USD 73.72 billion
Tractor Market Size, Share, Growth Analysis, By Type(Utility Tractors, Row Crop Tractors, Orchard Type Tractors, Industrial Tractors), By Drive(Two-Wheel Drive (2WD), Four-Wheel Drive (4WD), and others), By Application(Agriculture, Construction, Forestry, Landscaping), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25C2106 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
95
|Figures:
76
Tractor Market Insights
Global Tractor Market size was valued at USD 73.72 billion in 2022 and is poised to grow from USD 77.79 billion in 2023 to USD 119.56 billion by 2031, growing at a CAGR of 5.52% in the forecast period (2024-2031).
There have been several contributory factors to the recent consistent rise in the tractor market, including demand for high horsepower tractors, a growth rate in the mechanization of agriculture, and government policies aimed at promoting farm mechanization. Such a huge size mirrors how important tractors are to boosting the productivity of agriculture, and this market is foreseen to grow exponentially with a growth in precision farming techniques and demands for sustainable agricultural practices. There are short-term reasons for this increase in the sales of tractors across the globe that include short tractor replacement cycles, increasing prices of the labor force on farms, labor shortages across the seasons, and increasing rates of automation in farms-all across which the countries have been gaining an intense momentum. There are some of the top companies in the market that are more focused toward M&A deals and new products development. Technological progress in tractors has been a significant phenomenon influencing the European markets. Modern tractors are fitted with precision farming technology in automated steering, telematics, and GPS guiding systems. Such technologies improve operational effectiveness besides maximizing resource utilization and supporting sustainable agriculture by minimizing their negative impact on the environment. In a bid to increase production, more farmers are investing in tractors fitted with smart technologies and using precision farming techniques.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Utility Tractors
Fastest Growth
Electric Tractor
Growth Rate
5.52% CAGR
Global Tractor Market ($ Bn)
Country Share for Asia-Pacific Region (%)
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Tractor Market Segmental Analysis
The global tractor market is segmented into four major segments i.e. by type, drive, application, and region. Based on type, it is divided into utility tractors, row crop tractors, orchard type tractors, industrial tractors, garden tractors, and others. Based on drive, it is bifurcated as two-wheel drive (2wd), four-wheel drive (4wd), and others. Based on application it is segregated into agriculture, construction, forestry, landscaping, others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, Latin America.
Analysis by Drive
Low-range two-wheel drive tractors, because of a variety of benefits, take a significant share in the global tractor market. These are indeed very popular tractors, which are easily maneuvered and easy to use, especially on an even surface and with low loads. Due to their simplicity, the farmer who requires trustworthy service without the complication of more advanced technology often prefers them. That is one of the reasons these tractors are so attractive and explains, to some extent, the steady growth of demand- some of these above-mentioned companies are the most prominent participating in the 2WD segment, such as Massey Ferguson, John Deere, New Holland, and Mahindra & Mahindra.
However, the four-wheel drive segment within the tractor market is expected to grow rapidly in the forecast period due to increasing demand for more versatile and tougher equipment. Farmers are discovering the advantages of 4WD tractors in applications that pose challenges during unsteady times and larger loads requiring stability and traction. These tractors can be a great investment for those who are looking to gain efficiency and production as they can perform a host of agricultural tasks, such as plowing and hauling commodities. Strong demand in high-performance equipment as well as new agricultural techniques is predicted to going to cause the 4WD category to experience significant growth as the competition market share expands and transforms the landscape of farming operations across the globe.
Analysis by Application
The agriculture segment held the highest market position in the market. A rising population and the growing imperative to enhance crop production have been the basis of agriculture in most parts of the globe, mainly based on the business of tractors. Practical application of tractors by farmers for planting, harvesting, and tilling grounds particularly raises the level of productivity and efficiency in food production. Integration of latest technologies into tractors further this trend that allows very accurate farming with higher yields of crops. Demand for tractors is expected to grow as the evolution of farming will continue to meet the objectives of sustainability and food security. Tractors are a must investment for farmers who seek optimal farming practices and answer the challenges of modern agriculture.
However, the construction segment is expected to grow at the highest rate in the coming years as a tractor application category. Tractors are required for innumerable activities related to construction due to the inherent adaptability of the tool, such as material handling, levelling, and earthmoving. As infrastructural development projects, especially in developing economies, are now forming in every region of the globe, so is the demand for tractors daily. Another driving factor behind the phenomenon is urbanization, which requires better structures and transit systems, and thus begins the construction industry to understand the role of tractors as necessary tools, establishing them as major drivers in the expansion of the tractor market into a variety of applications.
Global Tractor Market By Drive
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Tractor Market Regional Insights
Asia-Pacific held the largest share of the global tractor market over the forecast period due to the massive presence of smallholder farmers in the region and increasing government support for agricultural mechanization. Innovations in tractors and their companion technologies are significant in the region. Traction manufacturers are incorporating technological aspects like robotics, automation, and GPS in such tractors to counter the competition from Chinese companies, which is selling its merchandise at a lower price than international participants. In addition, the government of each country is seriously pursuing several initiatives to enhance the mechanism in farming. For instance, to boost the development of the tractor market in India, the Government put forward schemes, such as the Rashtriya Krishi Vikas Yojana, that provides incentives to farmers, and National Bank for Agriculture and Rural Development (NABARD), providing incentives.
Most of North America's tractor market is comprised by farm mechanization. Both US and Canadian cash-rich farmers have been able to purchase tractors and other farm equipment available in the market. The credit loan facility for buying farming equipment is simple, which is another advantage available to these farmers in the region. The agricultural industry in North America is diverse given the different landscapes and climates of the member nations and the different techniques of agriculture. This industry holds very significant aspects to ensure food security, which boosts the economies in the rural areas and forms part of the cultural heritage of the continent.
Global Tractor Market By Geography
- Largest
- Fastest
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Tractor Market Dynamics
Drivers
Growing Demand for Tractors
- It relates the rising population worldwide directly to increased agricultural production and is one of the important reasons for the growing demand for tractors. To cater to increased food demands, farmers are now using tractors to perform all the necessary chores such as planting, harvesting, or plowing. These devices facilitate more massive farming activities, and combined with greater productivity, allow farmers to farm more land within less time. Food security is increasingly a very urgent requirement globally and as farmers realize that purchasing new machinery raises productivity and aids in sustainable farming, tractor sales are predicted to increase.
Technological Advances
- Growth in the market is closely aligned with innovations in tractor technology. The features, automated systems, GPS, and precision farming equipment, among others, leave them far more efficient and productive than before. This gives farmers the opportunity to increase yields, use all resources correctly, and make better data-driven decisions. And with advancing technology, the demand for modern tractors boasting current cutting-edge features will increase similarly. With this trend, the tractor market will develop more due to the introduction of new clients along with current motivation for the farmers to modernize their machinery.
Restraints
High Initial Investment Costs
- This is the most critical deterrent to the business; the high purchase cost of the tractors. The high and most costly price the sellers charge small farmers, and agricultural enterprise is anticipated to scare them off from purchasing the needed machinery. Even though finances are accessible, it will deter prospective buyers from the debt burden, particularly in developing countries where liquidity is not readily available. Therefore, most farmers would prefer traditional methods or the old model rather than new technology, thus constraining modernization in general agricultural practice and hence constraining expansion in the market.
Environmental regulations
- Strict environmental regulations pose a variety of challenges for tractor makers. Expensive upgrades and modifications if needed on existing tractor models for compliance with emissions and fuel efficiency standards do affect production schedules and cost margins. Manufacturers incur expenses on R&D because environmental preservation and sustainability can't wait as governments globally put these regulations into place. Though the call for greener technology will drive sustainability in the long term, this drive may also complicate the product's manufacture, to the tune of short-term profitability for the businesses, and even slow down the growth of the tractor market.
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Tractor Market Competitive Landscape
Global companies, such as AGCO Corporation (Massey Ferguson and Fendt), John Deere, CNH Industrial (Case IH and New Holland), and Kubota, dominate the European market. These highly aggressive players offer an extensive range of models with various capabilities and powers to cater to the diverse needs of farmers within Europe. Since after-sales services are vital in the agricultural machinery industry, competition is not just on product offers but also on networks of service and support.
Top Player’s Company Profiles
- John Deere & Company
- CNH Industrial N.V.
- AGCO Corporation
- Kubota Corporation
- Mahindra & Mahindra Limited
- SAME Deutz-Fahr S.p.A.
- ARGO SpA
- Yanmar Co., Ltd.
- TracFone Wireless, Inc.
- Escorts Limited
- Tafe Motors Limited
- PT Astra International Tbk
- LS Mtron Ltd.
- Sampo Rosenlew Ltd.
- CLAAS KGaA mbH & Co KG
- JCB Inc.
- New Holland Agriculture N.V.
- Mitsubishi Heavy Industries Ltd.
- Volvo Construction Equipment AB
- SDF Group
Recent Developments
- In October 2023, Ag-Pro was delighted to announce the successful acquisition of a John Deere dealership located in South Daytona, FL. Previously operating under the name "South Daytona Tractor & Mower," this establishment has been dedicated to serving Volusia County and its neighboring areas since the year 1990.
- In February 2023, The merger of Mahindra Electric Mobility Limited (MEML) into its parent company, Mahindra and Mahindra Limited (M&M), was formally completed. The M&M Board had previously announced that MEML would integrate into M&M starting from April 1, 2021, to streamline electric vehicle (EV) development, manufacturing, and sales operations.
- In April 2023, Mahindra & Mahindra will introduce 40 tractor models on the OJA platform, which it recently introduced. The organization intends to focus on the markets in Africa, Asia, India, and Thailand.
- In March 2023, John Deere announced MY24 improvements for its array of 7, 8, and 9 Series Tractors, which will aid in preparing them for precision agriculture's future.
Tractor Key Market Trends
- Alternative Fuels and Electrification: The tractor market is undergoing an emerging trend of electrification and more utilization of alternative fuel. The threat of carbon emissions and environmental is making the producers invest more in electric and hybrid tractor models. Environmentally conscious farmers will be interested in these vehicles because they not only offer silent functions and reduce dependence on fossil fuels but save running costs. On top of that, when biofuels and hydrogen-powered tractors are developed, the market is set to become yet more diversified. This supports global sustainability goals and fosters innovation in agriculture as more farmers seek higher output while leaving as little environmental impact as possible.
- Precision Agriculture Integration: One of the most critical developments in the tractor market has been the adoption of precision agricultural technology. Sensor, GPS, and advanced data analytics are applied to farm techniques. All of these allow real-time monitoring for crop health, soil conditions, and resource utilization through the tractors, which means better decision-making for farmers. Data use can maximize yields, eliminate wastage, and make overall operations more efficient for farmers. There is a lot of interest in tractors with precision agriculture as the primary reasons behind this are sustainability and yield maximization. So, the trend will decide how farming and tractor usage patterns are going to head in future.
Tractor Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, there will be an emerging rise in the tractor market with developing industry trends and technology breakthroughs along with surging demand for agriculture. The farmers demand more advanced and traditional tractors as they perceive with increasing experience how productive it is to have gear working well. Precision farming and electrification are trends reflecting the rising commitment of the industry to efficiency and sustainability. Of course, there are still several challenges to be overcome, including high start-up costs and regulatory requirements, for instance. All in all, tractor sales seem fine for the future, however, with new technology and innovative solutions promising a transformation in the way that farming is done and cementing the global food chain.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 73.72 billion |
| Market size value in 2031 | USD 119.56 billion |
| Growth Rate | 5.52% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Tractor Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Tractor Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Tractor Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Tractor Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Tractor Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Tractor Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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