Africa Agricultural Tractor Market - Growth, Trends, and Forecasts (2023 - 2028)

The Africa Agricultural Tractor Market is segmented by Engine Power (Less than 35 HP, 35 to 50 HP, 51 to 75 HP, 76 to 100 HP, and above 100 HP), and Geography (South Africa, Kenya, and the Rest of Africa). The report offers the market size and forecasts in terms of volume in units and value in USD million for all the above segments.

Africa Agricultural Tractor Industry Overview

Africa Agricultural Tractor Market Summary
Study Period: 2017-2027
CAGR: 9.6 %

Major Players

Africa Agricultural Tractor Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Africa Agricultural Tractor Market Analysis

The African agricultural tractor market is expected to register a CAGR of 9.6% during the forecast period.

  • Agriculture is critical to Africa's economic development, but it needs to function below its potential. Smallholder farmers make up more than 60% of the population in sub-Saharan Africa, and agriculture accounts for around 23% of the region's GDP. At the same time, the population is increasing on a large scale. As a result, there is an urgent need to raise crop yields in the coming decades to keep up with food demand in Africa. Therefore, mechanization in agriculture closes the yield gap by lowering harvest and post-harvest losses.
  • As per the research survey conducted by the Agri Evolution Alliance, Africa holds great market potential for agricultural tractors. The increasing government support to develop the agricultural sector is expected to drive this sector.
  • For instance, the Ghana government provides subsidized tractors to entrepreneurs who run 89 centers that rent out and service tractors. In major parts of Africa, tractor sales were affected due to uncertainty regarding crop yields and exchange rates. Additionally, issues with respect to land restitution and farmworkers’ farm shares added to the farmers' uncertain conditions. Therefore, considering these factors, the market can witness growth in the coming years.

Africa Agricultural Tractor Industry Segments

Agricultural tractors are types of machinery used in farming or other agriculture operations. The report defines the market in terms of end users that only procure tractors for agricultural production applications. The end users include farmers and institutional buyers operating in agriculture and allied production. The corporations in the tractor industry operate in the B2B and B2C formats. However, bulk buyers procuring tractors for retail sales are not considered in this market to eliminate any ‘double-count’ error in market estimations.

The African agricultural tractor market is segmented by engine power (less than 35 HP, 35 to 50 HP, 51 to 75 HP, 76 to 100 HP, and above 100 HP), geography (South Africa, Kenya, and the Rest of Africa). 

The report offers the market size and forecasts in terms of volume in units and value in USD million for all the above segments.

Engine Power
Less than 35 HP
35 to 50 HP
51 to 75 HP
76 to 100 HP
Above 100 HP
Geography
South Africa
Kenya
Egypt
Rest of Africa

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Africa Agricultural Tractor Market Trends

Increasing Focus on Sustainable Agricultural Mechanization

  • Agriculture plays a crucial role in the economic development of Africa. Despite Africa having the highest area of uncultivated arable land in the world, its productivity needs to catch up to other developing regions. Moreover, crop yields are only reaching 56% of the international average. Thus, there is a dire need to increase crop yields in the coming decades to keep pace with the food demand driven by population growth and rapid urbanization in Africa. Therefore, mechanization through tractors can, directly and indirectly, bridge the yield gap.
  • Additionally, this region's tractor sales have witnessed a growing trend in the past few years. For instance, according to the South African Agricultural Machinery Association (SAAMA), in 2022, 5,705 units of tractors were sold, while 4,862 units were sold in August 2021 in South Africa. This showed an increase of 17.3% more than the previous year. Therefore, the increase in sales of tractors shows the trend of an increase in mechanization in Africa.
  • According to the Food and Agriculture Organization of the United Nations (FAO), agricultural mechanization in Africa is still in its initial stages. The studies undertaken by FAO also revealed that the level of mechanization in the country is slowly moving from hand-driven technology to power sources. 
  • However, as stated in the sustainable development goals indicated in agenda 2063, the African Union Commission (AUC) and the Food and Agriculture Organization of the United Nations (FAO) view agricultural mechanization as an immediate indispensable action for attaining the Zero Hunger vision by 2025. Such initiatives toward sustainable agricultural mechanization will likely boost the market for agricultural tractors in the near future.
Agricultural Tractor Market: Tractor sales, in units, South Africa, 2021 and 2022

South Africa Dominates the Market

  • South Africa is the largest market among African countries. The South African agricultural economy has witnessed a paradigm shift from food aid to domestic production in the form of the green revolution, which was first started by the World Food Program of the United Nations. South Africa now has major potential for the growth of the agriculture and agriculture machinery market, including tractors.
  • In South Africa, there is a need for more farm workers due to increasing urbanization. This developed into a significant issue, driving up labor costs. As a result, farm equipment sales increased, helping the market expand. Additionally, increasing government subsidies for farm mechanization, accommodative financing, growth in the agricultural industry, and increased awareness of farm machine mechanization are driving the tractor market in the coming years.
  • The tractor market in South Africa has been reinvigorating from the standstill brought to the market due to extremely dry weather conditions. Major global tractor industry players like Deere & Company and Mahindra & Mahindra, are planning to make South Africa the hub for manufacturing and exports, given the high potential that the farm equipment market holds in South Africa.
  • The South African Crop Estimate Committee (SACEC) reported that farmers intend to increase the area plantings for summer grains and oilseeds in the next cropping season, thereby boosting the tractor market during the forecast period.
Agricultural Tractor Market: Employment in agriculture, in millions, Africa, 2018-2021

Africa Agricultural Tractor Market Competitor Analysis

The market is consolidated, with international players accounting for a higher market share. Deere & Company, Kempston Agri, and Kubota SA are the few key players in the African agricultural tractor market. Companies compete not only on equipment quality and promotion but also on strategic moves to attain larger market shares.

Africa Agricultural Tractor Market Top Players

  1. AGCO Corporation

  2. Kempston Agri

  3. Kubota SA

  4. Deere & Company

  5. Escorts Group (Farmtrac)

*Disclaimer: Major Players sorted in no particular order

Africa Agricultural Tractor Market Concentration

Africa Agricultural Tractor Market Recent Developments

  • June 2022: Agricultural vehicle supplier Argo Tractors South Africa inaugurated its new head office in South Africa. The new premise was built at the cost of USD 5. 88 million, hosts a 6000 square meter building, including office space, a 650 square meter showroom, a 100 square meter training facility, 2300 square meters dedicated to assembly, and 2000 square meters designated for spares.
  • August 2022: Deere & Company invested in Hello Tractor, an ag-tech company based in Nairobi, Kenya. The company links tractor owners with smallholder farmers in Africa and Asia through a farm equipment-sharing app. It helps farmers to track and manage their fleets, schedule customers, and access financing options.
  • November 2021: Mahindra South Africa (SA) launched a new range of tractors and farm equipment in the domestic market. The range included products from Sampo Rosenlew, of Finland, Mitsubishi Mahindra Agri Machinery of Japan, and Hisarlar and Erkunt equipment from Turkey. Together with the Mahindra EarthMaster Yellow Metal and Mahindra Powerol Generators, the company offered these products as a ‘World of Solutions’ to the South African farmer.

Africa Agricultural Tractor Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Engine Power

      1. 5.1.1 Less than 35 HP

      2. 5.1.2 35 to 50 HP

      3. 5.1.3 51 to 75 HP

      4. 5.1.4 76 to 100 HP

      5. 5.1.5 Above 100 HP

    2. 5.2 Geography

      1. 5.2.1 South Africa

      2. 5.2.2 Kenya

      3. 5.2.3 Egypt

      4. 5.2.4 Rest of Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 AGCO Corporation

      2. 6.3.2 CNH Industrial America LLC

      3. 6.3.3 Deere & Company

      4. 6.3.4 Argo Tractors SpA

      5. 6.3.5 Kempston Agri

      6. 6.3.6 Kubota SA

      7. 6.3.7 Escorts Ltd

      8. 6.3.8 Mahindra & Mahindra Limited

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Africa Agricultural Tractor Market Research FAQs

The Africa Agricultural Tractor Market market is studied from 2017 - 2027.

The Africa Agricultural Tractor Market is growing at a CAGR of 9.6% over the next 5 years.

AGCO Corporation, Kempston Agri, Kubota SA, Deere & Company, Escorts Group (Farmtrac) are the major companies operating in Africa Agricultural Tractor Market.

Africa Agricultural Tractor Industry Reports

In-depth industry statistics and market share insights of the Africa Agricultural Tractor sector for 2020, 2021, and 2022. The Africa Agricultural Tractor research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Africa Agricultural Tractor report PDF.

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