| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 73.86 Billion |
| Market Size (2030) | USD 95.17 Billion |
| CAGR (2025 - 2030) | 5.20% |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Agricultural Tractors Market Analysis
The Agricultural Tractors Market size is estimated at USD 73.86 billion in 2025, and is expected to reach USD 95.17 billion by 2030, at a CAGR of 5.20% during the forecast period (2025-2030).
Tractors are essential agricultural equipment for various farming operations, including plowing, tilling, planting, fertilizer application, and brush clearing. The rising cost of labor, driven by urbanization and rural-to-urban migration, has significantly impacted agricultural production expenses, accelerating the adoption of mechanization in agriculture. According to the World Bank, the percentage of India's workforce employed in agriculture decreased from 44.08% in 2021 to 42.86% in 2022.
Technological advancements have led to the development of modern tractors equipped with GPS and telematics systems. The global agriculture tractor market is anticipated to grow due to the increasing adoption of automated tractors and the use of wireless connectivity for remote monitoring in agricultural applications. Self-driving agricultural tractors are anticipated to enhance productivity and efficiency in the sector. In 2022, Loxley Innovation introduced the Blue E2, an electric tractor, in a fossil fuel-free cherry orchard in Mt Pisa, New Zealand. Similarly, companies are developing smart tractors for current and future use. For instance, Monarch Tractor designed a fully electric, driverless smart tractor. In 2023, this tractor was demonstrated in the world's first 100% electric and fossil fuel-free orchard in Central Otago, New Zealand.
Furthermore, Government support for farm mechanization through subsidies is increasing tractor adoption. In 2023, the Indonesian government allocated USD 538 million for machinery development, including tractor production. Similarly, in 2024, the Indian government introduced the PM Kisan Tractor Yojana scheme, which provides farmers with subsidies ranging from 20% to 60% for purchasing new tractors. However, the shortage of skilled labor to operate specialized and modern tractors may potentially hinder the growth of the tractor market.
Agricultural Tractors Market Trends
Rising Farm Mechanization Drives Agricultural Tractor Demand
The demand for tractors is increasing due to the adoption of precision farming and advanced agricultural technology. Modern agricultural equipment incorporates high-precision positioning systems (GPS and GNSS), automated steering systems, geo-mapping, sensors, and remote sensing technologies to optimize machine operations. Deere & Company offers Precision AG technology across its range of agricultural machinery, including tractors, display systems, receivers for seeding and planting, harvesting equipment, and field preparation and tillage tools. The introduction of these technological advancements contributes significantly to the agricultural tractor market's expansion.
Farm training programs increasingly promote agricultural machinery usage, driving growth in the tractor industry, particularly in the low-horsepower segment. Tractors with engine volumes under 1,500 CC offer enhanced maneuverability and operational flexibility due to their compact size. Their adaptable design enables manufacturers to test new components and technologies before implementing them in higher-powered models. These low-horsepower tractors perform effectively in soft soil conditions, such as river basins, while tractors below 40 HP are primarily utilized in horticulture. In developing countries, farmers prefer these smaller tractors due to limited disposable income, high labor costs, and small farmland sizes.
Furthermore, the United States recorded a 9.4% increase in 4-wheel-drive tractor sales in May 2024 compared to 2023, according to the Association of Equipment Manufacturers (AEM). This growth followed a 24% increase in April 2024 compared to the previous year. Additionally, Canadian sales of 4-wheel-drive tractors increased by 5.7% in 2023 compared to 2022. These sales patterns suggest sustained market expansion during the forecast period.
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Asia-Pacific Dominating the Market
The Asia-Pacific agricultural tractor market demonstrates significant growth, driven by regional manufacturers introducing innovative products. Farmers across India, China, Japan, Indonesia, Thailand, Vietnam, and Sri Lanka are expanding their operations to achieve higher yields and economies of scale. Vietnam reports mechanization in over 70% of its cultivated area, with government support schemes making tractors more accessible to farmers. Due to limited local production, Vietnamese farmers often rely on tractor rental services. In 2022, THACO Industries, a subsidiary of THACO Group, invested USD 550 million to establish mass production facilities for agricultural machinery, auto parts, semi-trailers, and supplemental equipment for both domestic use and export.
According to the National Bureau of Statistics of China, small tractors are increasingly replacing large and medium-sized tractors. By the end of 2023, the country recorded 4.4 million large and medium-sized tractors. The inclusion of agricultural machinery in the 'Made in China 2025' initiative aims to boost domestic farm equipment production, which may increase tractor sales in China. In the Asia-Pacific region, rising farm wages and government support for farm mechanization are driving the tractor market growth. For instance, in 2022, the Indian central government introduced the Pradhan Mantri Kisan Tractor Yojna, offering farmers a 50% subsidy on tractor purchases through direct beneficiary transfers.
Additionally, rising living standards have driven urbanization as populations migrate to urban centers for employment opportunities. This migration has decreased participation in agricultural occupations due to the labor-intensive nature of farming, creating a workforce shortage across Asia-Pacific countries. In India, agricultural employment declined from 158.2 million in 2022 to 147.9 million in 2023, according to the Centre for Monitoring Indian Economy (CMIE). The Indian Council of Food and Agriculture forecasts a 25.7% reduction in agricultural workers by 2050. This labor shortage has increased the demand for agricultural tractors to enhance operational efficiency and support market growth.
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Agricultural Tractors Industry Overview
The agricultural tractor market is consolidated, with major players occupying a significant market share. Deere & Company, Kubota Corporation, CNH Industrial NV, AGCO Corporation, and CLAAS Group are the major players in the market. The companies are not only competing based on product quality or product promotion but are also focused on other strategic moves, like acquisitions and expansions, to acquire a larger share and expand their acquired market size.
Agricultural Tractors Market Leaders
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Deere & Company
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CNH Industrial NV
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Kubota Corporarion
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AGCO Corporation
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CLAAS Group
- *Disclaimer: Major Players sorted in no particular order
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Agricultural Tractors Market News
- August 2024: New Holland, a brand of CNH, introduced India's first domestically manufactured tractor exceeding 100 horsepower. The WORKMASTER 105, equipped with a TREM-IV emission standard-compliant engine, delivers advanced technology and performance to the Indian market.
- February 2024: Deere & Company launched an autonomy-ready high-horsepower 9RX series tractor with innovative solutions to boost productivity, efficiency, and sustainability.
- February 2024: Mahindra introduced 2 new sub-compact and compact tractor models at the National Farm Machinery Show. The new “Powered by OJA” tractors are designed to improve user experience with enhanced power comfort and features.
- January 2024: At CES 2024, Kubota Corporation introduced the New Actually Concept, a fully electric and autonomous tractor. The agricultural vehicle performs multiple farming operations and incorporates rapid charging technology to maintain continuous operation. The company positions this technological advancement as an integration of automation and data analytics in agricultural operations.
Agricultural Tractors Industry Segmentation
A tractor is a farm vehicle that is used to pull farm machinery and provide the energy needed for the machinery to work. It helps to reduce the time required by farming operations and makes it easy. For this report, tractors used in agricultural operations in farming have been considered. The report does not cover other agricultural machinery and attachments to the tractor. Tractors used for industrial and construction purposes are also excluded from the study.
The agricultural tractors market is segmented by Engine Power (less than 40 HP, 40 HP to 99 HP, 100 HP to 175 HP, and Above 175 HP), Type (Orchard Tractors, Row-Crop Tractors, and Other Types), and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts in terms of value (USD) for all the above segments.
| Horse Power | Lesser than 40 HP | ||
| 40 HP to 99 HP | |||
| 100 HP to 175 HP | |||
| Above 175 HP | |||
| Type | Orchard Tractors | ||
| Row-crop Tractors | |||
| Other Types | |||
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Spain | |||
| Italy | |||
| Russia | |||
| Poland | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Africa | South Africa | ||
| Rest of Africa | |||
Horse Power
| Lesser than 40 HP |
| 40 HP to 99 HP |
| 100 HP to 175 HP |
| Above 175 HP |
Type
| Orchard Tractors |
| Row-crop Tractors |
| Other Types |
Geography
| North America | United States |
| Canada | |
| Mexico | |
| Rest of North America | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Spain | |
| Italy | |
| Russia | |
| Poland | |
| Rest of Europe | |
| Asia-Pacific | China |
| Japan | |
| India | |
| Australia | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Africa | South Africa |
| Rest of Africa |
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Agricultural Tractors Market Research FAQs
How big is the Agricultural Tractors Market?
The Agricultural Tractors Market size is expected to reach USD 73.86 billion in 2025 and grow at a CAGR of 5.20% to reach USD 95.17 billion by 2030.
What is the current Agricultural Tractors Market size?
In 2025, the Agricultural Tractors Market size is expected to reach USD 73.86 billion.
Who are the key players in Agricultural Tractors Market?
Deere & Company, CNH Industrial NV, Kubota Corporarion, AGCO Corporation and CLAAS Group are the major companies operating in the Agricultural Tractors Market.
Which is the fastest growing region in Agricultural Tractors Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Agricultural Tractors Market?
In 2025, the Asia-Pacific accounts for the largest market share in Agricultural Tractors Market.
What years does this Agricultural Tractors Market cover, and what was the market size in 2024?
In 2024, the Agricultural Tractors Market size was estimated at USD 70.02 billion. The report covers the Agricultural Tractors Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Agricultural Tractors Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Agricultural Tractors Industry Report
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