Agriculture Tractor Market Size, Share, Industry, and COVID-19 Impact Analysis, By Drive Type (2 Wheel Drive (2WD), 4 Wheel Drive (4WD)), By Engine Power Type (Less than 40HP, 40 to 100HP, 101 to 150HP, 151 to 200HP, More than 200HP), By Type (Orchard Tractors, Row Crop Tractors, Other Tractors), By Operation Type (Manual Tractors, Autonomous Tractors), and Regional Forecast, 2024-2032

Agricultural tractors are used on farms for various farming tasks such as tilling, plowing, and planting fields. They are also used for distributing fertilizer, removing brush, and other agricultural chores. There are several types of tractors in the market. The global tractor market share is growing due to increased government expenditure on new infrastructure and construction facilities, raising the demand for transportation tractors.

• For example, the Australian government has expanded infrastructure investment; from 2018 to 2020, spending climbed by 10.3%.

The global agriculture tractor market is growing due to rise in mechanization of agricultural equipment such as tractors in India, Brazil, China, and others. The market is expanding due to increased demand for high-efficiency tractors for different applications such as planting, sowing, and others. Tractors with power output ranges of 50-100 HP are available from Mahindra & Mahindra Ltd (NOVA Tractor). It features a strong engine, ideal for hard and sticky soil conditions coupled with good cooling system.

Moreover, the demand for high-performance tractors for muddy and heavy soil conditions is also increasing. Major manufacturers, such as John Deere India Private Limited, Mahindra & Mahindra Ltd, and VST Tillers and Tractors Ltd, for example, provide tractors with power outputs above 100 HP. John Deere & Company (John Deere 6120 B Tractor) has a 120 HP engine with four cylinders and a turbocharged John Deere Power Tech engine.

The lack of awareness about efficient tractors among farmers in any specific region limits market expansion. Furthermore, government attempt to help and offer subsidies to farmers with low credit rates is expected to create profitable chances for the global agriculture tractor market growth.

• For instance, various government programs in India, such as the PM Kisan Tractor Yojana and the Telangana Yantra Laxmi Scheme, provide farmers with a 20% to 50% subsidy on tractors.


• In September 2021, the U.S. Department of Agriculture (USDA) introduced a (PAL) Precision Agriculture Loan Act to allow farmers to avail loans to purchase precision agriculture equipment.

Impact of COVID-19 on the Agriculture Tractor Market

The industry witnessed a drastic drop in activity during the COVID-19 pandemic, with the dealership network being the most affected, owing to supply chain disruptions. Furthermore, production units were not fully operational. Production of commodities was delayed as supply was disrupted due to travel restrictions, resulting in a dramatic reduction in tractor sales during the pandemic. As the situation in many nations normalized, by half of 2021, the influence on the agriculture tractor market lessened. Also, travel restrictions across countries have led to a shortage of seasonal farm labor creating a heavy impact, especially in the ongoing and upcoming planting seasons worldwide.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships


• Porter’s Five Forces Analysis


• PEST Analysis


• Technological Developments


• Impact of COVID-19 on the Market

Analysis by Drive Type

By drive type, the agriculture tractor segment is divided into 2 wheel drive (2WD) and 4 wheel drive (4WD). 4WD is expected to grow over the forecast period due to its mechanical advantages. Attributed to its technical factors, 4WD provides enhanced performance and high speed while reducing slippage since all four wheels receive power from the engine. This makes it efficient for heavy load tasks and on any terrain tasks. All these factors uplift the 4WD segment.

Regional Analysis

The market is segmented into four regions, North America, Europe, Asia Pacific, and the rest of the world. Asia Pacific leads the global market and will likely maintain its dominance during the forecast period. This is due to the fact that the agricultural industry is more prevalent in Asian nations such as India and China. APAC is the largest and fastest expanding market for agricultural tractors. Furthermore, the government adopting innovative farming practices is expected to promote the industry over the forecast period. Increased demand for agricultural goods from Asian countries may increase the tractor demand.

Governments in APAC are also offering subsidiaries and reduced taxes on agricultural machinery, which would help the industry flourish. China has undertaken "Farm Mechanization," which has resulted in increased demand. Europe and the U.S. are expected to grow, followed by APAC.

Key Players Covered

• John Deere & Company (U.S.)


• Mahindra & Mahindra (India)


• Massey Fergusson (U.S.)


• Escorts Limited (India)


• CNH Industrial N.V. (Netherlands)


• Tractors and Farm Equipment Ltd (India)


• Kubota Corporation (Japan)


• SDF Group (Italy)


• Kioti Tractors (U.S.)


• AGCO Tractors (U.S.)

Segmentation

Key Industry Developments

• In May 2022, Massey Fergusson launched a compact but agile & powerful MF5S series. They ranged from 115 145 HP for material handling and farming activities.


• In July 2021, New Holland North America updated its portfolio by adding the T7 Heavy-duty Tractor with PLM Intelligence to its agricultural tractor lineup. The new tractor is intended to help farmers be more productive by allowing them to multitask in various fields and transport operations.


• In February 2021, Tractors and Farm Equipment (TAFE), the manufacturer of Massey Ferguson tractors, introduced its new DYNATRACK Series, an advanced range of tractors that offer dynamic performance and sophisticated technology, utility, and versatility, all engineered into a single powerful tractor.