The global agricultural tractors market demand was valued at 2,765.3 thousand units in 2021 and is expected to reach 4,968 thousand units by 2030, expanding at a CAGR of 6.8% during the forecast period,
The surge in demand for compact tractors in small farms and technological advancements, such as integrating telematics with agricultural tractors, are expected to drive market growth over the forecast period. In addition, the rapid adoption of mechanization in the agriculture industry is likely to bode well for the market growth over the next eight years. Furthermore, farm laborers’ migration towards cities creating a shortage of laborers is anticipated to drive the market growth. The outbreak of COVID-19 hampered the product demand owing to the temporary suspension of production and supply chain disruption.
Gather more insights about the market drivers, restrains and growth of the Global Agricultural Tractors Market
However, in H1 2021, the demand for tractors bounced back significantly with double-digit growth in major economies, such as the U.S, Canada, the U.K., Germany, China, and India. Also, strong crop production in these markets, along with the need to replace aging equipment, increased product sales in H1 2021. However, a sudden increase in demand led to lower inventory levels of tractors in H2 2021, a trend expected to continue over the next few quarters of 2022. In 2022, OEMs are presumed to increase the agricultural tractors prices from 4% to 22%, which is anticipated to further slowdown the market growth. It is attributed to low inventory levels of tractors experienced by dealers.
Also, OEMs are currently experiencing a shortage of semiconductors coupled with supply chain disruptions and market uncertainty due to the growing COVID-19 cases, which may delay production. Furthermore, a hike in steel and aluminum prices is expected to increase tractors prices, which is further anticipated to hinder market growth over the next few quarters. Favorable government policies are likely to boost market growth over the forecast period. For instance, on September 15, 2021, the U.S. Department of Agriculture (USDA) introduced a Precision Agriculture Loan (PAL) Act to allow farmers and ranchers to avail loans to purchase precision agriculture equipment.
Similarly, the imposition of The U.K. Agriculture Act 2020 and the Canadian Agricultural Loans Act (CALA) are likely to favor the product demand over the forecast period. Such initiatives are expected to fuel the market growth over the forecast period. Technological advancements in agricultural tractors are also expected to bode well for the market growth over the forecast period. For instance, the rising popularity of autonomous and electric tractors is projected to increase productivity and efficiency in farming.
Key vendors in this space, such as Deere & Company, CLAAS KGaAmbH Escorts Ltd., SOLECTRAC, and Monarch, have commercially launched concepts for their autonomous and electric tractors. For example, in December 2020, MONARCH TRACTOR announced the launch of its electric tractor integrated with autonomous, machine learning, and data analysis features. The launched tractor envisages farmers in improving operational efficiency, enhancing labor productivity and safety, and increasing yields.
Agricultural Tractors Market Segmentation
Based on the Engine Power Insights, the market is segmented into Less than 40 HP, 41 to 100 HP, More than 100 HP
Based on the Driveline Insights, the market is segmented into 2WD, 4WD
Based on the Regional Insights the market is segmented into North America, Europe, Asia Pacific, Latin America & Middle East & Africa
Market Share Insights
Key Companies Profile:
Some prominent players in the global agricultural tractors market include:
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