest market share in the crop segment in 2023, reaching nearly 82.79% of the North American market. Both U.S. and Canada are among the major global producers and exporters of grain and cereal crops. U.S. had the largest market share in the country segment, reaching 83.37% in 2023. The market share of U.S. is mainly due to its large commercial agriculture sector and the GDP of its economy, which is nearly 10-12 times bigger than the Canadian economy.

Dynamics

Technological Advancements in Farming Equipment

Technological advancements such as GPS guidance systems, telematics and sensors enable precision agriculture practices. Tractor implements equipped with these technologies can precisely apply inputs such as seeds, fertilizers and pesticides, leading to optimized resource utilization, improved yields and cost savings for farmers. Remote monitoring and control technologies allow farmers to remotely monitor and manage tractor implements with an internet connection. This capability enhances operational efficiency, reduces downtime and enables proactive maintenance, leading to improved equipment performance and longevity.

Tractor implements are increasingly designed to integrate with other agricultural machinery and systems, as well as with farm management software and data platforms. This integration and connectivity facilitate seamless data sharing, interoperability and workflow automation, enhancing overall efficiency and productivity on the farm. Also, the advances in automation and robotics have led to the development of autonomous and semi-autonomous tractor implements. These implements can perform tasks such as planting, spraying and harvesting with minimal human intervention, increasing efficiency and reducing labor requirements.

Chronic Farm Labor Shortages

Traditionally, manual farming operations have been carried out by immigrants in North America, mostly temporary workers from Mexico. The U.S. government allows foreign citizens to temporarily immigrate to the country for seasonal harvest and other agricultural work under the H-2A visa. Similarly, the Canadian government has also certain provisions which allow agricultural businesses to temporarily hire foreign agricultural labor. However, with a growing anti-immigrant rhetoric in U.S. and calls for curbing legal and illegal immigration, there has been an acute shortage of foreign agricultural labor.

In response to labor shortages, farmers are increasingly turning to mechanization to automate tasks that would otherwise require manual labor. Tractor implements play a crucial role in this mechanization process by enabling farmers to perform a wide range of agricultural tasks more efficiently and with fewer workers. Tractor implements equipped with labor-saving technologies help alleviate the impact of labor shortages by reducing the need for manual labor. The implements such as automated planters, harvesters and sprayers can perform tasks that would traditionally require multiple workers, thereby allowing farmers to maintain productivity levels despite a reduced workforce.

High Investment Cost

The high upfront costs associated with purchasing tractor implements can act as a barrier to entry for farmers, especially small-scale or new entrants to the industry. Even for more established farmers, cash flow problems are frequent and hence they might not have the required capital to invest in new equipment.

Most brand new farm machinery costs between US$ 50,000 to US$ 500,000, with some specialized machinery costing in excess of US$ 1 million. The biggest roadblock towards purchasing equipment is the high financing costs, with various banks and credit institutions offering interest rates between 5 and 8% on fixed 20 year loans.

The farmers may struggle to afford the initial investment required to acquire modern and technologically advanced implements, limiting their ability to adopt mechanization and improve productivity. Farmers operating on tight budgets may find it challenging to allocate funds for purchasing tractor implements, particularly during periods of economic uncertainty or low commodity prices.

Segment Analysis

North America agricultural implements market is segmented based on vehicle, type, technology, crop type, & country.

Demand for Planting Equipment Due to Technological Advancement

GPS-guided planting, variable rate technology (VRT) and automatic seed depth management are all examples of innovations that increase planting accuracy, optimize seed placement and reduce seed waste. The integration of smart sensors and Internet of Things (IoT) devices in planting equipment enables real-time monitoring and modifications, resulting in optimal planting conditions and improved crop production.

Increased adoption of modern or novel technologies in farm machinery, such as automatic seeders, which aid to cut sowing costs and time while increasing agricultural precision, is likely to drive the market growth. The growing number of small and medium-sized enterprises producing agricultural machines is likely to drive air seeder market growth. It is commonly used to sow row crop seeds like cotton, corn, sunflower, soybean and other beans. According to the USDA's report on crop output 2021 summary, corn was estimated at 15.1 billion bushels, sorghum at 448 million bushels and soybeans at 4.44 billion bushels.

Geographical Penetration

Rising Demand for Precision Agriculture Technologies in US

The use of precision agriculture technologies such as GPS-guided equipment, sensors, drones and data analytics improves efficiency and productivity. These technologies allow farmers to maximize planting, fertilization, irrigation and harvesting. The development of automated and robotic technology, such as self-driving tractors, automated planters and robotic harvesters, helps to cut labor costs while increasing operational efficiency.

Government support and financial incentives for purchasing innovative farming equipment encourage farmers to embrace new technologies. Government and institutional grants for agricultural R&D help to drive innovation and increase the availability of modern implements. Farmers in the country have received timely subsidies in the form of agricultural equipment loans with adjustable interest rates and payback schedules. This has enabled small-scale farmers to invest in primary agricultural equipment.

U.S. government provides financing for farm equipment through USDA Direct Operating financing, USDA Operating Microloans and USDA Guaranteed Operating Loans. Farmers' propensity toward technology due to inexpensive loans and the desire to increase output has resulted in double-digit gains for diverse machinery, boosting regional market growth.

Competitive Landscape

The major global players in the market include Deere & Company, Kubota Corporation, KUHN NORTH AMERICA, INC., Mahindra USA, Inc., AGCO Corporation, CNH Industrial America LLC and BUHLER INC.

Recent Developments

• On 5th January, 2023, John Deere launched two new technologies, ExactShot and an electric excavator in the market that helps customers be more productive, profitable and sustainable. Farmers can use ExactShot to decrease the amount of starting fertilizer required for planting by over 60%. Furthermore, on 28th February, 2024, John Deere built on its 187-year record of providing high-quality, customer-oriented products with one of its biggest product releases. At the Commodity Classic exhibition in Houston, Texas, John Deere introduced new advanced machinery solutions for Model Year 2025.
• In December 2023, Kubota Corporation announced the consolidation of two of its U.S.-based manufacturing companies to service the North American market, which is expected to become the company's largest in the equipment business. Kubota Manufacturing of America Corp. and Kubota Industrial Equipment Corp. will become merged beginning January 1, 2024.
• Kubota North America announced on 9th May 2024, plans to expand its Jefferson-based KIE operation by opening a new facility in Gainesville, Georgia, adding to its existing extensive footprint. Overall, the corporation intends to invest US$ 140 million to increase production capacity. It will serve to increase loader capacity while also freeing up space in the existing Jackson County factory for the manufacture of accessories & implements for tractors and construction equipment.

By Vehicle

• Tractor-Mounted Implements
• Self-Propelled Implements
• Others

By Type

• Planting Equipment
  • Air Seeders
  • Planters
  • Seed drills
  • Tillage Equipment
  • Plows
  • Harrows
  • Cultivators
• Harvesting Equipment
  • Combines
  • Headers
  • Airbars
  • Storage and Handling
  • Grain Bins
  • Aeration Fans
  • Blowers
• Support Equipment
  • Hitches
  • Couplings
  • Accessories

By Technology

• Conventional Implements
• Precision Farming Equipment
• Autonomous Implements

By Crop Type

• Grain (Wheat and Canola)
• Corn & Soy
• Others

By Country

• US
• Canada
• Mexico

Why Purchase the Report?

• To visualize the North America agricultural implements market segmentation based on vehicle, type, technology, crop type, & country.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the agricultural implements market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The North America agricultural implements market report would provide approximately 51 tables, 50 figures and 192 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies