The Worldwide Tractor Industry is Expected to Reach $66.1 Billion by 2027

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Dec 23, 2022, 07:30 ET

DUBLIN, Dec. 23, 2022 /PRNewswire/ -- The "Global Tractor Market, Share, Size, Forecast 2022-2027, Industry Trends, Growth, Impact of COVID-19, Opportunity Company Analysis" report has been added to ResearchAndMarkets.com's offering.

This report provides comprehensive details about Global Agricultural Tractors Industry. The global tractor market will reach US$ 66.1 Billion by 2027, from US$ 56.3 Billion in 2021.

Rising demand for food continues to impose heavy burdens on the agricultural sector, which remains reliant mainly on uncertain entities such as quality of soil weather and effectiveness of farming practices. However, farmers from several parts of the world rely on tractors for being essential agricultural machinery.

With the increased efficiency and productivity tractors brought, farms became larger because farmers could handle more land. The advent of the tractor allowed for specialization in crops and livestock, which shifted the farm economy to a cash-crop model and reduced the self-sufficiency of the farm. Tractors displaced mules and horses; as a result, farmers no longer needed to rise crop to feed work animals.

Global Tractor Industry will grow with a CAGR of 2.7% from 2021-2027

Worldwide, 7.9 Billion populations in 2021 are directly and indirectly dependent on agriculture.
In addition, the surge in population, advancements in tractor technology, and the rise in the appropriation of precision farming stimulate the growth of the global tractor market.

On the other hand, government initiatives for funding and assisting farmers with lower interest rates also expand the global agriculture tractor market. Growing farm cash receipt i.e. raises the affordability of tractors, profit and revenue generated from farming, which is expected to fuel the demand for agriculture tractors.

Four-Wheel Drive Global Agricultural Tractor Market

Based on type, Global Agricultural Tractor, the market is segmented into Four-wheel drive and Two-wheel drive. The enlargement in mechanization in the agriculture industry contributes to the growth of the four-wheel-drive tractors market. A four-wheel-drive (4WD) tractor comes with a four-wheel-drive axle that simultaneously spreads power to wheels. It helps in providing less slippage, excellent traction with better performance, more pulling power, is fuel-efficient, has longer service intervals, and distributes power to all wheels depending on the requirement.

Moreover, four-wheel-drive tractors and Two-wheel drive tractors are suitable for applications like land development & seedbed preparation, harvesting & threshing, Sowing & Planting, Weed Cultivation, etc. Due to the shortage of farm laborers, mostly in developed and developing economies most of the land is developed by four-wheel-drive tractors and Two-wheel drive tractors respectively.

Global Tractor Market Size was US$ 56.3 Billion in 2021

Furthermore, the main types of engine power are 100 HP to 150 HP, Less than 40 HP, 40 HP to 99 HP, 151 HP to 200 HP, 201 HP to 270 HP, 271 HP to 350 HP and Above 350 HP. The less than 40 HP tractors are mainly utilized for horticulture. In emerging countries, the demand for lower HP tractors is high due to the low disposable income of farmers. Besides, due to small farmland sizes, producers prefer small and customized tractors for agricultural purposes.

Asia-Pacific Commands the Agricultural Tractors Market

Based on geography, the global agriculture tractor industry is segmented into Europe, North America, Asia Pacific, and Rest of World. The Asia Pacific has emerged as a strong tractor market, with notable sales of tractors in India and China. Although China has significantly accelerated the adoption of tractors in recent years, its overall development of agricultural machinery is one of the crucial carriers for modern agriculture and a tool for improving farm productivity and liberating agricultural labor shortage. China introduced the 'Made in China 2025' scheme, focusing on producing 90% of its agricultural equipment with high-end machines, like agricultural tractors.

COVID-19 Impact in Worldwide Tractor Industry

Tractor industry has observed a sharp decline in the pandemic period, and the most affected company is the dealership system, owing to the disturbances in the supply chain. The global agricultural tractors market is an evolving industry, which has been hindered due to the unavailability of a workforce due to the corona virus's spread. This has disrupted the production and installation of agriculture tractors across affected countries.

Company Aspect

The global tractor market is compressed, with major players such as John Deere's, CNH Industrial, AGCO Corporation, KUBOTA Corporation, Mahindra & Mahindra, Claas KGaA mbH, Argo Group International Holdings Ltd., Escorts Ltd. The market share is cornered by established brands in their particular country.

Key Topics Covered:

1. Introduction

2. Research & Methodology

3. Executive Summary

4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges

5. Global Agricultural Tractors Market

6. Market Share - Global Tractor Analysis
6.1 Drive Type
6.2 By Engine Power
6.3 By Application
6.4 By Region

7. Drive Type - Global Tractor Market
7.1 Two Wheel Drive
7.2 Four Wheel Drive

8. Engine Power - Global Tractor Market
8.1 Less than 40 HP
8.2 40 HP to 99 HP
8.3 100 HP to 150 HP
8.4 151 HP to 200 HP
8.5 201 HP to 270 HP
8.6 271 HP to 350 HP
8.7 Above 350 HP

9. Application - Global Tractor Market
9.1 Land Development & Seed Bed Preparation
9.2 Sowing & Planting
9.3 Weed Cultivation
9.4 Plant Protection
9.5 Harvesting & Threshing
9.6 Post-harvest & Agro Processing

10. Region - Global Tractor Market
10.1 North America
10.2 Europe
10.3 Asia-Pacific
10.4 Rest of the World

11. Porters Five Forces
11.1 Overview
11.2 Bargaining Power of Buyers
11.3 Bargaining Power of Suppliers
11.4 Degree of Competition
11.5 Threat of New Entrants
11.6 Threat of Substitutes

12. Company Analysis
12.1 John Deere's
12.1.1 Overview
12.1.2 Recent Development
12.1.3 Revenue
12.2 CNH Industrial
12.2.1 Overview
12.2.2 Recent Development
12.2.3 Revenue
12.3 AGCO Corporation
12.3.1 Overview
12.3.2 Recent Development
12.3.3 Revenue
12.4 KUBOTA Corporation
12.4.1 Overview
12.4.2 Recent Development
12.4.3 Revenue
12.5 Mahindra & Mahindra
12.5.1 Overview
12.5.2 Recent Development
12.5.3 Revenue
12.6 Claas KGaA mbH
12.6.1 Overview
12.6.2 Recent Development
12.6.3 Revenue
12.7 Argo Group International Holdings Ltd.
12.7.1 Overview
12.7.2 Recent Development
12.7.3 Revenue
12.8 Escorts Ltd.
12.8.1 Overview
12.8.2 Recent Development
12.8.3 Revenue