Canada Agricultural Machinery Market Report and Forecast 2024-2032

Canada Agricultural Machinery Market Outlook

The Canada agricultural machinery market size was approximately USD 7.78 billion in 2023. The market is assessed to grow at a CAGR of 7.4% between 2024 and 2032, reaching a value of USD 14.87 billion by 2032.

Key Trends in the Market

Agricultural machinery refers to mechanical equipment and tools deployed in producing, harvesting, and looking after farm produce and livestock rearing. It can boost land fertility and enable farmers to grow more crops in less space. It removes the requirement of excessive manual labour on farms and enhances crop yield, which boosts farmer’s income. Agricultural mechanisation has improved the existing techniques of crop production, which has saved soil from erosion and made irrigation practices more efficient. They have also enabled large scale commercialisation of crop production.

• Agricultural machinery with a power range of more than 149 horsepower has grown significantly in demand since 2018. This is because of the need for deep ploughing and soil turning operations for maximising crop’s access to nutrients. This is expected to boost the Canada agricultural machinery market growth.

• Geopolitical shifts and sudden supply chain disruptions are challenging the import of agricultural machinery from Europe and the Asia Pacific (specially China) into Canada. This is threatening the food security of people and adversely impacting the growth of agriculture sector. This is creating a good economic opportunity for companies engaged in manufacturing agricultural machinery in Canada.

• The shortage of specialised labour in Canada’s farms is expected to boost the Canada agricultural machinery market demand over the forecast period. This is because rising temperatures will increase the fertility of arable land in Canada which will directly impact the area under cultivation. Increased demand for more fruit crops is expected to met through advanced agricultural technologies by farmers.

Market Segmentation

Based on tractors, the market is segmented into compact utility tractors, utility tractors, and row crop tractors. By ploughing and cultivating machinery, the market can be divided into ploughs, harrows, and cultivators and tillers, among others. The Canada agricultural machinery market segmentation, based on planting machinery, includes seed drills, planters, and spreaders, among others.

By harvesting machinery, the market is categorised into combine harvesters and forage harvesters, among others. Based on haying and forage machinery, the market can be divided into mowers and conditioners and balers, among others. By irrigation machinery, the market can be segmented into sprinkler irrigation and drip irrigation, among others.

On the basis of application, the market segmentation includes land development and seed bed preparation, sowing and planting, weed cultivation, plant protection, harvesting and threshing, and post-harvest and agro-processing.

The major regional markets include Northern Canada, British Columbia, Alberta, the Prairies, Central Canada, and Atlantic Canada.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Canada agricultural machinery market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Deere & Company

• AGCO Corporation

• CNH Industrial NV

• CLAAS KGaA mbH

• Kubota Corporation

• Caterpillar, Inc.

• SDF S.p.A (Deutz-Fahr)

• Yanmar Holdings Co., Ltd.

• KUHN Group, Inc.

• Mahindra & Mahindra Ltd.

• Others

Market Share by Irrigation Machinery

As per the Canada agricultural machinery market analysis, drip irrigation is expected to witness a significant growth in demand over the forecast period. This is because climate change is expected to adversely affect the rate of precipitation in the country and rising temperatures are expected to accelerate the rate of polar ice melting. This can put pressure on the water resources of the country which can promote the adoption of drip irrigation technologies for crop growing. By delivering water to plant roots in the right quantity, drip irrigation can help in the conservation of critical water resources which people can rely upon for meeting other requirements like drinking, bathing, washing, and cooking, among others.

Market Share by Region

Northern Canada is expected to account for a significant Canada agricultural machinery market share due to expansion in the cultivation of arable land. A milder climate, induced by climate change, is expected to favour the growth of new crops including maize, soya, wheat, and rapeseed. This is expected to increase the requirement of agricultural machinery for ploughing, seeding, and harvesting of crops to boost agricultural productivity as the vegetative period of some crops increases.

The demand for agricultural machinery is also expected to increase in regions like the British Columbia, Atlantic Canada, and Alberta as enhanced soil fertility favourably impacts the production of fruits and vegetables like apples, blueberries, and carrots.

Competitive Landscape

AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia (USA). It is engaged in designing, manufacturing, and distributing a wide range of agricultural equipment including tools for tillage and seeding, hay and forage equipment, tractors, combine harvesters, and replacement parts. Some of its most famous brands include Challenger, Fendt, GSI, Massey, Valtra, and Ferguson.

CNH Industrial NV was founded in 1842 and is headquartered in Essex, United Kingdom. It is a global company that is engaged in manufacturing safe capital goods for the agriculture and construction sector. Its brand portfolio includes New Holland Agriculture, New Holland Construction Equipment, CASE, and Case IH.  It has innovative research and development facilities, and it also provides financial support to farmers/organisations for procurement of equipments.

KUHN Group, Inc. was founded in 1828 and is headquartered in the United Kingdom. It uses its state-of-the-art production facilities to design, manufacture, and market superior quality agricultural machinery. It specializes in many key areas including foundry, forge, cutting/machining, and assembly of products among others. It exports its equipments and spare parts to 100+ countries across the world.

Other major players in the Canada agriculture machinery market include Deere & Company, CLAAS KGaA mbH, Kubota Corporation, Caterpillar, Inc., SDF S.p.A (Deutz-Fahr), Yanmar Holdings Co., Ltd., and Mahindra & Mahindra Ltd., among others.

Key Highlights of the Report