Autonomous and Semi-autonomous Tractors Market - Snapshot
Autonomous and semi-autonomous tractors are a ground-breaking innovation for the agricultural sector. This innovation is anticipated to boost agricultural produce with minimal labor cost engagement. Autonomous and semi-autonomous tractors minimizes the human effort required in farm processes such as harvesting, seed sowing, fertilization, and scarifying. Semi-autonomous tractors reduce human effort by assisting the driver in certain actions, while autonomous tractors are fully, driverless tractors, which completely replace the driver with several software and hardware components. Moreover, fully driverless tractors are controlled by handheld devices (remote control systems). The market for autonomous and semi-autonomous tractors is anticipated to expand significantly and surpass US$ 9 Bn by 2026.
High labor cost and limited availability of labor for farming are likely to propel the market for autonomous and semi-autonomous tractors, as it is expected to reduce the requirement of labor and would increase output for farmers. Autonomous tractors are more precise and help in planting, sowing, harvesting, and performing other functions more precisely, which helps enhance yield with minimum loss. In most countries, working hours are governed by laws; however autonomous tractors can be operated continuously without any time restriction, which can be a significant factor in enhancing yield of crops. Autonomous and semi-autonomous tractors comprise crop yield monitoring systems that track the crop and field and assist the owner in managing the field according to the property of the soil. Autonomous tractors are more precise and accurate, thus reduce the chances of collision with obstructions arriving in the path of tractors, which results in reduction of maintenance cost of tractors, except the regular maintenance cost. Functioning of autonomous tractors is independent of external factors such as weather and light conditions. High cost of autonomous and semi-autonomous tractors is anticipated to be a key factor that is likely to hamper the market; however, they are expected to be profitable in the long-term, as they are expected to repay their cost by saving on labor charges.
North America and Europe have witnessed a rise in adoption of precision agriculture in the last few years. Availability of large fields, limited labor availability, and massive grasslands in these regions and high per capita income are major factors driving the autonomous and semi-autonomous tractors market in these regions. Increase in geriatric population in Japan, who lack the power to handle conventional mechanical tractors with consistency, is likely to boost the autonomous and semi-autonomous tractors market in the country during the forecast period. According to the United Nations, the birth rate in Japan has plummeted since 2015, and the death rate has simultaneously deteriorated, which has led to an imbalance in the working population. Japan is at the forefront in the development of autonomous tractors due to the presence of large number of manufacturers in the region. Furthermore, China is major producer and exporter of farm products, thus it is likely to adopt autonomous and semi-autonomous tractors during the forecast period in order to enhance their production. Some leading wineries, such as E. & J. Gallo Winery, a prominent family-owned winery in the world, collaborated with New Holland and Autonomous Solutions Inc. to manufacture fully autonomous tractors for their vineyards. Likewise, Campbell Soup Company partnered with Case IH and Autonomous Solutions Inc. for development of fully autonomous tractors. Thus, the presence of large number of wineries in some countries, such as France, Italy, and Spain, is likely to boost the demand for autonomous tractors for wine yards in these countries.
The global autonomous and semi-autonomous tractors market in developing regions, such as Asia Pacific, is expected to expand at a significant growth rate during the forecast period, as the market for semi-autonomous tractors is expected to expand at a rapid pace in countries such as China and India, owing to their lower cost as compared to the fully driverless tractors. Furthermore, the penetration of fully driverless tractors is expected to remain low during the forecast period due to the availability of adequate labor in China and India; however, the penetration is expected to increase after the forecast period due to reduction in cost of driverless tractors owing to development of full-fledged production line of tractors and declining number of labor in sub-regions of Asia Pacific. Moreover, most of the population in the region prefers desk jobs over field work.
Major players who are continuously involved into the development of autonomous and semi-autonomous tractors include AGCO Corporation, CNH Industrial N.V., Deere & Company, Escorts Limited, Komatsu America Corp., Mahindra & Mahindra Ltd., SAME DEUTZ-FAHR Italia S.p.A., Ag Leader Technology, Agjunction, Inc., Autonomous Solutions Inc., Raven Industries, Inc., Trimble, Inc., and YANMAR CO., LTD. Among all the manufacturers, CNH Industrial N.V. and YANMAR CO., LTD are at the forefront in the development of the autonomous tractors. In 2016, CNH industrial N.V. revealed its concept for fully autonomous tractor and is planning to launch its fully driverless tractor under CASE IH brand in the market in the near future. The company is planning to launch its product into five categories based on the level of automation of the tractor, while YANMAR CO., LTD announced the expected launch its fully driverless tractor by the end of October 2018.
Autonomous and Semi-autonomous Tractors Market - Overview
The autonomous & semi-autonomous 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 autonomous & semi-autonomous 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 autonomous & semi-autonomous 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 autonomous & semi-autonomous tractors market. The Porter’s Five Forces analysis of the autonomous & semi-autonomous 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 global autonomous & semi-autonomous tractors market by segmenting it in terms of technology, power output, component, application, and region. These segments have been analyzed based on present and future trends. Regional segmentation comprises current scenario along with forecast of the autonomous & semi-autonomous 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 autonomous systems market. Demand for autonomous and fuel-efficient tractors among consumers and government emission regulations have been considered while sizing the market.
The study includes profiles of major companies operating in the global autonomous & semi-autonomous 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 autonomous & semi-autonomous tractors market include AGCO Corporation, Ag Leader Technology, Agjunction, Inc., Autonomous Solutions Inc., CNH Industrial N.V., Deere & Company, Escorts Limited, KUBOTA Corporation, Mahindra & Mahindra Ltd., Raven Industries, Inc., Dutch Power Company, Trimble, Inc., SAME DEUTZ-FAHR Italia S.p.A., and YANMAR CO., LTD. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The autonomous & semi-autonomous tractors market is primarily driven by rapid expansion of construction and mining industries, which are likely to expand at a significant pace during the forecast period. Furthermore, development of new equipment for the agriculture sector is another major factor propelling the autonomous & semi-autonomous tractors market.
The report provides the estimated market size of the autonomous & semi-autonomous tractors market for 2017 and forecast for the next nine years. The global market size has been provided in terms of revenue (US$ Mn) and volume (thousand units). Market figures have been estimated based on engine, Component, sales channel, vehicle type, and regions. Size and forecast for each major segment have been provided in terms of global and regional/country markets.
In-depth interviews and discussions were conducted with a number of 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 autonomous & semi-autonomous tractors market has been segmented as follows:
Global Autonomous & Semi-autonomous Tractors Market, by Technology
- Driverless Tractors
- Driver-assisted Tractors
Global Driverless Tractors Market, by Power Output
- Below 30 HP
- 31 HP to 100 HP
- 101 HP and above
Global Driver-assisted Tractors Market, by Power Output
- Below 30 HP
- 31 HP to 100 HP
- 101 HP and above
Global Autonomous & Semi-autonomous Tractors Market, by Component
- Camera/vision Systems
- Ultrasonic Sensors
- Handheld Devices
Global Autonomous & Semi-autonomous Tractors Market, by Application
- Seed Sowing
Global Autonomous & Semi-autonomous 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