Combine Harvester Market

The Combine Harvester Market is valued at USD 14.4 Bn in 2026 and is projected to reach USD 19.1 Bn,  growing at a CAGR of 4% by 2033.

Key Report Findings

• Favorable government support to aid the growth of the combine harvester market
• Labor shortage and need for advanced machinery to improve farm output to create ample opportunities for combine harvester industry
• North America accounts for a significant combine harvester market share
• Combine harvester industry to witness momentous opportunities across Asian countries in the forthcoming years

Market Analysis in Brief

In 2022, the combine harvester market displayed stable growth and per industry figures, it stood at around US$50 Bn in terms of value. According to preliminary study carried out by Fairfield Market Research, the market will continue to grow at a stable pace through 2030. With a history of over 180 years, John Deere is the largest combine harvester company in the world. The Asia Pacific is expected to reinforce its top regional standing in the coming years.

Growth Drivers

Consistent Shortage of Labor

Industrialization and urbanization have been on the rise in recent years, transforming most businesses in the process. While few businesses reap profits, some face challenges in terms of workforce needs. With agriculture being a labor-intensive industry, rapid urbanization has resulted in a decline of adequate labor or manpower.

Albeit a slight negative impact to the development of such activities, this has pushed farmers and agriculture business owners to opt for advance machinery to carry out regular farming activities. This has fuelled the demand and sales in combine harvester market, for agriculture operations such as the harvesting, and cleaning of grain and non-grain crops.

Growing Agricultural Mechanization

Furthermore, manufacturers of agricultural machinery are developing equipment that may soon be more affordable for small and medium-scale farmers, and farm owners. With the increase in awareness and know-how concerning novel technology and advanced machinery, the agriculture space has witnessed a positive transformation, wherein farmers are opting for agricultural mechanization and considering it as an apt substitute for a lack in manpower.

In addition, the number of agriculture workers is expected to reduce in the coming years. For instance, according to the Indian Council of Food and Agriculture, working individuals in the agriculture domain are likely to reduce by almost 25% by the end of 2050 in the country. This is expected to further trigger the demand for agricultural machinery such as combine harvesters.

Moreover, the mechanization of agriculture farms reduces labor costs, saves time, reduces costs associated with crop production activities, reduces losses during post-harvesting activities, and enhances crop outputs along with farm incomes. In this backdrop, the need for the mechanization of farms is likely to increase thus bolstering growth of the combine harvester market accordingly.

Government Support

Agriculture has prevailed as the backbone of several economies for many decades. Government authorities across the globe have encouraged the adoption of modern technology in the agricultural sector to improve farm outputs. These authorities are also incentivizing the mechanization of agricultural operations. With incentives and subsidies, it has become more economical and convenient for farm owners to purchase new agriculture equipment such as combine harvesters.

For instance, the Department of Agriculture, Cooperation & Farmers Welfare implemented processes particularly for the mechanization of agricultural zones. Under this initiative in India, a subsidy of 40% of the overall project cost, limited to 24 lakhs, has been extended to rural entrepreneurs. Such beneficial incentives and support from government bodies is expected to bode well for the combine harvester market.

Growth Challenges

High Costs, and Seasonal Demand

Combine harvesters are complex machines that require a significant investment, both to manufactures, and purchasers. The exorbitant combine harvester price point can pose a significant challenge in front of small and mid-sized farmers. Moreover, demand for these machines is strictly seasonal most of the times. This can make it difficult for the various manufacturers to maintain a consistent level of production year-round. This is expected to potentially hinder the further progression of the global combine harvester market in the years ahead.

Growth Opportunities Across Regions

North America Likely to Cement Dominance

Labor scarcity across developed nations in North America continues to positively influence the combine harvester market in the region. Labor shortage coupled with the need to replacement old agricultural machinery with advanced models and equipment also favors the combine harvester market. This has encouraged farm owners in the region to opt for innovative technology to enhance farm outputs while saving on costs and reducing losses.

Moreover, the United States is expected to account for a considerable share of the combine harvester market. This can be attributed towards a growing inclination of farmers to agricultural mechanization and the availability of modern equipment such as combine harvesters. This has resulted in an increase in the sales in the US combine harvester industry.

For instance, according to the report by the Association of Equipment Manufacturers, sales of self-propelled combine harvesters increased by around 15.8% in 2022 as compared to 2021 in the United States. In January 2021, the sale of about 194 self-propelled combine harvesters was registered whereas it touched 200 by the end of January 2022 in the country. This has significantly contributed to boosting growth in the combine harvester market of North America.

Asia Pacific to Prevail as a Key Revenue Pocket

On the other end of the spectrum, the Asia Pacific region is expected to offer many opportunities for the combine harvester market. This can be linked to a slow yet stable rise in the use of advanced agricultural equipment backed by the inclination to modern technology adoption by farmers.

Additionally, favorable government support for the development of the agriculture operations and processes has also supported the proliferation of technology in this sector. This factor coupled with a rise in agricultural activities across emerging economies such as China, and India are expected to pave an opportunistic landscape for the combine harvester market of Asia Pacific.

Combine Harvester Market: Competitive Landscape

A few of the major players in the combine harvester market include 

• John Deere
• AGCO Corporation
• CNH Industrial
• Kubota Corporation
• CLAAS Group
• SAME Deutz Fahr (SDF Group)
• Mahindra & Mahindra Ltd.
• Yanmar Co., Ltd.
• J C Bamford Excavators Ltd. (JCB)
• Tafe – Tractors and Farm Equipment Ltd.
• AMAZONE GmbH & Co. KG
• Challenger (AGCO brand)
• Zetor Tractors a.s.
• Shandong New Holland
• Lovol Heavy Industry Co., Ltd.

Key Developments:

• In January 2023, leading American manufacturing company John Deere made an announcement that it is including a grain sensing option – HarvestLab 3000 Grain Sensing – in its S700 combine harvester series. This option facilitates continuous monitoring of oil, proteins, and starch values in wheat, canola, and barley
  
  
• In November 2022, an investment of US$48.4 million was carried out by CLAAS to develop a novel modern combine harvester that features significant CO2 reduction and flexible production
  
  
• In March 2022, a decision was made by Kubota Corporation to increase its stake and shareholding in Escorts Limited, an Indian tractor company. This move was primarily to develop and distribute combine harvesters in India and a few other emerging nations

Global Combine Harvester Market Segmentation is Described Below:

Cutting Width

• Small Size Combine Harvester
• Large Size Combine Harvester

Type of Movement

• Wheel Type Combine Harvester
• Crawler Type Combine Harvester

Power Source

• Tractor Pulled/PTO Powered Combine Harvester
• Self-Propelled Combine Harvester

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa