Agricultural Tractors Market Projected to Reach USD 125.95 billion, at a 4.90% CAGR by 2030 – Report by Market Research Future (MRFR)

Agricultural Tractors Market Growth Boost by Growing Adoption of Smart Farming, Advanced Technology and Rising Demand for The Development

New York, US, May 30, 2023 (GLOBE NEWSWIRE) -- According to a Comprehensive Report by MRFR/Market Research Future (MRFR), “Agricultural Tractors Market Information By Engine Power, Application, Type, Operation, Driver Type, and Region - Forecast till 2030", By 2030, the market for agricultural tractors can expand from USD 90.11 billion in 2022 to USD 125.95 billion, at a rate of 4.90% between 2022 and 2030.

Agricultural Tractors Market Overview

Agricultural tractors are mostly used on farms for a variety of farming tasks, such as tilling, plough, and planting fields. In addition, they are utilised for other farming tasks such as bush clearing and fertiliser application. Depending on the needs of the customer, a broad variety of contemporary agricultural tractors are offered on the market. The labour deficit for agricultural activities has gotten worse as a result of growing urbanisation. The agricultural tractor market is anticipated to experience a boom in demand as a result of this scarcity. With capacities ranging from less than 40 HP to more than 100 HP, modern agricultural tractors are ideally suited for a variety of farming operations needs. Tractor use in farming operations increases productivity while using the least amount of resources.

Market Competitive Landscape:

The affluent payers active in the agricultural tractors industry are

  • Deere & Company
  • SDF
  • Mahindra & Mahindra Limited
  • CNH Industrial
  • Massey Ferguson
  • Among others.

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Agricultural Tractors Market COVID 19 Analysis

Due to the rising COVID-19 cases, OEMs are currently dealing with a shortage of chips, supply chain interruptions, and market instability. This could cause production to be delayed. In addition, a rise in the price of steel and aluminium is anticipated to drive up the cost of tractors, which is anticipated to restrain market expansion over the next quarters. However, during the projected term, favourable government policies are predicted to promote market expansion. The Precision Agriculture Loan (PAL) Act, for instance, was submitted by the U.S. Department of Agriculture (USDA) on September 15, 2022, to enable farmers and ranchers to get loans for the purchase of precision agriculture equipment.

Report Scope:

Report Metrics Details
Market Size 2030 2030: USD 125.95 billion
CAGR during 2022-2030 4.90% CAGR
Base Year 2021
Forecast 2022-2030
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Engine Power, Application, Type, Operation, Driver Type, and Region
Key Market Opportunities Rising demand for the development of modernization of agricultural implements
Key Market Dynamics Increasing need for productivity and the growing adoption of smart farming Rising demand for agricultural machinery in the agricultural industry

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Agricultural Tractors Market:

Agricultural Tractors Market USP Covered:

Market Drivers:

Growth will be fostered by the rise in demand for smaller tractors on small farms and technological advancements like the integration of telematics with agricultural tractors. Additionally, it is anticipated that the industry would expand favourably over the next eight years due to the swift adoption of mechanisation. The market is also expected to expand as a result of the migration of farm workers to cities, which would cause a labour shortage. Product demand was hampered as a result of the COVID-19 outbreak's brief production halt and supply chain disruption.

With double-digit growth in important markets including the U.S., Canada, the U.K., Germany, China, and India, the demand for tractors did, however, dramatically rebound in H1 2022. Additionally, robust crop production in these countries and the necessity to replace outdated machinery led to an increase in product sales in H1 2022. Tractor inventory levels dropped in H2 2022, though, due to a rapid rise in demand. This pattern is anticipated to continue throughout the next few quarters of 2022. The market growth is likely to slow down in 2022 as OEMs are predicted to raise agricultural tractor prices by 4% to 22%. It is blamed on the low tractor inventory levels that dealers have encountered.

Government measures that favour the market are projected to accelerate market expansion during the forecast period. For instance, it is anticipated that over the projected period, product demand will rise as a result of the adoption of the Canadian Agricultural Loans Act (CALA) and the U.K. Agriculture Act 2020. Such activities are predicted to fuel market expansion during the foreseeable timeframe. It is also projected that technical advancements in agricultural tractors will be beneficial for the market's growth throughout the course of the forecast period. The increasing usage of driverless and electric tractors, for instance, will increase farming productivity.

Market Restraints: 

Over the review period, market growth can be hampered by governments around the world implementing strict laws for emission control. 

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Agricultural Tractors Market Segmentation

By Engine Power

Depending on engine power, the agricultural tractors market is divided into five categories: engines with less than 40 HP, those with 120–180 HP, those with 121–250 HP, and those with more than 250 HP. The majority of the agricultural tractors market's revenue in 2021 was generated by the below 40 HP category.  

By Application

Harvesting, seed sowing, irrigation, and other applications are included in the segmentation of the agricultural tractors market based on application. The harvesting segment dominated the market in 2021 and is anticipated to grow at the fastest rate from 2022 to 2030. This is a result of the rising need for harvesting vehicles in the agricultural industry. However, due to the rising worldwide need for food and the increasing scarcity of freshwater, irrigation will experience the largest rise throughout the course of the projected period.

By Tractor Type

With respect to the tractor type, the agricultural tractors market has been divided into two categories: ICE and electric. The electric segment dominated the market in 2021 and is anticipated to grow at the fastest rate from 2022 to 2030. This is linked to the rising acceptance of electric and driverless agricultural tractors. However, due to technical development and the improvement of mechanical processes, ICE will experience the largest growth during the projection period.

By Operation

The global market for agricultural tractors has been divided into two operation types: manual tractor vehicles and autonomous tractor vehicles. In 2021, autonomous tractor vehicles accounted for the greatest segment share.  

By Driver Type

The agricultural tractors market has been divided into 2-wheel drive and 4-wheel drive categories based on the kind of driver. In 2021, 2-wheel drive vehicles had the highest segment share. 

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Agricultural Tractors Market Regional Insights

The agricultural tractors market in North America, which had sales of USD 37.71 billion in 2021, is anticipated to increase at a substantial CAGR over the research period. This is explained by the fact that the important companies in the area are there, supporting the market. The need for automated agricultural tractors is anticipated to increase as a result of technological development in these areas. Market expansion in the area will benefit from the mounting demand for agricultural products in the food and beverage sector in North America.

From 2022 to 2030, the agricultural tractors market in the Asia-Pacific region is anticipated to expand at the fastest rate. Asia-Pacific is now the largest market for agricultural machinery due to the region's strong agricultural presence in growing nations like China and India. Additionally, India is experiencing the quickest development while China has the top spot in the market for agricultural tractors.

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