Agricultural Machinery Manufacturing Industry Profile

Companies in this industry manufacture agricultural equipment and machinery, as well as commercial turf and lawn care equipment. Major companies include AGCO, John Deere, and Lindsay Corporation (all based in the US), along with CLAAS (Germany), CNH Industrial (UK), Kubota (Japan), Mahindra & Mahindra (India), and Shifeng Group and YTO Group (China).

Worldwide, the agricultural and farm machinery market size accounted for $196.5 billion in 2022 and is forecasted to reach a market size of over $485 billion by 2032 growing at a compound annual growth rate of 8.6% from 2023 to 2032, according to Globe Newswire. Europe, the US, and China are the largest markets.

The US agricultural machinery manufacturing industry includes about 1,000 companies with combined annual revenue of about $25 billion.

COMPETITIVE LANDSCAPE

Demand for agricultural machinery is driven by farm income and crop production projections for the next season and can vary highly year to year. The profitability of individual companies depends on the volume of products sold, since many manufacturing costs are fixed. Big companies have large economies of scale, especially in manufacturing tractors and combines. Small companies can be successful by making specialized equipment, especially tractor attachments. The US industry is highly concentrated: the 50 largest companies generate about 80% of revenue.

Imports of agricultural equipment, primarily from countries such as Germany, Canada, Japan, China, and Mexico make up about 60% of the US market. Exports account for ...