Top 10 Largest Agricultural Equipment Companies in the World

Whenever you drive past a farm or field that has some work happening on it, it’s most likely that the machines being used are made by one of the top 10 largest agricultural equipment companies in the world. With the negative trends that are present in the global agricultural sector, and high barriers to entry, these ten companies are set to dominate the market for years to come.

The global agriculture sector is facing a number of major challenges, including a potential increase in demand that stems from the growing world population and diminishing work force availability due to the migration of more people to cities, which leads to a lack of qualified and even unqualified people to work at farms. The largest agricultural equipment companies, alongside the 11 biggest agricultural companies in the world, are positioned the best to help deal with these issues, since equipment plays a major role in all stages of farming.

Even though agricultural equipment companies are facing lower sales, which are affected by low crop prices, they are still investing in major R&D projects and have introduced a number of technologies to help farmers improve their efficiency and keep their operations going even with fewer available hands. For example, Deere & Company (NYSE:DE), the largest manufacturer of agricultural equipment in the world, provides agricultural business and equipment management systems that use data collection and GPS technologies to allow farmers to control input costs and improve soil conservation, as well as reduce the use of chemicals.

Case IH, a brand of tractors owned by CNH Industrial NV (NYSE:CNHI), went even further, unveiling a concept for a completely autonomous tractor last year. Case IH also has tractors with a “follow me” function, which copy the exact movements and speed of another tractor that is being driven by a person. AGCO Corporation (NYSE:AGCO), another large agricultural equipment company, has similar technology, while Deere & Company (NYSE:DE) has introduced technology that allows a tractor to have a lot of autonomy, though it still requires a person to sit inside and monitor the process.

Moreover, with the recent advancements of self-driving technology in the automotive industry, it’s very likely that the future of farming will require a smaller number of people and more automated equipment. Goldman Sachs estimated that introducing automated tractors could increase a farmer’s revenue by 10%. At the same time, it pointed out that the developments in the agriculture sector involving equipment, irrigation, drone usage, and other aspects, could bring farm yields 70% higher by 2050.

With this in mind, let’s take a look at the top 10 largest agricultural equipment companies in the world. The companies in the list are sorted based on their revenue. For those companies that generate revenue from multiple sources, only the revenue from their agricultural operations was included, although in some cases it was not possible to measure due to lack of information.

10. MTZ

Revenue: $520 mln

MTZ is a less-known company in the West, but it is a major supplier of tractors and parts in eastern Europe and other smaller countries. MTZ stands for Minsk Tractor Factory and is a major industrial enterprise in the former Soviet republic of Belarus. MTZ tractors are also exported to the European Union, as well as the U.S and Canada.

9. Alamo Group, Inc. (NYSE:ALG)

Revenue: $845 mln

Alamo Group, Inc. (NYSE:ALG)’s agricultural division includes a number of brands, including Bush Hog, which makes rotary cutters, CT Farm & County, which offers cutting parts and tillage tools, Fieldquip, which sells tractor attachments and machinery in Australia, Canadian equipment manufacturer Schulte, and others. Overall, Alamo Group, Inc. (NYSE:ALG)’s agricultural division includes nine subsidiaries.

8. Manitou Group

Revenue: $1.31 bln

France-headquartered Manitou Group specializes in equipment for the Construction, Agriculture and Industrial markets, operating under five brands: Manitou, Gehl, Mustang, LOC, and EDGE. The company makes telehandlers, rough terrain and industrial forklifts, aerial working platforms and smaller equipment like skidsteer loaders and articulated loaders.

7. SDF Group

Revenue: $1.63 bln

SDF Group is a large multinational manufacturer of tractors, harvester machines, other agricultural equipment, and diesel engines. The company’s brand portfolio includes names like SAME, Lamborghini Trattori, Deutz-Fahr, and Gregoire. SDF Group was founded in 1942 and currently has eight production plants, five in Europe, two in China and one in India.

6. Mahindra Tractors

Revenue: $2.04 billion.

Mahindra Tractors ranks 6th in our list of  top 10 largest agricultural equipment companies in the world. It is a division of the Mahindra & Mahindra company, headquartered in Mumbai,  India. The company is one of the largest manufacturers of tractors in the country, with a market share of over 40%. In 2016, Mahindra sold 263,021 tractors and its farm equipment division generated sales of around $2.04 billion.

5. CLAAS

Revenue: $4.31 bln

Up next in our list of  top 10 largest agricultural equipment companies in the world is CLAAS that is a renowned German manufacturer of agricultural machinery that offers combine harvesters, forage harvesters, balers, mowers, tractors, and other machines. The company has one of the best-selling self-propelled forage harvesters in the world and offers a choice of 34 tractor models. CLAAS is also well-known for its rubber tracked wheel technology for combine harvesters.

4. AGCO Corporation (NYSE:AGCO)

Revenue: $7.41 bln

Next up on the list of the top 10 largest agricultural equipment companies in the world is AGCO Corporation (NYSE:AGCO), a U.S-based manufacturer of agricultural equipment that was formed through the acquisition of the American operations of German company Deutz-Allis. Over the next couple of years, it expanded and acquired several other companies, including Hesston Corporation, Massey Ferguson and Fendt, a German tractor manufacturer. It still continues to expand its business through acquisitions and earlier this year, it purchased Precision Planting, a company engaged in planting equipment and technology.

3. CNH Industrial NV (NYSE:CNHI)

Revenue: $10.12 bln

CNH Industrial NV (NYSE:CNHI) ranks 3rd in our list of  top 10 largest agricultural equipment companies in the world. It is registered in the Netherlands and is the company behind the Case and New Holland brands of agricultural equipment, as well as Steyr tractors. In 2016, the company unveiled its concept of an autonomous tractor that is being developed in partnership with technology company Autonomous Solutions, Inc.

2. Kubota

Revenue: $11.34 bln

Kubota, a Japanese maker of agricultural and construction equipment, ranks second on the list of the top 10 largest agricultural equipment companies in the world. Its main product in the agricultural equipment market is the M7001 Series tractor. The company also bought Great Plains Manufacturing, Inc. in 2012 in order to include agricultural implements for sowing, plowing, seeding, and planting in its range of products in the U.S and Europe.

1. Deere & Company (NYSE:DE)

Revenue: $18.49 bln

Deere & Company (NYSE:DE) is the largest manufacturer of agricultural equipment, but the company also has operations in the construction equipment market. However, 70% of its revenue is generated by the sales of agricultural equipment, which includes tractors, combines, cotton pickers and strippers, sugarcane harvesters, and equipment used for seeding and application.

Thus concludes the list of the top 10 largest agricultural equipment companies in the world. As you can see, the market is dominated by a few key players, which consistently expand their range of products and services to accommodate their customers. Given that the industry is very capital-intensive and is going through some rough times, it’s highly unlikely that there will be any new entrants, and more likely that the industry will go through further consolidation.

Disclosure: None