Market Trends of Asia-Pacific Utility Tractor Industry
This section covers the major market trends shaping the APAC Utility Tractor Market according to our research experts:
Increasing Cost of Farm Labour
The cost of farm labor is directly proportional to the cost of production, hence increasing labor wages and lack of farm labor have led to the increasing rates of mechanization in the region. This is driving the growth of the utility tractor market. Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor with a more cost-effective, easily available, and more efficient means of agricultural operation. According to the world bank, the employment rate in agriculture is declining. For instance, in 2016 the agricultural employment rate in China was 27.7% which declined to 26.6% in 2019. Additionally, in India, the employment rate has been declining every year. In 2019 the employment rate in agriculture declined to 43. 21% as against 45.12% in 2016. The trend is further expected to continue, thus driving the market.
Rise in Technological Advancements
Farmers in the Asia Pacific region are looking for utility tractors with tailored features, which can fulfill their needs for effective farming. So, to meet consumer demand, many international and domestic agriculture machinery manufacturers are coming up with new technologically-advanced utility tractors, which can handle various farming applications. For instance, in 2019, Mahindra & Mahindra, a leading tractor manufacturer launched ARJUN NOVO 605 DI-I, a 50 HP technologically-advanced tractor that can handle 40 applications, including puddling, harvesting, reaping, and haulage. Further, the tractor can deliver uniform and consistent power with minimum RPM drop in all soil conditions.
