Dublin, Aug. 05, 2021 (GLOBE NEWSWIRE) -- The "Agriculture Tractor Market - Forecasts from 2021 to 2026" report has been added to ResearchAndMarkets.com's offering.
The agriculture tractor market is estimated to grow at a CAGR of 4.88% to reach US$25,494.261 million in 2026 from US$18,267.930 million in 2019.
Demand for tractors depends on the agriculture activity in the country and that invariably is dependent on monsoons and the minimum support price (MSP).. The increasing need for operational efficiency and the rise in labor costs are expected to boost the demand for agricultural tractors. The agricultural tractor market is gaining momentum due to the technological advancements in the farming and agricultural process.
In the modern agricultural tractor market, there is a need for the replacement of the existing machinery with advanced machines to fuel the market growth. Self -driving or driverless tractors are replacing the drivers with several hardware and software components to increase efficiency. Self-driving tractors minimize human effort while enhancing the output
There are two types of self-driving tractors available in the market:
- Autonomous
- Semi-autonomous tractors
Shortage of skilled labor and restricted accessibility to the labor mainly due to the migration of the people from the rural areas to the urban areas and increasing labor cost have driven the market for the agricultural tractors over the forecasted period. As per the data released by the UN, in 2018, around 55% of the global population lived in urban areas. This number is expected to reach 68% by 2050. However, the high cost of the agricultural tractors and the tax and tariffs are imposed on the tractors are restricting the market growth especially in developing economies. For instance, the government of India imposed a 29.8% import duty on agricultural tractors
Growing Population
With the growing population, the demand for tractors is increasing. Other key factors leading to the growth of the market are rapid urbanization, restricted accessibility to labor, growing demand for food, and technological advancement. The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics and movement of the labor from urban to rural areas are affecting the agricultural tractors market
With increasing population and demand for the food, the farmers are expected to increase the yield. In India, agricultural tractors plays an important role in increasing the country's agricultural output.
The major factors expected to boost the sales of the agricultural tractors during the forecasted period are the increased inclination for the less power output tractors and the rise in the penetration of the self-driving tractors
COVID-19 Impacts on the Market
COVID-19 has significantly impacted demand sentiments across consumer segments and is expected to lead to a sharp contraction in the country's GDP in the financial year 2021. However, the expectation of growth in agricultural output remains a silver lining, and is expected to result in healthy cash flows for the farming community thus, it will be favorable for the tractor industry
The supply chain has been disrupted and the new strategy is producing and consuming from local business. Solid tax reform is required by the government to help smaller players. For instance, the Indian government has introduced the 'Macro-Management Scheme of Agriculture', according to this it provides a 25% subsidy on the tractors up to 35 PTO HP. While, the Canadian government have introduced a program 'Canadian Agricultural Loans Act' which provides the farmers the loan up tp USD 500 thousand when purchasing the land or tractor and can also be used for repairing buildings.
Smart factories are becoming the norm in manufacturing and relying on technologies. The factories of the future are continuing to grow and develop. In Future, the factories are expected to rely greatly on sensor technology and will utilize data to guide the tasks of the workforce
Asia Pacific dominates the market
Market players are investing in the research and development to introduce technologically advanced agricultural machinery. The use of technologically advanced machines is anticipated to bolster market growth
The Asia Pacific has the largest share in the terms of volume. The Asia Pacific is likely to maintain the dominance in the market during the forecasted period. While Europe due to its large farm sizes is estimated to witness considerable growth in terms of the volume during the forecasted period.
In developing countries, for instance, In India and China, the semi-autonomous tractors are more popular than autonomous due to lower cost. They are leading in the numbers of tractors sold across countries, China aims at the farm activities being mechanized, this includes the agricultural machinery in its 'Made in China 2025'. According to the campaign, the country will produce most of its farm equipment domestically. While the Indian government is promoting 'Balanced Farm Mechanization' by providing subsidies on various equipment and supporting bulk buying through front-end agencies. With the campaign, the tractor market is expected to strengthen during the forecasted period. Government initiatives regarding the development of the rural and the farm mechanization and other factors including enhancing rural wages and scarcity of the farm labor are expected to increase the tractor volume over the long term
In developing economies, the demand is higher and more inclined towards low engine power. As the developing countries account for the majority share in the agricultural tractors industry, the manufacturers are concentrating on major demand of developing countries of compact tractors with low engine power.
Competitive Insights
The agricultural tractor market is highly consolidated and has very few players cornering the majority of the market share
Leading companies are adopting strategies like new product launches, joint ventures, partnerships, and acquisitions to increase their production capacity and achieve higher sales. Major players are Claas Group, Deere & Company, Mahindra & Mahindra Ltd, CNH Industrial NV, and Kubota Corporation.
In October 2019, Deere and Company announced the launch of its autonomous concept tractor that produces zero emissions with a power output of 500 kW
In India, the agricultural machinery market is consolidated and dominated by large trusted global and domestic manufactures. The machines are manufactured domestically as most of the international companies have their local production setups in the country. With Mahindra & Mahindra Ltd is the leading player with the higher share in the Indian Agricultural tractors market followed by Tractor and Farm Equipment (TAFE), International Tractor Ltd, and Escorts Limited
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis
5. Agricultural Tractors Market Analysis, By Engine Power
5.1. Less than 40 Hp
5.2. 41 to 100 Hp
5.3. More than 100 Hp
6. Agricultural Tractor Market Analysis, By Types
6.1 Utility Tractors
6.2 Row Crop Tractors
6.3 Orchard Type
6.4 Industrial Tractors
6.5 Other Tractors
7. Agricultural Tractor Market Analysis, By Vehicle Type
7.1 Gasoline and Diesel
7.2 Electric
8. Agricultural Tractor Market Analysis, By Mode of Operation
8.1 Introduction
8.2 Manual Tractor
8.3 Autonomous
9. Agricultural Tractor Market Analysis, By Geography
9.1. Introduction
9.2. North America
9.2.1. North America Agricultural Tractor Market Analysis, By Engine Power
9.2.2. North America Agricultural Tractor Market Analysis, By Types
9.2.3. North America Agricultural Tractor Market Analysis, By Vehicle Types
9.2.4. North America Agricultural Tractor Market Analysis, By Mode of Operations
9.2.5. By Country
9.2.5.1. United States
9.2.5.2. Canada
9.2.5.3. Mexico
9.3. South America
9.3.1. South America Agricultural Tractor Market Analysis, By Engine Power
9.3.2. South America Agricultural Tractor Market Analysis, By Types
9.3.3. South America Agricultural Tractor Market Analysis, By Vehicle Types
9.3.4. South America Agricultural Tractor Market Analysis, By Mode of Operations
9.3.5. By Country
9.3.5.1. Brazil
9.3.5.2. Argentina
9.3.5.3. Others
9.4. Europe
9.4.1. Europe Tractor Market Analysis, By Engine Power
9.4.2. Europe Tractor Market Analysis, By Types
9.4.3. Europe Tractor Market Analysis, By Vehicle Types
9.4.4. Europe Tractor Market Analysis, By Mode of Operations
9.4.5. By Country
9.4.5.1. Germany
9.4.5.2. Spain
9.4.5.3. United Kingdom
9.4.5.4. France
9.4.5.5. Others
9.5. The Middle East and Africa
9.5.1. Middle East and Africa Tractor Market Analysis, By Engine Power
9.5.2. Middle East and Africa Tractor Market Analysis, By Types
9.5.3. Middle East and Africa Tractor Market Analysis, By Vehicle Types
9.5.4. Middle East and Africa Tractor Market Analysis, By Mode of Operations
9.5.5. By Country
9.5.5.1. Saudi Arabia
9.5.5.2. South Africa
9.5.5.3. Others
9.6. Asia Pacific
9.6.1. Asia Pacific Tractor Market Analysis, By Engine Power
9.6.2. Asia Pacific Tractor Market Analysis, By Types
9.6.3. Asia Pacific Tractor Market Analysis, By Vehicle Types
9.6.4. Asia Pacific Tractor Market Analysis, By Mode of Operations
9.6.5. By Country
9.6.5.1. China
9.6.5.2. Japan
9.6.5.3. Australia
9.6.5.4. India
9.6.5.5. Others
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3 Mergers, Acquisitions, Agreements, and Collaborations
10.4 Vendor Competitiveness Matrix
11. Company Profiles
11.1 Mahindra & Mahindra Limited
11.2 Deere & Company
11.3 Tractors and Farm Equipment Limited
11.4 CNH Industrial N.V.
11.5 Kubota Corporation
11.6 AGCO Corporation
11.7. Force Motors
11.8. Standard Corporation India Limited
11.9. Swadesh Motors & Tractors Ltd
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