Agricultural Tractor Market Forecasts from 2023 to 2028

The global agricultural tractor market is estimated to grow at a CAGR of 5.13%, reaching US$27, 877.434 million in 2028 from US$19, 641.678 million in 2021.

The need for smaller tractors on small farms is expected to increase, and technical developments like the incorporation of telematics with agricultural tractors are expected to boost growth. Additionally, due to the quick adoption of mechanization, it is projected that the industry will grow favourably during the next few years. Moreover, tractor production is also being aided by the government's enhanced support of farm mechanization for high yield through the provision of subsidies. Additionally, technical developments are supporting the expansion of farm mechanization and increasing farmer awareness of its advantages.

Increasing farm mechanization

The need for tractors is rising as a result of precision farming and the growing use of farm technologies to increase production. Agricultural machinery can benefit from the use of high-precision positioning systems (such as GPS and GNSS), automated steering systems, geomapping, sensors, and remote sensing, as well as integrated electronic communication. Moreover, the tractor business is also being driven by the rising number of farm training programs that encourage the widespread use of agricultural machinery. These tractors' engines, which have a maximum capacity of 1, 500 CC, enable them to be used more versatilely and occupy less space. Because they are simpler to customize, manufacturers are more likely to experiment with new parts and technologies in the agricultural tractor market before moving on to more powerful ones. Soft soil environments, such as those found in river basins, are ideal for low-horsepower tractors. The majority of uses for tractors with less than 40 HP are in horticulture.

Growing product innovation by key market players

The main agricultural tractor market players are also creating new products in response to the growing demand from developing countries. For instance, in February 2021, TAFE introduced the new DYNATRACK Series, a cutting-edge line of tractors that integrates a potent tractor with dynamic performance, intelligent technology, unsurpassed utility, and versatility. During the projected period, the agricultural tractor market is probably going to be driven by these variables.? For instance, FADA (Federation of Automobile Dealers Association) has released tractor OEMs' March 2023 retail sales data. The total retail sales for all tractor brands in March 2023 were 8, 27, 403 units, as against 7, 66, 545 in March 2022.

India is anticipated to be the fastest-growing country in the Asia-Pacific region

Agriculture tractors perform, tilling, plowing, and grinding among other agriculture tasks with ease and efficiency, thereby providing major assistance to farmers to bolster their production. The agriculture sector is one of the major GDP contributors of India, and with the growing population, the demand for food items has shown a significant increase thereby propelling the overall scale of agricultural activities. According to the Ministry of Agriculture & Farmers Welfare, in December 2022, food grain production reached 315.72 million tonnes thereby witnessing an increase of 2.3% over 308.65 million tonnes recorded in January 2022. Such an increase in production has positively impacted the demand for agricultural machinery such as tractors. For instance, according to the Tractor and Mechanization Association, in 2022, tractor sales in India stood at 9, 12, 061 units which represented an increase of 8, 337 units over 2021’s sale volume of 9, 03, 724. Moreover, as per the same source, tractor production reached 6, 99, 814 units till August 2023 which represented a 3.5% increase over 6, 75, 607 units produced till August 2022.

Market Key Developments

• In August 2023, Mahindra launched seven new models of its lightweight 4WD tractor “Mahindra OJA”. The new launch came as part of the company’s effort to transform Indian farming.

Segmentation:

By Engine Power

• Less than 40 HP
• 41 to 100 HP
• More than 100 HP

By Type

• Utility Tractors
• Row Crop Tractors
• Orchard Type
• Industrial Tractors
• Other Tractors

By Vehicle Type

• Gasoline and Diesel
• Electric

By Mode of Operation

• Manual Tractor
• Autonomous

By Geography

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