Belgium Tractor Market Outlook Report 2023-2028: Growth in Agricultural Productivity and Exports and Increased Government Subsidies & Credit-Support Systems Bolster Growth
DUBLIN, Jan. 9, 2024 /PRNewswire/ -- The "Belgium Tractor Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The Belgium tractor market is expected to grow at a CAGR of 2.83% from 2022-2028.
Flanders and the Wallonia have reportedly shown a higher demand for agriculture tractors than the Brussels region of the country. In 2022, the Flanders region held the share of the Belgium tractor market, accounting for over 50%. Flanders has a demand for various types and sizes of tractors, ranging from small utility tractors for specialized farming tasks to larger models for more extensive agricultural operations.
The choice of a tractor depends on the specific needs of individual farmers. The Belgian government, including the regional government of Flanders, offers subsidies and incentives to promote sustainable agriculture, rural development, and innovation in farming practices.
John Deere, New Holland, and Fendt dominated the Belgium tractor market with a collective market share of over 50% in 2022. These brands have adopted several strategies to gain traction in the market. The industry has highly established players in various segments, including open fields and horticulture. Further, the threat to existing vendors in the region from new vendors is quite low.
Belgium has over 11.6 million food consumers. The country witnessed a massive increase in farm mechanization in terms of agricultural and industrial productivity. The Belgium tractor industry is highly concentrated, with the top players controlling most of the market. Domestic and global brands, on the other hand, are equally represented in the industry.
The Belgian government plans schemes and initiatives to facilitate credit and improve agriculture-related operations, which will contribute to the growth of the overall value chain of the industry. The Belgium tractor market decreased by 11.2% in 2022 from 2021. The decrease in crop production and tractor sales was due to price and supply chain challenges and unfavorable climate conditions.
MARKET TRENDS & OPPORTUNITIES
Increasing Use of Bioenergy in Agricultural Tractors
Conventionally, farmers used diesel engine tractors known for their high power. Tractors are now more efficient and can complete tasks with less power requirements due to advances in machine technologies and engines. The volatility in diesel prices hampers the budget management of farmers. Thus, the Belgium tractor industry witnesses a considerable demand for tractors that run on different fuels, such as plant-oil and biogas-powered tractors.
Technological Advances in Tractor Technology
A new frontier of innovation emerged as agriculture met digital technology, opening various paths to a smart agricultural future. Tractor manufacturers are competitive, and companies constantly strive to innovate and ensure product differentiation at affordable prices. State-of-the-art technology-based tractors are currently available in the industry. GPS and remote sensing make farming more accurate and productive.
SEGMENTATION INSIGHTS
INSIGHTS BY HORSEPOWER
The less than 50 HP horsepower segment generated the highest sales in almost all the regions in the Belgium tractor market in 2022. This segment mainly includes semi-professional tractors with a customer base in small-scale agriculture farms and hobby farmers.
Tractors with low engine power take up less space and are more versatile because their engines have a capacity of less than 1,500 cc. Manufacturers are more likely to experiment with or modify such tractors before moving on to higher-powered ones due to the ease of customization. Further, the demand for tractors in the 251-300 HP power range will remain steady during the forecast period.
INSIGHTS BY DRIVE TYPE
Ease of driving and flexibility with light loads and in plain fields are significant factors that boost the demand for two-wheel-drive tractors. In 2022, the 2WD drive type segment dominated the Belgium tractor market.
The region has many small-scale farmers, with an average farm size of ten hectares. Therefore, farmers prefer to own compact-size machines or equipment. Moreover, power paddles are attached to 2WD for use in wheat plantations in the region. John Deere, New Holland, and Fendt hold most of the 2-wheel drive tractors segment shares.
WHY SHOULD YOU BUY THIS REPORT?
- Market Size & Forecast Volume (Units) 2020-2028
- Production and trade values
- Major current and upcoming projects and investments
- Competitive intelligence about the economic scenario, advantages in Belgium, market dynamics, and market shares
- Innovative technologies
- Company profiles of major and other prominent vendors
Recent Developments in the Belgium Tractor Industry
- In March 2023, John Deere announced MY24 updates for its 7, 8, and 9 Series Tractors lineup that will help prepare them for the future of precision agriculture.
- John Deere launched the new electric variable transmission (EVT) for select 8 Series Tractors and a new JD14X engine for 9 Series in March 2022.
- Massey Ferguson launched the MF 6S series tractors in February 2022; the machine provides up to 180 HP with advanced technology.
Market Opportunities & Trends
- Increased Focus on Smart & Autonomous Tractors
- Swath Control and Variable Rate Technology (Vrt)
- High Demand for Autonomous Equipment
- Shortage of Agricultural Laborers
- Increasing Use of Bioenergy in Agricultural Machinery
Market Growth Enablers
- Government Subsidies & Credit-Support Systems
- Growth in Agricultural Productivity and Exports
- Growing Farm Mechanization
Market Restraints
- High Demand for Used & Rental Tractors
- Unfavorable Weather Conditions
- Lack of Awareness of Latest Innovations in Agricultural Tractors
- Lack of Education Among Farmers
Key Company Profiles
- John Deere
- CNH Industrial
- AGCO
- Deutz-Fahr
Other Prominent Vendors
- CLAAS
- ISEKI
- BRANSON
- Escorts
- Kubota
- Lovol
- Solis
- TYM Corporation
- LS Tractor
- KIOTI
- YANMAR
Segmentation by Horsepower
- Less than 50 HP
- 50-100 HP
- 101-140 HP
- 141-180 HP
- 181-250 HP
- 251-300 HP
- Above 300 HP
Segmentation by Wheel Drive
- 2-Wheel-Drive
- 4-Wheel-Drive
Segmentation by Region
- Flanders
- Wallonia
- Brussels
For more information about this report visit https://www.researchandmarkets.com/r/krf87y
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