| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 26.93 Billion |
| Market Size (2030) | USD 34.70 Billion |
| CAGR (2025 - 2030) | 5.20 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Agricultural Tractors Market Analysis
The Asia-Pacific Agricultural Tractors Market size is estimated at USD 26.93 billion in 2025, and is expected to reach USD 34.70 billion by 2030, at a CAGR of 5.2% during the forecast period (2025-2030).
- Farming remains a crucial occupation in many Asian countries, deeply rooted in their cultural and economic fabric. As urbanization and technological advancements progress, the adoption of agricultural machinery, including tractors, is increasing. The tractor market in Southeast Asia is driven by factors such as growing farm labor shortages, rising wages, and government support for farm mechanization. In 2023, the Indonesian government allocated USD 538 million for machinery development, which includes tractor production. Similarly, In Thailand, government support is a primary driver of significant market growth. Initiatives like the Thailand 20-Year Strategic Plan 2017-2036 and Thailand 4.0, which focus on developing Smart Farmers, Smart Enterprises, and Smart Offices, include agricultural investment strategies and supportive policies that encourage new tractor acquisitions.
- The agricultural tractor machinery market in the region is propelled by the preference for farm mechanization in developing countries, which is necessary to meet increased agricultural production and food security demands. Government initiatives providing sufficient credit facilities also contribute to this growth. In Bangladesh, the Department of Agricultural Extension (DAE) reported that in 2022, approximately 95% of the land would be cultivated using pedestrian and wheeled tractors, with a notable increase in demand for higher horsepower tractors. Thus, these factors are anticipated to drive the market growth.
Asia-Pacific Agricultural Tractors Market Trends
Row Crops Dominate Agricultural Tractors Market
- In the Asia-Pacific agricultural tractors market, row crop tractors dominate, largely due to their efficiency with key regional crops. Crops like rice, wheat, and corn occupy over 50% of the region's agricultural land, necessitating farm mechanization, for planting, and management. These tractors, versatile in nature, handle tasks from planting to harvesting, proving to be a cost-effective choice for farmers. Their alignment with advanced technologies, such as GPS, resonates with the region's shift towards precision farming. Economically, row crop tractors cater to both small and large farms, bolstered by government subsidies. With the region advocating for increased mechanization and a rise in commercial farming, row crop tractors are well-positioned to navigate Asia-Pacific's diverse agricultural landscape.
- The rising global demand for agricultural products, coupled with favorable government policies, technological advancements, and an expansion in the cultivated land is propelling the growth of the row-crop tractor market. For instance, according to The Food and Agriculture Organization (FAO), India's rice cultivation area increased from 45.7 million hectares in 2020 to 46.4 million hectares in 2022, highlighting the growing need for tractors in land preparation and cultivation. These factors are anticipated to significantly boost the demand for row-crop tractors, which are increasingly being recognized as versatile alternatives to manual labor, particularly as labor productivity is declining, leading to increased production costs. For instance, China experienced a 4.27% year-over-year drop in labor productivity in 2023, compared to a growth of 4.78% in the previous year.
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India Dominates the Market
- The Economic Survey conducted by the Government of India highlights a strong relationship between farm mechanization and crop productivity, particularly the use of agricultural machinery such as tractors. It has been indicated that the adoption of agricultural machinery, including tractors, can potentially enhance crop productivity by up to 30% and reduce cultivation costs by 20%. According to the Tractor and Mechanization Association (TMA), total domestic tractor sales in the Financial Year (FY) 2023-24 were 874,504 units.
- Leading tractor manufacturers are proactively responding to this growing demand by introducing innovative models tailored to meet regional requirements. To support farmers in acquiring agricultural equipment, key industry players are offering accessible loan options, thereby further stimulating the market. For instance, in April 2023, Mahindra's farm equipment division collaborated with the State Bank of India (SBI) to provide convenient financing options for tractors and farm machinery, facilitating easier access for farmers.
- In addition to domestic players, significant international companies are also increasing their investments to establish a strong foothold in the Indian market. Notably, in 2024, New Holland, a brand under CNH Industrial, introduced the WORKMASTER 105, India's first 100+ HP TREM-IV tractor, marking a significant milestone for the company and the Indian tractor market.
- The Indian tractor market is being driven by factors such as scarcity of farm labor, increasing farm wages, and governmental support for farm mechanization. Additionally, population growth, rising demand, and labor scarcities are making the adoption of mechanized solutions imperative for long-term and sustainable growth.
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Asia-Pacific Agricultural Tractors Industry Overview
Market share analysis indicates a consolidated agricultural tractor market in Asia-Pacific, with leading manufacturers holding a substantial portion of the market. Key players in the region's tractor segment include Mahindra & Mahindra Ltd, AGCO Corporation, Deere & Company, CNH Industrial NV, CLAAS KGaA mbH, Tractors and Farm Equipment Ltd. (TAFE), and Escorts Kubota Limited. These companies are focusing on new product development, product improvement, expansions, and acquisitions to grow their businesses. Additionally, they are investing significantly in R&D to introduce new products at competitive prices.
Asia-Pacific Agricultural Tractors Market Leaders
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AGCO Corporation
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Mahindra & Mahindra Ltd
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Deere & Company
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CNH Industrial NV
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Escorts Kubota Limited
- *Disclaimer: Major Players sorted in no particular order
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Asia-Pacific Agricultural Tractors Market News
- February 2024: John Deere showcased a wide range of agricultural machinery at the Commodity Classic trade show, focusing on the Asian market. The company presented its high-horsepower, Autonomy-ready 9RX series tractors, demonstrating its commitment to enhancing farmer productivity, efficiency, and sustainability
- January 2024: Tractors and Farm Equipment Limited introduced electric tractors at the Tamil Nadu (India) Global Investors Meet (TN GIM) 2024. These tractors feature auto-steer capabilities and an integrated farm management system, addressing the evolving needs of the Indian agricultural sector.
- July 2023: CLAAS KGaA mbH launched three new compact tractor series: ELIOS 200, ELIOS 300, and AXOS 200. These models offer various technical specifications to cater to diverse customer requirements and applications, including performance, power transmission, comfort, and payload capacity.
Asia-Pacific Agricultural Tractors Industry Segmentation
A tractor is an industrial vehicle with one or two small wheels in front and two large wheels at the back for agricultural and other functions. It is used to move the attached implement that plows the field or performs different activities. For this report, tractors used in agricultural operations have been considered. The report does not cover other farm machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study.
Asia-Pacific agricultural tractor market is segmented by horsepower (less than 25 HP, 25-100 HP, and above 100 HP), type (orchard tractors, row crop tractors, and other types), and Geography ( China, India, Japan, Australia, and rest of Asia-Pacific). The report offers market size and forecasts for all the above segments in terms of value (USD).
| Horse Power | Below 25 HP |
| 25 HP to 100 HP | |
| Above 100 HP | |
| Type | Orchard Tractors |
| Row Crop Tractors | |
| Other Types | |
| Geography | China |
| India | |
| Japan | |
| Australia | |
| Rest of Asia-Pacific |
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Asia-Pacific Agricultural Tractors Market Research Faqs
How big is the Asia-Pacific Agricultural Tractors Market?
The Asia-Pacific Agricultural Tractors Market size is expected to reach USD 26.93 billion in 2025 and grow at a CAGR of 5.20% to reach USD 34.70 billion by 2030.
What is the current Asia-Pacific Agricultural Tractors Market size?
In 2025, the Asia-Pacific Agricultural Tractors Market size is expected to reach USD 26.93 billion.
Who are the key players in Asia-Pacific Agricultural Tractors Market?
AGCO Corporation, Mahindra & Mahindra Ltd, Deere & Company, CNH Industrial NV and Escorts Kubota Limited are the major companies operating in the Asia-Pacific Agricultural Tractors Market.
What years does this Asia-Pacific Agricultural Tractors Market cover, and what was the market size in 2024?
In 2024, the Asia-Pacific Agricultural Tractors Market size was estimated at USD 25.53 billion. The report covers the Asia-Pacific Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Asia-Pacific Agricultural Tractors Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Asia-Pacific Agricultural Tractors Industry Report
Statistics for the 2025 Asia-Pacific Agricultural Tractors market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Agricultural Tractors analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
