The global agricultural tractors market size is expected to exceed US$ 100 billion by 2027, expanding at a CAGR of more than 4.2% during the forecast period 2020 to 2027.
The agriculture tractor is an engineering automobile precisely designed and fabricated to convey a high torque at slower speeds. Furthermore, it is employed to carry machinery or a trailer that are utilized in agriculture applications.
Increasing demand from consumers for food products and expansion of the farming industry in some regions are likely to boost the agricultural tractors market. Accordingly to the VDMA Economic Report 2015, automation in the agriculture industry in China increased from 34% in 2004 to 61% in 2014. Enhanced quality, decrease in production time, and cost-effectiveness are key factors driving the agricultural tractors market. More than 70% of global production of agricultural tractors takes place in China and India, which propels the market share held by Asia Pacific to about 80% of the global agricultural tractor market.
Agricultural tractors having power output between 31 HP to 100 HP accounted for a larger share of the market for 2017. In terms of power output of tractors, 31 HP to 100 HP is anticipated to be a leading segment of the tractors market, owing to adequate efficiency and high demand among farmers. Tractors with power output between 31 HP to 100 HP are highly versatile and can be utilized for cultivation of maximum number of crops.
In terms of the drive type integrated in tractors, four-wheel drive (4WD) is a highly attractive segment of the market. Depending on the various systems designed or used, 4WD can provide significant forward traction during acceleration. It is especially helpful to carry out agricultural processes while driving on moderate off-road terrain. 4WD tractors are useful while driving through mud, sand, and other loose surfaces.
The introduction of autonomous tractors has been a major improvement among the numerous technological inventions witnessed in the global agricultural tractors market. Consequently, the autonomous tractors segment is likely to expand at a CAGR of more than 15% during the forecast period. Yanmar Co., Ltd., a prominent player in this agricultural tractors industry, has collaborated with Hokkaido University, Japan, to offer advanced driver-less tractors with highly advanced features. CNH industrial, another key manufacturer of agricultural tractors, has begun research and development in the concept of autonomous tractors.
In terms of geography, the global agricultural tractors market has been segregated into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific held a major share of the global market in 2019. Higher demand for agricultural tractors from farmers and large number of production of tractors in countries such as China and India are likely to boost the market in Asia Pacific during the forecast period. The market in Europe is not as prominent as other regions despite having larger demand for food products among consumers in the region. This is because most countries in Europe depend on the industrial sector and the region has less land for farming. Furthermore, shortage of labor for farm applications drives automation in the farm industry in Europe, which in turn is likely to boost the market for agricultural tractors in the region.
Optimization in procedures used to manufacture and assemble agricultural tractors, optimization in size, and advancements in materials employed to manufacture tractor components are key factors that fuel the technological advancements in agricultural tractors.
Manufacturers involved in the manufacturing of agricultural equipment, such as tractors, are continuously developing equipment that can boost the production from agriculture. Such development is likely to boost the agricultural tractors market.
The global agricultural tractors market is highly unified as design, manufacturing, and assembling of agricultural tractors require considerably advanced technology, significant investment, skilled workers, and high precision. Furthermore, the market has seen the presence of major tractor manufacturers working in the industry for numerous years. Major share of the agricultural tractors market is held by key global players, as the market is highly consolidated. Major players operating in the global agricultural tractors market include CNH Industrial N.V., AGCO Corporation, Deere & Company, CLAAS KGaA GmbH, Mahindra & Mahindra India Limited, Kubota Corporation, Escorts Limited, Caterpillar, Inc., J.C. Bamford Excavators Limited (JCB), Yanmar Co., Ltd., Tractors and Farm Equipment Limited (TAFE), and SDF Group.
Global Agricultural Tractors Market, by Power Output
Global Agricultural Tractors Market, by Drive Type
Global Agricultural Tractors Market, by Operation
Global Agricultural Tractors Market, by Agriculture Application
Global Agricultural Tractors Market, by Region
The global agricultural tractors market has been forecasted for the period from 2018 to 2026 based on revenue (US$ Mn) and volume (thousand units). This report provides forecast and analysis of the global agricultural tractors market at regional and global levels. The study highlights the drivers and restraints influencing the market. The report also highlights the opportunities in the global agricultural tractors market and underlines the technological roadmap for understanding the market.
The report contains value chain analysis, which provides a comprehensive view of the global agricultural tractors market. The Porter’s Five Forces analysis of the agricultural tractors market has also been included that helps understand the competitive scenario of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and attractiveness.
The study provides a decisive view of the market by segmenting it in terms of drive type, power output, operation, agriculture application, and region. These segments have been analyzed based on present and future trends. Regional segmentation comprises current scenario along with forecast of the agricultural tractors market. The forecast provided is based on the compilation of current trends as well as the expected scenario in future due to change in technological, geographical, political, regulatory, and economic factors such as the rapid expansion of machines and autonomous systems market. Demand for autonomous and fuel-efficient tractors among consumers and government regulations have been considered while sizing the market.
The study includes profiles of major companies operating in the global agricultural tractors market. The major share of the market is held by a few key players, and the rest is fragmented among medium-scale manufacturers. Major players operating in the global agricultural tractors market include CNH Industrial N.V., AGCO Corporation, Deere & Company, CLAAS KGaA GmbH, Mahindra & Mahindra Limited, Kubota Corporation, Escorts Limited, Caterpillar, Inc., J.C. Bamford Excavators Limited (JCB), Yanmar Co., Ltd., Tractors and Farm Equipment Limited (TAFE), and SDF Group. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The global agricultural tractors market is primarily driven by surge in demand for food products due to rise in population in most regions across the globe. Furthermore, development of new equipment for the agriculture sector is another major factor propelling the global agricultural tractors market, as it enhances the production efficiency of farms due to high precision and accuracy.
In-depth interviews and discussions were conducted with several key industry participants and opinion from leaders to compile the research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be highly reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, market reports, news articles, press releases, and webcasts specific to companies operating in the market, Food and Agriculture Organization (FAO), Automotive Research Association of India, Factiva, etc.
Primary research involves e-mail interactions and telephonic interviews for each market, category, segment, and sub-segment across regions. Primary interviews are conducted on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.