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Global Agriculture Tractor Market- Size, Trends, Competitive Analysis and Forecasts (2022-2027)

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  • 131 Pages
  • October 2022
  • Region: Global
  • Hypercube Insights
  • ID: 5673449
Tractors have become a necessity in the current global agriculture system. The utilization of tractors for agriculture in North America and Europe has been mainstream. However, with the industrialization of Agriculture in these regions, the consumption of tractors is expected to increase. The adoption of precision farming and the promotion of farm mechanization in Asia-Pacific and South America has triggered the growth in the Agriculture tractor market. The agricultural tractors market is forecasted to grow at a CAGR of 4.0% during 2022-2027.

Growing Adoption of Mechanization is driving Tractor Sales

Farm Mechanization has led to far-reaching developments in agriculture in North America and Europe. Machines such as tractors, combines, harvesters, and others increased the output of farm produce. The dwindling number of farmers & farm laborers and expensive labor cost is forcing the farmers to switch to mechanization. Changing weather conditions, rain patterns, and emphasis on increasing output are other demand-driving factors in the North American and European tractor market. However, the high cost and less versatility of tractors hinder the growth of the market.

Asia-Pacific, South America, and Africa regions have a large number of smallholder farmers with fragmented land holdings. The farmers in these regions are resource-poor and have restricted purchasing power. Lack of availability of financial products focused on farm equipment hinders the growth of the tractor market in these regions. Furthermore, the underdeveloped supply chains to support the servicing and maintenance of tractors and agricultural machinery restrict the market's expansion. However, growing farm income, surges in international food commodity prices, support from Government to increase productivity, and increasing private investments in Agriculture have brought optimism in the agriculture landscape in Asia, South America, and Africa. These factors are expected to push farm mechanization and thus the demand for tractors.

Utility tractors are general-purpose machines designed for plowing and driving other equipment. Utility tractors account for a major market share. Row crop tractors are forecasted to be the fastest-growing segment to grow at a CAGR of 4.2% from 2022 to 2027. Driverless tractors are the opportunity segment in the market, with the product being currently in the pipeline of many key players. Tractors meant for hill agriculture are another opportunity segment in the market.

Asia-Pacific- Fastest growing region

The Asia-Pacific region dominates the global agricultural tractors market, with India and China accounting for more than 40% revenue share in 2021. The push from the Chinese Government for Farm mechanization and promote agricultural machinery to achieve higher crop yields, and the creation of larger-scale, more efficient farms has created a demand for tractors, farm tools, and equipment. The availability of farm subsidies has boosted the sales of tractors in China. Indian agriculture has long faced problems of reducing farm laborers, rising labor charges, changing monsoon pattern, unpredictable weather, and reducing farmlands. To revamp the agriculture sector, the Government has allotted subsidies to the agriculture sector, framed policies to push mechanization, and introduced training programs to ensure implementation of mechanization. All these factors are boosting the usage of tractors in agriculture. The Indian tractor market is expected to maintain a steady momentum over the forecast period.

North America region is the hub of technological and product innovations in the market. The U.S and Canada are the major markets in the region, but tractor sales are forecasted to be fastest in Mexico. The rising cost and dwindling numbers of agriculture laborers have forced farmers in Europe to adopt mechanization and automation, boosting the sales of tractors. The adoption of precision farming practices has led to increased farm output. The profitability of precision farming and farm mechanization is leading to increased farmers' expenditure on farm equipment. U.K., Spain, Germany, and Russia are the major markets for tractor sales in Europe.

Key Strategies of Major Players

The agricultural tractors market is highly consolidated, with a few players accounting for most of the market share. R&D investments to develop innovative products and features, strengthening the distribution channel, and acquisitions are the major strategies adopted in the market. Expansion in developing countries and mergers to consolidate the market reach are other strategies adopted by key players in the market. South-East Asia and Eastern Europe is the target market for business expansion for many key players. Major players in the market are Deere & Company, CNH Industrial, AGCO, Kubota, TAFE, The Escorts Group, Mahindra & Mahindra, SDF, Claas, Argo Tractors, among others.

Key Deliverables

  • Market trends since 2018 and five-year forecasts of market growth
  • Detailed analysis of the micro and macro elements influencing demand trends
  • Identifying opportunity spaces across segments and countries
  • Supply & demand side trend and analysis
  • Price trend analysis, investment prospects, and competition pattern
  • Insights on the growth potential of the market in key countries
  • Detailed analysis of major producers covering financial investments & strategies adopted
  • Competitive landscape of the industry

Table of Contents

1. Introduction
1.1 Research Methodology
1.2 Scope of the Study
1.3 Assumptions
2. Summary
2.1 Market Summary By Type
2.2 Market Summary by Geography
3. Industry Dynamics
3.1 Drivers
3.1.1 Growing access to subsidies and credits for Farm Machinery in Asia
3.1.2 Push for agriculture mechanization from policy makers
3.1.3 Focus to increase cropping intensity
3.1.4 Dwindling agriculture laborers due to Urbanization
3.2 Restraints
3.2.1 Diminishing area under agriculture
3.2.2 Increased number of fragmented landholding in Asia
3.2.3 Consolidating farmland under contract farming & co-operatives
3.3 Opportunities
3.3.1 Growing emphasis on Precision farming
3.3.2 Hill Agriculture
3.3.3 Gender friendly tools and Equipment
3.4 Porter’s Five Forces Analysis
3.4.1 Bargaining power of Suppliers
3.4.2 Bargaining power of Buyers
3.4.3 Degree of Competition
3.4.4 Threat of Substitution
3.4.5 Threat of new entrants
3.5 Future Trends in the Industry
3.6 Value Chain Analysis
3.7 Impact of Covid-19 on agriculture tractor industry
3.8 Market Innovations
4. Market Size and Forecast
4.1 Market Share, By Types
4.1.1 Utility Tractors
4.1.2 Row crop tractors
4.1.3 Garden Tractor
4.1.4 Orchard Tractor
4.1.5 Others
4.2 Market Share, By Horse Power
4.2.1 Below 40 HP
4.2.2 40 HP-100 HP
4.2.3 Above 100 HP
4.3 Market Share, By Drive Type
4.3.1 Two-Wheel Drive
4.3.2 Four-Wheel Drive
5. Country Market Share
5.1 North America
5.1.1 U.S.
5.1.2 Canada
5.1.3 Mexico
5.1.4 Others
5.2 Europe
5.2.1 Germany
5.2.2 U.K.
5.2.3 France
5.2.4 Spain
5.2.5 Italy
5.2.6 Russia
5.2.7 Others
5.3 Asia-Pacific
5.3.1 China
5.3.2 India
5.3.3 Japan
5.3.4 Indonesia
5.3.5 South Korea
5.3.6 Australia
5.3.7 Thailand
5.3.8 Israel
5.3.9 Others
5.4 South America
5.4.1 Brazil
5.4.2 Argentina
5.4.3 Colombia
5.4.4 Others
5.5 Africa
5.5.1 South Africa
5.5.2 Egypt
5.5.3 Nigeria
5.5.4 Others
6. Competitive Analysis
6.1 Market Share Analysis
6.2 Growth Strategies of leading players
6.3 Investment and Development Prospects
6.3.1 Investment in past five years
6.3.2 Investment Opportunities
7. Company Profiles
7.1 AGCO Corp.
7.2 Claas KGaA mbH
7.3 CNH Industrial N.V
7.4 Deere and Company
7.5 Same Deutz-Fahr
7.6 Escorts Kubota Limited
7.7 Kubota Corporation
7.8 Mahindra & Mahindra Ltd.
7.9 Tractors and Farm Equipment Ltd.
7.10 Yanmar Company Limited
  • Appendix
  • Sources
  • Disclaimer

Companies Mentioned

  • AGCO Corp.
  • Claas KGaA mbH
  • CNH Industrial N.V
  • Deere and Company
  • Same Deutz-Fahr
  • Escorts Kubota Limited
  • Kubota Corporation
  • Mahindra & Mahindra Ltd.
  • Tractors and Farm Equipment Ltd.
  • Yanmar Company Limited