US Agricultural Tractor Machinery Market by Type, Application, and Distribution Channel - Forecast and Analysis 2024-2028

US Agricultural Tractor Machinery Market Forecast 2024-2028

The US agricultural tractor machinery market size is forecast to increase by USD 3.84 billion, growing at a CAGR of 5.31% between 2024 and 2028. The growth rate of the market depends on several factors including the rising demand for food production, government support for agricultural development, and increasing availability of rental agricultural tractor machinery. 

AGCO Corp. provides a range of agricultural tractor machinery, including the Fendt 1100 Vario MT tractor, Fendt 1000 Vario tractor, Fendt Cargo T955 telehandler, Fendt Cargo T740 telehandler, Fendt Katana forage harvester, Fendt Cutter mowers, and Fendt Slicer mowers. CLAAS KGaA mBH also offers, agricultural tractor machinery, featuring models such as the Crop Tiger Terra Trac combines, Dominator 40 Terra Trac combines, Crop Tiger 40 Multicrop combines, Jaguar 800 forage harvesters, and Jaguar 25 forage harvesters, among others.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamic

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Driver - Rising demand for food production

The rising demand for food production is notably driving market growth in the US. Given the rising population in the US, the demand for food is expected to rise significantly during the forecast period. Additionally, agricultural tractors serve as indispensable tools in meeting this demand by enabling farmers to efficiently cultivate larger areas of land and boost agricultural productivity. Furthermore, from soil preparation and planting to crop maintenance and harvesting, tractors streamline essential farming tasks, allowing farmers to scale up their operations to meet the growing food requirements.

Moreover, the expansion of agricultural activities into previously uncultivated or underutilized land areas also drives the demand. As urbanization in the US intensifies, there is a need to reclaim marginal lands and employ modern farming techniques to maximize their agricultural potential. Tractors enable farmers to mechanize operations in challenging terrains, such as hillsides or remote areas, thereby unlocking new opportunities for agricultural production. Hence, the increasing demand for food production will drive growth in the US during the forecast period.

Key Trends - Increasing mechanization in agriculture

The increasing mechanization in agriculture is an emerging trend shaping market growth. As tractors are versatile machines, play a pivotal role in mechanizing various farming operations such as plowing, planting, cultivating, and harvesting. Modern tractors are equipped with advanced features such as GPS guidance systems, automated steering, and precision farming technologies, which enhance operational accuracy and reduce the wastage of resources such as fuel, seeds, and fertilizers. 

Furthermore, mechanized farming practices help mitigate risks associated with weather variability and labor shortages, thereby ensuring greater resilience in the face of challenges such as workforce fluctuations. Therefore, increasing mechanization in agriculture will drive the growth of the market in the US during the forecast period.

Significant Challenge - High costs of agricultural tractor machinery

The high cost of agricultural tractor machinery hampers the growth. In the case of farmers, especially those operating small to medium-sized farms, the substantial upfront investment required to purchase tractors and related equipment can be prohibitive. The average cost of machinery in the US typically ranges from USD 30,000 to USD 150,000, depending on factors such as size, horsepower, features, and brand. Also, the high cost limits the ability of farmers to invest in modern mechanized farming technologies, thereby hindering widespread adoption and market expansion. 

Additionally, the high cost can exacerbate disparities in access to modern farming equipment, perpetuating inequalities within the agricultural sector. Large commercial farms or agribusinesses with greater financial resources may have the ability to invest in advanced and high-capacity tractors, giving them a competitive advantage over smallholder farmers who cannot afford similar equipment. Hence, the high costs will hinder the growth during the forecast period.

Market Segmentation by Type, Application and Geography

Type Segment Analysis:

The market share growth by the wheel tractor segment will be significant during the forecast period. It is a versatile agricultural vehicle primarily used for towing or pulling heavy loads, plowing fields, and performing other farming tasks. Furthermore, tractors come in various sizes and power ratings, depending on the intended use and the type of terrain these are operated. These typically feature a front-mounted engine, a driver seat, and controls for steering, braking, and operating attachments.

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The wheel tractor segment was the largest segment and was valued at USD 8.73 billion in 2018. Furthermore, modern tractors often have enclosed cabs with climate control systems for the comfort and safety of the operator. The US is experiencing a shift from manual labor to mechanized farming practices. Tractors provide significant advantages over traditional methods such as agroforestry and crop rotation, allowing farmers to accomplish tasks more efficiently, save time, and increase yields. This transition toward mechanization drives the demand for wheel tractors, which, in turn, will boost the growth of the wheel tractor segment of the market in the US during the forecast period.

Application Segment Analysis:

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 tractor machinery is essential in modern agriculture, which enables farmers to perform a wide range of tasks more efficiently. The demand for tractors in farming is influenced by several factors, including agricultural practices, farm size, technological advancements, economic conditions, and government policies. 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 drives the market growth during the forecast period.

Who are the Major Market Companies?

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 such as TH255C telehandlers, TL642 telehandlers, TL642 w Stabilizers telehandlers, TL943 telehandlers, TL1255 telehandlers etc.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

AGCO Corp., Caterpillar Inc., CLAAS KGaA mBH, CNH Industrial N.V., Daedong Corp., Deere and Co., J C Bamford Excavators Ltd., Kubota Corp., KUHN SAS, Kverneland AS, Mahindra and Mahindra Ltd., Monarch Tractor, The Toro Co., Tuff bilt Tractor Systems, Yanmar Holdings Co. Ltd., and Zetor Tractors as 

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. 

Segment Overview

The market analysis and report forecasts market growth and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook
  • Wheel tractor
  • Crawler tractor

• Application Outlook
  • Farm
  • Landscape garden
  • Others

• Distribution Channel Outlook
  • Offline
  • Online

Market Analyst Overview

The Market in the US is witnessing dynamic growth fueled by factors like innovation, automation, and regulatory standards. From compact tractors to autonomous and electric models, the market showcases a shift towards greener technologies and increased efficiency. Telematics and Big Data integration optimize farming productivity, while regulatory scrutiny drives the adoption of emissions-reducing technologies. M&A activities and advancements in robotic technology further reshape the landscape, emphasizing sustainability and reduced power and machinery costs. With a focus on electrification and compliance with stringent environmental standards set by the US EPA, the market for agricultural tractors is poised for continued expansion and technological evolution in the coming years.

The market holds a prominent position within the global market, serving as a cornerstone of the farm industry. Despite the importance of skilled farm labor, the industry is witnessing a notable shift towards automation and the adoption of advanced technologies, including autonomous and compact-sized tractors. These advancements are supported by the Farm Service Agency (FSA), which facilitates access to farm equipment for agricultural operations. Market concentration is evident as manufacturers strive to enhance efficiency and reduce carbon emissions, with a particular focus on innovations such as electric tractors. Insights into engine power, drivelines, and propulsion systems guide the development of both 2WD and 4WD tractors, with critical components including hydraulic pumps, coolant pumps, and air brakes. Regulatory compliance with United States Environmental Protection Agency (US EPA) standards remains a key consideration, driving the industry's efforts towards sustainability and environmental responsibility.

Market Scope
Report Coverage	Details
Page number	142
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.31%
Market Growth 2024-2028	USD 3.84 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.93
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AGCO Corp., Caterpillar Inc., CLAAS KGaA mBH, CNH Industrial N.V., Daedong Corp., Deere and Co., J C Bamford Excavators Ltd., Kubota Corp., KUHN SAS, Kverneland AS, Mahindra and Mahindra Ltd., Monarch Tractor, The Toro Co., Tuff bilt Tractor Systems, 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, and 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market in US between 2023 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across US
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of market companies

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