Tractor Market

Global Tractor Market:

The global tractor market is expected to exhibit a growth rate (CAGR) of 3.99% during 2024-2032. The rising global food demand, the expansion of agriculture land, the growing interest in farm mechanization, and ongoing technological advancements are primarily driving the market's growth.

Tractor Market Analysis:

• Major Market Drivers: The introduction of precision farming along with the rising adoption of farm mechanization to increase productivity is also bolstering the demand for tractors. Moreover, the growing number of farm training programs promoting the use of agricultural machinery on a large scale is escalating the industry's demand.
• Key Market Trends: The rising number of building and construction projects is also augmenting the demand for tractors in the construction sector. Additionally, the growing popularity of automated commercial vehicles along with the high penetration of wireless connectivity for remote monitoring is also expected to drive the global tractor market.
• Competitive Landscape: Some of the prominent tractor market companies include Agco Corporation, Argo Tractors S.p.A, Changzhou Dongfeng Agricultural Machinery Group Co. Ltd., CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, Escorts Limited, Kubota Corporation, Mahindra & Mahindra Ltd. (Mahindra Group), Sonalika Group, Tractors and Farm Equipment Limited (Amalgamations Group), and Yanmar Co. Ltd. (Yanmar Holdings Co., Ltd.)., among many others.
• Geographical Trends: According to the tractor market dynamics, Asia Pacific exhibits a clear dominance in the market. Many countries in the region are investing in modernizing their agricultural sectors to improve productivity. Tractors play a crucial role in this transformation by enhancing efficiency and yield.
• Challenges and Opportunities: High initial costs associated with tractors and high competition from alternative technologies like electric vehicles are hampering the market's growth. However, numerous innovations, such as GPS-guided systems, precision farming technologies, and automation, offer opportunities for enhancing tractor efficiency and attracting tech-savvy farmers.

Tractor Market Trends:

Rising Agriculture Demand

As the global population grows, there is an increasing need for food production to meet the rising food consumption. For instance, according to an article published by HSBC Global Research in November 2023, with the world's population expected to grow by almost a billion people over the next two decades and wages growing, total food consumption is anticipated to rise by more than 50% by 2050. To enhance agricultural productivity and efficiency, farmers are turning to modern tractors and machinery, which can help them cultivate larger areas of land and increase yields. These factors are further contributing to the tractor market growth.

Surging Government Initiatives

Government initiatives and subsidies aimed at modernizing agriculture and improving rural infrastructure encourage the purchase and use of advanced tractors. For instance, in March 2024, the Government of Sri Lanka unveiled its plan to modernize and transform the agriculture sector. The Cabinet of Ministers approved the initiative, which intends to transform the agricultural sector by bringing contemporary techniques and technology based on successful models implemented by other countries. According to the agreed proposal, in the first phase, each Agricultural Modernization Centre in the designated Divisional Secretariats would receive INR 25 million. Additionally, a sum of INR 175 million will be dispersed among essential departments, including agriculture. These factors are further positively influencing the tractor market forecast.

Technological Advancements

Innovations in electric and hybrid tractor technology are beginning to emerge. These alternatives to traditional diesel-powered tractors offer potential benefits in terms of lower emissions and reduced fuel costs. For instance, in August 2024, AutoNxt launched India's first electric tractor at Talao Pali Lake Side in Thane. The launch of this truck offers various benefits to farmers and contributes to environmental conservation, thereby boosting the tractor market revenue.

Global Tractor Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global tractor market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on power output, drive type, and application.

Breakup by Power Output:

• Below 40 HP
• 40 HP - 100 HP
• Above 100 HP
   

Below 40 HP accounts for the majority of the global market share

The report has provided a detailed breakup and analysis of the tractor market based on the power output. This includes below 40 HP, 40 HP-100HP, and above 100 HP. According to the report, below 40 HP accounts for the majority of the global market share.

According to the tractor market outlook, tractors with engines below 40 horsepower (HP) are generally used for smaller-scale farming operations, landscaping, and various utility tasks. They are valued for their maneuverability, efficiency, and suitability for lighter agricultural tasks. They are generally more affordable than larger tractors, both in terms of purchase price and operating costs.

Breakup by Drive Type:

• 2-Wheel Drive
• 4-Wheel Drive
   

2-wheel drive currently holds the largest market share

The report has provided a detailed breakup and analysis of the tractor market based on the drive type. This 2-wheel drive and 4-wheel drive. According to the report, 2-wheel drive currently holds the largest market share. 

According to the tractor market overview, 2-wheel drive (2WD) tractors are a popular choice for many agricultural and utility tasks due to their affordability, simplicity, and efficiency. 2WD tractors are generally less expensive than 4-wheel drive (4WD) models, both in terms of initial purchase price and maintenance costs. They typically have better fuel efficiency because they have fewer drivetrain components that require energy.

Breakup by Application:

• Agriculture
• Construction
• Mining
• Forestry
• Others
   

The agriculture sector exhibits a clear dominance in the market

A detailed breakup and analysis of the tractor market based on the application has also been provided in the report. This includes agriculture, construction, mining, forestry, and others. According to the report, the agriculture sector exhibits a clear dominance in the market. 

Tractors are essential equipment for modern farming, providing the necessary power and versatility for a wide range of agricultural tasks. They are used for plowing, planting, cultivating, and harvesting crops, as well as for managing livestock and performing various other farm operations. Moreover, tractors help farmers perform tasks more quickly and efficiently compared to manual labor. This increased productivity is crucial for meeting food demands and managing larger areas of farmland.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific currently dominates the global market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific currently dominates the global market.

According to the tractor market statistics, many APAC countries are focused on modernizing agriculture to increase productivity and food security. Tractors play a crucial role in this transition, as they help automate and streamline farming operations. Moreover, investments in rural infrastructure, including better roads and irrigation systems, facilitate the use of tractors and other modern farming equipment. Enhanced infrastructure supports efficient transportation and logistics for agricultural products. Besides this, various governments in the APAC region offer subsidies, grants, and low-interest loans for purchasing agricultural machinery. These financial incentives make tractors more accessible to farmers, encouraging their adoption. For instance, in August 2023, VST Tillers Tractors, a Bengaluru-based manufacturer of tractors and tillers, planned to invest INR 100 crore in constructing a dedicated research and development facility.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• Agco Corporation
• Argo Tractors S.p.A
• Changzhou Dongfeng Agricultural Machinery Group Co. Ltd.
• CLAAS KGaA mbH
• CNH Industrial N.V.
• Deere & Company
• Escorts Limited
• Kubota Corporation
• Mahindra & Mahindra Ltd. (Mahindra Group)
• Sonalika Group
• Tractors And Farm Equipment Limited (Amalgamations Group)
• Yanmar Co., Ltd. (Yanmar Holdings Co., Ltd.)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Tractor Market Recent Developments:

• August 2024: New Holland, a CNH brand, launched the 100+ HP (Horsepower) tractor made in India. The WORKMASTER 105 has a modern FPT engine that produces 106 horsepower and some notable features like a lift capability of 3,500 kg, electro-hydraulic 4WD engagement, and an air-suspended seat with an adjustable backrest.
• August 2024: AutoNxt launched an electric tractor at Talao Pali Lake Side in Thane. The launch of this truck offers various benefits to farmers and contributes to environmental conservation.
• June 2024: Mahindra Tractors, a division of the Mahindra Group, launched its innovative lightweight tractor, the Mahindra OJA 2121, in Madhya Pradesh. The new Mahindra OJA specializes in puddling activities for crops such as paddy.

Tractor Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the tractor market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global tractor market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the tractor industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.