India Agricultural Equipment Market

Based on product type the market is segmented into Power Reaper, Power Tiller, Power Weeder, Transplanter, Sprayers, Brush Cutters, Pump Sets, Weather Stations, Agri Drones, Harvesters, and Tractor. The power reaper is further bifurcated into Walk-Behind Reaper and Self-Propelled Reaper. The Power Tiller is segmented into Mini Power Tiller, Medium Power Tiller, and Heavy-Duty Power Tiller. Whereas power weeder is divided into Manual Weeder, Self-Propelled Weeder, and Multi-Functional Weeder. Transplanter is segmented into Rice Transplanter, Vegetable Transplanter, and Seedling Transplanter. 

Sprayers is segmented into Manual Sprayers, Knapsack Sprayers, and Powered Sprayers. The brush cutter is bifurcated into Electric Brush Cutters and Gasoline Brush Cutters. The Tractor segment dominated the India market in 2024, while the Agri Drones segment is projected to be the fastest–growing segment during the forecast period. Tractors are one of the most fundamental pieces of agricultural machinery, playing a crucial role in modern farming. They are versatile machines that can be used for a wide range of tasks such as ploughing, tilling, planting, hauling, and more. 

The tractor serves as the backbone of agricultural mechanization, enabling farmers to perform operations more efficiently and with less labour. It is often referred to as the "workhorse" of the farm, as it powers various attachments and implements like ploughs, seeders, harvesters, and sprayers, among others. The global tractor market has been growing steadily over the past few decades, driven by the increasing adoption of mechanized farming practices and the need for higher productivity in agriculture.

On the basis of the engine type, the agricultural equipment market is segmented into Diesel Engine, Petrol Engine, Electric/Battery Operated, Hybrid Engine, and Solar-Powered Pumps. The Diesel Engine segment dominated the India market in 2024, while the Electric/Battery Operated segment is projected to be the fastest–growing segment during the forecast period. 

The diesel engine segment is expected to grow owing to increased adoption of mechanized farming solutions, rising demand for high-powered tractors and irrigation systems, and government incentives that promote the use of diesel-powered equipment. Diesel engines are widely used in tractors, harvesters, power tillers, and pump sets, making them a crucial component of modern agricultural practices. The affordability and fuel efficiency of diesel-powered machinery make them an attractive choice for farmers, particularly in regions where alternative power sources are not feasible. 

The demand for high-horsepower diesel engines, particularly those above 25 HP, has been rising due to the increasing need for powerful equipment that can handle larger farm operations. Additionally, government schemes such as the Sub-Mission on Agricultural Mechanization (SMAM) have been instrumental in driving market growth by providing subsidies on diesel-based farm machinery.  

Based on functionality the India agricultural equipment market is segmented into Manual Control, Semi-Automatic, and Fully Automatic. The Semi-Automatic segment dominated the India market in 2024, while the Semi-Automatic segment is projected to be the fastest–growing segment during the forecast period The semi-automatic agricultural equipment segment is witnessing robust growth in India due to the increasing need for efficiency, productivity, and reduced labour dependence in agricultural operations. 

These machines are equipped with automated features, which reduce the need for manual labour but still require human intervention for specific tasks. The semi-automatic equipment is ideal for mid-scale farmers who are looking for a balance between affordability and productivity. These systems provide increased efficiency, higher output, and lower labour costs while still maintaining a degree of manual oversight. 

Examples of such equipment include semi-automatic seeders, irrigation systems, and sprayers, which automate several tasks but still require human operators for adjustments or monitoring. The rise in smart agriculture and the growing focus on precision farming have been key drivers for this segment’s expansion.

Based on power output, the market is bifurcated into Below 8 HP, 8–12 HP, 12–20 HP, and Above 20 HP. The Above 20 HP segment dominated the India market in 2024, while the 12–20 HP segment is projected to be the fastest–growing segment during the forecast period. The above 20 HP agricultural equipment segment is experiencing rapid growth, particularly in large-scale commercial farming operations. Machines in this category, such as high-power tractors, combine harvesters, and irrigation pumps, are essential for high-yield, large-acreage farming. 

The above 20 HP segment is driven by the increasing demand for high-performance machinery capable of supporting large-scale farming operations. These machines offer exceptional power output, allowing farmers to perform demanding tasks such as large-scale harvesting, soil preparation, and irrigation with high efficiency. The adoption of these machines is particularly prevalent in commercial crop production, such as cotton, wheat, and sugarcane, where efficiency and productivity are critical to meeting market demand.

Based on application, the agricultural equipment market is segmented into Agriculture (Crop Harvesting, Soil Preparation, Seeding and Planting, Spraying, Irrigation), Horticulture, Forestry, Landscaping, Construction, and Drone Applications (Aerial Spraying, Farm Mapping and Monitoring).  The agriculture segment dominated the India market in 2024, while the Drone Applications segment is projected to be the fastest–growing segment during the forecast period. 

The agriculture segment in the agricultural equipment market represents a substantial portion of the overall market, as it encompasses a wide variety of machinery and equipment that assist in enhancing agricultural productivity. This growth is driven by several factors, such as the increasing need for mechanization, government incentives for farmers to adopt modern equipment, and the ongoing trend of precision farming. As farming methods evolve and become more reliant on data-driven technologies, demand for equipment tailored to specific agricultural tasks has increased.

With smart farming becoming increasingly popular, farmers are adopting advanced machinery that helps in improving crop yields, conserving resources, and reducing labour costs. 

Based on distribution channel, the India agricultural equipment market is bifurcated into direct and indirect. The Direct segment dominated the India market in 2024, while the Direct segment is projected to be the fastest–growing segment during the forecast period. The direct distribution channel has been gaining momentum in the agricultural equipment market, especially as manufacturers increasingly focus on creating a more personalized experience for the end-user. 

This model allows for better brand control, more effective marketing strategies, and the ability to provide enhanced after-sales services. The rise of direct sales can be attributed to the increasing presence of online platforms and dealership networks that allow manufacturers to engage with customers more directly. Furthermore, direct distribution offers the advantage of a more transparent relationship between the buyer and the seller. 

The growing focus on customer-centric sales, where manufacturers can provide tailored solutions and build strong customer relationships, has been a key driver of this growth. Additionally, many companies are integrating digital sales platforms, where farmers can view, compare, and purchase agricultural equipment online, reducing the barriers of geographical location. Moreover, manufacturers can offer training on the usage of their products and maintenance services, which is highly valued by end users, especially in rural areas.

Based on region, the India Agricultural Equipment Market is Segmented into South (Andhra Pradesh, Tamil Nadu, Telangana, Others), North (Uttar Pradesh, Punjab, Haryana, Others), West (Maharashtra, Gujarat, Others), East (Bihar, West Bengal, Jharkhand, Others). The North dominated the North America market in 2024, while the South is projected to be the fastest–growing segment during the forecast period. The agricultural equipment sector in North India is experiencing notable expansion, influenced by several factors such as governmental initiatives, advancements in technology, and evolving agricultural practices.  

The demand for tractors, which play a crucial role in essential farming tasks like ploughing and harvesting, is particularly robust in this region, representing a substantial portion of the agricultural machinery market due to their adaptability and effectiveness. Although North India is at the forefront of farm mechanization, there remains significant potential for enhancement, with mechanization rates estimated between 40% and 45%, suggesting opportunities for growth as farmers increasingly embrace modern agricultural techniques.

FIGURE 3: INDIA AGRICULTURAL EQUIPMENT MARKET SHARE BY REGION 2024 AND 2035 (INR BILLION)