The Global Autonomous Tractor Market is projected to register a CAGR of 25. 4% during the forecast period (2021-2026). During Covid19, the sector has seen a sharp dip in the tractor business and the most affected business could be the dealership network due to the disruption supply chain also manufacturing units were not 100 % active.
New York, July 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Autonomous Tractors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06101226/?utm_source=GNW
Due to the travel restrictions, production is delayed, and supply is being interrupted this had resulted in a sharp decrease in sales of tractor business during 2019-2020.
Decreasing agricultural labor as a result of the price of farm labor is rising. Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor with a more cost-effective, easily available, and more efficient means of agricultural operation. Tractors being the primary source of power for driving agricultural machinery.
The semi-autonomous systems operate independently enough, within reasonable distances, that the farmer can intervene if any problems occur, and therefore, is more realistic than fully autonomous equipment. Because of the presence of the operator on agricultural vehicles, the safety of such a semi-autonomous system can be easily ensured without the incorporation of costly sensors and complicated sensor fusion algorithms, thus, making them the most feasible for farmers to purchase especially in developing economies.
The Noth America and Asia Pacific region are identified to be the fastest-growing market and the companies located in these regions are increasingly launching new autonomous tractors in the market and thereby dominating the market with faster innovations and product launches.
Key Market Trends
Shortage of Farm Labor and the Declining Arable Land
Due to decreasing agricultural labor, the prices of farm labor are rising. The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics, thereby affecting the global agricultural tractors market. On average, developing economies have larger percentages of the population dependent on agriculture. However, the percentages have decreased over time as a large number of people are migrating to the urban area every year. According to the World Bank Report, the world’s rural population has declined from 67% in 1960 to 45% in 2017.
As technologically assisted agriculture needs skilled laborers that are at an acute shortage of availability, farmers are adopting technologies such as autonomous tractors that can be productive, considering the current challenge. This scenario is one of the major factors that drive the market forward. According to the Indian Council of Food and Agriculture, the percentage of agriculture workers in India is estimated to decline by 25.7% in 2050.
According to the World Bank, the area of arable land per person decreased from 0.20 hectares in 2011 to 0.19 hectares in 2016. Thus declining arable land pushed growers to increase their productivity per hectare of land available to meet the growing demand for food. All these changes in the agriculture field are boosting the use of autonomous tractors, which helps farmers increase their productivity and the return on investment.
North America Dominates the Market
North America is expected to account for the largest share of the market in 2019. The higher disposable incomes of farmers, lack of trained farm labor, and well-developed technology are the primary reasons for the future expansion of the North American autonomous tractors market. In North America, being a developed region, the sizes of farms are usually large, and customer loyalty is high. Demand for high-powered tractors in the US is starting to gain traction. The US is the largest market for autonomous tractors in the North American region.
The government’s supports for sustainable production techniques such as precision farming involving the integration of the Internet of Things (IoT), Artificial Intelligence (AI), and machine learning (ML) is boosting the demand for automated technologies. Therefore, this may result in the significant growth of the autonomous tractor market in the United States during the forecast period. Further, Canadian farmers are also showing interest in the adoption of autonomous tractors as they would save time and decrease operating costs. Therefore, this may indicate a positive sign for the growth of the market over the coming years.
The global autonomous tractor market is consolidated. The major players in this market are focused on innovation and launching new products globally. Since the inception of the market is very recent, it is considered to be a consolidated market with a few players holding the majority of the shares in the market. The market is dominated by CNH, AGCO, Yanmar, Mahindra & Mahindra, John Deere, and Kubota Corporation. These companies have a strong distribution network at the global level. The key strategies adopted by these companies to sustain their market position are new product development and acquisitions.
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