Tractor Market Size - By HP (Below 30 HP, 31 - 100 HP, 101 - 200 HP, Above 200 HP), Type (Farm Tractor [Sub-compact Utility Tractor, Compact Utility Tractor, Specialty Tractor], Construction Tractor, Garden Tractor) & Global Forecast, 2023 - 2032

Tractor Market Size

Tractor Market size was valued at USD 101.5 billion in 2022 and is estimated to register a CAGR of 6% between 2023 and 2032. Growing tractor registrations are driving market expansion, indicating sustained demand. They reflect the ongoing agricultural activities, highlighting the stability and growth potential of the sector. According to the CEMA, European Agriculture Machinery Association, around 215,000 tractors were registered across Europe in 2022. The consistent need for tractor signifies a robust market, encouraging manufacturers to deliver high-quality tractor. As registration numbers are rising steadily, it will foster market confidence, leading to increased investments, technological advancements, and a broader range of offerings, fueling the overall tractor industry growth.
 

Tractors play a pivotal role in enhancing efficiency and productivity within the agriculture sector, propelling the tractor market growth. Their powerful engines and versatile attachments automate labor-intensive tasks, such as plowing, planting, and harvesting, reducing manual efforts & time. Tractors enable precision farming techniques, optimizing resource usage and crop yields. Their heightened efficiency boosts agricultural output along with encouraging farmers to invest in modern equipment, driving tractor demand and augmenting industry growth.
 

In the tractor market, maintenance and technical support challenges encompass the limited availability of skilled technicians and spare parts for timely repairs. Inadequate training programs can lead to a shortage of qualified personnel capable of handling complex tractor issues. Limited access to genuine spare parts may prolong downtime, affecting the productivity of farmers. Insufficient service networks in rural areas compound the problem, making it difficult for farmers to get prompt assistance. Addressing these challenges requires investments in training programs, establishing robust service infrastructure, and ensuring a steady supply of authentic spare parts to effectively support farmers.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the tractor market, causing supply chain disruptions, manufacturing slowdowns, and reduced consumer demand. Lockdowns and social distancing measures led to labor shortages, hindering the production. Economic uncertainties prompted farmers to postpone or scale down equipment purchases, affecting the sales. The restrictions on international trade affected the availability of essential components. These challenges negatively impacted the market, causing reduced sales and financial strain on manufacturers and dealers.
 

Tractor Market Trends

The proliferation of autonomous technology is driving the tractor industry size by revolutionizing farming practices. Autonomous tractor equipped with advanced sensors, GPS systems, and Artificial Intelligence (AI) enable precise & efficient field operations. For instance, in August 2023, Holland Agriculture launched the pioneering T4 Electric Power, the market's inaugural all-electric utility tractor featuring autonomous capabilities. This state-of-the-art tractor established the Utility Electric category, aiming to optimize field operations with enhanced efficiency. T4 Electric Power is designed to tackle prevalent farming issues including the rising total ownership cost and the shortage of labor.
 

Government subsidies and support programs play a pivotal role in propelling the market demand. Government financial incentives encourage farmers to invest in mechanized farming equipment such as tractor. These subsidies reduce the overall cost of tractor acquisition, making them more accessible to farmers, especially in developing economies. By easing the financial burden on farmers, government initiatives stimulate tractor sales, promote agricultural mechanization, ultimately contributing to increased productivity in the agriculture sector.
 

Tractor Market Analysis

Based on HP, the 31 - 100 HP segment recorded more than 50% of the market share in 2022, due to their versatility and suitability for medium-sized farms. Their adaptability allows farmers to efficiently tackle agricultural tasks, such as plowing, planting, and harvesting, increasing operational flexibility. These tractors are suitable for medium-sized farms, striking a balance between power and cost-effectiveness. Farmers with such landholdings find these tractors economically viable and productive, driving their popularity and significantly boosting industry demand.
 

Based on type, the farm tractor market held over 70% of revenue share in 2022. The introduction of diverse tractor platforms catering to specific farming needs is driving growth of the farm tractor segment in the market. By offering specialized platforms, such as sub-compact, compact, small utility, and large utility tractor, manufacturers address the varying horsepower requirements of farmers.
 

For instance, in August 2023, Mahindra Tractors, a division of M&M's Farm Equipment Sector, introduced its latest global tractor platform, OJA. This platform includes four sub-categories: sub-compact, compact, small utility, and large utility tractor. The sub-compact category is designed for tractor in the 20 – 25 HP range, compact for 21 – 30 HP, small utility for 26 – 40 HP, and large utility for 45 – 70 HP. There is a diverse range of options to meet the various agricultural needs.
 

Asia Pacific tractor market accounted for 40% of the revenue share in 2022. Chinese tractor industry is rapidly expanding due to the country's strong commitment to technological advancements and heavy investments in autonomous vehicle R&D. China's vast & growing urban population also demands innovative solutions for public transportation. Government support and favorable regulatory policies for autonomous vehicles have created a conducive environment for industry outlook. China's well-established manufacturing infrastructure and a growing market for electric buses align with the development of the tractor sector, making it a focal point for industry expansion in the country.
 

Tractor Market Share

The major companies operating in the tractor industry are:

• AGCO Corporation
• Belarus Tractor
• Claas
• CNH Industrial
• Deutz-Fahr
• Escorts Group
• John Deere
• Kioti
• Kubota
• LS Tractor
• Mahindra & Mahindra
• SAME Deutz-Fahr Group
• TAFE (Tractors and Farm Equipment Limited)
• YANMAR
• Zetor

John Deere and Mahindra & Mahindra are the major companies operating in market. The competitive landscape in the market is characterized by intense rivalry among the major players. These companies vie for market share by focusing on product diversification, technological advancements, customer services, and strategic partnerships.
 

Tractor Industry News

• In October 2023, International Tractors Limited (ITL), the foremost tractor exporter in India, unveiled a lineup of five tractor including the electric model, the Solis SV Series. These tractors combine technology, power, and versatility to boost productivity and efficiency for farming communities globally.
   

The tractor market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) and shipment (Units) from 2018 to 2032 for the following segments:

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Market, By HP

• Below 30 HP
• 31 - 100 HP
• 101 - 200 HP
• Above 200 HP

Market, By Type

• Farm Tractor
  • Sub-compact Utility Tractor
  • Compact Utility Tractor
  • Specialty Tractor
• Construction Tractor
• Garden Tractor

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa