The global farm machinery sector is entering a transitional phase, with trends emerging in 2025 expected to define equipment development well into 2026 and beyond. While agriculture has always evolved, identifying which technologies will endure—and which will fade—remains a challenge for manufacturers and farmers alike.
Insights from Agritechnica 2025 point to the growing prominence of hybrid drive systems, as confidence in fully battery-powered solutions weakens and the industry reassesses the long-term role of diesel engines. Rather than disappearing, internal combustion engines (ICE) appear set to remain central to high-power agricultural machinery, supported increasingly by hybrid technologies rather than full electrification.
Despite ongoing debates about decarbonisation, most major tractor manufacturers never truly anticipated the end of diesel. AGCO has continued to invest heavily in ICE development, even as others adjusted their strategies. CNH, for example, sold its engine production business to India-based interests and Deutz, while Deutz itself—long synonymous with diesel innovation—is reportedly scaling back development of large engines. These shifts converged with the launch of the latest Deutz 8 Series tractors, offering more than 300hp but powered by FPT engines, now part of Tata Motors. Although Deutz Engines and Deutz Tractors are separate entities, the move marked a significant break from long-standing internal supply relationships.
In contrast, John Deere continues to show strong confidence in large-capacity engines. Its collaboration with Liebherr has resulted in the company’s first forage harvester exceeding 1,000hp, unveiled in June and powered by a Liebherr V12 engine. Krone has followed a similar path, equipping its latest Big X forage harvester with an 834hp Liebherr straight-six. Once relatively obscure within agricultural machinery, Liebherr is now emerging as a major player as engine supply structures shift across the industry.
At the same time, broader energy constraints are influencing machinery development. Rapid expansion in artificial intelligence and data infrastructure is placing unprecedented demand on electricity grids already under pressure from increased reliance on intermittent renewable sources. This raises questions about the feasibility of large-scale battery-powered tractors, particularly as both transport electrification and data-driven industries compete for limited generating capacity.
As a result, diesel and hybrid solutions are gaining renewed traction. Claas has retained diesel engines in its autonomous machinery strategy, while Krone and Lemken have adopted the same approach for their Combined Powers robotic tractor. Fendt has also deliberately avoided battery integration in its Xaver autonomous platform, designed for secondary cultivation and crop care, highlighting low weight and efficiency achieved through ICE power.
Yet experimentation with electric systems has accelerated the development of hybrid drives, a concept long discussed but now gaining tangible momentum. This was clearly demonstrated by Zoomlion at Agritechnica, where the Chinese manufacturer unveiled both a 400hp hybrid tractor and a mid-sized hybrid combine harvester. Crucially, these were not conceptual prototypes but machines claimed to be ready for production.
Beyond their technical specifications, Zoomlion’s launches carried a broader message for Western manufacturers: large Chinese engineering groups possess vast resources and execution capability. When strategic decisions are made, they are able to move quickly from concept to market—a factor likely to play an increasingly influential role in the future balance of power within the global farm machinery industry.
