The North America Tractor Market Size was valued at $16,683.4 million in 2021, and is projected to reach $23,247.5 million by 2031, registering a CAGR of 3.2% from 2022 to 2031. A tractor is a vehicle that has one or two small wheels in the front and two large wheels in the rear. It is used in agriculture, construction, and logistics to move attachments such as tillers, plows, sowing, cultivation, and harvesting. Tractors come in 2-wheel and 4-wheel types.
“The North America tractor market was severely hampered during the lockdown period owing to the outbreak of COVID-19. The restrictions on construction activities negatively impacted the production of tractors. However, the market exhibited significant signs of recovery by the end of 2021.”
Market Dynamics
Increasing demand for tractors due to increasing crop production, tillage and planting applications in agricultural activities is driving the growth of the tractor market. Ease of financing and high utilization of tractors in agricultural applications such as row crops, orchards and gardens, are driving the growth of the tractor market. In addition, increasing modernization of agricultural activities is a key factor behind the growth of the tractor market. Moreover, population growth has increased the need for crop cultivation.
Therefore, to maintain the demand for agricultural products, farmers are switching to using tractors for agricultural and logistics applications, which contributes significantly to the growth of the tractor market. Rising demand for mechanization in the logistics and agricultural industries is boosting the growth of the tractor market. However, volatility in commodity prices is expected to limit the growth of the tractor market. On the contrary, government initiatives to provide subsidies to farmers are expected to provide lucrative opportunities for the North America tractor market growth.
Tractors are essential in agriculture as it provide mechanical power to perform agricultural uses. The use of tractors in modern agriculture has increased due to their unique features such as air-filled tires, air cooling systems, three-point linkages, front loaders, and others. New technological advancements from robotics and drones to computer vision software, have completely changed modern agriculture. The main goal of agricultural automation technology is to cover simpler routine tasks.
Some of the key technologies most commonly used on farms include harvest automation, autonomous tractors, seeding and weeding, and drones. Agricultural automation technologies address key issues such as a growth in population, agricultural labor shortages, and change in consumer preferences. The benefits of automating traditional agricultural processes to address issues such as consumer preferences, labor shortages and the environmental footprint of agriculture are immense. Thus, the increase in modernization of agricultural activities drives the adoption of tractors in the agricultural sector, thereby surging the market growth.
The demand for North America tractors decreased in 2020, owing to low demand from different industries due to lockdowns imposed by the government of many countries. The COVID-19 pandemic has shut down the production of tractors, mainly owing to prolonged lockdowns in major countries globally.
This hampered the growth of the North America tractor market significantly during the pandemic. The major demand for North America tractor was previously noticed from giant manufacturing countries including the U.S., Germany, India, and China, which was badly affected by the spread of coronavirus, thereby halting the demand for tractors. North America tractor manufacturers must focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19 infection cases start to decrease.
Segmental Overview
The tractor market is segmented into power output, drive type, application, and country. By power output, the market is categorized into less than 30 HP, 30-50 HP, 50-100 HP, and more than 100 HP. The 30-50 HP segment dominated the market in 2021. By drive type, the market is bifurcated into 2-wheel drive and 4-wheel drive. The 2-wheel drive segment dominated the market in 2021. On the basis of application, it is classified into agriculture, construction, and mining & logistics. The agriculture segment dominated the market in 2021. The tractor market is analyzed across North America (U.S., Canada, and Mexico).
By Power Output:
The North America tractor market is categorized into less than 30 HP, 30-50 HP, 50-100 HP, and more than 100 HP. In 2021, the 30-50 HP segment registered the highest revenue owing to the rise in demand for highly efficient tractors for various applications such as planting, sowing, and others, which leads to market growth. Further, prominent players such as Mahindra & Mahindra Ltd, and Sonalika International Tractors Limited are engaged in offering state-of-the-art 30-50 HP tractors to the market. It is suitable for agricultural applications. It has a power output of 30 HP and has mechanical steering. It has a fuel tank with a capacity of 50 liters and has a material lifting capacity of 1,800 KG. All such instances drive the growth of the North America tractor market.
In 2021, more than 100 HP is expected to grow at a significant CAGR, because more than 100 HP power output tractors serve as an important part of agricultural, forestry, and logistics applications. Rise in agricultural related activities such as sowing, planting, and crop cultivation in various countries such as the U.S. and Canada propels the demand for high performance tractors. Moreover, key companies such as Deere & Company and others, are engaged in offering innovative tractors with power output more than 100 HP. For instance, Deere & Company offers John Deere 6120 B tractor for agriculture and mulching applications. These tractors are reliable, have lower service costs, have power output of 120 HP with 4 cylinders, and have turbo charged John Deere Power Tech engine. All such instances drive the growth of the tractor market.
By Product Type
30-50 HP is the largest segment, owing to its cost effectiveness and wide range of usability.
By Drive Type:
The North America tractor market is bifurcated into 2-wheel drive and 4-wheel drive. In 2021, 2-wheel drive accounted for the highest revenue and 4-wheel drive is expected to grow at a significant CAGR. Growth of agricultural sector has led to a rise in demand for tractors for applications such as sowing, planting, and crop cultivation, thereby propelling the growth of the tractor market. In addition, rise in the wages of agricultural laborers has led farmers to focus on adopting modern methods of farming, thereby driving the growth of the tractor market.
Further, benefits associated with 2-wheel drive tractors such as cost effectiveness, small turning cycles, and easy to use augment the growth of the market. In addition, key players such as Deere & Company and AGCO Corporation are involved in offering advanced 2-wheel drive tractors to the market. For instance, Deere & Company offers 5039D power pro 2WD type tractor having a power output of 41 HP. It has a high rpm rotation cycle of 2100 rpm and has fuel tank capacity of 60 L. It has features such as mobile charging point with holder, lifting capacity of 1760 KG, and having digital hour meter. All such instances are anticipated to cater to the growth of this segment.
By Drive Type
2 Wheel Drive is the largest segment, owing to its cost effectiveness.
By Application:
The North America tractor market is classified into agriculture, construction, mining & logistics. The agriculture segment generated the highest revenue and construction, mining & logistics segment is expected to grow at the highest CAGR during the forecast period, owing to rise in demand for tractors to perform applications such as harvesting, rowing, and others, which caters to the growth of the market. For instance, in 2021, agriculture and food industries contributed 5.4% to the U.S. gross domestic product and created 18.5 million jobs in the agriculture sector.
Major players such as AGCO Corporation, Deere & Company, and Mahindra & Mahindra Ltd are engaged in offering tractors for agricultural applications. For instance, in November 2021, John Deere launched the new 6R 140 with 110-140 horsepower small frame and 6R 150 tractors is a mid-frame of 145 to 165 horsepower tractors. It delivers up to 166 and 212 maximum horsepower in tough conditions such as heavy transport, PTO, or hydraulic applications. It is majorly used for agricultural applications. All such instances drive the growth of this segment.
By Application
Agriculture is the largest segment, owing to large food & beverage industry in U.S.
By Country:
The North America tractor market is analyzed across North America (U.S. Canada and Mexico. Farmers in the North American countries own large farms, which fuel the need for tractor and related equipment to conduct activities efficiently in minimal time. The countries such as the U.S. and Canada are economically developed, and thus the penetration of automated tractor is high in these countries as compared to other developing and underdeveloped countries. For instance, in January 2022, John & Deere is a U.S. based company that has introduced a fully autonomous tractor for large-scale production. It combines Deere's 8R tractor, TruSet-enabled chisel plow, GPS guidance system, and new advanced technology.
It has six pairs of stereo cameras that enable 360-degree obstacle detection and distance calculation. Images captured by the camera are passed through a deep neural network that classifies each pixel in about 100 milliseconds and determines whether the machine should keep moving or stop, depending on whether an obstacle is detected. In addition, rise in population and high urbanization are creating the demand for food and the new technology helps the farmers to enhance the productivity in an efficient manner. For instance, according to the World Bank, urban population of the U.S. increased from 79% of the total population in 2000, to 83% in 2021. In addition, trends such as organic farming and food processing are anticipated to create potential opportunities for the utilization of tractors to cultivate better quality crops using less artificial fertilizers and pesticides. All such instances drive the growth of the tractor market in North America region.
By Region
U.S. is the largest market, owing to necessity of agriculture equipment due to large size of farms.
Competition Analysis
Competitive analysis and profiles of the major players in the North America tractor market include AGCO Corporation, ARGO SpA, CNH Industrial N.V, Class Group, Deere & Company, Deutz-Fahr, Kubota Corporation, Sonalika International limited, Mahindra and Mahindra Ltd. and YANMAR are provided in this report. Major players have adopted product launch and acquisition as key developmental strategies to improve the product portfolio of the North America tractor market share.
Some examples of product launches in the market
In November 2022, CNH industrial N.V. brand, New Holland launched its first T8 tractor with Raven Autonomy, a driverless grain cart harvest application. It uses Omnidrive, the first driverless agriculture technology for harvesting grain carts. The farmer may control, synchronize, and monitor an autonomous tractor from the cab of harvester owing to cutting-edge technology stack.
In February 2021, TAFE, manufacturer of Massey Ferguson tractors, has launched its new DYNATRACK Series, an advanced range of tractors that offer dynamic performance, sophisticated technology, versatility, and unmatched utility all engineered into a single powerful tractor.
In August 2021, Kubota launched its two new models in its new LX Series, a line of versatile compact tractors under 40 HP, notably the 35HP LX-351 Rear ROPS and LX-351 Cab. The new LX tractor features a Stage V engine with CRS, EGR and DPF and will be available in 4 different models. The LX-351 Rear ROPS and LX-351 Cab, with 35 hp and a HST 3-range transmission, and the LX-401 Rear ROPS and LX-401 Cab, featuring 40 hp, and a 3-range HST transmission.
In August 2021, John Deere launched its new 6155MH Tractor that offers all field-proven performance and reliability effective for cultivating, harrowing, or pulling harvester trailers.
In June 2020, Mahindra & Mahindra Ltd launched its new Sarpanch Plus Tractor series. This tractor offers 2 HP (1.49kW) more power, higher max torque, and back-up torque to cover more land quickly and comes with Mahindra’s industry-first 6-year warrant.
In December 2020, Sonalika Tractors launched its field-ready electric tractor for the domestic market called Tiger Electric.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging North America tractor market trends and dynamics.
- In-depth market North America tractor market analysis is conducted by constructing market estimations for key market segments between 2022 and 2031.
- Extensive analysis of North America tractor market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis of the North America is provided to determine the prevailing North America tractor market opportunities.
- North America tractor market forecast analysis from 2022 to 2031 is included in the report.
- The key players within North America tractor market are profiled in this report and their strategies are analysed thoroughly, which help understand the competitive outlook of North America tractor industry.
North America Tractor Market Report Highlights
| Aspects | Details |
 By POWER OUTPUT |
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 By DRIVE TYPE |
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 By APPLICATION |
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 By Region |
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 By KEY PLAYERS |
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Analyst Review
Technological advancements in the field of agricultural machinery such as tractor have led to increased crop production, and ploughing. Tractor manufacturers such as Mahindra & Mahindra Ltd., and Sonalika International Tractors Ltd., have focused on designing and upgrading their tractor products with higher performance, and higher productive tractors. For instance, Mahindra & Mahindra ltd has launched it new Sarpanch Plus tractor series.
This tractor offers 2 HP (1.49kW) more power, higher max torque, and back-up torque to cover more land quickly and, it has features such as higher productivity, reliability, durability, and easy maintenance. In addition, key players are now producing machinery conforming to the latest emission standards to tackle the environmental challenges on farms. The development of new hybrid equipment, which can work on both fuel as well as batteries, decrease operational costs, and significantly increase productivity, fuels the growth of The North America tractor market.
Moreover, growth in the agricultural sector is one of the important businesses in North America. For instance, agriculture industries accounted approximately $1.264 trillion with a 5.4% share to the U.S. gross domestic products in 2021. Furthermore, governments offer incentives and loans to farmers to motivate the use of agricultural equipment, which increases the cultivation of crops. These factors collectively are anticipated to create lucrative growth opportunities for The North America tractor market during the forecast period
The North America tractor market size was valued at $16,683.4 million in 2021, and is projected to reach $23,247.5 million by 2031, registering a CAGR of 3.2% from 2022 to 2031.
The forecast period considered for the North America tractor market is 2022 to 2031, wherein, 2021 is the base year, 2022 is the estimated year, and 2031 is the forecast year.
The base year considered in the North America tractor market is 2021.
The report for North America tractor market doesn’t provides Value Chain Analysis, but if there is a requirement for the same, it could be added as an additional customization.
On the basis of power output, 30-50 HP segment is expected to be the most influencing segment in the North America tractor market.
Based on the application, in 2021, the agriculture segment generated the highest revenue, accounting for over half of the market, and is projected to grow at a CAGR of 3.1% from 2022 to 2031.
The report contains an exclusive company profile section, where leading 10 companies in the market are profiled. These profiles typically cover company overview, geographical presence, and market dominance (in terms of revenue).
The market value of North America tractor market is $ 17,455.8 million in 2022.
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