The global agricultural compact tractor market share is expected to increase by USD 296.78 million from 2019 to 2024, and the market’s growth momentum will accelerate at a CAGR of 4.45%.
This global agricultural compact tractor market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the global agricultural compact tractor market segmentation by engine capacity (20-40 hp and below 20 HP) and geography (APAC, North America, Europe, and South America). The global agricultural compact tractor market report also offers information on several market vendors, including AGCO Corp., CNH Industrial NV, Deere & Co., Doosan Corp., Escorts Ltd., Kubota Corp., Mahindra & Mahindra Ltd., Sonalika International Tractors Ltd., Tractors and Farm Equipment Ltd., and Yanmar Holdings Co. Ltd. among others.
What will the Global Agricultural Compact Tractor Market Size be During the Forecast Period?
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Global Agricultural Compact Tractor Market: Key Drivers, Trends, and Challenges
Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growing use of compact tractors by small-scale farmers is notably driving the global agricultural compact tractor market growth, although factors such as consolidation of agricultural land may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the global agricultural compact tractor industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Global Agricultural Compact Tractor Market Driver
The growing use of compact tractors by small-scale farmers is one of the key factors driving the growth of the global agricultural compact tractor market. Compact tractors are smaller than the average tractor and thus cost less. Despite the low costs, farmers can complete various tasks in the agricultural fields by using compact tractors along with small farm implements, front-end loaders, and small backhoes without depending on farm laborers. This is one of the key reasons for the growing adoption of compact tractors, especially by small and mid-size farmers, for whom getting sufficient financial capital is a major challenge. Large tractors offer high efficiency only on large tracts of land. However, for a small-scale farmer, large tractors would not be the ideal investment due to the small size of the landholding; moreover, as large tractors are costly, it would take a longer duration for the farmer to recover the return on investment (ROI) or break even when compared with a compact tractor. Thus, the demand for compact tractors is rapidly increasing among small farmers. Such factors will increase the market growth during the forecast period.
Key Global Agricultural Compact Tractor Market Trend
The investments in the development of the agriculture sector will fuel the global agricultural compact tractor market growth. Vendors constantly invest in various R&D activities to develop new technologies that not only benefit farmers but also make it possible to differentiate themselves from their competitors. These new technological innovations include drones, robots, self-driving tractors, and others. Other technological advances in the agricultural tractor sector include the inclusion of the Internet of things (IoT) sensors, wireless communication, cloud apps, and steering wheel replacements. Some technologies can also measure the amount of pressure being exerted on each seed while sowing. For instance, in September 2019, Bobcat, a subsidiary of Doosan Corp., reentered the compact tractor market with the launch of 15 different CT Series compact tractors. Similarly, in September 2017, AGCO invested $2 million in its Edgewood assembly and distribution facility for its Massey Ferguson brand of compact and utility tractors and equipment. Similarly, in July 2018, Kubota announced an investment of $62.15 million for tractors in its new European R&D Center. The center will be established in France and is expected to become fully functional during the forecast period.
Key Global Agricultural Compact Tractor Market Challenge
The consolidation of agricultural land is a major challenge for the global agricultural compact tractor market growth. Agricultural land is increasingly becoming consolidated in regions like Europe and the Americas. This consolidation also leads to the wider adoption and use of higher capacity agricultural equipment among farmers to ensure that all the agricultural operations are completed during the limited cycle time of the agricultural seasons. Agricultural compact tractors are mainly designed for use in small farms, while mid-power and high-power agricultural tractors, which offer higher efficiency, are mainly used in large farms. Thus, owing to the consolidation of farmland holdings, many farmers are opting to use tractors with a higher engine capacity as the use of these tractors allows the farmer to cover a wider field area within a given time. Therefore, the increasing consolidation of agricultural land and the decline in the number of small farms in Europe and the Americas may restrict the sales of new agricultural compact tractors, thereby posing a challenge to the overall market.
This global agricultural compact tractor market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.
Parent Market Analysis
Technavio categorizes the global agricultural compact tractor market as a part of the global agricultural and farm machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the global agricultural compact tractor market during the forecast period.
Who are the Major Global Agricultural Compact Tractor Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- AGCO Corp.
- CNH Industrial NV
- Deere & Co.
- Doosan Corp.
- Escorts Ltd.
- Kubota Corp.
- Mahindra & Mahindra Ltd.
- Sonalika International Tractors Ltd.
- Tractors and Farm Equipment Ltd.
- Yanmar Holdings Co. Ltd.
This statistical study of the global agricultural compact tractor market encompasses successful business strategies deployed by the key vendors. The global agricultural compact tractor market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market
Product Insights and News
- AGCO Corp. - The company agricultural compact tractors through its Massey Ferguson brand.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The global agricultural compact tractor market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Global Agricultural Compact Tractor Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the global agricultural compact tractor market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global agricultural and farm machinery market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Global Agricultural Compact Tractor Market?
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63% of the market’s growth will originate from APAC during the forecast period. India and China are the key markets for the global agricultural compact tractor market in APAC. Market growth in this region will be faster than the growth of the market in regions.
The growing use of compact tractors by small-scale farmers will facilitate the global agricultural compact tractor market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
Farming is one of the major contributors to India's GDP. Owing to the COVID-19 pandemic, the country witnessed the return of migrant laborers to their native places, which halted farming activities in different parts of India. The farmers' protest in the states of Punjab and Haryana was a major reason for the decline in tractor sales. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period.
What are the Revenue-generating Engine Capacity Segments in the Global Agricultural Compact Tractor Market?
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The global agricultural compact tractor market share growth by the 20-40 HP segment will be significant during the forecast period. In the 20-40 HP segment, agricultural compact tractors have an engine capacity of 20-40 HP and usually use a three-cylinder or a four-cylinder engine. One of the prominent drivers for the prominence of the 20-40 HP segment of agricultural compact tractors is the comparatively low capital investments that they require, which makes them an affordable option for small and mid-sized farmers.
This report provides an accurate prediction of the contribution of all the segments to the growth of the global agricultural compact tractor market size and actionable market insights on post COVID-19 impact on each segment.
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Global Agricultural Compact Tractor Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2019 |
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Forecast period |
2020-2024 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.45% |
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Market growth 2020-2024 |
$ 296.78 million |
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Market structure |
Concentrated |
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YoY growth (%) |
3.52 |
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Regional analysis |
APAC, North America, Europe, and South America |
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Performing market contribution |
APAC at 63% |
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Key consumer countries |
India, China, Australia, Canada, and France |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
AGCO Corp., CNH Industrial NV, Deere & Co., Doosan Corp., Escorts Ltd., Kubota Corp., Mahindra & Mahindra Ltd., Sonalika International Tractors Ltd., Tractors and Farm Equipment Ltd., and Yanmar Holdings Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Global Agricultural Compact Tractor Market Report?
- CAGR of the market during the forecast period 2020-2024
- Detailed information on factors that will drive global agricultural compact tractor market growth during the next five years
- Precise estimation of the global agricultural compact tractor market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the global agricultural compact tractor industry across APAC, North America, Europe, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of global agricultural compact tractor market vendors
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