Agricultural Tractors Market - Snapshot
The agricultural tractor is a key part of modern-day farming. Among all machinery utilized in farming, the tractor is mostly used to carry out various agriculture applications such as harvesting, seed sowing, and irrigation. Tractors are basically employed for two major applications: agriculture and construction; however, the agriculture sector witnesses significant usage of tractors.
Rise in population, water shortage, insufficient arable land, and deprivation of land fertility are key factors that are fueling the demand for food among consumers. The agriculture sector is prone to various issues regarding the production of food in comparison to fulfilling the demand from consumers. A majority of agriculture land around urban and rural areas is employed for commercial usage owing to industrialization. This is primarily due to the migration of the population from rural areas toward urban areas. Increase in wages in urban areas, improved standard of living in urban areas compared to rural areas, and restricted accessibility to labor are key factors that fuel the migration of the population, leading to a shortage of labor for agriculture applications. The trend of mechanization and automation is rising in order to expand the effectiveness and efficiency of farmlands and to overcome shortage of labor. The demand for agricultural tractors is rising at a rapid pace owing to improved and advanced automation in the agriculture sector. Increase in demand for equipment that is utilized in farming applications is due to the expansion of the agriculture industry. This, in turn, is anticipated to boost the demand for agricultural tractor during the forecast period. Increase in demand for automated agriculture equipment in several countries, such as India and countries in ASEAN is propelling the market for agricultural tractors.
Rise in global population has propelled the demand for agricultural goods that are utilized as daily needs by people. Increase in inclination among consumers for small-scale tractors (generally less power output tractors) and rise in penetration of self-directing (driver-less) tractors are major factors that are likely to boost the sales of agriculture tractors, worldwide, during the forecast period. Furthermore, easy availability of finance, increase in labor cost, and rise in investments by leading agriculture machinery manufacturers, such as John Deere, Mahindra & Mahindra, Tractors & Farm Equipment Limited, in their tractor product lines is expected to positively influence the global tractor market in the near future.
Countries in Europe and North America prefer to adopt the most efficient system available. They are likely to have more than 75% of four-wheel drive (4WD) tractors by the end of 2020.
All applications in agriculture, such as harvesting, sowing, and irrigation, are carried out by tractors presently; however, the amount of applications varies according to the work to be done in the field and wages required if it is to be done manually. Almost all applications held approximately equal share of the market; however, the market share held by seed sowing and irrigation segments is increasing. Therefore, both segments are likely to expand at a significant pace during the forecast period.
In 2017, Asia Pacific held a magnificent share for the global market of agricultural tractors. Asia Pacific is likely to maintain its dominance of the global market during the forecast period owing to higher production of farm tractors in countries such as China and India. Countries such as China and India have significant population and a majority of people from these countries depend on agriculture as their primary income source. In India, a majority of farmers have moderate-sized farm land, and it is difficult to source labor to carry out farm applications, which leads to a decrease in productivity. Therefore, farmers adopt agricultural tractors in order to improve productivity and cater to the demands from consumers. Apart from China and India, the U.S. has significant production of agricultural tractors. The U.S. witnesses a shortage of labor in the agriculture industry. Hence, various farm operations are carried out with the help of agricultural equipment. Farmers in the U.S. are forced raise production in order to cater to the increase in demand for food from consumers, which in turn is likely to boost the agricultural tractors market in the country during the forecast period.
The agricultural tractors market witnesses the presence of key players, as design, fabrication, manufacturing, and assembling of the components of agricultural tractors requires high investment, more production land, skilled labor, large number of employees, considerable precision. Moreover, it is a complicated and extremely expensive affair.
Major players operating in the global agricultural tractors market include CNH Industrial N.V., AGCO Corporation, Deere & Company, CLAAS KGaA GmbH, Mahindra & Mahindra India Limited, Kubota Corporation, Escorts Limited, Caterpillar, Inc., J.C. Bamford Excavators Limited (JCB), Yanmar Co., Ltd., Tractors and Farm Equipment Limited (TAFE), and SDF Group. Major market players are focusing more on mergers and acquisitions, production plant expansions, and joint ventures with regional players who manufacture the component required for tractors in order to consolidate their position in the global agricultural tractors market.
Agricultural Tractors Market - Overview
The global agricultural tractors market has been forecasted for the period from 2018 to 2026 based on revenue (US$ Mn) and volume (thousand units). This report provides forecast and analysis of the global agricultural tractors market at regional and global levels. The study highlights the drivers and restraints influencing the market. The report also highlights the opportunities in the global agricultural tractors market and underlines the technological roadmap for understanding the market.
The report contains value chain analysis, which provides a comprehensive view of the global agricultural tractors market. The Porter’s Five Forces analysis of the agricultural tractors market has also been included that helps understand the competitive scenario of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and attractiveness.
The study provides a decisive view of the market by segmenting it in terms of drive type, power output, operation, agriculture application, and region. These segments have been analyzed based on present and future trends. Regional segmentation comprises current scenario along with forecast of the agricultural tractors market. The forecast provided is based on the compilation of current trends as well as the expected scenario in future due to change in technological, geographical, political, regulatory, and economic factors such as the rapid expansion of machines and autonomous systems market. Demand for autonomous and fuel-efficient tractors among consumers and government regulations have been considered while sizing the market.
The study includes profiles of major companies operating in the global agricultural tractors market. The major share of the market is held by a few key players, and the rest is fragmented among medium-scale manufacturers. Major players operating in the global agricultural tractors market include CNH Industrial N.V., AGCO Corporation, Deere & Company, CLAAS KGaA GmbH, Mahindra & Mahindra Limited, Kubota Corporation, Escorts Limited, Caterpillar, Inc., J.C. Bamford Excavators Limited (JCB), Yanmar Co., Ltd., Tractors and Farm Equipment Limited (TAFE), and SDF Group. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The global agricultural tractors market is primarily driven by surge in demand for food products due to rise in population in most regions across the globe. Furthermore, development of new equipment for the agriculture sector is another major factor propelling the global agricultural tractors market, as it enhances the production efficiency of farms due to high precision and accuracy.
In-depth interviews and discussions were conducted with several key industry participants and opinion from leaders to compile the research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be highly reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, market reports, news articles, press releases, and webcasts specific to companies operating in the market, Food and Agriculture Organization (FAO), Automotive Research Association of India, Factiva, etc.
Primary research involves e-mail interactions and telephonic interviews for each market, category, segment, and sub-segment across regions. Primary interviews are conducted on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
The global agricultural tractors market has been segmented as follows:
Global Agricultural Tractors Market, by Drive Type
- Two-wheel Drive (2WD)
- Four-wheel Drive (4WD)
Global Agricultural Tractors Market, by Power Output
- Below 30 HP
- 31 HP to 100 HP
- 101 HP to 200 HP
- More than 200 HP
Agricultural Tractors Market, by Agriculture Application
- Seed Sowing
Agricultural Tractors Market, by Operation
- Manual Tractors
- Autonomous Tractors
Global Agricultural Tractors Market, by Region/Country/Sub-region
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa