Dublin, April 16, 2026 (GLOBE NEWSWIRE) -- The "Australia Agriculture Equipment Market Research Report 2026-2031" report has been added to ResearchAndMarkets.com's offering.
The Australia Agriculture Equipment Market was valued at USD 2.36 Billion in 2025, and is projected to reach USD 2.73 Billion by 2031, rising at a CAGR of 2.46%
The agriculture equipment market in Australia is competitive and dominated by both global and strong domestic manufacturers. Companies like John Deere, CNH Industrial, Kubota, and AGCO hold a significant share of the market. The top three companies thrive on innovation, strong dealer networks, and technology to attract Australian farmers across diverse operations from broadacre to mixed farming. John Deere's 2025 Australian market strategy centers on unprecedented horsepower capabilities combined with advanced autonomy and an aggressive electrification roadmap.
New South Wales is the most diverse and strategically significant agricultural region, supported by a broad mix of broadacre cropping, cotton cultivation, and livestock farming. Market growth in the state is increasingly shaped by machinery replacement cycles and the adoption of precision agriculture technologies, rather than the expansion of equipment fleets.
Victoria exhibits one of the highest levels of machinery use per hectare, reflecting its strong mixed farming base. Demand is primarily concentrated on compact and mid-range tractors, along with balers, mowers, and specialized planting equipment. In Queensland, the agricultural equipment market is heavily influenced by large-scale farming operations and the prominence of sugarcane and grain production. These characteristics generate strong demand for high-horsepower tractors, efficient sprayers, and specialized harvesting machinery.
Western Australia is distinguished as a high-value but lower-volume market, dominated by expansive, export-focused broadacre farms. Although fewer units of equipment are sold compared with the eastern states, average transaction values are significantly higher due to strong demand for ultra-high-horsepower tractors, large seeders, and high-capacity combine harvesters. Winter crop production in South Australia is forecast to rise by 63% to 8.7 million tonnes in 2025-?26. Production is forecast to rise in 2025-?26 because of average to above average rainfall across most cropping regions in South Australia throughout October 2025.
Tasmania is a prime location to produce cereal and seed crops such as hemp, vegetables, and grass seeds, along with other high-value crops such as canola and malting barley. The Tasmanian Institute of Agriculture (TIA) at the University of Tasmania has launched a new strategic plan for 2026-2031 focused on advancing sustainable agricultural growth and food production in Tasmania.
AUSTRALIA AGRICULTURAL EQUIPMENT MARKET TRENDS
Technological Innovation and the Rise of Autonomous Farming
- The Australian agricultural sector is experiencing rapid transformation, driven by accelerating innovation and the widespread adoption of advanced technologies such as GPS guidance, precision farming systems, and telematics.
- Several leading original equipment manufacturers (OEMs) operating in Australia - including John Deere, AGCO, CNH Industrial, and Kubota - have already incorporated GPS and telematics into their latest tractor models.
- In 2025, John Deere also introduced its next generation of round balers for Australian farmers, designed to deliver improved performance, intelligent connectivity, and consistently high-quality bales.
Growing Prominence of Electric Agricultural Equipment
- The Australian agricultural industry is undergoing a steady acceleration in machinery electrification, supported by advances in technology, proactive government policy, and increasing cost and sustainability pressures across farm operations.
- Reduced carbon emissions, lower fuel costs, and government incentives are making this transition attractive. As battery technology improves, electric tractors will become more viable for mainstream farming.
- In May 2025, John Deere unveiled its E-Power tractor prototype in Australia, incorporating high-performance KREISEL batteries with patented immersion-cooling technology. The prototype provides a continuous 130-horsepower output with instant torque, making it well-suited for intensive agricultural operations.
Growing Usage of Alternative Fuels in Agricultural Tractors
- Traditionally, farmers have relied on manufacturer-built, diesel-powered tractors, as diesel engines deliver the high torque required for demanding field operations. However, advances in engine and machinery technology have improved efficiency, enabling modern equipment to perform the same tasks with lower power requirements.
- The government support increased in 2025, with substantial federal and state funding for low-carbon and renewable fuels, mainly focusing on long-term capacity development and providing limited immediate incentives for farmers.
- In 2024, New Holland unveiled a prototype LNG-powered T7 series tractor, positioned as a future solution for Australian farmers and designed to potentially operate on captured methane from livestock waste, supporting circular and sustainable farming systems.
AUSTRALIA AGRICULTURAL EQUIPMENT MARKET DRIVERS
Growth in Winter Crop Productivity
- Higher winter crop productivity in 2025-26 is expected to have a measurable impact on agricultural equipment demand in Australia in 2026. In Western Australia, winter crop production in 2025-26 is forecast to be the second-highest on record, largely due to above-average yields.
- Higher production of wheat, barley, canola, and lentils is mainly driven by better yields and, in some cases, slightly larger planted areas. As yields rise, more work is required from machinery on each hectare, especially during seeding, spraying, and harvesting.
- In South Australia and Victoria, crop production is improving after drought years. Production is expected to rise by 63% and 17% in 2025-26, which points to a return to more normal farming conditions.
Increased Investments Australian Agricultural
- In 2026, higher Australian Government spending on agriculture is supporting stronger demand for agricultural machinery. Government funding is improving farm profitability, giving farmers more confidence to invest, and making it easier to finance large equipment purchases.
- In 2025, the Australian Government committed $3.5 million to develop Feeding Australia: A National Food Security Strategy. The strategy will be developed with farmers and fishers, industry and the community. It aims to boost the productivity, resilience and security of our food system.
- Through the Natural Heritage Trust (NHT), the $302.1 million Climate-Smart Agriculture Program is encouraging farmers to adopt precision agriculture technologies, low-emissions machinery, and improved soil-management equipment.
Export Market Dynamics and Global Demand
- The value of Australian wheat exports is forecast to increase by 7% in 2025-26 to $9.7 billion, as higher export volumes offset lower global prices.
- Elevated output in Western Australia, Australia's largest exporting state, is expected to underpin above-average export volumes in 2025-26, increasing reliance on high-capacity seeding, harvesting, and grain-handling machinery to manage larger crops within narrow seasonal windows.
- Canola export values are forecast to rise by 5% to $4.2 billion in 2025-26, with volumes increasing by 6% to 5.2 million tonnes.
INDUSTRY RESTRAINTS
Rainfall Deficiency and Prolonged Drought Conditions
- Australia's agricultural productivity is being increasingly constrained by persistent rainfall deficiencies and deepening drought conditions, particularly across the country's key food-producing regions
- Large parts of Tasmania, Victoria, South Australia, southern and inland New South Wales, and much of Western Australia recorded below-average rainfall in 2025, with long-term deficiencies dating back to February 2024 continuing to weigh heavily on farm output. Rice production, which is entirely dependent on irrigation within the Murray-Darling Basin, has contracted sharply.
- Conditions have continued to deteriorate through the irrigation season, with storage levels falling rapidly as irrigation demand peaks during summer, further tightening water allocations.
Declining Farmer Profitability and Commodity Price Weakness
- Rising inflation and elevated agricultural input costs are expected to remain a constraint on demand for agricultural equipment in Australia in 2026, primarily through their adverse impact on farm profitability and cash flows. Farmer margins are projected to weaken in 2025-2026 compared with 2024-2025, driven by a combination of softening commodity prices and persistently high input costs.
- Australia's structural dependence on imported fertilizers further amplified cost volatility in 2025, exposing producers to global supply disruptions and geopolitical risks.
- Heightened geopolitical tensions contributed to sharp price increases, with urea prices peaking at around $603.6 per ton in early September 2025, around 21% higher than at the start of the year 2025.
KEY QUESTIONS ANSWERED
- How big is the Australia agriculture equipment market?
- What are the key trends in the Australia agriculture equipment market?
- Who are the major players in the Australia agriculture equipment market?
- What is the growth rate of the Australia agriculture equipment market?
- Which region dominates the Australia agriculture equipment market?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 143 |
| Forecast Period | 2025 - 2031 |
| Estimated Market Value (USD) in 2025 | $2.36 Billion |
| Forecasted Market Value (USD) by 2031 | $2.73 Billion |
| Compound Annual Growth Rate | 2.4% |
| Regions Covered | Australia |
Key Company Profiles
- John Deere
- AGCO
- CNH Industrial
- Kubota
- Mahindra & Mahindra
Other Prominent Company Profiles
- Silvan Australia
- Same Deutz-Fahr
- Class
- Kioti
- ISEKI
- Lovol Tractors
- YTO Group
- Zoomlion
- K-Line Ag
- KUHN Group
- JCB
- HARDI Australia
- AFGRI Equipment Australia
- RDO Equipment Australia
- Emmetts
- Terrequipe Pty Ltd
- Yanmar
- Inlon Pty Ltd
- On-Trac Ag
Segmentation by Equipment Type
Land Preparation
- Tillers
- Plough
- Harrow
Agriculture Tractor
Seedling & Planting
- Planters
- Seed Drillers
Plant Protection
Harvesting
Other Equipment
- Mowers
- Balers
Geography
- Queensland
- Western Australia
- Victoria
- New South Wales
- Southern Australia
- Tasmania
- Northern Territory
For more information about this report visit https://www.researchandmarkets.com/r/881pux
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