Utility Tractor Market - Forecasts from 2023 to 2028

The utility tractor market is estimated to grow at a CAGR of 4.57% during the forecast period

The utility tractor market is expected to grow at a steady pace during the forecast period. Utility tractors are used for wider applications including landscaping, farming, mowing, snow clearing, and construction among others. Utility tractors are majorly used in farming activities and the largest market for utility tractors based on geography is expected to be Asia Pacific because of their agriculture sector’s share in the overall economy. The growing agriculture sector, technological advancements, effective operational maintenance along with wider application are expected to boost the growth of the utility tractor market.

The growing population and agriculture sector are acting as growth drivers

The world population is constantly growing and so is the food demand. As per the estimates of the UN, the world population is expected to reach 9.8 billion by 2050 and 11.2 billion in 2100 and food demand will increase by 50% by 2050 thereby increasing the demand for utility tractors worldwide.  Agriculture is the major sector contributing to the GDP of developing nations. For instance, the agriculture sector in India contributes highly to the national GDP as per the UN CSAM report. The utility tractors help the farmer in ploughing, tilling, and pulling heavy implements. Moreover, it increases the agricultural output thus benefiting the farmer to cope with the rising demand of the growing population.

Cost Efficiency and affordability are few growth drivers of utility tractors

Utility tractors are also known as mini tractors which are economical and also can be equipped with mowers, trailers, rotavators, harrows, and log splitters. The economic feature of the utility tractors is creating more demand among small farmers and business owners. Moreover, households that need to mow lawns, haul materials, and do other related tasks are adopting utility tractors. These utility tractors require less maintenance costs and repairs as compared to large models thus making them more affordable. Consequently, the utility tractor market is anticipated to grow owing to its cost efficiency.

Rising Demand of utility tractors in the Agricultural Sector

The farmers are adopting technological and smart types of equipment to increase agricultural yield. The Indian Vision 2020 in the agriculture sector was to raise productivity and rapid diversification encouraging the farmers to adopt the utility tractors. India is the largest tractor industry with almost one-third of global production and Mahindra and Mahindra leading the market. According to the reports of the Association of Equipment Manufacturers, the compact mid-size utility tractor of 40 to 100 hp units saw an increase in sales of up to 28% in 2021. This rising demand for compact utility tractors coupled with increased supply aids the growth of the utility tractor market size.

Wider Application use of Utility tractors

The utility tractors are suitable for a range of applications including landscaping, lawn care, animal management, driveway maintenance, and digging foundations and ditches. Hydraulic tillers, box scrapers, blades, utility carts, and sprayers are the options for landscaping. With a rear-mounted blade attached to the utility tractor, gravel spreading or snow moving can be done for driveway maintenance. Compact utility tractors can also be implemented in animal management by moving feed, cleaning stalls or pens, and other related tasks. This wider application coupled with constant technological advancements shows the potential of the utility tractors market.

North America is one of significant market players in the utility tractor market

The North American region is expected to hold a significant share in the utility tractors market owing to the rapid technological advancements and adoption of smart types of equipment by the farmer. Moreover, some of the leading utility tractors manufacturing companies are located in this region thus the product launch and availability of the utility tractors will be there at first. For instance, John Deere, Zetor, Nelson Tractor Company, and Ocala Tractor LLC are located in the North-American region. Consequently, this region will show the highest market growth during the forecasted period.

Utility Tractor Key Players

• Deere and Company, one of the leading utility tractor company have been in the market for almost two centuries. It's continuous innovation and smart machines provide solutions in agriculture, construction, forestry & logging, government & military, and golf & sports turf.
• Mahindra and Mahindra Corporation, an India-based company is committed to driving positive change across the globe. The company started the business seven decades ago and since then, it has been one of the leading companies worldwide. The company provides utility tractors through its range of Mahindra Jivo, Mahindra XP Plus, Mahindra SP Plus, Mahindra Yuvo, and Mahindra Nuvo.
• AGCO Corporation is providing tractor solutions to various industries. The company’s utility tractors are versatile and powerful machines completely designed to handle complex farming and other related work. It has an ergonomic feature that enables rugged and dependable agricultural solutions.

Market Key Developments

• In June 2023, Swaraj Tractors launched a new range of compact lightweight tractors called Swaraj Target. It is specially designed to suit the needs of Indian farmers in assisting them to achieve their farm productivity targets. Moreover, it has unique features such as a synchromesh gearbox for smooth gear shifts, and reminiscent of a car-like experience.
• In March 2023, VST Tillers - an Indian tractor manufacturer announced the launch of a new utility tractor in the first quarter of 2024. The new utility tractor is developed by the collaboration with Zetor and with this, the company will enter into a larger horsepower space.
• In March 2022, New Holland Agriculture entered into the sub-30HP compact tractor segment of the Indian market with the launch of its Blue Series SIMBA. This tractor is designed especially for spraying, rotavation, and inter-row cultivations in vineyards, orchards, sugarcane, cotton fields, etc.

Segmentation:

By Product

• Manual Transmission
• Continuously Variable Transmission

By Type

• Compact Utility Tractors
• Mid-Sized Utility Tractors

By Application

• Landscaping
• Farming
• Municipal
• Mowing
• Snow Clearing
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others