Agricultural Tractor Market By Engine Type (Below 40 HP, 40 Hp-120 HP), Application (Irrigation, Harvesting, Seed Sowing), Operations (Manual Tractor Vehicle, Automatic Tractor Vehicle), Driver Type (Two-Wheel Drive, Four-Wheel Drive), And Region for 2024-2031

Agricultural Tractor Market Valuation – 2024-2031

Rising small-farm demand for compact tractors and technological advancements like the incorporation of telematics into agricultural tractors is expected to drive the Agricultural Tractor Market growth. Thus, growing demand for food products and mechanization in agricultural industry along with technological advancement is projected to permit the market to exceed its estimated value of USD 81.25 Billion in 2023 and reach USD 122.09 Billion by 2031 in value.

Additionally, the rapid adoption of automation is anticipated to be advantageous for the market’s growth during upcoming years to grow at a CAGR of about 5% from 2024 to 2031.

Agricultural Tractor MarketDefinition/ Overview

Agricultural tractor is a powerful vehicle used in agriculture for tasks such as plowing, tilling, planting, and harvesting. Tractors are designed to work in different types of terrain and weather conditions, and their power and performance depend on their size, type, and engine horsepower. They come in different forms and sizes, ranging from small utility tractors used in small farms to large tractors used in commercial farming operations. Tractors are equipped with a variety of machinery, including planters and fertilizer sprayers, and others to utilize time effectively. These tractors are typically used for tilling, planting seeds, harvesting, and cultivating. They are propelled by diesel, petrol, and electricity. The Agricultural Tractor Market is poised for steady growth.

In addition, the government has been supporting farmers through a number of scheme that reduce liabilities and give them free or heavily subsidized inputs. Many farmers have benefited from these schemes by purchasing tractors and inputs. Furthermore, many farmers have seen a rise in pay and revenues as a result of government initiatives and the green revolution. It is expected that these factors will boost the market’s expansion.

How will Technological Advancement in the Agricultural Industry Drive the Agricultural Tractor Market?

The agricultural industry has been rapidly advancing in recent years, with new technologies and innovations being introduced to increase efficiency and productivity. Growing demand for more advanced and technologically advanced agricultural machinery is creating lucrative opportunities for the Agricultural Tractor Market. Advancements such as GPS technology, precision farming, and autonomous driving capabilities have significantly improved the efficiency and accuracy of tractor operations, driving the market for more advanced and high-tech tractors.

Increasing demand for food due to the growing global population is expected to lead to a rise in demand for agricultural machinery, including tractors.

Additionally, the need for greater efficiency and productivity in the agricultural industry is driving the demand for more advanced and high-tech tractors. Moreover, the availability of financing options and government subsidies for farmers to purchase tractors is expected to boost market growth.

Will High Cost Associated with the Purchase and Maintenance of the Machine Hinder Growth of Agricultural Tractor Market?

The high cost associated with the purchase and maintenance of agricultural tractors can be a major hindrance to the growth of the market. Farmers, particularly in developing countries, may not have the financial means to invest in expensive machinery, which can limit their ability to increase productivity and yield.

In addition, the high cost of maintenance and repair can also be a deterrent to farmers who may not have the resources to keep their machines in good working condition. However, the availability of financing options and government subsidies can help to mitigate some of these challenges and encourage adoption of agricultural tractors.

Depreciation and resale value are important factors that can affect the growth of the Agricultural Tractor Market. Farmers are often hesitant to invest in new tractors if they believe that the resale value of the machine will decline significantly over time. This can lead to longer replacement cycles and slower market growth.

Category-Wise Acumens

Will the Use of Below 40 HP Power Engine Drive the Demand for Agricultural Tractor Market?

The below 40 HP power engine segment is anticipated to dominate the Agricultural Tractor Market. This dominance is dependent on its versatility, agility, and compact design, which is likely to make it suitable for various agricultural tasks, such as plowing, tilling, planting, cultivating, spraying, and mowing, making them ideal for small to medium-sized farming operations. Also, the lower operating costs, reduced fuel consumption, and easier maintenance compared to higher horsepower tractors is projected to render it affordable for small and medium-sized farmers.

These tractors are often equipped with various implements and attachments, such as front loaders, backhoes, mowers, tillers, seeders, and sprayers, thereby, enhancing their functionality and versatility. It is being used in specialized farming practices like horticulture, gardening, landscaping, and small-scale livestock operations, creating lucrative opportunities for below 40HP tractors. Thus, the power and functionality needed for precision farming techniques, sustainable agriculture practices, and organic farming methods is offered by these tractors.

Furthermore, government subsidies, financial incentives, and support programs in emerging economies, like China and India, further boost the demand for below 40 HP tractors, making it more accessible for smallholder farmers and rural communities to invest in modern agricultural equipment, driving market growth and adoption.

Will Increasing Adoption Of Irrigation Drive Sales of Agricultural Tractor?

Irrigation plays a crucial role in modern agriculture, particularly in areas with limited rainfall or drought-prone regions. Thus, the demand for adequate water supply, maintaining soil moisture levels, and maximizing crop yields in these areas is vital, creating opportunities of growth for irrigation techniques. Some of these advanced techniques include drip irrigation, sprinkler systems, and precision irrigation, which require specialized tractors with hydraulic systems, power take-off shafts, and attachments for connecting and operating irrigation components.

Also, the growing inclination toward sustainable agriculture practices and water conservation initiatives is enhancing the implementation of more efficient irrigation systems dependent on tractor-powered equipment.

Growing focus on optimizing water usage, lowering water wastage, and improving efficiency are encouraging the farmers to invest in modern irrigation technologies. Thus, the demand for irrigation tractors is increasing owing to their versatility and application in land preparation, planting, cultivation, spraying, and harvesting. These systems are often equipped with adjustable wheel tracks, flotation tires, and precision steering systems to navigate uneven terrain and minimize soil compaction and crop damage. Such technological advancements are projected to upsurge its sales in the coming years.

Moreover, government support programs, subsidies, and incentives promoting sustainable agriculture, water resource management, and farm mechanization is anticipated to further contribute to the dominance of irrigation in the Agricultural Tractor Market.

Gain Access into Agricultural Tractor Market Report Methodology

Country/Region-wise Acumens

Will Early Adoption of Technology in North America Drive the Market for Agricultural Tractor Market?

According to Market Research, North America is experiencing rapid growth in the Agricultural Tractor Market. Rise in technological advancements and innovations in agricultural machinery is one of the primary factors bolstering the demand for agricultural tractors in this region. Farmers are increasingly adopting advanced tractor models with GPS technology, automated systems, telematics, and precision farming capabilities for optimizing their field operations, data-driven decision-making, and improved yields.

Rapid modernization in North America’s agriculture sector, characterized by larger farm sizes and commercial farming operations, is propelling the demand for high-horsepower tractors and specialized equipment, creating a conducive environment for market growth.

Also, the rising interest of farmers in investing in powerful tractors with advanced features for handling complex tasks such as heavy tillage, planting, harvesting, and material handling is proving fruitful for the market. Similarly, emphasis on sustainable agriculture practices, environmental stewardship, and precision farming techniques in North America is contributing to the adoption of modern tractors that support efficient resource management, reduced inputs, and minimized environmental impact.

The robust agricultural infrastructure of this region supports the adoption and integration of advanced tractor solutions, as well as offering accessibility to a wide range of tractor models, configurations, and aftermarket services to the farmers. Besides these, government policies, farm subsidies, and incentives promoting farm mechanization, equipment upgrades, and technological adoption further stimulate growth in the Agricultural Tractor Market in North America.

How the Government Policies Favor the Market in Asia Pacific?

Favorable government policies and economic conditions are enabling the farmers purchase the agricultural tractors to cater to the growing agricultural demands of the growing population in the Asia Pacific, especially emerging countries such as India and China. In recent years, several governments in the region have implemented policies, subsidies, and tax incentives favoring farmers. These financial initiatives are encouraging farmers to invest in new and advanced agricultural machinery such as tractors.

Moreover, the economic conditions in the Asia Pacific region, including GDP growth, inflation, and disposable income, also plays a crucial role in driving the demand for agricultural tractors. In countries with growing economies and increasing disposable income, such as India, China, South Korea, farmers are more likely to increase their spending in new and advanced tractors to improve their productivity and yields.

Furthermore, the increasing focus on mechanization in agriculture in the Asia Pacific region is expected to drive the demand for agricultural tractors in the coming years. With a growing population and shrinking land availability, farmers are increasingly adopting mechanized farming practices to improve efficiency and productivity. As a result, the demand for tractors is expected to witness significant growth in the Asia Pacific region in the coming years.

Competitive Landscape

The competitive landscape of the Agricultural Tractor Market is characterized by dynamic arena with established giants and exciting new developments. Well-known global brands like John Deere and Kubota hold a strong position, leveraging their reputation and dealer networks. They compete by offering a range of tractors, from compact models suited for smaller farms to high-powered machines for large-scale operations. However, the landscape isn’t static. Innovation is key, with manufacturers integrating precision farming features and telematics to make tractors smarter and more data-driven. This caters to the evolving needs of modern farmers. Additionally, the emergence of new players, particularly those focused on autonomous tractors and other robotic solutions, could shake things up in the coming years.

Some of the prominent players operating in the Agricultural Tractor Market include

CLAAS Group, Deere & Company, Mahindra & Mahindra Limited, CNH Industrial, Kubota Corporation, Massey Ferguson Limited, TAFE Ltd., Iseki & Co. Ltd., JCB, and Yanmar Co.

Latest Developments

• In November 2022, CNH Industrial N.V. and Monarch Tractor have partnered to develop fully electrified autonomous tractors with advanced technologies, expanding their product portfolio and supporting a sustainable future.
• In August 2022, AGCO Corporation launched the New 700 Vario Series tractors in North America. These tractors are designed to improve performance and productivity, featuring an efficient powertrain, FendtiD low engine speed, hydraulic capacity, VarioDrive transmission, and larger frame.

Report Scope

Agricultural Tractor Market, By Category

Engine Type

• Below 40 HP,
• 40 hp-120 HP
• 121 HP-180 HP
• 181 HP-250 HP
• Above 250 HP

Application

• Harvesting
• Seed Sowing
• Irrigation
• Others

Operations

• Manual Tractor Vehicle
• Automatic Tractor Vehicle

Driver Type

• Two-Wheel Drive
• Four-Wheel Drive

Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

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