What Has Been the Growth Trajectory for the Agricultural Tractors Market in Recent Years?
The agricultural tractors market has seen considerable growth due to a variety of factors.
• The market size for agricultural tractors has experienced solid growth lately. It is set to expand from $78.16 billion in 2024 to $82.29 billion in 2025, with a compound annual growth rate (CAGR) of 5.3%.
This growth in the historical period is due to factors such as the mechanisation of agriculture, the enlargement of farms, rising demands for productivity, the displacement of traditional farming methods, and governmental policies on agriculture.
What Are the Future Growth Projections for the Agricultural Tractors Market?
The agricultural tractors market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, a robust expansion is anticipated in the agricultural tractors market, which is predicted to reach a value of $103.12 billion by 2029, growing at a compound annual growth rate (CAGR) of 5.8%.
This growth during the forecast period can be linked to the adoption of precision farming methods, increasing global population, emphasis on environmental sustainability, development of agriculture in emerging markets, and the amalgamation of advanced technologies in farming. The upcoming trends during the projected period include the use of artificial intelligence (AI) for managing crops, the transition towards electric and hybrid tractors, improvement of comfort and ergonomics for operators, the utilization of predictive maintenance solutions, and the launch of applications for intelligent agriculture.
What Factors Are Driving Growth In The Agricultural Tractors Market?
The escalating need for compact tractors is projected to drive the agricultural tractors market's expansion in the future. These tiny, farm-specific tractors referred to as compact tractors, are particularly designed for home-owners or hobby farmers with moderate acreage. Essentially, a compact tractor is an agricultural vehicle equipped with a 540 rpm PTO and a three-point hitch compatible for Category 1 equipment exclusively. These tractors play an essential role in different farming activities. To illustrate, in June 2024, the Association of Equipment Manufacturers, a US-based Trade association, reported a rise in U.S. sales of 4-Wheel-Drive tractors by 9.4% in May 2024, from the previous year, preceded by a 24% growth in April. Cumulatively, annual sales have increased by 3.2%. Conversely, the general agricultural tractor sales in the U.S. saw an 11.5% reduction, and combine sales encountered a decline of almost 17.7%. Consequently, this surge in the demand for compact tractors is fueling the expansion of the agricultural tractors market.
What Are The Major Segments Within The Agricultural Tractors Market?
The agricultural tractors market covered in this report is segmented –
1) By Type: Orchard Tractors, Row-Crop Tractors, Other Tractors
2) By Propulsion: ICE, Electric and Hybrid
3) By Operation Type: Manual, Autonomous
4) By Engine Power Type: Less than 40 HP, 41 to 100 HP, More than 100 HP
Subsegments:
1) By Orchard Tractors: Compact Orchard Tractors, Specialty Orchard Tractors
2) By Row-Crop Tractors: Standard Row-Crop Tractors, High-Horsepower Row-Crop Tractors
3) By Other Tractors: Utility Tractors, Sub-Compact Tractors, Garden Tractors
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Which Trends Are Expected To Transform The Agricultural Tractors Market?
Leading enterprises in the agricultural tractors sector are forging alliances to create novel products and solidify their market positions. Such collaborations and partnerships spur innovation, harness mutual expertise and expedite the creation and marketing of advanced therapeutic solutions by pooling resources and capabilities. For example, in August 2023, Mahindra & Mahindra Ltd., an automotive manufacturer from India, teamed up with SARGA MotoCorp Ltd., an automotive producer based in Tanzania. This alliance will provide Tanzanian farmers with a broad range of tractors and agricultural tools, along with superior productivity, earnings, and post-sale services. The partnership aligns with initiatives designed to boost youth participation in Tanzania's farming industry towards sustainable growth. Additionally, it complements Mahindra's pledge to transform agriculture and enhance the livelihoods of farmers worldwide. To ensure premium client services, the partnership would involve establishing a showroom in Dar es Salaam and over 25 authorized service centers.
Who Are the Key Players in the Agricultural Tractors Market?
Major companies operating in the agricultural tractors market include:
• Tractors and Farm Equipment Ltd.
• ARGO Tractors S.p.A.
• Deere & Company
• CNH Industrial N.V.
• Kubota Corporation
• LS Mtron Co. Ltd.
• Mahindra & Mahindra Ltd.
• Dongfeng Motor Corporation Ltd.
• AGCO Corporation
• Yanmar Co. Ltd.
• Escorts Ltd.
• YTO Group Corporation
• Jinma Agricultural Machinery Co. Ltd.
• CLAAS KGaA mbH
• J C Bamford Excavators Ltd.
• Lovol Heavy Industry Co. Ltd.
• SAME Deutz-Fahr Group
• Iseki & Co. Ltd.
• Daedong Corporation
• The Sonalika Group
• Carraro Agritalia S.p.A.
• Buhler Industries Inc.
• Gromax Agri Equipment Limited
• AgriArgo UK Ltd.
• McCormick Tractors International Ltd.
• Massey Ferguson Limited
• Weifang Huaxia Tractor Manufacturing Co. Ltd.
• Landini S.p.A.
• Zetor Tractors a.s.
• Kukje Machinery Co. Ltd.
• Shandong Wuzheng Group Co. Ltd.
• Landtrac Tractors Private Limited
• V.S.T. Tillers Tractors Ltd.
What Is The Most Dominant Region In The Agricultural Tractors Market?
Asia-Pacific was the largest region in the agricultural tractors market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global agricultural tractors market report during the forecast period. The regions covered in the agricultural tractors market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
