Agricultural Tractors Market - Growth, Trends, and Forecast (2020 - 2025)

The Agricultural Tractors Market is Segmented by Engine Power (Less than 40 HP, 40 HP to 99 HP, 100 HP to 150 HP, 151 HP to 200 HP, 201 HP to 270 HP, 271 HP to 350 HP, Greater than 350 HP) and Type (Orchard Tractors, Row-crop Tractors, Other Tractors). A Detailed Geographical Analysis Covering More than 16 Countries is also Provided.

Market Snapshot

Study Period:


Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

North America


5.8 %

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Market Overview

The agricultural tractors market is projected to register a CAGR of 5.8%, over the forecast period.

  • China and India lead in the number of tractors sold across countries. China has around 60% of its farm activities mechanized. Beijing included agricultural machinery in its ‘Made in China 2025’ campaign in 2018. The program will help the country to produce most of its farm equipment domestically, which is expected to increase the sales of tractors in China. The farm mechanization level in India was recorded at 40%-45%, in 2017. The penetration of farm equipment is slow, as almost 80% of small and marginal farmers own less than five hectares of land in the country. To increase the mechanization level, the Indian government is promoting ‘Balanced Farm Mechanization’, by providing subsidies on various equipment and supporting bulk buying through front-end agencies, which is expected to strengthen the tractors market during the forecast period.
  • The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics, thereby, affecting the agricultural tractors market.

Scope of the Report

For this report, tractors used in agricultural operations, especially four-wheeled tractors, have been considered. The report does not cover other agricultural machinery and attachments for tractors. Tractors used for industrial and construction purposes are also excluded from the study.

The agricultural tractors market is segmented by engine power into - less than 40 HP, 40 HP to 99 HP, 100 HP to 150 HP, 151 HP to 200 HP, 201 HP to 270 HP, 271 HP to 350 HP, and greater than 350 HP tractors; and by type into orchard tractors, row-crop tractors, and other tractors. A detailed geographical analysis, covering more than 16 countries, is also provided.

Horse Power
Less than 40 HP
40 HP to 99 HP
100 HP to 150 HP
151 HP to 200 HP
201 HP to 270 HP
271 HP to 350 HP
Greater than 350 HP
Orchard Tractors
Row-crop Tractors
Other Tractors
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
South Africa
Rest of Africa

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Key Market Trends

Increasing Farm Mechanization in Developing Markets Driving Lower Engine Power Tractor Sales

The market size for less than 40 HP tractors is estimated to reach USD 23.41 billion by 2025. With an engine volume of not more than 1,500 cc, these tractors occupy less space and can be used with greater flexibility. Ease of customization makes them more amenable to experimentation, and consequentially, manufacturers are willing to try new components and technologies in this segment before moving on to high-powered ones. These tractors are compact, with a mass of fewer than 4,000 lbs and use less than 40 PTO HP to run the attachments. Invariably, all these high-production, economical, and user-friendly compact tractors are being used by schools, parks, landscapers, cemeteries, and hobby farmers. Low horsepower tractors work well in soft soil conditions, such as river basins. The less than 20 HP tractors are mainly used for horticulture in India. In developing countries, the demand for lower HP tractors is high due to the low disposable income of farmers and high labor costs. Farmers prefer small and customized tractors for agricultural purposes, due to small farmland sizes. Moreover, lesser fuel consumption by small tractors helps to empower small and marginal farmers.

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China and India Driving Market Growth in Asia-Pacific

China has started focusing on the adoption of automated farming machinery through the introduction of driverless tractors. For instance, YTO Group Corporation launched its first driverless tractor in 2017 and is planning to conduct mass production as per the market demand. China’s agricultural machinery had been facing several challenges, like overcapacity and low profit-margins, after the provision of a year-long subsidy scheme for promoting mechanization in the farming, which led to the mass production of low-quality tractors. Farmers are against purchasing equipment, due to the decline in grain prices and lower return on equipment investment. The demand for agricultural tractors reduced during 2016 and 2017, owing to the high existing numbers of tractors and the changes in the subsidy regime for purchasing new tractors. Although the subsidies per machine have declined, the system is now more inclined toward large tractors, as the government seeks to enhance productivity and the yield.


The availability of abundant and cheap labor in India has largely confined farm mechanization to tractors. The penetration of tractors in the country is higher in Northern India, particularly in Punjab, Uttar Pradesh, and Haryana. Tractors are the largest segment in the Indian agricultural equipment category, with annual sales of 600,000 to 700,000 units. India’s tractor export market comprises African and ASEAN countries, and it exports an average of 60,000 tractors, annually. The demand for tractors declined during 2015-16, due to a contraction in the farm incomes, as the production of major crops and commodity prices reduced with lower procurement by the government, owing to adequate buffer reserves. In India, Mahindra & Mahindra Ltd is the leading player occupying the highest share, followed by Tractors and Farm Equipment Ltd (TAFE), VST Industries Ltd, International Tractors Ltd, Force Motors, and Escorts Limited.

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Competitive Landscape

The agricultural tractors market is highly consolidated, with very few players cornering the majority of the market share. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, globally. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies in the coming years.

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Table Of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    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 from Substitute Products

      5. 4.4.5 Competitive Rivalry


    1. 5.1 Horse Power

      1. 5.1.1 Less than 40 HP

      2. 5.1.2 40 HP to 99 HP

      3. 5.1.3 100 HP to 150 HP

      4. 5.1.4 151 HP to 200 HP

      5. 5.1.5 201 HP to 270 HP

      6. 5.1.6 271 HP to 350 HP

      7. 5.1.7 Greater than 350 HP

    2. 5.2 Type

      1. 5.2.1 Orchard Tractors

      2. 5.2.2 Row-crop Tractors

      3. 5.2.3 Other Tractors

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Italy

        6. Russia

        7. Poland

        8. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Africa

        1. South Africa

        2. Rest of Africa


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Claas Group

      2. 6.3.2 Deere & Company

      3. 6.3.3 Mahindra & Mahindra Ltd

      4. 6.3.4 CNH Industrial NV

      5. 6.3.5 Kubota Corporation

      6. 6.3.6 Massey Ferguson Limited

      7. 6.3.7 TAFE Ltd

      8. 6.3.8 Iseki & Co. Ltd

      9. 6.3.9 Yanmar Co.


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