Tractors Market Segmentation By Engine Types (22 to 25HP, 25 to 60HP, 60 to 140HP), By Mechanism Type (Electric Tractors, Hydraulic Tractors, Hybrid Tractors), By Application Type (Utility Tractors, Row Crop Tractor, Industrial Tractor, Garden Tractor) & By Region – Global Market Insights 2022-2032
Analysis of Tractors market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Global Tractor Market Outlook (2022-2032)
The global tractor market is estimated at USD 137 Billion in 2022 and is forecast to reach USD 192 Billion by 2032, growing with a CAGR of 3.4% from 2022 to 2032.
Market size value in 2022A
USD 133 Billion
Market value estimated in 2022E
USD 137 Billion
Market forecast value in 2032F
USD 192 Billion
Global Growth Rate (2022-2032)
North America Market Share in 2022
North America Market Growth Rate (2022-2032)
Market Share of Top 5 Companies
Key Companies Profiled
As per latest industry analysis published by Fact.MR MR - a market research and competitive intelligence provider, the global tractor market is expected to reach valuation of around USD 137 Billion in 2022. The tractor sales are slated to accelerate at a steady CAGR of 3.4% to reach USD 192 Billion by 2032. The demand for hydraulic type of mechanism is likely to increase with a CAGR of 3.8% over the assessment period of 2022 to 2032. The global agricultural equipment market was valued at USD 190 Billion in 2021, whereas the tractor market was valued at USD 133 Billion in 2021, with a total holding of 43% in the global market.
The global demand for tractors is expected to continue at an impressive rate during the forecast period. Gains in emerging markets are expected to be higher than in advanced economies. Industrial revolution and rapid adoption of new-age agricultural techniques in countries such as China, India and Brazil has provided an impetus to the global market. The South Asia & Oceania region is expected to grow at a CAGR of 5.2% over the forecast period.
Tractor application in the agriculture sector remains significantly high. Also, rising level of awareness about benefits of tractor in modern agriculture sector usage among farmers in South Asia and Latin America has helped to drive their adoption. Advances in agricultural machineries including tractors are allowing farmers to reach greater production volumes. The 60 to 140HP engine type segment is likely to dominate with a market share of 34% by the end of 2032, owed due to surge in agricultural sector, where mid-power of engines are widely used.
As the world’s food consumption continue to rise, farmers face a tough task of improving their overall crop yield. The trend of mechanization of agricultural tasks is gaining tremendous momentum, which is propelling the sales of tractors around the world. The modern tractors are more efficient and can also be utilize in a wide variety of non-agricultural implementations.
Don't Need a Global Report?
save 40%! on Country & Region specific reports
Tractor Market Historical Outlook (2017-2021) Vs. Forecast Outlook (2022-2032)
- North America is a prominent region in market due to the rising demand for tractor in U.S., which is anticipated to grow at a CAGR of 2.9%, and reach a market value of USD 83 Billion by 2032.
- The 60 to 140 HP in engine type dominates the market by holding a valuation of around USD 40 Billion in 2021 owing to high rate of technology adoption.
- The East Asia and Europe contributed significantly to the growth of the tractors market, and is likely to account for around 13% and 18% market share in 2022 respectively.
- The utility tractors segment in application type is expected to reach at a valuation of USD 46 Billion by the end of 2032
- Under mechanism type, hybrid and hydraulic segment is expected to hold a combined market share of 81% by the end of FY2022
How Increased Non-Agricultural Application to surge the sales of Global Tractors?
Over the years, the use of tractors for non-agricultural purposes has grown quite significantly. Apart from farm operations, the tractors are being increasingly deployed in construction areas, road making, brick kilns, sand mines and even for commutation purposes.
Increased construction and mining activities in various parts of the world is driving gains in the global market and the trend is likely to grow further in the projected future. The demand for tractors in countries such as India and China has escalated partly due to their increasing use in construction and mining activities in these countries. The extended economic boom and increased per capita income in the many of the South Asian and Latin American countries has led to an expansion of large scale industries such as construction and mining.
More Insights, Lesser Cost (-50% off)
Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR
How the Growth in Agricultural Equipment Industry Creating Opportunities for Tractors?
There has been an insistent increase in the implementation of agricultural equipment with a view to ensure good return on investment. This also produces a more viable business structure for farmers. However, the purchase factor of agricultural equipment including tractors still remain unsatisfactory in several regions of the world, particularly in developing countries.
To address the issues, governments in developing economies like India and Brazil are presenting policies that are directed for better access to modern agricultural equipment for farmers. Moreover, farmer subsidiary on equipment cost, improved availability of credit, emergence of contract farming, focus on maximizing productivity and opportunity for employment in urban areas is proving an impetus to the agricultural equipment industry.
How High Cost and Lack of Skilled Labor Impacting the Global Market?
With the changing consumer requirements, tractor designs have also evolved. But, improving equipment design involves heavy investments in research and development, which often makes the finished-product expensive.
The manufacturers face the challenge of reducing the overall cost of manufacturing. From a farmer’s point of view, product efficiency is important but the affordability matter the most.
The cost remains one of a major factors that impact the sales of global tractors. Meanwhile, the lack of operating knowledge of end-users is also emerging as a hurdle for the global tractors market. Increase sophistication of tractors has added more operation complexities in them.
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
What is the Regional Outlook for U.S based Tractor Market?
As the regional demand for tractors grew to a single-digit percent per year, developed economies such as the U.S registered a counterbalance with strong economic recovery. Mid-horsepower range of tractors are being witness a considerable growth in adoption as U.S farmers continue to cultivate small pieces of agricultural lands. Within the next decade, U.S market will exhibit a revolutionized adoption of self-driving tractors. The region is characterized as pioneer in the market with a market share of more than 70% in 2022 holding in North America region.
How is the Demand for Tractors Shaping Up in Brazil?
Leading economies like Brazil in Latin America is showcasing a growing uptake for commercial agriculture as the presence of subsistence farming continues to dwindle.
Being one of the world’s major producer of high-value crops and fresh produce, Brazil demands higher adoption of heavy fieldwork machines such as tractors. In the near future, the special subsidy schemes for small family farms will have a considerable role in boosting the sales of tractors across Latin America.
How the adoption of 60 to 140 HP Engine Type among Farmers to Pave the Way for Market?
High crop production provide a threshold to large-scale farming which is driving the adoption in the global agricultural landscape. To meet the requirements of tilling and ploughing across large farms, tractors with high power engines are witnessing a growing demand. The report estimates that 31% of tractors sold globally will be equipped with 60-140 HP engines by the end of 2022.
Which is the Most Profitable Mechanism Type in the Market?
Considering their usage as heavy fieldwork equipment, tractors developed on hydraulic systems provide key advantages in terms of fluid transmission, fuel consumption and simple operability. The adoption of hydraulic tractors is pegged to remain economical for farmers in the years to come. By the end of 2032, the 59% of tractors sold will be hydraulic type of mechanism.
According to the tractor market industry analysis, Caterpillar Inc., Deere & Co., Mahindra & Mahindra Limited, AGCO Corporation, Yanmar Co., Ltd., New Holland, Doosan Bobcat Inc, ARGO Tractors., Tractors and Farm Equipment Limited, CLAAS, Escorts Limited, JCB Inc and Kioti Tractors are identified as key players manufacturing tractors.
The report sheds light on leading manufacturers of tractors, along with detailed profiles of mentioned companies. Up-to-date and essential data related to market players & suppliers who are mostly involved in offering tractors have been brought with the help of a complete view of dashboard.
Some of the key developments are:
- In 2022, New Holland had re-launched the tractor named as T7 intelligent tractor with some latest features like PLM (Precision Land Management) intelligence, increase in cab volume by 8%, 11% of increase in glass area which makes a lot better visibility to the driver.
Similarly, recent developments by top providers of tractor have been tracked by the team at Fact.MR, which are available in the detailed report.
Key Segments Covered
By Engine Type :-
- 22 to 25 HP
- 25 to 60 HP
- 60 to 140 HP
- 140 to 400 HP
- 400 to 620 HP
By Mechanism Type :-
By Application Type :-
- Utility Tractors
- Row Crop Tractor
- Orchard Type
- Industrial Tractor
- Garden Tractor
- Rotary Tillers
- Implement Carrier
- Earth Moving Tractors
By Region :-
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
The global market is likely to be worth more than USD 192 Billion by the end of 2032.
The market is projected to increase at a CAGR of over 3.4% during 2022 – 2032.
Value sales of tractors increased at a CAGR of 2.8% during 2017 – 2021.
The industrial revolution and rapid adoption of new-age agricultural techniques is expected to drive the demand for tractor.
Caterpillar Inc., Deere & Co., Mahindra & Mahindra Limited, KUBOTA Corporation and AGCO Corporation are identified as the top 5 prominent players in the market.
Top 5 countries driving demand for tractors are the U.S., China, India, Germany, and Japan.
North America is expected to account for over 45% of market share in global market in 2022.
The Europe based tractor market is projected to expand at a CAGR of around 2.5% during 2022 – 2032.
60 to 140 HP segment holds the dominating position with 31% of market share in global market in 2022.