Dublin, July 02, 2024 (GLOBE NEWSWIRE) -- The "Tractors - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029" report has been added to ResearchAndMarkets.com's offering.
The Tractors Market size is estimated at USD 83.56 billion in 2024, and is expected to reach USD 110.76 billion by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).
Over the long term, the key factors contributing to the increase in worldwide tractor sales are increasing farm mechanization rates, especially in developing nations, rising farm labor costs, seasonal labor shortages, and shorter tractor replacement cycles. However, some of the prominent players in the industry are focusing on mergers and acquisitions and new product development in the market. For instance,
- In October 2022, At Kubota Connect, the manufacturer gave dealers a sneak peek at the new products. Series M7 Generation 4 The Kubota M7s are the company's largest tractors, aimed at livestock and forage producers.
- In September 2021, TAFE launched the new Massey Ferguson 244 and 246 Dynatrack versions of tractors specifically for West Bengal and Odisha states of India. These tractors are characterized by high utility, advanced technology, and high power.
Key Highlights
Governments in emerging markets are also encouraging farmers in their countries and providing farm equipment at subsidized rates and low interest rates. The demand for farm equipment and tractors is expected to grow at a healthy rate. For instance,
According to the USDA 2021 Budget, USD 3.3 billion is allocated to support research to advance the competitiveness of US agriculture and promote food security. The budget also supports an estimated 35,000 farmers and ranchers by financing operating expenses and providing opportunities to acquire a farm or keep an existing one.
Asia-Pacific region is expected to witness significant growth in the next five years as emerging key economies like India, China, and Japan are encouraging farmers in their countries by offering subsidized farm equipment and low credit rates to encourage tractor adoption. Such developments are likely to drive the demand for tractors in these regions.
Tractor Market Trends
Below 40 HP Tractors Segment's Growth Expected to be Bolstered over the Next Five years
The industry trend toward bigger horsepower tractors continues to grow worldwide, owing to greater performance in difficult terrain and versatility in farm and non-farm applications. The major tractor markets like India and China are recording positive growth across less than 40 HP segments in recent years.
Less than 40 HP tractors are often synonymous with the term compact tractors. With an engine displacement of not more than 1,500 ccs, these tractors occupy less space and can be aligned with great flexibility. They are primarily used for mowing but can handle other basic farming tasks, like manure handling.
However, due to the significant volatility that caused the world market during the COVID-19 pandemic, demand for compact tractors fell dramatically in the first quarter of 2020. The imposition of lockdowns in several regions limited mobility and resulted in the closure of retail outlets. This resulted in a market delay, which, in turn, significantly reduced sales.
With the majority of countries that have huge agricultural activity, Asia-Pacific and African regions are witnessing high demand for less than 40 HP tractors, primarily for agricultural activities, as the low cost of these tractors increased the affordability rate among the highly populated small-scale farmers. Several players in the market studied are launching the latest products to gain market share.
Further factors such as compact size, ease of customization, and nearly 50% more price for the next power range of tractors, are expected to enhance the demand for these tractors. In this power band, the bargaining power of consumers is high, compared to high-powered tractors, given the wide range of options and substitutes from different manufacturers. With the aforementioned trends and developments, it is expected that the Below 40HP tractors segment is likely to have healthy growth over the coming years.
Asia-Pacific Region Anticipated to Lead the Market During the Forecast Period
The tractor market is expected to be dominated by Asia-Pacific, and the region is predicted to develop at the highest rate over the coming years. The growing preference for farm mechanization and an increase in the number of government-funded policies are anticipated to promote the growth of the market in the next few years. For instance,
In October 2021, the Indian government announced up to 50% subsidy on buying tractors under the PM Kisan Tractor Scheme. Farmers buying a tractor under the scheme can avail of the benefits and pay half the amount.
Several regional regulatory bodies, such as the China Agricultural Industry Mechanization Association, promote farm mechanization by educating co-operatives and individual farmers about the benefits of using high-horsepower tractors in larger farm areas. A shift toward EVs is also backed by the government, which is helping companies to develop sustainable products.
The expansion in the number of large agricultural producers and new rural groups engaged in farming contributed to this tendency to stabilize the demand in the market. The introduction of large-scale bespoke hiring service enterprises in agricultural machinery in India fueled the rise in farm mechanization. The subsequent move to automated technologies is envisioned to drive the demand for tractors across the Asia-pacific region. All these aforementioned factors are expected to drive the growth of the market.
Tractor Industry Overview
The tractor market is moderately consolidated as it witnesses active engagement from several global and regional players. Major players such as Mahindra & Mahindra, Tractor, Kubota Corporation, Farm Equipment Limited, and HMT Limited are adopting agreements and product launches as key developmental strategies to improve the product portfolio of tractor products.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Challenges
4.3 Industry Attractiveness - Porter's Five Forces Analysis
5 MARKET SEGMENTATION (Market Size in USD billion)
5.1 By Horsepower
5.1.1 Below 40 HP
5.1.2 40 HP - 100 HP
5.1.3 Above 100 HP
5.2 By Drive Type
5.2.1 Two-wheel Drive
5.2.2 Four-wheel Drive/All-wheel Drive
5.3 By Geography
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
- Deere and Company
- CNH Global NV (includes New Holland and Case IH)
- AGCO Corporation (includes Massey Ferguson, Valtra, Fendt, and Challenger)
- CLAAS KGaA mbH
- Mahindra and Mahindra Corporation
- Kubota Corporation
- Escorts Limited
- Tractors and Farm Equipment Limited (TAFE)
- Kuhn Group (Subsidiary of Bucher Industries)
- Yanmar Company Limited
- Deutz-Fahr
For more information about this report visit https://www.researchandmarkets.com/r/dwgxzn
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Attachments
- Tractors Market Global Four Wheeler Tractor Sales Forecast From 2019 To 2029 In Thousand Units
- Tractors Market Tractors Market Growth Rate By Region 2022 2027
