According to market research firm MarketsandMarkets, the global farm equipment market is bound to grow from $39.95 billion in 2025 to $52.79 billion by 2032, at a CAGR of 4.1%. 

Although there's been a decline in the market in the past two years, one that the organization says will continue till 2026-2027, according to the Association of Equipment Manufacturers and the European Agricultural Machinery Industry Association. However, long term, "potential opportunities will be generated in the market," which will lead to it gaining momentum in the future. 

"As equipment prices adjust, interest rates may drop, and the farmers' spending will become affordable to invest in new equipment," the report says. 

The drop in farm equipment can be mainly attributed to a projected 25% drop in net farm income for 2024, falling from $155 billion to $116 billion, which has made farmers hesitant to invest in new machinery. Plus, high operational costs and increasing commodity prices have led to a 15-20% decrease in monthly US tractor sales.

According to the report, sales of machinery have suffered since farmers have had to postpone purchases due to financial constraints. 

Asia Oceania dominates the farm equipment market, with a share of 50% in 2025, the report states. However, markets like  China, India and Japan are not far behind.