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Tractor Market Trends

Report ID: GMI7286
Published Date: Nov 2023
Report Format: PDF

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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.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of tractor reached USD 101.5 billion in 2022 and is poised to foresee significant growth at 6% CAGR from 2023 to 2032, led by their increasing demand to enhance efficiency and productivity within the agriculture sector.

Asia Pacific held over 40% of the market share in 2022, owing to the strong commitment to technological advancements and heavy R&D investments in autonomous vehicles.

Farm tractor segment accounted for more than 70% of market share in 2022, driven by the introduction of diverse tractor platforms for catering to specific farming needs.

Some of the major tractor manufacturers are AGCO Corporation, Belarus Tractor, Claas, CNH Industrial, Deutz-Fahr, Escorts Group, John Deere, Kubota, LS Tractor, Mahindra & Mahindra, TAFE (Tractors and Farm Equipment Limited), and YANMAR.