United States Agricultural Tractor Machinery Market - Growth, Trends & Forecast (2020 - 2025)

The United States Agricultural Tractor Machinery Market is segmented by Horse Power, by Tractor Type into Utility Tractors, Row Crop Tractors, Garden & Orchard Type Tractors, and Other Applications.

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

3.8 %

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Market Overview

The United States Agricultural Tractor Machinery market is set to grow at a CAGR of 3.8% during the forecast period. The United States is a major tractor-importing nation, from countries, like Mexico, Japan, and India. With sagging commodity prices, the global tractor market is expected to experience the “trickle-down” effect over the coming years. Agriculture is a major occupation in the United States, where mechanization of farming is considered an important reason for increased productivity, sales, and export. Also, the shorter replacement cycles of 9 years in advanced economies like the United States increase the demand for new tractors and hence drives the market.

Scope of the report

For this report, tractors used in agricultural operations, especially four-wheeled tractors, have been considered. The report does not cover other agricultural machinery and attachments for tractors. Tractors used for industrial and construction purposes are also excluded from the study.

Horse Power
Below 40 HP
40-100 HP
Above 100 HP
Tractor Type
Utility Tractors
Row Crop Tractors
Graden & Orchard Type Tractors
Other Applications

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Key Market Trends

Increasing Cost of Farm Labor Driving Mechanization

In recent years, farmers, growers, and ranchers throughout the United States have expressed concerns about the challenges of hiring an adequate number of qualified farmworkers at an economically viable wage. These challenges are particularly acute for labor-intensive sectors of U.S. agriculture. According to the 2018 Agricultural Census, contract and hired labor together accounted for 10 percent of U.S. agriculture’s total operating expenses. The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics, thereby affecting the global agricultural tractors market. A prominent indicator of a tighter farm labor market in the United States is the rising real (inflation-adjusted) wage for farmworkers. Between 2014 and 2018, the average hourly real wage for nonsupervisory hired farmworkers (in 2018 dollars) rose from USD 12.00 to USD 13.25, an increase of 10.4 percent. This increase in the real wage for farm labor is the fastest experienced over a 4-year period during the past two decades. 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. Tractors being the primary source of power for driving agricultural machinery have, thus, seen a phenomenal rise in terms of sales in these countries during the study period. Due to decreasing agricultural labor, the prices of farm labor are rising. Hence, it is expected to increase the demand for agricultural tractors in the country during the forecast period.

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Below 40 HP Tractors Dominate the Market

In 2018, the market size for below 40 HP segments, dominated the United States market. These are being increasingly adopted by small-scale farmers as they are much smaller in size than the average agricultural tractors and are priced much lower. Despite the low-cost, compact tractors can help farmers perform many tasks with the help of farm equipment, such as backhoes and front-end loaders, and save labor wage expenses. Although a key reason for the increasing demand for larger tractors is the hard soil condition, increased use in non-agri segments, such as infrastructure and construction fields, has also contributed to the increase in demand in this category. Utility tractors are more than capable of working with significant front or rear attachments, like front-end loaders and backhoes, for loading and digging, but can also be used for landscaping, seeding, hay cultivation, and snow removal that drives the market for this segment, in the country.

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Competitive Landscape

The agricultural tractors market in the United States is highly consolidated, with very few players cornering the majority of the market share. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, in the country. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies in the coming years. For example, in 2018, Mahindra and Mahindra set-up a Mahindra Ag Tech Center in the US at Virginia Tech Corporate Research Center to focus on creating breakthrough technology products for the United States agriculture market.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 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 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Horse Power

      1. 5.1.1 Below 40 HP

      2. 5.1.2 40-100 HP

      3. 5.1.3 Above 100 HP

    2. 5.2 Tractor Type

      1. 5.2.1 Utility Tractors

      2. 5.2.2 Row Crop Tractors

      3. 5.2.3 Graden & Orchard Type Tractors

      4. 5.2.4 Other Applications

  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 AGCO Corporation

      2. 6.3.2 CNH Industrial N.V.

      3. 6.3.3 Deere & Company

      4. 6.3.4 KUBOTA Corporation

      5. 6.3.5 Mahindra and Mahindra Ltd.

      6. 6.3.6 The Case Corporation

      7. 6.3.7 Deutz-Fahr

      8. 6.3.8 CLAAS KGaA mbH

      9. 6.3.9 Daedong-USA, Inc.

      10. 6.3.10 Belarus Tractor

      11. 6.3.11 Massey Ferguson Limited

      12. 6.3.12 Caterpillar Inc.

      13. 6.3.13 SAME Deutz Fahr

      14. 6.3.14 Escorts Group

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19

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