Market Size of Agricultural Tractors Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 70.40 Billion |
| Market Size (2029) | USD 90.71 Billion |
| CAGR (2024 - 2029) | 5.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Agricultural Tractors Market Analysis
The Agricultural Tractors Market size is estimated at USD 70.40 billion in 2024, and is expected to reach USD 90.71 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
- 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.
