Canada Tractors Market Industry Report 2024 - Compound Annual Growth of 2.5% Forecast During 2023-2029, with Market Set to Reach 32,270 Units in 2029

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Mar 21, 2024, 20:00 ET

DUBLIN, March 21, 2024 /PRNewswire/ -- The "Canada Tractors Market - Industry Analysis & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The Canadian tractors market witnessed shipments of 27,823 units in 2023 and is expected to grow at a CAGR of 2.5% from 2023-2029, to reach 32,270 units in 2029.

The tractors market in Canada is expected to witness considerable year-over-year (YoY) growth due to the following factors:

Shortage of Farm Labor: The agricultural sector faces a labor shortage in the country, driving the demand for mechanized farming equipment, including tractors. Tractors can help farmers perform various tasks more efficiently and productively, with less reliance on manual labor.
High Demand for Efficient and Advanced Tractors: Farmers increasingly demand efficient and advanced tractors to help reduce operating costs and improve productivity. Tractors with advanced features like GPS guidance, telematics, and precision agriculture capabilities are in high demand.
Launch of Several Schemes In The Agricultural Sector: The Canadian government is launching various schemes to promote agricultural mechanization. These schemes typically provide subsidies or financial assistance to farmers to purchase agricultural machinery, including tractors.
Shift Toward Electric-Powered Tractors: Electric-powered tractors are gaining popularity due to their environmental benefits and lower operating costs. Electric tractors produce zero emissions, which helps to reduce greenhouse gas emissions and air pollution. They also have lower operating costs than diesel-powered tractors, as electricity is cheaper than diesel fuel.
Advent of Intelligent & Smart Tractors: Intelligent and innovative tractors are equipped with advanced technologies, such as artificial intelligence (AI) and machine learning (ML), which enable them to perform tasks more autonomously and efficiently. Intelligent tractors can self-drive, navigate fields, and even make decisions about crop management.

In addition to the above factors, Canada's tractor market's growth is also driven by the increasing demand for food products and the expansion of agricultural land. Farmers are increasingly adopting mechanization to meet the growing food demand and improve profitability.

Market Opportunities & Trends

Increased Focus on Smart & Autonomous Tractors
- Swath Control & Variable Rate Technology (VRT)
- High Demand for Autonomous Equipment
Use of Energy-Efficient Agriculture Tractors
Shortage of Agricultural Labor
- Fall in Farming Interest
- Youth Engagement

Market Growth Enablers

Government Subsidies & Credit Support Systems
Increased Farm Mechanization

Market Restraints

Lack of Awareness of Latest Agriculture Equipment & Innovations
- Lack of Education Among Farmers
High Demand for Used & Rental Tractors

SEGMENTATION INSIGHTS

INSIGHTS BY HORSEPOWER

The less than 25 HP segment recorded a high share in the Canada tractors market in 2023. The significant factors for the increasing growth of the low-power range of tractors are versatility and adaptability, cost-effectiveness, availability of small and medium-sized farms, and operational flexibility. Tractors in this HP range can easily handle small and medium-sized fields and heavy-duty mowing tasks.

Market Trends Driving less than 25 HP Range Tractor Sales:

Crop Adaptability: These HP range of tractors are favored by farmers due to their versatility across various crops, accommodating the diverse agriculture seen across the country.
Sustainability Focus: Sustainable farming practices are a priority, and small & medium-sized tractors, with their efficient power-to-efficiency ratio, align well with eco-friendly approaches.
Cost-Effective Solutions: Small and medium HP tractors offer cost-effective alternatives to larger models, attracting budget-conscious farmers while delivering substantial performance.

INSIGHTS BY WHEEL DRIVE

Canada's tractors market is dominated by low-range HP 2WD tractors. Among the several tractor models available in the country, 2WD tractors are the most favored by farmers. Ease of driving and flexibility with light loads and in plain fields are significant factors that boost the demand for two-wheel-drive tractors. John Deere, New Holland, Massey Ferguson, and Kubota hold most of the 2-wheel drive tractors segment shares. Furthermore, industry players try to redesign their 2WD tractors with more power and ease of handling features so that farmers can upgrade their tractors and buy new ones for their use.

REGIONAL ANALYSIS

The Prairie province held the highest share of the Canadian tractors market, accounting for more than 50% in 2023. The prairie province market growth can be attributed to many smallholder farmers in the region and the increasing government support for agricultural mechanization. Ontario and Quebec are also expected to be significant markets for agricultural tractors due to the high adoption of advanced farming practices in these regions/provinces. Further, improvements in agricultural production in the Prairie provinces can be used to create awareness of new tractors and improved implements, which will help to increase farm yields. Vendors must create awareness of the benefits of advanced agricultural machinery in the provinces.

COMPETITIVE LANDSCAPE

Canada's tractors market is characterized by various vendors that account for most of the market share. Therefore, it would be difficult for new players to compete with well-established vendors in the industry. The key competitive factors of the industry players include efficiency, product reliability & availability, after-sales service, and price.

John Deere, CNH Industrial, AGCO Corporation, and Kubota dominated the Canada tractor market with a collective market share of over 60% in 2022. These brands have adopted several strategies to gain traction in the industry. These companies invest heavily in research and development to develop new and innovative tractor technologies. They are also expanding their presence in emerging markets to capitalize on the growing demand for agricultural tractors.

Key Company Profiles

John Deere
CNH Industrial
AGCO
Kubota
Mahindra

Other Prominent Vendors

CLAAS
Same Deutz-Fahr
Buhler Industries
Yanmar
Solis
Kioti
Arbos
Antonio Carraro
MTW Holdings
JCB
Zetor

This report is among the few in the market that offer outlook and opportunity analyses forecast in terms of:

Market Size & Forecast Volume (units) 2020-2029.
Segmentation by Horsepower
Segmentation by Drive Type
Segmentation by Geography
Production and trade values
Major current and upcoming projects and investments
Competitive intelligence about the economic scenario, advantages, industry dynamics, and shares
Innovative technologies
Market share by each HP segment
Market share by each country
Company profiles of primary and other prominent vendors
Market shares of major vendors

Report Segmentation

Segmentation by Horsepower

Less than 25 HP
25-35 HP
36-45 HP
46-65 HP
66-100 HP
Above 100 HP

Segmentation by Drive Type

2-Wheel-Drive
4-Wheel-Drive

For more information about this report visit https://www.researchandmarkets.com/r/ixwmfd

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