Deere Boston Consulting Group Matrix
Fully Editable
Tailor To Your Needs In Excel Or Sheets
Professional Design
Trusted, Industry-Standard Templates
Pre-Built
For Quick And Efficient Use
No Expertise Is Needed
Easy To Follow
Deere Bundle
Unlock Strategic Clarity
Curious where Deere’s product lines sit — Stars, Cash Cows, Dogs, or Question Marks? This quick look scratches the surface; the full BCG Matrix lays out quadrant placements, revenue trends, and practical moves you can act on now. Purchase the complete report for a Word narrative and an Excel summary that make board-ready decisions fast. Skip the guesswork—get the strategic clarity Deere needs and start reallocating capital with confidence.
Stars
Precision Ag & Autonomy
In Deere’s 2024 guidance Precision Ag & Autonomy is classified as high growth, high share, driven by computer vision and an autonomy stack that integrates hardware and software; Deere noted in 2024 that heavy R&D and rollout spending compress margins today. The company is continuing to invest to defend its lead and scale acres under management, with the expectation that as adoption and services mature this business can convert to Cash Cow status.
Connected Large Ag
Connected Large Ag—high-horsepower tractors, sprayers and combines—anchors Deere’s tech-upgrade cycle as connectivity and automation drive farm yield and labor efficiency gains. Uptake is strong across major markets, pushing recurring revenue from firmware and data services and heavy dealer enablement. Sustained investment in service density and SaaS support is required to maintain uptime and margins. Strategy: hold share now to milk aftermarket cash when growth normalizes.
Smart Construction
Deere’s Smart Construction portfolio—excavators, dozers, graders with machine-control and telematics—benefits from rising infrastructure spend and digitization; Deere reported full-year 2024 net sales around $52.6 billion, with Construction & Forestry a growing contributor. Competition is fierce and capex-heavy, so promotions, OEM partnerships and site integrations remain necessary. If Deere sustains share gains, Smart Construction can be a steady earner.
Forestry Tech Expansion
Forestry Tech Expansion sits in Stars as Deere's harvester and forwarder telematics—with ~35% penetration in new units in 2024—win as operators modernize; mechanization drives a healthy ~5% market growth and supports product leadership, though expanding service networks and operator training still require capital. Maintain pace to convert share gains into durable cash flow.
- Telematics adoption ~35% (2024)
- Market growth ~5% CAGR
- Strong product leadership
- Service & training capex needed
Data Platform Ecosystem
Data Platform Ecosystem is a Star: Operations Center and connected services anchor a growing, sticky user base, with Deere reporting fiscal 2024 net sales near $57.6 billion as digital services scale. Network effects strengthen as more machines and acres sync, accelerating data leverage. Monetization is early so cash in often offsets cash out; continued funding for integrations and APIs is essential to lock in leadership.
- Anchor: Operations Center
- Network effects: rising with machine sync
- Monetization: early, low margin conversion
- Priority: fund integrations/APIs
High-R&D ag & forestry tech turning telematics and SaaS into recurring cash
Deere’s Stars (Precision Ag, Connected Large Ag, Smart Construction, Forestry Tech, Data Platform) are high-growth, high-share segments with heavy 2024 R&D/capex that compress margins today but aim to convert to cash cows as services scale; Deere reported fiscal 2024 net sales ~$57.6B and telematics penetration ~35% in Forestry. Network effects and recurring firmware/SaaS revenue drive upside; continued investment in service density and integrations is required.
| Metric | 2024 |
|---|---|
| Net sales | $57.6B |
| Telematics penetration | ~35% |
| Forestry market growth | ~5% CAGR |
What is included in the product
Detailed Word Document
Clear BCG Matrix review of Deere’s portfolio: Stars, Cash Cows, Question Marks, Dogs with investment and divestment guidance.
Customizable Excel Spreadsheet
One-page Deere BCG Matrix to pinpoint growth vs drain—clear quadrants, fast decisions for leadership reviews.
Cash Cows
Core Tractors & Combines
Core tractors and combines are Deere cash cows: a large installed base and premium brand drive repeat purchases in a mature cycle, with Deere holding roughly 60% share in North American large tractors; fiscal 2024 net sales were about $60.7 billion. Strong margins from scale and pricing power keep segment profitability high, reducing promotional pressure as growth slows. Focus on manufacturing optimization and share protection to sustain cash generation.
Aftermarket Parts
Aftermarket parts are Deere's cash cow: high-margin, recurring demand across seasons backed by Deere's scale — the company reported fiscal 2024 net sales of $61.2 billion. Predictable volumes come from a vast in-field fleet, reducing revenue volatility. Minimal marketing needs and superior availability drive wallet share, while targeted investment in logistics and uptime tools (telemetry, parts forecasting) can further squeeze cash flow.
Dealer Service Network
Mission-critical uptime drives steady, recurring service revenue for Deere’s Dealer Service Network, anchored in mature, localized markets with over 3,600 dealers worldwide and high customer retention. Training and diagnostics upgrades—digital telematics and technician certification programs—have lifted service productivity, with aftermarket revenues up about 8% year-over-year in 2024. Milk the trust advantage while standardizing best practices across the network to protect margins.
Financial Services
Deere Financial Services provides stable support for equipment purchases, managing roughly $30 billion in receivables in 2024 and delivering attractive risk-adjusted returns while leveraging strong underwriting and cross-sell with Deere equipment to limit credit losses.
- Stable income: low growth, predictable cashflow
- Scale: ~$30B managed assets (2024)
- Competitive edge: cross-sell and underwriting
- Role: fund strategic bets while maintaining discipline
Turf & Utility Vehicles
Turf & Utility Vehicles are cash cows for Deere: a well-known brand with a broad installed base in mature segments, delivering steady replacement cycles and relatively stable margins in 2024.
Limited need for heavy promotion keeps SG&A pressure low; management focuses on mix optimization and channel efficiency to sustain cash generation and aftermarket revenue.
- Brand strength
- Installed base, replacement-led demand
- Stable margins, low promo spend
- Focus: mix and channel efficiency
Core tractors, parts, dealers and finance drive steady high-margin cash (FY24 $61B)
Deere cash cows: core tractors/combines, aftermarket parts, dealer services, turf/UTV and finance generate high-margin, predictable cash — FY2024 net sales ~61B, NA large-tractor share ~60%, dealers >3,600, aftermarket +8% YoY, receivables ~$30B.
| Metric | 2024 |
|---|---|
| Net sales | $61B |
| NA large-tractor share | ~60% |
| Dealers | >3,600 |
| Receivables | $30B |
Preview = Final Product
Deere BCG Matrix
The file you're previewing is the exact Deere BCG Matrix you'll receive after purchase—no watermarks, no placeholders, just the finished, fully formatted report. It’s crafted for strategic clarity by experts and ready to plug into your planning, decks, or board meetings. After buying you get the downloadable, editable file instantly—no surprises, no revisions needed. Use it as-is or tweak for your team.
Dogs
Low-end Residential Mowers
Low-end residential mowers are price-led tiers facing intense competition, compressing margins to mid-to-low single digits versus Deere's overall equipment gross margin of about 20% in 2024. Market growth is sluggish—US residential mower demand rose roughly 1% in 2023–24—making brand premium harder to defend. Cash ties up in inventory and offers limited strategic upside; minimize exposure or reposition toward service and higher-margin SKUs.
Legacy Non-connected Gear
Older Deere models without telemetry or software hooks lag in value perception and miss participation in a 2024 precision agriculture market worth about $9.3 billion. Low growth and limited differentiation class these as Dogs in the BCG matrix. Support and parts costs persist while resale returns decline, pressuring margins. Recommend sunsetting units where feasible and nudging customers toward connected upgrades.
Small Standalone Displays
Small standalone displays are a niche, commoditizing hardware segment losing share to integrated systems and precision platforms; Deere’s Ag Technology revenue from peripherals was reported under 5% of total Ag Tech sales in 2024. Growth is low to flat across core markets in 2024, with some pockets showing single-digit share only. Cash neutrality at best; recommend SKU consolidation or strategic exit to free R&D and margin resources.
Niche Implements w/ Fragmented Demand
Dogs: niche implements with fragmented demand are sub-scale categories with sporadic orders and limited scale economies, making it hard for Deere to win on cost or innovation; fiscal 2024 scale (company revenue ~$63B, net income ~$6.3B) highlights where capital should prioritize higher-velocity lines. Working capital gets stuck in slow-moving inventories; prune and redeploy to core, higher-margin segments.
- sub-scale
- sporadic orders
- low scale economies
- ties up working capital
- prune & redeploy
Older Engine Platforms
Older engine platforms in Deere's BCG Dogs segment carry ongoing compliance and support costs as of 2024, with demand broadly flat-to-down and minimal pricing power; these legacy variants are suited for accelerated retirement and transition to a parts-only service model to contain spend and regulatory exposure.
- 2024 tag: accelerate retirements
- cost tag: shift to parts-only
- demand tag: flat-to-down
- pricing tag: little power
Prune low-margin mowers and retire legacy engines to free capital for precision ag
Deere Dogs are low-growth, low-margin lines: low-end mowers (margins mid-low single digits vs Deere equipment GM ~20% in 2024), legacy engines with flat demand, and niche implements tying up working capital; Deere revenue ~63B and net income ~6.3B in 2024, precision ag market ≈9.3B. Prune, retire, or shift to parts/service to redeploy capital.
| Tag | 2024 metric | Recommendation |
|---|---|---|
| Low-end mowers | GM mid-low % | Prune/reposition |
| Legacy engines | Flat demand | Retire/parts-only |
| Niche implements | Sub-scale | Exit/consolidate |
Question Marks
Battery-Electric Equipment
Battery-electric equipment sits in Deere’s BCG Question Marks: early-stage growth driven by regulatory and customer pull, but Deere’s share is still forming. High capex and supply-chain complexity persist, with battery pack costs near $132/kWh (BNEF 2023) raising upfront investment. Could flip to Star if range, TCO and charging ecosystems scale. Invest selectively to prove use-cases.
Full Autonomy Rollout
Pilots show promise but broad adoption remains uneven amid intense competition; Deere reports promising field tests in row-crop autonomy. Deere invested over $1 billion annually in R&D (2023 filing) focused on sensors, safety, and remote support, driving heavy burn. If scaled, full autonomy could be a category-defining Star in Deere’s BCG matrix. Push hard where ROI is clearest — large-scale, high-acreage operators.
Software Subscriptions
Question Marks: Software Subscriptions — Deere sits in high-growth SaaS adjacencies (analytics, compliance, workflow) with low current share-of-wallet versus potential; Deere reported $60.2B revenue in FY2024 while public cloud spend hit about $579B in 2024 (Gartner), signaling upside. Monetization frameworks are still maturing; test pricing, bundle smart, drive activation to scale recurring margins.
Construction in Emerging Markets
Construction in emerging markets is a high-growth Question Mark for Deere: the growth runway is real while Deere’s share varies significantly by country, driven by local OEM competition and project pipelines.
Distribution and financing remain choke points; early investments in dealer networks and captive/partner financing unlock scale and reduce cycle times.
Focus on select markets, deepen dealer density and aftersales to convert Question Marks into Stars.
- Growth runway: high in urbanization and infrastructure expansion
- Choke points: distribution depth and equipment financing
- Playbook: early investments, dealer depth, targeted market focus
Advanced Sensing & Drone Tie-ins
Advanced sensing and drone tie-ins sit in the Question Marks quadrant: the commercial drone ecosystem surpassed an estimated $25 billion in 2024 and grows ~13% CAGR, while Deere’s direct footprint remains nascent; integration quality and sensor-to-cloud data accuracy will dictate value and could redirect demand into Deere machines and subscriptions; Deere should pursue partner-first deals and reserve M&A after persistent traction.
- ecosystem-size: >$25B (2024)
- growth-rate: ~13% CAGR
- deere-footprint: nascent — partner-first
- value-drivers: integration & data quality
- strategy: partner, acquire if traction
Turn pilots into Stars: target BEV, drones, SaaS with dealers, finance & sensor partners
Question Marks: BEV, autonomy, SaaS, construction and drones show high growth but low Deere share—battery packs ~$132/kWh (BNEF 2023), Deere revenue $60.2B FY2024, R&D >$1B (2023); drone ecosystem ~$25B (2024). Invest selectively in pilots, dealer/finance depth and partner-first sensor ties to convert to Stars.
| Segment | Growth/Size | Key Barrier |
|---|---|---|
| BEV | Battery $132/kWh | Capex/charging |
| SaaS | Deere $60.2B FY2024 | Monetization |
| Drones | $25B (2024) | Integration |