The Farm Tractor Market reached a value of US $ 66.7 Bn. in 2020. Global Farm Tractor Market size is expected to grow at a CAGR of 5.1%. The market is expected to reach a value of US $ 94.48 Bn. in 2027.
Farm Tractor Market Overview:With the rising food demand, population growth, water scarcity, insufficient land, and soil fertility deterioration, the global agricultural industry is experiencing production-specific issues. As a result, there is an increase in mechanization innovation, which is expected to drive farming efficiency. Tractors are the 56th largest traded product in the world. In 2019, the total trade volume was 57 billion U.S. dollars, and tractor exports fell -4.59%. Trade-in tractors represent 0.31%of total world trade. Agriculture has grown into a diversified and complicated industry around the world, with operating units ranging from tiny family farms to enormous multinational agricultural holdings. Food poverty and malnutrition have become important global concerns as the world's population grows, particularly in developing economies. By 2050, the world's population is expected to reach approximately 10 billion, based on current and anticipated growth rates. Aside from agricultural, social, and economic growth drivers, macroeconomic and intrinsic factors such as population growth and demand, urbanization, a surge in Agri exports such as tractors, improved agricultural credit flow, labor migration, and shortages are all driving the adoption of mechanized solutions. To know about the Research Methodology :- Request Free Sample Report
Farm Tractor Market Dynamics:Precision farming, as well as the increasing adoption of farm technology to increase production, are driving up demand for tractors. The growing number of farm training programs promoting the use of agricultural machinery on a wide scale is also driving the tractor industry. Governments in several developing nations are providing subsidies and financial aid to help with the automation of key agricultural processes. As a result of different technical breakthroughs, modern tractors with pre-installed GPS and telematics systems have emerged. With the technological breakthroughs that are altering farming and agricultural processes, the industry is also gaining traction. Farm tractors with self-driving capabilities are expected to drive productivity and efficiency in the industry. CNH Industrial N.V., Escorts Limited and Deere and Company have all released concepts for automatic and electric tractors. For example, Deere & Company announced the launch of their autonomous prototype tractor in October 2019, which creates zero emissions and has a power output of 500 kW. In addition, Escorts Limited announced the debut of their autonomous prototype tractor, which is specifically intended for precision farming, in 2019. The demand for improved machines to replace current machinery is expected to drive market growth. However, one of the major problems limiting market growth, particularly in developing economies, is the high cost of agricultural tractors. Similarly, levies and import tariffs implemented by various governments are expected to stifle market growth. For example, the Republic of Turkey declared in 2019 that agricultural machinery imported from non-EU nations would be subject to a 21% import charge. Farm tractors are also subject to a 29.8% import levy imposed by the Indian government. Government programs around the globe are further promoting the use of machinery in farming and other agricultural activities. For example, the Indian government implemented the "Macro-Management Scheme of Agriculture," which provides a 25% subsidy on tractors with a PTO horsepower of up to 35. Similarly, the Canadian government has established the "Canadian Agricultural Loans Act" (CALA) program, which offers farmers a loan of up to USD 500 thousand for the purchase of land or a tractor, as well as the repair of buildings. Over the forecast period, such measures, together with a growing need for operational efficiency and rising labor costs, are likely to drive demand for Farm tractors. COVID – 19 Impact on Farm Tractor Market: COVID-19 has had an impact on a variety of industries around the globe. The Tractor Sector is one of the most heavily impacted industries. Due to supply chain disruptions and production units that were not fully operational, this industry has suffered a dramatic drop in tractor sales. The most affected firm could be the dealership network. Because of the government's lockdown and travel restrictions, production of items was delayed, and supply was disrupted, resulting in a dramatic drop in tractor sales during the pandemic. Aside from the shutdown, the business has been affected by a supply shortage right in the heart of harvest season. Tractor sales are booming in 2021, but the industry is struggling to keep up with demand due to supply chain issues, including a shortage of tires. Greater Kharif sowing, solid cash flows to farmers, timely and regular rainfall in the world during June and July, ongoing higher rural spending by the government, and freedom from lockdown restrictions boosted demand for agricultural machinery, notably tractors, in the final phases. As a result, the global pandemic has had little effect on the tractor market. The Indian government's measures in rural development and farm mechanization, such as raising rural salaries and reducing farm labor scarcity, are expected to enhance tractor volume in India over time. Overall, it appears that nothing has changed, as tractor registrations increased by 16.11 % to 6, 44,778 units in 2020-21, compared to 5, 55,315 units in 2019-20. Competitive Landscape – In July, Mahindra Group Tractors had a 5.34 % increase in sales. In July 2021, the company sold 25,769 units, compared to 24,463 units in July 2020. This obviously demonstrates a % gain over the previous year, and its market share climbed by 0.77 % in July 2021. The tractor sales of Tafe Group (Massey Ferguson and Eicher) dropped by 5.25%. In July 2021, domestic sales of Tafi tractors were 11,112 units, and in July 2020, domestic sales of tractors were 11,728 units. As a result, TAFE lost 1.54% of the market share. In July 2021, Sonalika Tractor reported a 1.27 % decline in the domestic tractor market. This brand sold 8,115 units in July 2021, compared to 8,219 units in July 2020, resulting in a 0.57 % market share loss in July 2021. John Deere Tractor sold 7,244 units in July 2021, compared to 7,521 units in July 2020, a 3.65 % fall in sales and a 0.80 % decrease in market share. Escorts Group sold 6.055 domestic tractor units in July 2021, up from 4,695 units in July 2020, a 22.25 % increase, with a market share of 11.94 % in July 2021, up from 9.28 % in July 2020.
Farm Tractor Market Segment Analysis:Based on Power output, the market is sub-segmented into less than 40 Hp, 41 to 100 Hp, and more than 100 Hp. In terms of volume, the segment with less than 40 Hp dominated the market in 2019, accounting for more than 60% of the total. This is due to the advantages of modern agricultural tractors, which include their small size, low cost, and capacity to execute all essential agricultural tasks. The industry is likely to grow in the forecast years as more agricultural tractors are adopted in emerging countries. Due to increased demand from mature areas such as North America and Europe, agricultural tractors with engine power ranging from 41 to 100 Hp are likely to see substantial growth over the forecast period. Agriculture technology adoption is substantially higher in these regions compared to developing markets like India and China. The demand for these agricultural tractors is increasing as the necessity to meet the needs of farmers in these areas grows. In terms of volume, agricultural tractors with more than 100 horsepower accounted for more than 10% of the market in 2019. Demand for high-capacity agricultural tractors is increasing in various European nations, including Germany, Turkey, and France. Based on Driver type, the market is sub-segmented into Two-wheel drive and Four-wheel drive. Due to the pandemic, 2WD tractor transmissions will grow at a negative rate in 2021, resulting in fewer tractor sales overall. Globally, around 97-98 % of 2WD tractors are sold. 4WD tractors are better suited to big field operations that require a lot of flexibility. In comparison to 2020, the volume will increase by 50% by 2027.
Farm Tractor Market Regional Insights:U.S tractor sales declined 12.7% in June 2021, the second negative result in a year, while sales of self-propelled combine harvesters rose 4.1%. Tractor sales in the United States fell 12.7% in June 2021, the second negative result in a year, while self-propelled combine sales increased 4.1 %. Tractors with less than 40 horsepower (29.8 kW) saw the biggest drop in sales, down 18.4 % for the month. The mid-size segment, which ranges from 41 to 100 horsepower (30.6-74.6 kW), also saw a minor decrease. Farm tractor inventory in the United States (71,035) is down 41.3% from June 2020 (121,169), while inventory in Canada is down 33.2 % (9,535 in 2021 to 14,288 in 2020) The other segments were all positive, with the articulated 4WD category leading the way for the second month in a row, with 266 units sold, up 141.8 %. The 100+ horsepower 2WD sector climbed 24.8 % as well. Farm tractor sales are up 16.7% year to date, while combined sales are up 11%. In 2020, total farm tractor sales in the United States will increase by 17.9% to 288k units. Tractors with 4WD and more than 100 horsepower sold well in February 2020. Total farm tractor sales in the United States increased 15.1 % year over year in May 2020. Due to COVID-19-related quarantines, the 100 HP segment grew. It basically means that as homeowners and hobby farmers spend more time at home, they want to upgrade and invest in their equipment. Row-crop tractors and harvesters, which are largely employed in commercial farming operations, have experienced a fall, which can be related to the general agricultural economy's volatility. Due to a statewide lockdown, the first quarter of FY22 was difficult for the Indian tractor market. Despite this, total domestic tractor sales in Q1 FY22 were 2, 29,441 units, which is 38.92 % higher than domestic tractor sales in Q1 FY21, which were 1, 65,156 units. With approximately 899k units sold in FY 2020-2021, India is the world's largest tractor market. Despite the country's COVID outbreak, India's tractor market has remained unaffected. Even though many metropolitan and semi-urban areas are still under partial lockdown, rural markets are leading the recovery. The tractor market is also immune to the ongoing "boycott china" sentiments because it relies on China for very few components. Almost all of the components are made in the United States. After the car sector adopted BS6 emission standards (similar to Euro 6), the tractor industry is gearing up to adopt BS TR-Tractor EM-Emission (TREM) 4 standards (for tractors over 50 HP) by October 2021. The changeover to BS TREM 4 might affect 7% to 10% of overall industry volumes this fiscal year, as prices are expected to increase by $1,800 to $2,500 per tractor. Tractors with less than 50 horsepower will be required to comply with the new standards by October 2023. Upgrading the fuel injection system, exhaust after-treatment, and electronic control unit on the manufacturer's side would cost around $2 million per engine type to comply with the new standards. Farm machinery registrations in Italy increased in the first quarter of 2021. Tractor registrations climbed by 57.7%, while combined harvester registrations increased by 180 %, owing to government tax incentives and demand for next-generation technology. Year-to-date in 2021, the German tractor market sold 26,209 units, compared to 19,581 units in 2020. Factors like improved productivity through mechanization and labor scarcity have resulted in an increase in agricultural equipment demand in Germany, as a labor deficit has raised a demand for tractors. Tractor sales in Germany increased by 2.6 % year over year to 29K units. Tractors with a power output of more than 50 horsepower accounted for more than 74% of total sales. Similarly, the Turkish tractor market sold 22,232 units a year to date in 2021, up from 14,574 units sold the previous year. Turkey is one of Europe's largest tractor markets, with sales expected to reach 88,500 units in 2020. Few tractors are manufactured in the United Kingdom; CNH Industrial's New Holland facility in Essex and JCB's Fastrac plant near Cheadle, Staffordshire are the only two major production facilities. The United Kingdom imports a variety of high-horsepower vehicles from the United States. Tractor registrations in the United Kingdom fell 15% year on year in June 2020. Many tractor manufacturing plants have resumed production following the shutdown, but at a substantially reduced capacity. In Q1-2021, China's agriculture mechanization rate was expected to be 69 %. It is still low in comparison to established economies, which presents a significant opportunity. In the third quarter of 2019, China announced that it would no longer purchase agricultural products from the United States. Because China is one of their largest clients, this will have a direct impact on American farmers. Prior to the imposition of tariffs, China purchased $6 billion worth of agricultural products. On the other hand, this decision will immediately benefit domestic Chinese farmers as well as farmers in foreign nations. In terms of volume, China's agricultural machinery industry is large, but it is technologically poor. Until recently, most Chinese manufacturers exclusively produced low-end equipment that was only sold in China and a few African countries. They were unsuitable for shipment to the United States or Europe. The objective of the report is to present a comprehensive analysis of the Farm Tractor Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The reports also help understand the Farm Tractor Market dynamic and structure by analyzing the market segments and projecting the Farm Tractor Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Farm Tractor Market make the report investor’s guide.
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Global Farm Tractor Market Report Coverage Details Base Year: 2020 Forecast Period: 2021-2027 Historical Data: 2016 to 2020 Market Size in 2020: US$ 66.7 Bn. Forecast Period 2021 to 2027 CAGR: 5.1% Market Size in 2027: US$ 94.48 Bn. Segments Covered: by Power Output • <30 Hp • 31Hp -150Hp • 151Hp -250Hp • >250Hp by Drive type • Two-wheel drive • Four-wheel drive by System type • Without loaders • Front-loaders • Backhoe loaders by Design type • Tractor without CAB • Tractor with CAB
Global Farm Tractor Market by Region• North America • Europe • Asia Pacific • Latin America • The Middle East and Africa
Global Farm Tractor Market Key Players• Claas KGaA mbH • CNH Industrial N.V. • AGCO Corporation • Mahindra & Mahindra Ltd. • Deere & Company • Kubota Corporation • Yanmar Co., Ltd. • Tractors and Farm Equipment Limited • Zetor Tractors A.S. • Alamo Group, Inc. • STEYR • New Holland Agriculture • Antonio Carraro • Argo Tractors S.p.A. • Changzhou Dongfeng Agricultural Machinery Group Co. Ltd. • CLAAS KGaA mbH • Steyr Landmaschinentechnik AG • Daedong-USA, Inc. KIOTI Tractor Division • Escorts Group • Force Motors Ltd. • Indo Farm Equipment Limited. Frequently Asked Questions: 1] What segments are covered in the Farm Tractor Market report? Ans. The segments covered in the Farm Tractor Market report are based on Power output, Drive type, system type, and Design type. 2] Which region is expected to hold the highest share in the Farm Tractor Market? Ans. The North American region is expected to hold the highest share in the Farm Tractor Market. 3] What is the market size of the Farm Tractor Market by 2027? Ans. The market size of the Farm Tractor Market by 2027 is US $ 66.7 Bn. 4] What is the forecast period for the Farm Tractor Market? Ans. The Forecast period for the Farm Tractor Market is 2020-2027. 5] What was the market size of the Farm Tractor Market in 2020? Ans. The market size of the Farm Tractor Market in 2020 was US $ 94.48 Bn.
1. Global Farm Tractor Market Size: Research Methodology 2. Global Farm Tractor Market Size: Executive Summary 2.1. Market Overview and Definitions 2.1.1. Introduction to Global Farm Tractor Market Size 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global Farm Tractor Market Size: Competitive Analysis 3.1. MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2. Consolidation in the Market 3.2.1 M&A by region 3.3. Key Developments by Companies 3.4. Market Drivers 3.5. Market Restraints 3.6. Market Opportunities 3.7. Market Challenges 3.8. Market Dynamics 3.9. PORTERS Five Forces Analysis 3.10. PESTLE 3.11. Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • Latin America 3.12. COVID-19 Impact 4. Global Farm Tractor Market Size Segmentation 4.1. Global Farm Tractor Market Size, by Power Output (2020-2027) • <30 Hp • 31Hp -150Hp • 151Hp -250Hp • >250Hp 4.2. Global Farm Tractor Market Size, by Drive type (2020-2027) • Two-wheel drive • Four-wheel drive 4.3. Global Farm Tractor Market Size, by System type (2020-2027) • Without loaders • Front-loaders • Backhoe loaders 4.4. Global Farm Tractor Market Size, by Design Type (2020-2027) • Tractor without CAB • Tractor with CAB 5. North America Farm Tractor Market (2020-2027) 5.1. Global Farm Tractor Market Size, by Power Output (2020-2027) • <30 Hp • 31Hp -150Hp • 151Hp -250Hp • >250Hp 5.2. Global Farm Tractor Market Size, by Drive type (2020-2027) • Two-wheel drive • Four-wheel drive 5.3. Global Farm Tractor Market Size, by System type (2020-2027) • Without loaders • Front-loaders • Backhoe loaders 5.4. Global Farm Tractor Market Size, by Design type (2020-2027) • Tractor without CAB • Tractor with CAB 5.5. North America Farm Tractor Market, by Country (2020-2027) • United States • Canada • Mexico 6. European Farm Tractor Market (2020-2027) 6.1. European Farm Tractor Market, by Power Output (2020-2027) 6.2. European Farm Tractor Market, by Drive type (2020-2027) 6.3. European Farm Tractor Market, by System type (2020-2027) 6.4. European Farm Tractor Market, by Design type (2020-2027) 6.5. European Farm Tractor Market, by Country (2020-2027) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest Of Europe 7. Asia Pacific Farm Tractor Market (2020-2027) 71. Asia Pacific Farm Tractor Market, by Power Output (2020-2027) 7.2. Asia Pacific Farm Tractor Market, by Drive type (2020-2027) 7.3. Asia Pacific Farm Tractor Market, by System type (2020-2027) 7.4. Asia Pacific Farm Tractor Market, by Design type (2020-2027) 7.5. Asia Pacific Farm Tractor Market, by Country (2020-2027) • China • India • Japan • South Korea • Australia • ASEAN • Rest Of APAC 8. The Middle East and Africa Farm Tractor Market (2020-2027) 8.1. The Middle East and Africa Farm Tractor Market, by Power Output (2020-2027) 8.2. The Middle East and Africa Farm Tractor Market, by Drive type (2020-2027) 8.3. The Middle East and Africa Farm Tractor Market, by System type (2020-2027) 8.4. The Middle East and Africa Farm Tractor Market, by Design type (2020-2027) 8.5. The Middle East and Africa Farm Tractor Market, by Country (2020-2027) • South Africa • GCC • Egypt • Nigeria • Rest Of ME&A 9. Latin America Farm Tractor Market (2020-2027) 9.1. Latin America Farm Tractor Market, by Power Output (2020-2027) 9.2. Latin America Farm Tractor Market, by Drive type (2020-2027) 9.3. Latin America Farm Tractor Market, by System type (2020-2027) 9.4. Latin America Farm Tractor Market, by Design type (2020-2027) 9.5. Latin America Farm Tractor Market, by Country (2020-2027) • Brazil • Argentina • Rest Of Latin America 10. Company Profile: Key players 10.1. Claas KGaA mbH 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2. CNH Industrial N.V. 10.3. AGCO Corporation 10.4. Mahindra & Mahindra Ltd. 10.5. Deere & Company 10.6. Kubota Corporation 10.7. Yanmar Co., Ltd. 10.8. Tractors and Farm Equipment Limited 10.9. Zetor Tractors A.S. 10.10. Alamo Group, Inc. 10.11. STEYR 10.12. New Holland Agriculture 10.13. Antonio Carraro 10.14. Argo Tractors S.p.A. 10.15. Changzhou Dongfeng Agricultural Machinery Group Co. Ltd. 10.16. CLAAS KGaA mbH 10.17. Steyr Landmaschinentechnik AG 10.18. Daedong-USA, Inc. KIOTI Tractor Division 10.19. Escorts Group 10.20. Force Motors Ltd. 10.21. Indo Farm Equipment Limited.