5.6.2Segment

Agricultural & Farm Equipment

Manufacturers of tractors, harvesters, planters, and application equipment serving row crop, livestock, and specialty crop production operations globally.

5
Verticals

Overview

Agricultural & Farm Equipment covers tractors, combines, planters, harvesters, and lawn-and-garden equipment. At ~$53B it is a consolidated, brand-loyal segment dominated by global majors (John Deere, CNH Industrial, AGCO, Kubota) with strong dealer networks and aftermarket franchises.

Demand is cyclical with farm income and crop prices, and the ~10% growth reflects strong farm economics and equipment pricing in 2021–22, plus the rise of precision agriculture, autonomy, and connectivity (a major Deere strategic thrust). It is capital-intensive with attractive recurring parts and service revenue.

Market snapshot

Market size
~$53B
Growth
~10.0%CAGR (2017–22, nominal)
Companies
~1,157 firms
Firms by employee count

65.1% of firms have fewer than 20 employees: 753 micro-businesses, below most mandates.

The investable universe404 firms with 20+ employees
20–99
25764%
100–499
9925%
500+
4812%

Among the fastest growth here, and it is a farm-income story rather than a structural one: record grain prices in 2021–22 funded a replacement cycle that had been deferred for years. Farm income has since fallen and equipment orders with it. A dealer or component supplier bought on 2022 earnings is being bought at the peak.

NAICS 333111, 333112. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Equipment sales through dealers plus parts and service

Key economics

Revenue per firm
$45,345,510
Revenue per employee
$645,513
Employees per firm
74.3
Recurring revenue
Moderate–High

recurring parts, service, and precision-ag

EBITDA margin
Cyclical equipment; strong aftermarket
Capex intensity
High

Characteristics

  • Scale-driven — payroll is only 10% of revenue; the cost base is assets, not headcount
  • Moderate strategic-buyer pool — 48 firms exceed 500 employees; a scaled asset has buyers, but not many
  • Consolidated around Deere, CNH, AGCO, Kubota.
  • Precision agriculture, autonomy, and connectivity rising.
  • Cyclical with farm income and crop prices.

NAICS 333111, 333112. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahVirginiaWashingtonWisconsinSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandPennsylvaniaIowaNebraska

Farm equipment is built where the farms are — Nebraska and Iowa carry roughly eight times the national concentration, tied to the corn belt and the dealer networks serving it.

NebraskaIowaPennsylvania

U.S. Census Bureau — 2022 Statistics of U.S. Businesses (firms by state), NAICS 333111/333112. Concentration shown by location quotient.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Agricultural-equipment majors
  • Precision-ag & ag-tech acquirers
  • PE-backed dealer/component platforms

What’s driving deals

  • Precision-ag and autonomy technology.
  • Aftermarket and dealer consolidation.
  • Farm-economics cyclicality.

Verticals in this segment

Find Agricultural & Farm Equipment acquisition targets

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