The global tractor market size was $64,800 million in 2020 and is expected to reach $97,906.1 million by 2030, registering a CAGR of 4.0% from 2021 to 2030.
A tractor is a vehicle usually available with one or two small wheels in front and two large wheels at the back. It is used in agriculture, construction, and logistics applications to move attached implements such as rotavators, plowing, tilling, sowing, cultivation, and harvesting. Tractors are available in 2 wheel type and 4 wheel type. It is also available in power output of 20 HP to more than 20 Hp.
A rise in government spending on new infrastructural and construction buildings, which in turn, increases the demand for tractors for transportation applications, drive the growth of the global tractor market. For instance, the Australia government has increased spending on infrastructure activities. The spending was increased by 10.3% from 2018 to 2020. In addition, construction tractor offers operational efficiency, and advancement in tractor technology. This drives the growth of the global tractor market.
An increase in mechanization in agricultural equipment such as tractor in countries such as India, Brazil, China, and others, drive the global tractor market growth. Rise in demand for high efficient tractors for various applications such as planting, sowing, and others, drive the growth of the market. Major players such as Mahindra & Mahindra Ltd, and Escorts Limited are engaged in offering tractors with power output range of 50-100 HP. For instance, Mahindra & Mahindra Ltd offers Mahindra NOVO tractor. It has power output of 64.1 HP. It has powerful engine which is best suitable for heavy & sticky soil condition. It has efficient cooling system. It is used for harrow, and mulcher applications.
By Drive Type
4 Wheel Drive segment is projected to grow at a significant CAGR
A rise in demand for high performance tractor for muddy, and heavy soil condition, drive the growth of the global tractor market. For instance, major players such as John Deere India Private Limited, Mahindra & Mahindra Ltd, and VST Tillers and Tractors Ltd are engaged in offering tractors with power output with more than 100 HP. For instance, Deere & Company, offers John Deere 6120 B tractor for agriculture, and mulching applications. It has more reliability, with lower service costs. It is used in agricultural activities such as tilting, sowing, hauling, and puddling. It has power output of 120 HP with 4 cylinders and turbo charged John Deere Power Tech engine.
However, lack of information about efficient tractor among farmers in India, is anticipated to restraint the market growth. Furthermore, a government initiative for assisting and providing subsidy to farmers with low interest rates, is anticipated to provide lucrative opportunities for the growth of the global tractor market. For instance, many government initiatives such as PM Kisan Tractor Yojana, and Telangana Yantra Laxmi Scheme in India are providing 20% to 50% subsidy on tractors to farmers.
By Power Output
30-50 HP segment generated the highest revenue.
The tractor market is segmented into power output, drive type, application, and region. 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 2020. By drive type, the market is bifurcated into 2 wheel drive and 4 wheel drive. The 2 wheel drive segment dominated the market in 2020. On the basis of application, it is classified into agriculture, construction, and mining & logistics. The agriculture segment dominated the market in 2020.
Region wise, the tractor market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). The Asia-Pacific region dominated the market in 2020.
Agriculture segment holds dominant position in 2020
Key players profiled in this report include The Mahindra & Mahindra Ltd, Escorts Limited, CNH Industrial N.V., Tractors and Farm Equipment Ltd, Sonalika International Tractors Limited, Deere & Company, HMT Limited, Force Motors Limited, Kubota Corporation, and V.S.T. Tillers Tractors Ltd.
Major players such as Mahindra & Mahindra, Tractor, Kubota Corporation, and Farm Equipment Limited, and HMT limited, are adopting agreement, and product launch as a key developmental strategies to improve the product portfolio of tractor products. For instance, in July 2019, Kubota announced its plan to launch a new series of high-horse power tractors in North America. It entered into a strategic partnership with the OEM Buhler Industries Inc. for the development and production of these tractors to accelerate its business in the North America market.
Asia-Pacific holds a dominant position in 2020.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging global tractor market trends and dynamics.
- In-depth analysis of the market is conducted by global tractor market estimations for the key market segments between 2020 and 2030.
- Extensive tractor market analysis is conducted by following key product positioning and monitoring of the top competitors within the market framework.
- A comprehensive global tractor market opportunity analysis of all the countries is also provided in the report.
- The global tractor market forecast analysis from 2021 to 2030 is included in the report.
- The key players within the market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the tractor industry.
Tractor Market Report Highlights
By Power Output
By Drive Type
Key Market Players
Kubota Corporation, V.S.T. Tillers & Tractors Ltd, Force Motors Limited, CNH Industrial N.V., Tractors and Farm Equipment Ltd, Escorts Limited, Deere & Company, Mahindra & Mahindra Ltd., Sonalika International Tractors Limited, HMT Limited
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, in July 2018, Swaraj Tractors, a subsidiary of Mahindra & Mahindra Ltd., launched a new Swaraj 963 FE series tractor with 2 wheel drive & 4 W wheel drive. It has powerful engine which is fuel efficient, with high torque. 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 global tractor market.
Moreover, growth in agricultural sector is one of the important businesses of the population in various developing countries such as India, China, Brazil, and others increases the demand for tractor for cultivation and plating applications. This, in turn, drives the growth of the global tractor market. For instance, according to India Brand Equity Foundation, 58% of the total population in India are farmers. Furthermore, governments in these nations 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 global tractor market during the forecast period.