Agricultural Tractors Industry Overview
The global agricultural tractors market demand is expected to reach 4,968 thousand units by 2030, expanding at a CAGR of 6.8% during the forecast period, according to a study conducted by Grand View Research, Inc. Increase in farmers’ income, lower bank interest rates, and soaring farm yields are expected to drive the market growth over the forecast period. In addition, increased demand for mini-compact tractors is likely to drive market growth over the forecast period. Also, the integration of sophisticated technology, such as Light Detection and Ranging (LiDAR) and Global Positioning System (GPS), and telematics coupled with the rising popularity of compact tractors are presumed to drive the market growth over the next few years. Increasing demand for medium horsepower (40 to 100 HP) tractors is likely to grow over the next few quarters of 2022.
Agricultural Tractors Market Segmentation
Grand View Research has segmented the global agricultural tractors market based on engine power, driveline type, and region:
Based on the Engine Power Insights, the market is segmented into Less than 40 HP, 41 to 100 HP and More than 100 HP.
- The less than 40 HP segment accounted for more than 61% market share in terms of volume. The high growth can be attributed to low cost, compact size, and greater convenience offered by less than 40HP tractors to perform all basic farming operations.
- The 40 HP to 100 HP segment is expected to register a significant CAGR during the forecast period. It is credited to a surge in demand for these tractors from developed markets, such as the U.S, Japan, and Germany. Increased income levels, tech-savvy farmers, and well-established after-sales services are expected to favor the growth of this segment over the forecast period.
Based on the Driveline Type Insights, the market is segmented into 2WD and 4WD.
- The 2WD segment accounted for more than 79.5% market share in terms of volume. The segment is also estimated to register the fastest growth rate over the forecast period. Low upfront costs and better maneuverability are long-term factors that are expected to drive the demand in the 2WD segment, notably in the Asia Pacific market. The 2WDs are the most preferred tractors among middle-income farmers in India.
Agricultural Tractors Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East Africa
Key Companies Profile Market Share Insights
Lack of skilled employees, high raw material prices, and shortage of semiconductor components are short-term challenges that are faced by the OEMs. Moreover, due to low inventory levels, OEMs and dealers cannot meet consumer demand. However, strategic initiatives, such as collaborations and innovations, are expected to counter such bottlenecks over the next few years.
Some prominent players in the global agricultural tractors market include
- AGCO Corp.
- CLAAS KGaAmbH
- CNH Industrial N.V.
- Deere Company
- Escorts Limited
- International Tractors Ltd.
- Kubota Corp.
- Mahindra Mahindra Ltd.
- Tractors and Farm Equipment Ltd.
- Yanmar Co., Ltd.
Order a free sample PDF of the Agricultural Tractors Market Intelligence Study, published by Grand View Research.