Ethiopia Agriculture Tractors Market- Size, Trends, Competitive Analysis and Forecasts (2021-2026)

Agriculture is a vital section of Ethiopia’s economy and is a major employment generator in the country. However, agricultural practices in the country are still largely dependent on human labor and animal horsepower. The Government is taking steps to introduce mechanization and technologies in agriculture to increase the crop yields and productivity of farmers, especially smallholders. Tractors were introduced in the country during the 1980s in the southeastern region to promote mechanization in agriculture. With the emphasis on achieving mechanization in agriculture, the agriculture tractor market is expected to grow at a CAGR of 3.1% during 2021-2026

Drivers

Rising labor costs and expenditure on keeping livestock are the major factors pushing for the utilization of tractors in agriculture practices in Ethiopia. Further, push from the Government to modernize agriculture, adopt market-oriented production practices and reduce post-harvest losses are other factors driving the growth of the agriculture tractors market. A mechanization strategy has been developed with a vision to raise the agricultural mechanization index from 0.13 kW/ha to 1 kW/ha by 2025. Increasing awareness and willingness to buy tractors among small-scale farmers is another demand driving factor of the market.

Restraints

Mechanization in Ethiopia is mainly used for land preparation, threshing, and harvesting. Fragmented land holdings, agro-ecological diversity, and topography are major factors hindering the growth of the agriculture tractor market in Ethiopia. Some other challenges for agricultural mechanization are lack of skill, lack of credit, lack of policy support (e.g., tax exemptions), and lack of customized tools. While some progress has been made in recent years of introducing different types of technologies to farmers, a national strategy that provides direction and unifies these efforts is vital to successfully institutionalize agricultural mechanization and promote utilization of tractors in farming practices

The market has been segmented based on the:

• End applications- Utility, Row crop, Garden type, Orchard type, Rotary tillers, and Implement carriers
• Horse Power- Below 40 HP, 40 HP-100 HP and Above 100 HP
• Drive Type- Two Wheel and Four Wheel

Competitive Landscape

John Deere, CNH Industrial, and Kubota SA are the major tractor suppliers in the market. The market share is concentrated among these international players. Partnership with the Government to establish assembly and manufacturing units, promotion and awareness campaigns, and strengthening the dealership networks are the major strategies adopted by tractor suppliers in Ethiopia

Key Deliverables

• Market trends since 2017 and five-year forecasts of market growth
• Detailed analysis of the micro and macro elements influencing demand trends
• Identifying opportunity spaces across segments
• Supply & demand side trend and analysis
• Price trend analysis, investment prospects and competition pattern
• Insights on the growth potential of the market
• Detailed analysis of major producers covering financial investments & strategies adopted
• Competitive landscape of the industry