|Fastest Growing Market:||Asia-Pacific|
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The global agricultural tractor market is projected to register a CAGR of 5.2% over the forecast period 2022-2027.
During the COVID-19 pandemic, the sector saw a sharp dip in business, and the most affected business was the dealership network due to the disruption of supply chains. Additionally, manufacturing units were not 100% active. Due to travel restrictions, production of goods was delayed as supply was interrupted, resulting in a sharp decrease in tractor sales during the pandemic. As the situation returns to normal across countries, the impact has been reducing on the agricultural tractor market.
Row-crop tractors are estimated to be the largest agricultural tractor segment in the global market. Several major market players are spending on research and development in order to produce cutting-edge equipment and retain a strong market position. For instance, in 2020, Deere & Company launched a new 8 Family Tractor line-up that included 8R wheel tractors, 8RT two-track tractors, and the industry’s first fixed-frame four-track tractors. These new tractors come equipped with the latest precision agriculture technology and allow customers to choose the machine configuration, options, and horsepower to best fit their operation.
Asia-Pacific is considered one of the fastest-growing markets because the cost of labor has been increasing at very high rates, and the cost of farm labor is directly proportional to the cost of production. Thus, the increasing labor wages and the lack of farm labor have led to the increasing rates of mechanization in the region. This is driving the growth of the tractor market in the region. In addition, numerous businesses have been releasing new agricultural tractors, allowing them to dominate the market studied with speedier product launches and advancements.
Scope of the Report
For the purpose of 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 global agricultural tractors market is segmented by engine power (lesser 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), type (orchard tractors, row-crop tractors, and other types), and geography (North America, Europe, Asia-Pacific, South America, and Africa). For each segment, the market sizing and forecast have been done on the basis of value in USD million.
|Lesser 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|
Key Market Trends
Increasing Farm Mechanization in Developing Markets
Precision farming and the increasing adoption of farm technology to boost production are driving up demand for tractors. The increasing number of farm training programs promoting the use of agricultural machinery on a wide scale is also driving the tractor industry. 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. Low horsepower tractors work well in soft soil conditions, such as river basins. The lesser than 40 HP tractors are mainly used for horticulture. 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 empower small and marginal farmers. Like India, governments in developing countries promote farm mechanization by subsidizing equipment purchases and supporting bulk buying through front-end agencies. Due to the increasing demand from developing countries, the major players in the market are innovating new products. For instance, in March 2018, KUBOTA UK launched the L1361 compact utility tractor, which is equipped with a 36.6-HP, three-cylinder KUBOTA D1803-M-E2 engine, along with a manual or three-range hydrostatic transmission and a 38-liter capacity tank. These factors are likely to drive the market during the forecast period.
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Asia-Pacific Dominating the Market
In the Asia-Pacific, China, Japan, and India lead in terms of the number of tractors sold. Around 60% of China’s farm activities are mechanized. According to data from the National Bureau of Statistics of China, China produced 617,700 tractors in 2019. Large and medium-sized tractors are gradually being replaced by small tractors. As of the end of 2019, China boasted 22.24 million agricultural tractors, including 4.44 million large- and medium-sized tractors. The government included agricultural machinery in its ‘Made in China 2025’ campaign. The program is expected to help the country produce most of its farm equipment domestically, which is expected to increase the sales of tractors in China. The agriculture sector in India has witnessed a substantial decline in the use of animal and human power in the agriculture sector. Fossil fuel-operated vehicles, such as tractors and diesel engines, are being used instead, which has resulted in a shift from the traditional agriculture process to a more mechanized process. In order 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 in India. Thus, the implementation of programs by governments in the region along with the increasing tractor usage across the region are expected to drive the market during the forecast period.
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In 2021, the global agricultural tractor market was consolidated, with major players occupying a significant market share. Deere and Company, Kubota Corporation, CNH Industrial NV, AGCO Corporation, and CLAAS KGaA mbH are the major players in the market. New product launches, partnerships, and acquisitions are the major strategies being adopted by the leading companies in the global market.
In July 2021, New Holland North America launched T7 Heavy-duty Tractor with PLM Intelligence as an addition to its line of agricultural tractors. The new tractor is aimed to help farmers be more productive, enabling multi-tasking in a variety of field and transport applications.
In February 2021, TAFE (Tractors and Farm Equipment), manufacturers of Massey Ferguson tractors, launched its new DYNATRACK Series, which is an advanced range of tractors that offer dynamic performance, sophisticated technology, unmatched utility, and versatility, all engineered into a single powerful tractor.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat from Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Horse Power
5.1.1 Lesser than 40 HP
5.1.2 40 HP to 99 HP
5.1.3 100 HP to 150 HP
5.1.4 151 HP to 200 HP
5.1.5 201 HP to 270 HP
5.1.6 271 HP to 350 HP
5.1.7 Greater than 350 HP
5.2.1 Orchard Tractors
5.2.2 Row-crop Tractors
5.2.3 Other Types
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 South America
18.104.22.168 Rest of South America
22.214.171.124 South Africa
126.96.36.199 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Claas KGaA mbH
6.3.2 Deere & Company
6.3.3 Mahindra & Mahindra Ltd
6.3.4 CNH Industrial NV
6.3.5 Kubota Corporation
6.3.6 AGCO Corporation (Massey Ferguson Limited)
6.3.7 Tractors and Farm Equipment Ltd
6.3.8 Iseki & Co. Ltd
6.3.9 Yanmar Holdings Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Agricultural Tractors Market market is studied from 2017 - 2027.
What is the growth rate of Agricultural Tractors Market?
The Agricultural Tractors Market is growing at a CAGR of 5.2% over the next 5 years.
Which region has highest growth rate in Agricultural Tractors Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Agricultural Tractors Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Agricultural Tractors Market?
Deere & Company, Mahindra & Mahindra Ltd, CNH Industrial NV, Kubota Corporarion, Claas KGaA mbH are the major companies operating in Agricultural Tractors Market.