Smart Tractor Market - Forecasts from 2021 to 2026

The global smart tractor market is expected to grow at a CAGR of 24.79%. This market was valued at US$2.210 billion in 2019 and is expected to reach US$10.451 billion by 2026. Tractors are used in agriculture for various purposes, starting from leveling the field to harvesting and transporting the products to the market. The prime reason which is expected to drive the market growth of smart tractors is growing automation in the agriculture sector. The rise in automation in the agriculture sector has encouraged the adoption of tractors for numerous operations. Growing population and spreading urbanization have limited the land available for cultivation, pressurizing the farmers to produce more output. Farmers hence turn to automation for speedier operations and better productivity. Furthermore, technological advancement and the launch of new products are further expected to support the market.

The North American region dominates the market for smart tractor consumption owing to higher agriculture investment, financially better farmers, and state-of-art infrastructure in the region

Based on geography, the global smart tractor market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific regions. The North American region is the largest consumer of smart tractors due to higher investment in the sector. Farmers in the region are financially better and more aware of the latest farm technology as compared to other regions which have resulted in higher adoption of smart tractors. Furthermore, state-of-art agriculture infrastructure in the region accompanied with technological advancement and launch of new production and their early adoption also plays advantage for the market growth. R&D and innovation have supported the market for electric smart tractors which further offers significant market opportunities.

The Asia Pacific region is a notable producer of smart tractors owning to the availability of cheaper labor and raw materials. Moreover, governments' support to the manufacturing sector encourages the production of automobiles, including tractors, which is expected to support the market. Further, a rise in investment accompanied by increasing awareness is expected to open opportunities for the market.

Growth Factors

Increasing agriculture expenditure is expected

One of the key reasons which are anticipated to drive lucrative growth in the global smart tractor market is rising agriculture expenditure. The agriculture sector is the backbone of every economy. Surging population coupled with mushrooming urban sector has decreased the land available for agriculture. Farmers hence turn to automation for effective production. The government supports the sector through budget expenditure. Increasing expenditure by governments is expected to drive market growth. the Government of India, for instance, increased the agriculture budget for 2020-21 by 32% to Rs 134,400 crores.

Recent Developments

• March 2021, CNH invested in a US-based Monarch Tractor to develop electric smart tractors.
• October 2020, Partnership. Japan-based tractor manufacturer, Kabuto, partnered with US-based Nvidia, aiming to develop self-driving smart tractors.

Impact of COVID-19 on the Smart Tractor Market

The coronavirus pandemic negatively impacted the global smart tractor market. The outspread of the virus resulted in a halt across the automotive industry which hampered supply. Furthermore, trade restrictions affected the farm product sales, hence impacting the market.

Segmentation:

By Type

• Full Autonomy
• Supervise Autonomy

By End Users

• Farmer
• Agriculture Companies

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• United Kingdom
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• India
• China
• Japan
• Thailand
• Indonesia
• Taiwan
• Others