Agricultural Tractor Market in North America Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers North American Tractor Market Companies and is Segmented by Type (Below 40 HP, 40-100 HP, Above 100 HP, and 4 WD Farm Tractors) and Geography (United States, Canada, Mexico, and Rest of North America).

North America Agricultural Tractors Market Size

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North America Agricultural Tractors Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 16.39 Billion
Market Size (2029) USD 21.32 Billion
CAGR (2024 - 2029) 5.40 %
Market Concentration High

Major Players

North America Agricultural Tractors Market Major Players

*Disclaimer: Major Players sorted in no particular order

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North America Agricultural Tractors Market Analysis

The North America Agricultural Tractors Market size is estimated at USD 16.39 billion in 2024, and is expected to reach USD 21.32 billion by 2029, growing at a CAGR of 5.40% during the forecast period (2024-2029).

  • With changing industry trends and the development of more sophisticated agricultural machinery, farming methods have taken a giant leap forward. Farm mechanization increased productivity, improved the quality of the product, and reduced the hazards of operations. However, with developing technology in the future, driverless tractors, which use GPS maps and electronic sensors, may come into play. The United States and Canada are the major markets in the region due to large farm sizes and the adoption of high mechanization.
  • Farm mechanization saves time and labor, cuts down crop production costs in the long run, reduces post-harvest losses, and boosts crop output and farm income. Larger farms and awareness among farmers lead to the quick adoption of modern technologies in developed countries compared to developing nations. This factor makes North America the largest market for tractor technologies.
  • The increasing benefits of tractors and food security concerns across the world are paving the way for the agricultural tractor market. The increasing focus on research, innovations, and partnerships to develop advanced technologies by key market players leads to the market's growth in the region.

North America Agricultural Tractors Market Trends

Increasing Adoption of Farm Mechanization and Shortage of Labor

With the development of more sophisticated agricultural machinery, farming methods have changed. Increased farm consolidation, a large production base, and greater government support through subsidies drive the adoption of agricultural tractor machinery.

Farmers in most markets in North America are increasingly adopting advanced technology, such as precision farming systems and GPS-controlled agricultural machinery. The North American market is driven by the sales of higher engine-power tractors, with tractors of power more than 40 HP contributing a major market share. Alongside, major players, like Deere & Company, AGCO Corp., and CNH Industrial NV, are focusing on manufacturing agricultural tractors with advanced technology, which drives the market during the forecast period.

The United States has been witnessing an acute shortage of farm laborers. A survey by the California Farm Bureau revealed that more than 40% of the farmers faced a consistent labor shortage in various farm operations in the state in the past five years. It led to an increased adoption rate of modern technologies such as tractors to ensure better management of farm resources. According to the World Bank's database, the employment in agriculture out of the total employment fell drastically and reached 1.36% in 2019.

North America Agricultural Tractor Machinery Market: Working Labor Force, in Thousand, United States, 2019-2020

Increasing Cost of Labor Paves Way for Agricultural Tractors

Farming has traditionally been a highly-labor intensive method in agriculture. However, the continually rising real wage of farm labor positively impacted the demand for tractors in the region, as farmers are increasingly adopting agricultural mechanization, including tractors, as a substitute for manual labor. According to the USDA reports, the annual average gross hourly wage for field and livestock workers was USD 16.62 in 2022. This was a 7% increase over last year's annual average of USD 15.56 per hour, further increasing the demand for tractors in the country.

According to the Canadian Agriculture Human Resource Council, Canada's farm labor deficit is expected to double by 2029 to 123,000 workers, or one in three jobs, as shortages continue to hit the sector's bottom line. The rapid shrinkage of farm labor has boosted the tractor market, thus driving the demand for tractors in the region.

According to the International Labor Organization, around 25% of human resources engaged in agriculture were skilled in the United States, which has decreased over the years. As technologically assisted agriculture needs skilled laborers that are in an acute shortage, farmers are adopting technologies such as tractors that can be productive, considering the current challenge.

North America Agricultural Tractor Machinery Market: Average Farm Wages in USD Per Hour, United States, 2021-2022

North America Agricultural Tractors Industry Overview

The North American agricultural tractor machinery market is consolidated, with few players dominating the market. CNH Industrial NV, Deere & Company, AGCO Corp., Same Deutz-Fahr Deutschland GmbH, and Claas KGaA mbH are some of the major players operating in the market. The companies focus on strengthening their base by offering enhanced product features, competitive pricing, enhanced quality, increased scale of operation, and technological innovation. Along with innovations and expansions, investments in R&D and developing novel product portfolios will likely be crucial strategies in the coming years. These companies are making strategic partnerships with domestic companies to expand their distribution networks and launch new innovative tractors that cater to the needs of the farmers in this region.

North America Agricultural Tractors Market Leaders

  1. CNH Industrial NV

  2. Deere and Company

  3. AGCO

  4. Same Deutz-Fahr Deutschland GmbH

  5. CLAAS KGaA mbH

*Disclaimer: Major Players sorted in no particular order

North America Agricultural Tractor Machinery Market Concentration
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North America Agricultural Tractors Market News

  • January 2023: John Deere partnered with Microsoft to bring new value and efficiencies to John Deere Dealers. The system will provide a common technology platform for many aspects of a tractor dealer's business, enabling new opportunities for growth, innovation, and customer insights for dealers.
  • November 2022: John Deere developed new 5EN and 5ML Series specialty tractors. These are designed for work in narrow orchards and vineyards with the addition of new technologies.
  • March 2021: CNH Industrial NV partnered with Monarch Tractor, a US-based agriculture technology company, for the latter launched an electric tractor platform, which combines a fully-electric powertrain with autonomous technologies to help advance farming operations. This strategic partnership aims to enhance long-term sustainability and achieve zero-emissions farming.

North America Agricultural Tractors Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Below 40 HP

      2. 5.1.2 40-100 HP

      3. 5.1.3 Above 100 HP

      4. 5.1.4 4 WD Farm Tractors

    2. 5.2 Geography

      1. 5.2.1 United States

      2. 5.2.2 Canada

      3. 5.2.3 Mexico

      4. 5.2.4 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Deere and Company

      2. 6.3.2 AGCO Corp.

      3. 6.3.3 Claas KGaA mbH

      4. 6.3.4 CNH Industrial NV

      5. 6.3.5 Same Deutz-Fahr Deutschland GmbH

      6. 6.3.6 Kubota Corporation

      7. 6.3.7 Mahindra & Mahindra Ltd

      8. 6.3.8 Escorts Limited

      9. 6.3.9 Tractors and Farm Equipment Ltd

      10. 6.3.10 Kverneland Group

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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North America Agricultural Tractors Industry Segmentation

A tractor is a type of agricultural vehicle used in farm operations to pull farm equipment and supply the energy required for that equipment to function.

The North American agricultural tractor machinery market is segmented by type (below 40 HP, 40-100 HP, above 100 HP, and 4 WD farm tractors) and geography (United States, Canada, Mexico, and Rest of North America). The report offers the market size and forecasts for volume in (units) and value in (USD million) for all the above segments.

Type
Below 40 HP
40-100 HP
Above 100 HP
4 WD Farm Tractors
Geography
United States
Canada
Mexico
Rest of North America
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North America Agricultural Tractors Market Research FAQs

The North America Agricultural Tractors Market size is expected to reach USD 16.39 billion in 2024 and grow at a CAGR of 5.40% to reach USD 21.32 billion by 2029.

In 2024, the North America Agricultural Tractors Market size is expected to reach USD 16.39 billion.

CNH Industrial NV, Deere and Company, AGCO, Same Deutz-Fahr Deutschland GmbH and CLAAS KGaA mbH are the major companies operating in the North America Agricultural Tractors Market.

In 2023, the North America Agricultural Tractors Market size was estimated at USD 15.55 billion. The report covers the North America Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Agricultural Tractors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

North America Agricultural Tractor Machinery Industry Report

Statistics for the 2024 North America Agricultural Tractor Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Agricultural Tractor Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Agricultural Tractor Market in North America Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)