Agricultural Tractor Market Size, Share, Forecast Report, 2020-2027

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The report provides rational insights along with historical and forecast data to aid in better understanding of the Global Agricultural Tractor Market. The report provides a comprehensive analysis of key factors that are expected to drive the growth of the Agricultural Tractor market. This study also provides a detailed overview of the opportunities along with the current trends observed in the target market.

The global agricultural tractor market demand was expected to be at 1,974.7 thousand units in 2019 and is expected to expand at a CAGR of 3.0% from 2020 to 2027. This growth is attributed to rising demand for food products and increasing mechanization in the agriculture industry. Furthermore, rapid urbanization is promoting the migration to cities, resulting in farm labor shortage and thus propelling the demand for agricultural tractors. As per the data released by the UN, in 2018, around 55% of the global population lived in urban areas. This number is expected to reach 68% by 2050.

Government initiatives across the globe are further providing an impetus to the adoption of machineries for farming and other agricultural activities. For instance, the Indian government introduced "Macro-Management Scheme of Agriculture" that provides 25% subsidy on tractors up to 35 PTO HP. Similarly, the Canadian government has implemented the "Canadian Agricultural Loans Act" (CALA) program that provides farmers with a loan up to USD 500 thousand for purchasing land or tractor and repairing buildings. Such initiatives, along with increasing need for operational efficiency and rise in labor cost, are expected to boost the demand for agricultural tractors over the forecast period.



The market is also gaining momentum owing to the technological advancements that are revolutionizing the farming and agricultural processes. For instance, implementation of agricultural tractors with self-driving capabilities is expected to increase productivity and efficiency in agriculture. Companies such as CNH Industrial N.V., Escorts Limited, and Deere and Company have already launched concepts for their autonomous and electric tractors. For example, in October 2019, Deere and Company announced the launch of its autonomous concept tractor that produces zero emissions and has a power output of 500 kW. Furthermore, in 2018, Escorts Limited announced the launch of its autonomous concept tractor that is designed specifically for precision farming.



Need for the replacement of existing machinery with advanced machines is expected to fuel the market growth. However, high cost of agricultural tractors is one of the prominent factors restricting market growth, especially in the developing economies. Similarly, taxes and import tariffs imposed by the governments of different countries are expected to hinder the market growth. For instance, in 2017, the Republic of Turkey announced 21% import duty on agricultural machinery imported from non-EU countries. Similarly, the government of India imposes 29.8% import duty on agricultural tractors.



Shortage of skilled labor and increasing labor cost are expected to drive the market for agricultural tractors over the forecast period. Migration of people from rural areas to urban areas is one of the major reasons for this shortage. For instance, according to the data released by Our World in Data publication, in September 2018, the global urban population grew at a rate of 1.98% between 2016 and 2017. This growth has resulted in increased demand for food, which in turn has paved the way for the demand for agricultural tractors.

The report covers major players operating in the market along with the key strategies implemented to achieve a competitive edge against a majority of the vendors which provides a competitive outlook of the industry. The competitive landscape further includes details about different players and their position on a global and a local level is also explained in detail in this compiled study. These insights were prepared through mapping business strategies and products that offer high revenue generation capacities. Key players of the global Agricultural Tractor market are included as given below:

Market players are significantly investing in research & development to introduce technologically advanced agricultural machineries. The advent of self-driving tractors and use of telematics for farming are anticipated to bolster the market growth. For instance, in August 2016, Case IH, a brand of CNH Industrial N.V., unveiled its autonomous concept tractor and is researching on its autonomous technologies through its Autonomy and Automation Program. Similarly, in 2018, KUBOTA Corporation announced its plans to invest around USD 64.2 million in its new research and development center for tractors in Europe. The key objective of the company behind this initiative was to expand its business throughout Europe and enhance its sales.



Additionally, manufacturers are inclined towards catering to the growing demand for compact tractors with low engine power from developing economies that account for majority of the share in the agricultural tractors industry. For instance, in 2016, Deere & Company announced its plan to focus on agricultural tractors below 40 HP for the Indian market in order to gain greater market share in the country. Furthermore, companies are focusing on mergers & acquisitions and alliances to cater to the end user requirements.



For instance, in November 2019, CNH Industrial joined a data interface project known as DataConnect. This interface project was launched by John Deere, CLAAS, and 365FarmNet. There are now five key farm equipment brands: John Deere, CLAAS, CNH Industrial, STEYR, and New Holland Agriculture, who have joined the DataConnect project, along with their respective telematics platforms. The data interface ensures the exchange of machinery data between the telematics platforms, which enables users to view all the brand information on a single platform.

The global Agricultural Tractor market has been segmented as below:

� Engine Power Outlook (Volume, Thousand Units, 2016 - 2027)

� Less than 40 Hp

� 41 to 100 Hp

� More than 100 Hp

� Regional Outlook (Volume, Thousand Units, 2016 - 2027)

� North America

o U.S.

o Canada

� Europe

o U.K.

o Germany

o France

o Italy

o Spain

o Ukraine

o Romania

o Poland

o Benelux

o Turkey

� Asia Pacific

o China

o India

o Japan

o Australia

o South Korea

� Latin America

o Brazil

o Mexico

� Middle East & Africa

Reasons to Purchase this Report:

Estimates Agricultural Tractor development trends with SWOT analysis

� Detailed business profiles including product offerings, recent developments, key financial information, and strategies employed by main market players

� Analysis of various regions and countries that includes the demand and supply based actions, which consequently have a major influence on the market's expansion

� Market dynamics scenario, along with growth opportunities for players in the years to come

� Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the mentioned forecast period

� Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects