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The agricultural tractor machinery market size is forecast to increase by USD 23.46 billion, at a CAGR of 5.63% between 2023 and 2028. The growth rate of the market depends on several factors, such as the increasing availability of agricultural tractor machinery through rentals, the rising innovation of equipment and technologies for precision farming, and the increase in M&A activities among companies. Our report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
The APAC market is driven by the imperative to enhance efficiency, and productivity, and address the rising demand for food. AGCO Corp provides advanced agricultural tractor machinery, empowering farmers with unparalleled productivity in large acreage operations. Argo Tractors SpA presents agricultural tractor solutions that optimize traction and speed across various terrains, ensuring superior horsepower and control without compromise.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The rising availability of farm machinery through rental facilities has been significant for market growth. In addition, rental services also help end-users to save on the initial investments required to purchase agricultural tractor machinery. Furthermore, renting agricultural tractor machinery enables farmers to access the latest tractor models and technology without the need for significant investments.
Moreover, rental companies often update their inventory regularly, offering farmers the opportunity to use advanced tractors with improved features and capabilities. In addition, the availability of agricultural machinery on a rental basis allows end-users to gain access to machinery that incorporates the latest technologies. Furthermore, end-users also do not have to worry about servicing and maintenance. Hence, such factors are driving the market growth during the forecast period.
The implementation of AI in agricultural tractor machinery has the potential to transform farming practices by enhancing efficiency, productivity, and sustainability. In addition, AI can enable tractors to operate autonomously, reducing the need for human intervention. Furthermore, tractors equipped with sensors, cameras, and GPS systems can navigate fields, detect obstacles, and adjust their paths accordingly.
Moreover, AI algorithms analyze the data collected to optimize route planning, reduce overlap, and improve overall field coverage. In addition, AI-powered tractors can contribute to precision farming techniques by applying inputs such as fertilizers, pesticides, and water in a targeted and controlled manner. Furthermore, by analyzing data from soil sensors, weather forecasts, and historical yield information, AI algorithms can determine the optimal amount and timing of inputs, minimizing waste and maximizing crop health. Hence, such factors are driving the market growth during the forecast period.
Agricultural machinery manufacturers increasingly invest significant funds in designing and developing advanced equipment that meets the specific requirements of farmers. In addition, the costs incurred during the R and D phase, including prototyping, testing, and refinement, contribute to the overall price of the machinery. Furthermore, the production of agricultural machinery involves various expenses, such as raw materials, labor, and machinery maintenance costs.
Moreover, the complexity of manufacturing processes, especially for advanced machinery, can lead to higher costs. In addition, machinery and equipment are major cost items in farm businesses. Furthermore, larger machines, new technology, higher prices for parts and new machinery, and higher energy prices have increased the price of machinery and power in recent years. Hence, such factors are hindering the market growth during the forecast period.
The wheel tractor segment is estimated to witness significant growth during the forecast period. A wheel tractor segment is a versatile agricultural vehicle mainly used for towing or pulling heavy loads, plowing fields, and other farming tasks. In addition, tractors come in various sizes and power ratings, depending on the intended use and the type of terrain they will operate on.
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The wheel tractor segment was the largest segment and was valued at USD 49.35 billion in 2018. Moreover, they typically feature a front-mounted engine, a driver seat, and controls for steering, braking, and operating attachments. In addition, modern tractors often have enclosed cabs with climate control systems for the comfort and safety of the operator. Furthermore, tractors are essential in the agricultural sector for tasks such as plowing, planting, harvesting, and hauling. In addition, tractors provide significant advantages over traditional methods, allowing farmers to accomplish tasks more efficiently, save time, and increase yields. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the application, the market has been segmented into farm, landscape garden, and others. The farm segment will account for the largest share of this segment. Agricultural tractors machinery is crucial in modern agriculture, enabling farmers to perform a wide range of tasks more efficiently. In addition, the demand for tractors in farming is influenced by several factors, including agricultural practices, farm size, technological advancements, economic conditions, and government policies. Moreover, larger farms require more powerful and versatile tractors to cover larger areas and handle heavier workloads. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 42% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC region comprises several countries with large agricultural sectors, such as China, India, Japan, Australia, and Indonesia. In addition, these countries rely heavily on agricultural activities to support their populations and contribute to their economies. Moreover, many countries in APAC are transitioning from traditional farming methods to mechanized agriculture. In addition, this shift is driven by the need to improve efficiency and productivity and meet the growing food demand. Furthermore, tractors play a crucial role in this mechanization process. APAC countries often have vast agricultural lands, and there is a trend toward larger-scale farming operations. In addition, to manage extensive farms effectively, farmers and agricultural enterprises require powerful and reliable tractors to carry out various tasks, such as plowing, planting, harvesting, and transportation. Hence, such factors are driving the market growth in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Caterpillar Inc: The company offers agricultural tractor machinery with various equipment, used for different crops all together such as olives, fruits, grapes, and other unique crops.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Alamo Group Inc, CLAAS KGaA mBH, CNH Industrial NV, Daedong Corp., Deccan Farm Equipments Pvt. Ltd., Deere and Co., ISEKI and Co. Ltd., JCB Co. Ltd., Jiangsu Yueda Intelligent Agricultural Equipment Co. Ltd., Kubota Corp., Mahindra and Mahindra Ltd., Mitsubishi Heavy Industries Ltd., SDF SpA, Titan Machinery Inc., Tractors and Farm Equipment Ltd., Yanmar Holdings Co. Ltd., and Zetor Tractors.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The Agricultural Tractors Market plays a crucial role in modern farming operations, addressing tasks such as plowing, tilling, planting, spreading fertilizers, and clearing bushes. The market is influenced by factors like the cost of labor, urbanization, and migration, which impact the overall cost of production. Mechanization, supported by government subsidies and technological advancements, is transforming the farming landscape, offering benefits to farmers and businesses alike. Market players focus on research and development to enhance equipment, ensuring a strong market position.
Key trends include the introduction of the 8 Family Tractor line-up and the adoption of precision agriculture technology. Modern tractors come with various machine configurations, options, and horsepower, meeting the demands of skilled labor. Specialized and modern tractors cater to market trends such as farm mechanization, particularly in developing markets. Precision farming, incorporating high-precision positioning systems like GPS and GNSS, along with automated steering systems, geo-mapping, sensors, and display systems, has become integral. This technology improves seeding, planting, harvesting, and field preparation processes.Farm training programs and advanced agricultural machinery further contribute to the market's dynamic performance. High-powered tractors address challenges like soft soil conditions and river basins. The availability of 40 HP tractors supports horticulture in developing countries, catering to disposable income levels and small farmland sizes. Fuel efficiency is a crucial aspect for small tractors, benefitting marginal farmers. Government initiatives, such as equipment purchases through bulk buying from front-end agencies, contribute to the market's growth. The Agricultural Tractors Market continues to evolve, offering unmatched utility and versatility in line with sophisticated technology, ensuring a positive outlook for the forecast period.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.63% |
Market Growth 2024-2028 |
USD 23.46 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.23 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, India, Indonesia, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGCO Corp., Alamo Group Inc., Argo Tractors SpA, Caterpillar Inc., CLAAS KGaA mBH, CNH Industrial NV, Daedong Corp., Deccan Farm Equipments Pvt. Ltd., Deere and Co., ISEKI and Co. Ltd., JCB Co. Ltd., Jiangsu Yueda Intelligent Agricultural Equipment Co. Ltd., Kubota Corp., Mahindra and Mahindra Ltd., Mitsubishi Heavy Industries Ltd., SDF SpA, Titan Machinery Inc., Tractors and Farm Equipment Ltd., Yanmar Holdings Co. Ltd., and Zetor Tractors as |
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 the forecast period. |
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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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