Agricultural Tractors Market Analysis

Agricultural Tractors Market Overview:

The Agricultural Tractors Market size was valued at USD 92.91 billion in 2023. The agricultural tractors industry is projected to grow from USD 96.86 Billion in 2024 to USD 144.45 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.9% during the forecast period (2024 - 2030). The increased government help to raise farm mechanization, the surge in demand for compact tractors on small farms, and technological advancements are the key market drivers enhancing the market growth. 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Agricultural Tractors Market Trends

• Several strategies by key players to boost the market growth

A rise in demand for a high-performance tractor for muddy and heavy soil condition drive the growth of the global tractor market. For instance, major players such as John Deere India Private Limited, Mahindra & Mahindra Ltd, and VST Tillers and Tractors Ltd are engaged in offering agricultural tractors with a power output of more than 100 HP. For instance, Deere & Company offers John Deere 6120 B agricultural tractors and mulching applications. It has more reliability, with lower service costs. It is used in agricultural activities such as tilting, sowing, hauling, and puddling. It has a power output of 120 HP with 4 cylinders and a turbocharged John Deere Power Tech engine.

Additionally, numerous businesses have been releasing recent agricultural tractors, permitting them to dominate the market with speedier product introduction and advancements. Various major market players are spending on research and development to produce cutting-edge equipment and retain a strong market position. This major factor drives the sales of tractors in the market. For instance, in 2020, Deere & Company introduced a new 8 Family Tractor line-up that included 8RT two-track tractors, 8R wheel tractors, and the industry's first fixed-frame four-track tractors. These unique tractors come equipped with the latest precision agriculture technology and permit customers to choose the best machine configuration, options, and horsepower to fit their operation.

However, the increased government support to raise farm mechanization for obtaining high yield by providing subsidies is helping to increase the number of tractors. Technological advancements also cater to the increased mechanization and raising awareness among farmers about the benefits of farm mechanization positively impacts the growth of the agricultural tractors market revenue.

Agricultural Tractors Market Segment Insights:

Agricultural Tractors Engine Power Insights

The Agricultural Tractors Market segmentation, based on engine power, includes below 40 HP, 40 HP–120 HP, 121 HP–180 HP, 181 HP–250 HP, and more than 250 HP. The below 40 HP segment held the majority share 2021 of the Agricultural Tractors Market revenue. The high growth can be attributed to the low cost, compact size, and greater convenience offered by less than 40HP tractors to perform all basic farming operations. However, 40 HP–120 HP is the fastest-growing category over the forecast period due to the rising demand for high-power agricultural tractors for more than 10-hectare farm sizes is expected to be a long-term factor.

Agricultural Tractors Application Insights

The Agricultural Tractors Market segmentation, based on application, includes harvesting, seed sowing, irrigation, and others. The harvesting segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. This is due to the increasing demand for an agricultural trucks for harvesting. However, irrigation is the fastest-growing category over the forecast period due to the growing demand for food and rising water scarcity globally, which positively impacts the market growth.

Agricultural Tractors Type Insights

The Agricultural Tractors Market data has been bifurcated by type into ICE and electric. The electric segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. This is attributed due to the growing popularity of autonomous and electric agricultural tractors. However, ICE is the fastest-growing category over the forecast period due to technological advancement and the upgradation of mechanical processes.

Figure 2: Agricultural Tractors Market, by Type, 2021 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Agricultural Tractors Operation Insights

Based on operation, the global agricultural tractors industry has been segmented into manual tractor vehicles and autonomous tractor vehicles. Autonomous tractor vehicles held the largest segment share in 2021. Manufacturers are investing in developing electrically powered autonomous tractors to expand their product portfolio. However, manual tractor vehicle is the fastest-growing category over the forecast period. The high availability of manual tractors drives the segment's growth. Manual tractors are less expensive than autonomous tractors, and a wide range of agricultural tractors market are available for farmers.

Agricultural Tractors Driver Type Insights

Based on driver type, the global agricultural tractors industry has been segmented into 2-wheel drive and 4-wheel drive. 2-wheel drive vehicles held the largest segment share in 2021. Low upfront costs and better maneuverability are long-term factors expected to drive the demand in the 2-wheel drive segment. However, 4-wheel drive is the fastest-growing category over the forecast period owing to the increasing demand for high-power agricultural tractors to perform various agricultural tasks efficiently.

Agricultural Tractors Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America agricultural tractors market accounted for USD 37.71 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the presence of the region's key players as the market's supporting factor. Technological advancement in these regions is expected to propel the demand for automated agricultural tractors. Increasing demand for agricultural products in North America's food and beverage industry is anticipated to drive market growth in the region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Agricultural Tractors Market SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe agricultural tractors market accounts for the second-largest market share due to the increased demand for large farm tractors, particularly from Italy, Greece, and Lithuania. In addition, the high demand for autonomous tractors is expected to drive regional market growth over the forecast period. Further, the Germany agricultural tractors market held the largest market share, and the UK agricultural tractors market was the fastest growing market in the European region.

The Asia-Pacific agricultural tractors Market is expected to grow at the fastest CAGR from 2024 to 2030. The agricultural sector's strong presence in emerging Asia-Pacific countries, including China, India, and others, has made Asia-Pacific the largest market for agricultural machinery. Moreover, China agricultural tractors market held the largest market share, and the India agricultural tractors market was the fastest-growing market in the Asia-Pacific region.

Agricultural Tractors Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the agricultural tractor market grow even more. Market participants are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the agricultural tractor industry must offer cost-effective items to expand and survive in an increasingly competitive and growing market environment.

One of the primary business strategies manufacturers adopt in the global agricultural tractors industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In the agricultural tractors market, major players such as Deere & Company, CNH Industrial, SDF, Mahindra & Mahindra Limited, and others are working to expand the market demand by investing in research and development activities.

New Holland is a global full-line agricultural machinery manufacturer. Founded in 1895 as an American company, today, it is an Italian brand. New Holland agricultural products include agricultural tractors, combine harvesters, balers, forage harvesters, self-propelled sprayers, haying tools, seeding equipment, hobby tractors, utility vehicles and implements, and grape harvesters. In October 2020, New Holland Agriculture, one of the leading agriculture brands, announced a 6-year transferable warranty on all the tractors sold in India, effective from 2nd October 2020. This offer assisted the company in strengthening the trust of consumers in the quality and durability of their agricultural tractors.

Also, Deere & Company is an American corporation that manufactures agricultural machinery, forestry machinery, diesel engines, heavy equipment, drivetrains (axles, transmissions, gearboxes) utilized in heavy equipment, and lawn care equipment. The company also delivers financial services and other related activities. In August 2021, Deere and Company acquired Bear Flag Robotics, an AgTech company, for USD 250 million. It would help the former company to meet consumer demands and increase its customer base.

List of the Key Companies in the Agricultural Tractors Market Includes

• CNH Industrial N.V.


• Deere & Company


• CLAAS KGaAmbH


• Escorts Ltd.


• International Tractors Ltd.


• YanmarCo, Ltd.


• KubotaCorp.


• Mahindra & Mahindra Ltd.


• Tractors and Farm Equipment Ltd., among others

Agricultural Tractors Industry Developments

November 2022: ZETOR TRACTORS and VST Tillers Tractors Ltd launched two best-in-class tractors at the CII Agro Tech India 2022 presentation. These 45 HP and 50 HP segment tractors are jointly generated by VST & ZETOR at their India & Czech Republic plants.

November 2021: CNH Industrial N.V. signed a long-term agreement with Monarch Tractor, an AgTech company, to develop fully electrified autonomous agricultural tractors. The initiative would enable the former company to increase its product portfolio.

Agricultural Tractors Market Segmentation:

Agricultural Tractors Engine Power Outlook

• Below 40 HP


• 40 HP–120 HP


• 121 HP–180 HP


• 181 HP–250 HP


• More Than 250 HP

Agricultural Tractors Application Outlook

• Harvesting


• Seed Sowing


• Irrigation


• Others

Agricultural Tractors Type Outlook

• ICE


• Electric

Agricultural Tractors Operation Outlook

• Manual Tractor Vehicle


• Autonomous Tractor Vehicle

Agricultural Tractors Driver Type Outlook

• 2-Wheel Drive


• 4-Wheel Drive

Agricultural Tractors Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America