Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "North America Agricultural Machinery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The North America agricultural machinery market is projected to expand from USD 54.3 billion in 2025 to USD 57.5 billion in 2026, estimated to reach USD 76.57 billion by 2031, reflecting a 5.9% CAGR over 2026-2031. This growth trajectory highlights the ongoing demand for mechanization despite financial challenges like heightened interest rates and volatile commodity prices that curbed capital expenditure in 2024.
Factors such as persistent labor shortages, federal subsidies encouraging fleet renewal, and the swift adoption of precision agriculture technology support increased equipment orders. Showcases of autonomous capabilities at CES 2025 have prompted farms to prioritize software compatibility with hardware advancements. Moreover, the need for modernized irrigation systems, particularly in drought-prone areas of Mexico, expands the market for specialized equipment manufacturers. To stay competitive, leading OEMs offer bundled financial solutions, software subscriptions, and dealer support to stabilize revenue streams.
Market Segmentation
The market report segments the North America Agricultural Machinery Market by type (Tractor, Equipment, Irrigation Machinery, Harvesting Machinery, Haying and Forage Machinery, Other Types) and geography (United States, Canada, Mexico, Rest of North America). The market forecasts are provided in USD value.
Market Trends and Insights:
- Robust Farm-Income Outlook and Subsidy Programs: Federal depreciation incentives and direct grants bolster capital spending. The USDA Climate-Smart Commodities initiative has allocated over USD 3 billion since 2024 for equipment promoting efficiency and lower emissions. With Section 179 rule allowances, growers can leverage tax deductions up to USD 1.16 million annually, countering higher borrowing costs. Many mid-sized growers advance purchases to maximize grant and tax benefits. Dealer feedback shows increased demand for mid-horsepower tractors with telematics to meet sustainability requirements. Consequently, the market enjoys a steady influx of subsidized orders, mitigating cyclical demand fluctuations.
- Rising Labor Scarcity and Wage Inflation: Declines in rural workforce participation drive mechanization for tasks previously managed manually. Mexico's crop yield issues in 2024 highlight the impact of labor shortages. Autonomous sprayers and robotic harvest aids are reducing the need for field crews and mitigating wage pressures that have surpassed inflation rates. OEM demonstrations show machine-vision integration can lower chemical usage, further reducing labor costs. Grain-elevator automation enables operations without staffing at night, further sustaining demand for advanced equipment.
- High Upfront and Maintenance Costs of Advanced Machinery: Advanced machinery costs continue to rise, with high-horsepower tractors exceeding USD 400,000 as of 2024, and precision upgrades adding USD 50,000-100,000 per unit. Complex modern engines and software require specialized technicians, who are scarce, leading to higher service costs. Extended warranties and service contracts, adding USD 15,000-25,000, help mitigate uncertainty but swell the overall purchase price, leading producers to refurbish older machines, complicating technology advancements and increasing fuel consumption. Consequently, small to mid-sized farms may delay purchasing decisions until late-season discounts become available, tightening dealer margins and extending replacement cycles.
Other Market Drivers and Restraints:
- Accelerated Equipment Replacement with Precision Agriculture
- Increased Low-Emission Equipment Demand via USDA Climate-Smart Grants
- Impact of Volatile Commodity Prices on CAPEX Decisions
Segment Analysis
Tractors held a 47.30% share of the market in 2025, underscoring their central role in crop management. Autonomous retrofits tested over 50,000 acres reveal increased uptime and reduced concerns about driverless tilling. However, irrigation machinery is set to witness a 13.4% CAGR through 2031, especially in response to water-scarcity mitigation efforts. Secondary categories such as plows and cultivators grow slowly as precision technology shifts demand to variable-rate applications, while harvesting machinery benefits from yield mapping and grain-quality advancements. Forage and haying machines experience growth tied to livestock expansion in specific regions. Autonomous robots, such as Kubota's KATR, transform traditional equipment roles by offering multifunctional capabilities.
Companies Covered in This Report:
- Deere & Company
- CNH Industrial N.V.
- AGCO Corporation
- Kubota Corporation
- CLAAS KGaA mbH
- Mahindra & Mahindra Limited
- Netafim USA Inc.
- Lindsay Corporation
- Trimble Inc.
- Horsch Maschinen GmbH
- KUHN SAS
- Bernard Krone Holding SE & Co. KG
- The Toro Company
- Vermeer Corporation
- J.C. Bamford Excavators Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/h8gorq
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
