Global agriculture tractors market is projected to attain a valuation of $98.79 billion by 2030 at a CAGR 5.8% of during the forecast period, offering an added revenue opportunity of over $38.62 billion from 2022.
The agriculture tractors market is heading towards a period of significant transformation and growth, driven by several factors such as increasing demand for food due to population growth, changing dietary habits, and advancements in technology. The number of tractors in use increased from 2.9 million in 2016 to 9.6 million in 2021. This growth is driven by the adoption of tractors by large commercial farms and the government sector. In addition, the use of tractors is expected to increase in the small and medium-sized farm sector as these farms look to improve their yield management.
The demand for agricultural tractors is growing in several countries, including the US, Canada, Germany, France, the UK, China, Japan, Australia, and Brazil, among others. However, the US is the largest consumer of agricultural tractors in North America, accounting for a significant share of the global market. This is due to the high adoption rate of precision agriculture practices in the country, which is driven by the need to improve crop yields and reduce costs. It was found Asia Pacific to continue leading the market with more than 30% revenue share. Other countries, such as China and India are also expected to witness significant growth in the demand for agricultural tractors and continue dominating the global market in the coming years, due to the increasing adoption of precision agriculture practices in these countries.
Some of the Key Trends that are Shaping Future of Agriculture tractors market:
Segmental Analysis:Two Wheeled Utility Tractors in the Range of 36–50 HP to remain the Largest Contributors to the Global Agriculture tractors market
The product type segment includes sub-compact tractors, compact utility tractors, specialty tractors, and row-crop tractors. Among these, the compact utility tractors segment accounted for the largest market share in 2022, driven by its versatility and wide range of applications in both farming and non-farming tasks. However, the row-crop tractors segment is expected to witness the fastest growth during the forecast period, owing to their ability to cater to larger field sizes and the increasing adoption of precision farming techniques.
Based on horsepower, The 36-50 HP segment dominated the agriculture tractors market in 2022, primarily due to its widespread use in small and medium-sized farms. However, the >200 HP segment is projected to experience the highest CAGR during the forecast period, as the demand for high-horsepower tractors grows in line with the need for enhanced productivity and efficient farm operations.
The drive type segment comprises two-wheel drive (2WD) and four-wheel drive (4WD) tractors. In 2022, the 2WD segment accounted for the majority of the agriculture tractors market share due to its affordability and suitability for small-scale farming operations. However, the 4WD segment is anticipated to grow at a higher CAGR during the forecast period, as farmers increasingly adopt these tractors for their enhanced traction, stability, and capacity to work on uneven terrains.
Growing Demand for Alternative Fuel Based Agricultural Tractors to Support Market Growth
The growing interest in alternative fuel agricultural tractors is reflected in recent surveys and data. A survey conducted by the American Farm Bureau Federation found that 58% of farmers are interested in purchasing electric or hybrid tractors for their farms. This shows a significant increase in interest compared to previous years, indicating a shift towards more sustainable and environmentally friendly farming practices.
In addition, the use of biodiesel in agricultural equipment has been on the rise in the United States. From less than 1 million gallons in 2005, the use of biodiesel in agricultural equipment has increased to over 35 million gallons in 2021. This trend is driven by the growing awareness of the environmental impact of traditional fossil fuels and the desire to reduce greenhouse gas emissions.
Biofuel-powered tractors, in particular, are gaining popularity in the global agriculture tractors market due to their ability to reduce greenhouse gas emissions by up to 90% when compared to traditional fossil fuel-powered tractors, according to a report by the European Environment Agency. Biofuels can be made from a variety of renewable sources, such as waste materials, which makes them a cost-effective and sustainable option for farmers.
These trends suggest that there is a growing demand for alternative fuel agricultural tractors, and this demand is likely to continue to increase in the coming years. As farmers and agricultural companies seek to reduce their environmental impact, the adoption of these technologies is expected to accelerate, further driving the growth of the alternative fuel agriculture tractors market.
John Deere and Mahindra and Mahindra are two of the Leading Players in the Global Agriculture tractors market
John Deere is a US-based company that has been in the agricultural equipment industry for over 180 years. It offers a wide range of tractors, including small utility tractors, row-crop tractors, and four-wheel-drive tractors, among others. The company is known for its advanced precision farming technologies, such as GPS-based guidance systems and variable-rate seeding systems.
Mahindra and Mahindra, on the other hand, is an Indian multinational company that has been in the automotive and agricultural equipment industry for over 75 years. It is one of the largest tractor manufacturers in the world and offers a diverse range of tractors, from compact tractors to heavy-duty tractors for commercial farming. The company is known for its innovative technologies, such as the mCRD engine technology that provides high fuel efficiency and lower emissions.
Both John Deere and Mahindra and Mahindra have established a strong presence in the global agriculture tractors market, with a wide distribution network and a reputation for quality and reliability. They are also investing in research and development to develop new and advanced technologies to meet the evolving needs of farmers and agricultural companies. As the demand for agricultural tractors continues to grow, these market leaders are expected to maintain their dominant position in the market.
Segmentation Overview
The Global agriculture tractor market is segmented into:
By Tractor Type:
By Product (Fuel):
By Wheel Type:
By Engine Power:
By Region:
