Combine Harvester Market Size, Share, and Industry Trends 2031

The global combine harvester market is poised for significant growth over the forecast timeline, driven by favorable government policies, labor shortages, and the need for advanced machinery to improve farm output. According to a recent study by Fairfield Market Research, the combine harvester market displayed stable growth in 2022, valued at approximately US$50 billion, and is expected to continue its upward trajectory through 2030.

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Key Report Findings

Favorable government support is expected to aid the growth of the combine harvester market.

Labor shortages and the need for advanced machinery to improve farm output create ample opportunities for the combine harvester industry.

North America accounts for a significant share of the combine harvester market.

The combine harvester industry is set to witness momentous opportunities across Asian countries in the forthcoming years.

Market Analysis in Brief

In 2022, the combine harvester market demonstrated stable growth, reaching around US$50 billion in value. As per Fairfield Market Research, the market is anticipated to grow at a stable pace through 2030. John Deere, with over 180 years of history, remains the largest combine harvester company in the world. The Asia Pacific region is expected to reinforce its top regional standing in the coming years.

Growth Drivers

Consistent Shortage of Labor

Industrialization and urbanization have transformed many businesses, including agriculture, which remains labor-intensive. Rapid urbanization has led to a decline in adequate labor, pushing farmers and agriculture business owners to opt for advanced machinery to carry out regular farming activities. This has fueled the demand and sales in the combine harvester market for operations such as harvesting and cleaning of grain and non-grain crops.

Growing Agricultural Mechanization

Manufacturers of agricultural machinery are developing equipment that may soon be more affordable for small and medium-scale farmers. With increased awareness and know-how concerning novel technology and advanced machinery, the agriculture sector has witnessed a positive transformation. Farmers are increasingly opting for agricultural mechanization, considering it an apt substitute for the lack of manpower. The Indian Council of Food and Agriculture predicts that the number of agriculture workers in India will reduce by almost 25% by 2050, further triggering the demand for agricultural machinery such as combine harvesters.

Mechanization of farms reduces labor costs, saves time, reduces costs associated with crop production activities, minimizes losses during post-harvesting activities, and enhances crop outputs along with farm incomes. This trend is likely to bolster the growth of the combine harvester market.

Government Support

Agriculture has been 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 in India offers a subsidy of 40% of the overall project cost, limited to 24 lakhs, to rural entrepreneurs. Such beneficial incentives are 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 for manufacturers and purchasers. The high price point can pose a significant challenge for small and mid-sized farmers. Moreover, the demand for these machines is often seasonal, making it difficult for manufacturers to maintain a consistent level of production year-round. This can potentially hinder the further progression of the global combine harvester market.

Growth Opportunities Across Regions

North America Likely to Cement Dominance

Labor scarcity in North America continues to positively influence the combine harvester market. The need to replace old agricultural machinery with advanced models also favors the market. Farm owners in the region are increasingly opting for innovative technology to enhance farm outputs while saving costs and reducing losses. The United States is expected to account for a considerable share of the combine harvester market due to the growing inclination towards agricultural mechanization and the availability of modern equipment. According to the Association of Equipment Manufacturers, sales of self-propelled combine harvesters in the US increased by around 15.8% in 2022 compared to 2021.

Asia Pacific to Prevail as a Key Revenue Pocket

The Asia Pacific region is expected to offer numerous opportunities for the combine harvester market. A slow yet stable rise in the use of advanced agricultural equipment and favorable government support for the development of agricultural operations have supported technology proliferation in this sector. Emerging economies such as China and India are expected to pave an opportunistic landscape for the combine harvester market.

Combine Harvester Market: Competitive Landscape

Major players in the combine harvester market include CLAAS, Kubota Agricultural Machinery, John Deere, Yanmar Co. Ltd., Zhengzhou Amisy Machinery Co. Ltd., Iseki & Co. Ltd., Kuhn SA, New Holland, AGCO Corporation, Foton Lovol International Heavy Industry Co. Ltd., and Buhler Versatile Incorporated. These companies are focusing on new product launches, partnerships, collaborations, acquisitions, and alliances to gain a competitive edge.