+1-518-618-1030 866 - 552 - 3453 USA-Canada Toll Free

North America and Europe Farm Tractor Market: Focus on Mechanized Farming Techniques to Boost Sales of Tractors, predicts TMR

Posted on Mar 10, 2017

The competitive landscape of the North America and Europe farm tractor market is highly consolidated in nature. The top three companies, AGCO Corporation, Deere and Company, and CNH (Case New Holland) Industrial collectively held a share of 70.0% in 2015. Deere and Company alone accounted for a market share of 35% that year, emerging as the clear leader. 

The pressure is mounting on farmers to increase food production to meet the growing demand for food among a massive global population. Hence, farmers are equipping themselves with latest and advanced mechanized farming techniques such as farm tractors. Easy credit and favorable government policies are enabling farmers to adopt farm tractors. 

north america europe farm tractor market

The level of competition among the established players is quite high. The existing participants are constantly on the verge of improving product portfolio, forming strategic alliances, and investing in innovations. One such product innovation would be of John Deere. This company, in 2016, launched a new 450 HP tractor that is specifically designed to attain reduction in fuel consumption, enabling the company to reinforce its strategic plan of focusing on innovation. 

According to a TMR report, the North America and Europe farm tractor market is projected to be valued around US$17.23 bn by of 2022 from its previous value of US$13.6 bn in 2015, and is anticipated to grow at a CAGR of 3.0% within the forecast period of 2015 to 2022.  

Fluctuating Canadian Dollar Value Enable North America to Take the Lead 

In terms of unit shipment, North America dominated the farm tractor market in 2015, with a significant demand for small and compact tractors in the below 40 HP horsepower category. On the contrary, the Canada farm tractor market witnessed a steep fall in shipments due to recurrent fluctuation and weakening of the Canadian dollar. Plus, most tractor manufacturing giants are having a tough time maintaining their market share as a large volume of the local demand is met through imports, which is in turn is raising the chances of currency fluctuation. 

On the other hand, with a shipment of 153 thousand units in 2015, the demand for farm tractors contributed significantly to the market growth of Europe. The U.K., France, and Italy are also expected to be prominent contributors to the Europe farm tractor market. In terms of area, the U.K, Finland, and the Netherlands have larger farms, thereby propelling the demand for farm tractors above 80 HP. 

Strict Emission Norms to Increase Cost of Tractors and Decrease Sales 

Increased production, time and resources saving, and improved efficiency have propelled the demand for farm mechanization across North America and Europe. Plus, scarcity of farm laborers and precision farming have supplemented the demand for farm tractors. In addition, due to rising demand for agricultural products, regional government has put stress on adopting mechanized farming techniques by providing subsidies and easy access to credit for farmers. 

The implementation of strict emission norms in most developed countries poses a major threat to the North America and Europe farm tractors market. Regulatory bodies such as the Economic Commission for Europe (ECE) and the U.S. Environment Protection Agency (EPA) have implemented strict laws against the usage of diesel engines, particularly in off-road vehicles. Therefore, to adhere to the norms, tractor manufacturers are forced to incur additional costs, which is limiting the uptake of farm tractors. 

This review is based on the findings of a TMR report titled ‘Farm Tractor Market - North America and Europe Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.’ 

North America and Europe Farm Tractors Market, by Horse Power 

  • Less than 40 HP
  • 40 HP–80 HP
  • 81 HP–120 HP
  • 121 HP–180 HP
  • 181 HP–250 HP
  • More than 250 HP

About Us

Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement.

US Office Contact

90 State Street, Suite 700
Albany, NY 12207
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453
Email: sales@transparencymarketresearch.com
Website: https://www.transparencymarketresearch.com

Back To Top