2016 - 2026
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The North America agricultural tractor machinery market is expected to register a CAGR of 6.2% over the forecast period (2021-2026).
Farming operations make up the largest end-user for the agriculture industry. Many farmers in North America are contending with economic hardship due to the COVID-19 pandemic, with a rise in farm bankruptcies in 2020. As a result, many farming operations have delayed due to the less availability of agriculture tractors. Increased prices in diesel due to the economic uncertainty and supply chain delay impacted negatively in the region.
With changing industrial trends, leading to the development of more sophisticated agricultural machinery, farming methods have taken a giant leap forward. Farm mechanization increased the productivity of the producer, 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, but tractor sales are projected to be the fastest in Mexico.
Scope of the report
Agricultural tractors are used in farm operations across the globe including North America. The North America agricultural tractor machinery market provides an understanding of the agricultural tractor machinery in North America which has been segmented based on Product type (less than 40 HP, 40 to 100 HP, above 100 HP, and 4 WD farm tractors), primarily depending on the end applications. Based on Geography, the market is segmented into the United States, Canada, Mexico, and the Rest of North America. The report provides an overview of the major players in the industry and the key strategies adopted by them to sustain and grow in the market studied.
|Below 40 HP|
|Above 100 HP|
|4 WD Farm Tractors|
|Rest of North America|
Key Market Trends
Increasing Adoption of Farm Mechanization
With changing industrial trends, leading to the development of more sophisticated agricultural machinery, farming methods have taken a giant leap forward. Increased farm consolidation, a large production base, and greater government support through subsidies are driving the sales of agricultural tractor machinery.
In most of the markets in North America, farmers 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., CNH Industrial NV are focusing on manufacturing agricultural tractors with advanced technology which drives the market during the forecast period.
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Increasing Cost of Labor Driving Mechanization
Farming has traditionally been a highly-labor intensive method in agriculture. However, the continually rising real wage of farm labor had a positive impact on 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 World Bank database, in 2019, in the United States, the agriculture sector accounted for 1.5% of the total employment rate, as compared to 1.4% in 2016. Moreover, the average hourly real wage for non-supervisory hired farmworkers increased by 17.4%, from USD 12.07 to USD 14.17 during 2014-2019, which further increased 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. As such, the rapid shrinkage of farm labor has given a boost to the tractor market, and thus, driving the demand for tractors in the region.
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The North America agricultural tractor machinery market is consolidated, with few players dominating the market. Deere & Company, AGCO Corp., CNH Industrial NV, Same Deutz-Fahr Deutschland GmbH, and Claas KGaA mbH are some of the major players operating in the market. The companies are focusing on strengthening their base, by offering enhanced product features, competitive pricing, enhanced quality, increased scale of operation, and technological innovation.
In Oct 2019, John Deere introduced a new 8 family tractor lineup that includes 8R wheel tractors, 8RT two-track tractors and the industry's first fixed-frame four-track tractors, the all-new 8RX. These new tractors come standard equipped with the latest precision ag technology and allow customers to choose the machine configuration, options and horsepower to best fit their operation.
In December 2018, Deere & Company launched the four-wheel-drive 3028EN tractor, which offers advanced technology and features suited for orchard and paddy farming.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Below 40 HP
5.1.2 40-100 HP
5.1.3 Above 100 HP
5.1.4 4 WD Farm Tractors
5.2.1 United States
5.2.4 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere and Company
6.3.2 AGCO Corp.
6.3.3 Claas KGaA mbH
6.3.4 CNH Industrial NV
6.3.5 Same Deutz-Fahr Deutschland GmbH
6.3.6 Kubota Corporation
6.3.7 Mahindra & Mahindra Ltd
6.3.8 Escorts Limited
6.3.9 Tractors and Farm Equipment Ltd
6.3.10 Kverneland Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The North America Agricultural Tractors Market market is studied from 2016 - 2026.
What is the growth rate of North America Agricultural Tractors Market?
The North America Agricultural Tractors Market is growing at a CAGR of 6.2% over the next 5 years.
Who are the key players in North America Agricultural Tractors Market?
- Deere and Company
- CNH Industrial N.V
- Same Deutz-Fahr Deutschland GmbH
- CLAAS KGaA mbH
Are the major companies operating in North America Agricultural Tractors Market.