Agricultural Tractor Market Forecasts to 2030 - Global Analysis By Type (Orchard Tractors, Row-crop Tractors and Other Types), Driveline Type (2 Wheel Drive and 4 Wheel Drive), Engine Power (Less than 40 HP, 40HP to 80 HP and Other Engine Power), Propulsion, Operation, Application and By Geography
Estimated Year Value (2023)
US $68.4 BN
Projected Year Value (2030)
US $114.2 BN
CAGR (2023 - 2030)
North America, Europe, Asia Pacific, South America, and Middle East & Africa
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa
Highest Growing Market
According to Stratistics MRC, the Global Agricultural Tractor Market is accounted for $68.4 billion in 2023 and is expected to reach $114.2 billion by 2030 growing at a CAGR of 7.6% during the forecast period. A tractor is a vehicle with one or two tiny front wheels and two huge back wheels. In agricultural, construction, and logistical applications, it is utilized to move associated tools such as rotators, ploughing, tilling, sowing, cultivating, and harvesting. There are two sizes of tractors: two wheels and four wheels. Additionally, it comes in a variety of power levels, from 20 HP to more than 20 HP.
According to the Indian Brand Equity Foundation, 58% of the total population in India are farmers.
Shorter replacement cycles
Farmers are increasingly apt to replace their tractors more regularly as they try to increase output and remain competitive. Newer models with greater features, better fuel efficiency, and increased performance have been released as a result of technological breakthroughs and design innovation in tractors. In order to maximize their agricultural operations, farmers realize the advantage of upgrading to these cutting-edge models. Farmers are replacing aging equipment with newer, greener options as a result of changing agricultural techniques and growing environmental restrictions, which also drives the need for more environmentally friendly and sustainable tractors.
Fragmentation of land holdings
In many regions, especially in developing countries, land ownership is fragmented into small and scattered plots, making it challenging for farmers to justify the investment in large and high-powered tractors. Smaller land holdings require smaller, more affordable tractors, which may lead to reduced sales for manufacturers of larger, more powerful machines. Moreover, servicing and maintaining a dispersed fleet of tractors can be logistically complex and costly for both farmers and equipment suppliers. As a result, the fragmentation of land holdings restricts the widespread adoption of agricultural tractors and influences the market dynamics in regions with such land distribution patterns.
Growing rate of farm mechanization in emerging nations
Modernizing agriculture to increase productivity and fulfill expanding food demands is becoming more important as these nations undergo economic expansion and increased urbanization. Improvements in yields, labor dependency reduction, and efficiency are just a few advantages of farm mechanization. Agricultural tractors are in high demand as a result of farmers in these countries realizing the benefits of implementing automated operations. Government programs and subsidies that support agricultural development further increase the market's potential for growth in these developing nations, making it a desirable possibility for tractor suppliers and manufacturers.
High dependence on commodity costs
As the profitability of farmers heavily relies on commodity prices, fluctuations in the prices of crops and agricultural products directly impact their purchasing power for tractors and farm equipment. During periods of low commodity prices, farmers may be hesitant to invest in expensive machinery like tractors, leading to a decline in tractor sales. Additionally, uncertainty in the agricultural sector due to unpredictable market conditions can cause farmers to postpone or forego tractor purchases altogether, affecting overall market demand. Manufacturers and suppliers in the agricultural tractor market must navigate these price volatility challenges and develop strategies to mitigate the impact of fluctuating commodity costs on their sales and business growth.
The COVID-19 pandemic had a mixed impact on the agricultural tractor market. In the initial phases, the market experienced disruptions in production, supply chain, and logistics due to lockdowns and restrictions, causing delays and shortages. However, as the pandemic progressed, agriculture was deemed essential, leading to increased demand for tractors as farmers sought to maintain productivity. The shift towards mechanization and modern farming practices also boosted tractor sales. The government's stimulus packages and financial support for the agricultural sector further supported the market. Despite challenges, the pandemic accelerated the adoption of technology-driven tractors and highlighted the importance of resilient agricultural machinery supply chains.
The 4 wheel drive segment is expected to be the largest during the forecast period
The 4 wheel drive segment is expected to have lucrative growth owing to the increasing demand for high power agricultural tractors to perform various agricultural tasks efficiently. For instance, powerful agricultural tasks such as tilling and sowing can be easily performed with 4WD tractors. In a four-wheel-drive tractor, all four wheels receive power from the engine. 4WD tractors provide enhanced performance, high speed, and reduced slippage. All these factors are anticipated to drive the 4WD segment's growth over the forecast period.
The less than 40 HP segment is expected to have the highest CAGR during the forecast period
The less than 40 HP segment is anticipated to witness the fastest CAGR growth during the forecast period. The low price, small size, and better convenience provided by tractors with less than 40 HP to carry out all essential farming tasks may be credited for the significant growth. Most farmers in the region favour these machines, which are mostly used in the Asia Pacific region, where 85% of farmlands are less than 10 hectares.
Region with largest share:
During the forecast period, it is expected that the North American Agricultural Tractor market will continue to hold a majority of the market share. Factors driving this growth include increasing farm sizes, a need for higher productivity, and technological advancements in tractor design. Key players in the market continually strive to introduce innovative features, such as GPS guidance systems and precision farming capabilities, to cater to the evolving needs of farmers. Additionally, government subsidies and favorable policies further boost the adoption of agricultural tractors, making North America a dynamic and competitive market for this essential agricultural machinery.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, as agriculture remains a primary economic activity in many countries within the region, the demand for agricultural tractors continues to grow steadily. Factors driving this demand include the need to improve farm efficiency, address labor shortages, and adopt modern agricultural practices, the rising population, increasing food demand. Additionally, local and international manufacturers compete to offer a diverse range of tractors, including small utility tractors and high-powered models, tailored to meet the varying needs of farmers across Asia Pacific's diverse agricultural landscape.
Key players in the market
Some of the key players in Agricultural Tractor market include AGCO Corp., CLAAS KGaAmbH, CNH Industrial N.V., Deere & Company, Escorts Ltd., International Tractors Ltd., KubotaCorp., Mahindra & Mahindra Ltd., Tractors and Farm Equipment Ltd., YanmarCo., Ltd., Massey Feguson Limited, Iseki & Co. Ltd, Enerpac Tool Group, Bucher Industries, Alamo Group, Inc., J C Bamford Excavators Ltd, Mitsubishi Heavy Industries Ltd. and Zetor Tractors AS.
In January 2023, 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.
In November 2022, VST Tillers Tractors Ltd and ZETOR TRACTORS unveiled two best-in-class tractors at the CII Agro Tech India 2022 exhibition. These 45 HP and 50 HP category tractors are jointly developed by VST & ZETOR at their India & Czech Republic plants.
In June 2022, Solis Yanmar company launched three new tractor models in the below 30 HP category for Turkish farms that are to be exported from India.
• Orchard Tractors
• Row-crop Tractors
• Other Types
Driveline Types Covered:
• 2 Wheel Drive
• 4 Wheel Drive
Engine Powers Covered:
• Less than 40 HP
• 40HP to 80 HP
• 81HP to 120 HP
• 121 HP to 180 HP
• 181 HP to 250 HP
• More than 250 HP
• Internal Combustion Engine (ICE)
• Electric and Hybrid
• Autonomous Tractor Vehicle
• Manual Tractor Vehicle
• Seed Sowing
• Other Applications
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
3 Market Trend Analysis
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Agriculture Tractor Market, By Type
5.2 Orchard Tractors
5.3 Row-crop Tractors
5.4 Other Types
6 Global Agriculture Tractor Market, By Driveline Type
6.2 2 Wheel Drive
6.3 4 Wheel Drive
7 Global Agriculture Tractor Market, By Engine Power
7.2 Less than 40 HP
7.3 40HP to 80 HP
7.4 81HP to 120 HP
7.5 121 HP to 180 HP
7.6 181 HP to 250 HP
7.7 More than 250 HP
8 Global Agriculture Tractor Market, By Propulsion
8.2 Internal Combustion Engine (ICE)
8.3 Electric and Hybrid
8.4 Other Propulsions
9 Global Agriculture Tractor Market, By Operation
9.2 Autonomous Tractor Vehicle
9.3 Manual Tractor Vehicle
9.4 Other Operations
10 Global Agriculture Tractor Market, By Application
10.3 Seed Sowing
10.6 Other Applications
11 Global Agriculture Tractor Market, By Geography
11.2 North America
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.5 Other Key Strategies
13 Company Profiling
13.1 AGCO Corp.
13.2 CLAAS KGaAmbH
13.3 CNH Industrial N.V.
13.4 Deere & Company
13.5 Escorts Ltd.
13.6 International Tractors Ltd.
13.8 Mahindra & Mahindra Ltd.
13.9 Tractors and Farm Equipment Ltd.
13.10 YanmarCo., Ltd.
13.11 Massey Feguson Limited
13.12 Iseki & Co. Ltd
13.13 Enerpac Tool Group
13.14 Bucher Industries
13.15 Alamo Group, Inc.
13.16 J C Bamford Excavators Ltd
13.17 Mitsubishi Heavy Industries Ltd.
13.18 Zetor Tractors AS
List of Tables
1 Global Agriculture Tractor Market Outlook, By Region (2021-2030) ($MN)
2 Global Agriculture Tractor Market Outlook, By Type (2021-2030) ($MN)
3 Global Agriculture Tractor Market Outlook, By Orchard Tractors (2021-2030) ($MN)
4 Global Agriculture Tractor Market Outlook, By Row-crop Tractors (2021-2030) ($MN)
5 Global Agriculture Tractor Market Outlook, By Other Types (2021-2030) ($MN)
6 Global Agriculture Tractor Market Outlook, By Driveline Type (2021-2030) ($MN)
7 Global Agriculture Tractor Market Outlook, By 2 Wheel Drive (2021-2030) ($MN)
8 Global Agriculture Tractor Market Outlook, By 4 Wheel Drive (2021-2030) ($MN)
9 Global Agriculture Tractor Market Outlook, By Engine Power (2021-2030) ($MN)
10 Global Agriculture Tractor Market Outlook, By Less than 40 HP (2021-2030) ($MN)
11 Global Agriculture Tractor Market Outlook, By 40HP to 80 HP (2021-2030) ($MN)
12 Global Agriculture Tractor Market Outlook, By 81HP to 120 HP (2021-2030) ($MN)
13 Global Agriculture Tractor Market Outlook, By 121 HP to 180 HP (2021-2030) ($MN)
14 Global Agriculture Tractor Market Outlook, By 181 HP to 250 HP (2021-2030) ($MN)
15 Global Agriculture Tractor Market Outlook, By More than 250 HP (2021-2030) ($MN)
16 Global Agriculture Tractor Market Outlook, By Propulsion (2021-2030) ($MN)
17 Global Agriculture Tractor Market Outlook, By Internal Combustion Engine (ICE) (2021-2030) ($MN)
18 Global Agriculture Tractor Market Outlook, By Electric and Hybrid (2021-2030) ($MN)
19 Global Agriculture Tractor Market Outlook, By Other Propulsions (2021-2030) ($MN)
20 Global Agriculture Tractor Market Outlook, By Operation (2021-2030) ($MN)
21 Global Agriculture Tractor Market Outlook, By Autonomous Tractor Vehicle (2021-2030) ($MN)
22 Global Agriculture Tractor Market Outlook, By Manual Tractor Vehicle (2021-2030) ($MN)
23 Global Agriculture Tractor Market Outlook, By Other Operations (2021-2030) ($MN)
24 Global Agriculture Tractor Market Outlook, By Application (2021-2030) ($MN)
25 Global Agriculture Tractor Market Outlook, By Harvesting (2021-2030) ($MN)
26 Global Agriculture Tractor Market Outlook, By Seed Sowing (2021-2030) ($MN)
27 Global Agriculture Tractor Market Outlook, By Irrigation (2021-2030) ($MN)
28 Global Agriculture Tractor Market Outlook, By Ploughing (2021-2030) ($MN)
29 Global Agriculture Tractor Market Outlook, By Other Applications (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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