| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 74.06 Billion |
| Market Size (2030) | USD 95.43 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 74.06 billion in 2025, and is expected to reach USD 95.43 billion by 2030, at a CAGR of 5.2% during the forecast period (2025-2030).
- Tractors are agriculture equipment that is used to perform farming operations such as plowing, tilling, and planting. They are also used for spreading fertilizers, clearing bushes, and other activities. The cost of labor has been increasing at significantly high rates due to the urbanization and migration of people to urban areas. The cost of farm labor is directly proportional to the cost of production. Mechanization can reduce labor wages. The increasing labor wages and the lack of farm labor have led to increasing rates of mechanization.
- Furthermore, the increased government support to raise farm mechanization for obtaining high yield by providing subsidies is helping to increase the number of tractors. Moreover, technological advancements are also catering to the increased mechanization and raising awareness among farmers about the benefits of farm mechanization.
- Numerous businesses have been releasing new agricultural tractors, allowing them to dominate the market with speedier product launches and advancements. Several major market players are spending on research and development in order to produce cutting-edge equipment and retain a strong market position. This factor drives the sales of tractors in the market. 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. On the other hand, the lack of properly skilled labor for operating specialized and modern tractors may become a restraining factor for the tractor market.
Agricultural Tractors 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. Agricultural equipment can use technology like high-precision positioning systems (such as GPS and GNSS, automated steering systems, geo-mapping, sensors, and remote sensing) and integrated electronic communication to produce superior results from machine operations. For instance, Deere & Company provides Precision AG technology for farm machinery like tractors and other items. The company provides display systems, receivers for seeding and planting, harvesting, and field preparation and tillage equipment. The launch of such items has a substantial impact on the growth of the agricultural tractor market.
- 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. Governments in developing countries like India promote farm mechanization by subsidizing equipment purchases and supporting bulk buying through front-end agencies.
- Furthermore, due to the increasing demand from developing countries, the major players in the market are innovating new products. For instance, in February 2021, TAFE launched a new DYNATRACK Series, which is an advanced range of tractors that offer dynamic performance, sophisticated technology, unmatched utility, and versatility, engineered into a single powerful tractor. 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, large and medium-sized tractors are gradually being replaced by small tractors. At the end of 2020, there were 4.4 million large- and medium-sized tractors in the country. 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.
- Most people in India are agriculture-dependent. According to the Indian Brand Equity Foundation, 58% of the total population in India are farmers. Thus, there is a great market for tractors in India. 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. For instance, the government of India offers various schemes for agricultural equipment, such as loan-cum-subsidy for the purchase of tractors. In addition, as per NABARD norms, any farmer with eight acres of land can take a tractor loan for a period of nine years with a 12.5% rate of interest. Thus, the implementation of programs by governments in the region, along with the increasing tractor usage across, is expected to drive the market during the forecast period.
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Agricultural Tractors Industry Overview
The agricultural tractor market is 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.
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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Claas KGaA mbH
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AGCO Corporation
- *Disclaimer: Major Players sorted in no particular order
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Agricultural Tractors Market News
- November 2022: VST Tillers Tractors Ltd and ZETOR TRACTORS unveiled two best-in-class tractors at the CII Agro Tech India 2022 exhibition. These 45 HP and 50 HP category tractors are jointly developed by VST & ZETOR at their India & Czech Republic plants.
- 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.
- June 2022: Solis Yanmar company launched three new tractor models in the below 30 HP category for Turkish farms that are to be exported from India.
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 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 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). The report offers market size and forecasts for all the above segments in terms of value (USD million).
| By Horse 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 | |||
| Greater than 350 HP | |||
| By Type | Orchard Tractors | ||
| Row-crop Tractors | |||
| Other Types | |||
| By 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 74.06 billion in 2025 and grow at a CAGR of 5.20% to reach USD 95.43 billion by 2030.
What is the current Agricultural Tractors Market size?
In 2025, the Agricultural Tractors Market size is expected to reach USD 74.06 billion.
Who are the key players in Agricultural Tractors Market?
Deere & Company, CNH Industrial NV, Kubota Corporarion, Claas KGaA mbH and AGCO Corporation 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 70.21 billion. The report covers the Agricultural Tractors Market historical market size for years: 2019, 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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