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Agricultural Tractors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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The global agricultural tractors market was valued at USD 60,468. 9 million in 2020 and is projected to reach USD 81,909. 0 million by 2026, while registering a CAGR of 5. 2% over the forecast period (2021-2026).

New York, Oct. 27, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "Agricultural Tractors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" -

The COVID-19 had a detrimental impact on the market, resulting in lower tractor sales around the world due to the lockdown. For example, Mahindra and Mahindra, a renowned tractor manufacturer, predicted a loss of 30,000 tractors in sales from April to June 2020 as a result of the lockout and other limitations. Due to rising demand for food production and direct impact on agriculture, this figure increased to 253k units sold by December 2020.

Row crop tractors are the largest agricultural tractor segment in the global market. Several major market players are spending in research and development, in order to produce cutting-edge equipment and retain a strong market position. In 2020, Deere & Company launched a new 8 Family Tractor line-up that includes 8R wheel tractors, 8RT two-track tractors, and the industry’s first fixed-frame four-track tractors. These new tractors come standard equipped with the latest precision agriculture technology and allow customers to choose the machine configuration, options, and horsepower to best fit their operation.

Asia-Pacific is considered one of the fastest-growing markets because the cost of labor has been increasing at very high rates, and the cost of farm labor is directly proportional to the cost of production, thereby, increasing labor wages, and the lack of farm labor has led to the increasing rates of mechanization in the region. This is driving the growth of the tractor market in the region. In addition, numerous businesses have been releasing new agricultural tractors, allowing them to dominate the market studied with speedier product launches and advancements.

Key Market Trends

Increasing Farm Mechanization in Developing Markets Driving Lower Engine Power Tractor Sales

With an engine volume of not more than 1,500 cc, these tractors occupy less space and can be used with greater flexibility. Ease of customization makes them more amenable to experimentation, and consequentially, manufacturers are willing to try new components and technologies in this segment before moving on to high-powered ones. These tractors are compact, with a mass of fewer than 4,000 lbs, and use less than 40 PTO HP to run attachments. Invariably, all these high-production, economical, and user-friendly compact tractors are being used by schools, parks, landscapers, cemeteries, and hobby farmers. Low horsepower tractors work well in soft soil conditions, such as river basins. The less than 40 HP tractors are mainly used for horticulture. In developing countries, the demand for lower HP tractors is high due to the low disposable income of farmers and high labor costs. Farmers prefer small and customized tractors for agricultural purposes due to small farmland sizes. Moreover, lesser fuel consumption by small tractors helps empower small and marginal farmers. Like India, the governments of developing countries are promoting farm mechanization by subsidizing the purchase of equipment and supporting bulk buying through front-end agencies.

Asia Pacific Dominates the Market

In the Asia Pacific, China, Japan, India lead in the number of tractors sold across countries. China has around 60.0% of its farm activities mechanized.According to data from the National Bureau of Statistics of China, China produced 617,700 tractors in 2019. Large and medium-sized tractors gradually replaced small tractors. As of the end of 2019, China boasted 22.24 million agricultural tractors, including 4.44 million large- and medium-sized tractors. The government included agricultural machinery in its ‘Made in China 2025’ campaign in 2018. The program is expected to help the country produce most of its farm equipment domestically, which is expected to increase the sales of tractors in China.

The agriculture sector in India has witnessed a substantial decline in the use of animal and human power in the agriculture sector. A large number of these are driven by fossil fuel-operated vehicles, such as tractors and diesel engines. This has resulted in a shift from the traditional agriculture process to a more mechanized process. In order to increase the mechanization level, the Indian government is promoting ‘Balanced Farm Mechanization’, by providing subsidies on various equipment and supporting bulk buying through front-end agencies, which is expected to strengthen the tractors market in India. Thus, the implementation of programs by the governments in the region along with the increasing tractor usage across the region are expected to drive the market during the forecast period.

Competitive Landscape

The global agricultural tractor market is consolidated, with the major players occupying the major share of the market in 2020. The Deere and Company, Kubota Corporation, CNH Industrial NV, AGCO Corporation, and CLAAS KGaA mbH are the major players in the market New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, globally.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
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