Rising demand for food continues to impose heavy burdens on the agricultural sector, the progress of which remains largely dependent on uncertain entities such as weather, quality of soil and effectiveness of farming practices. However, farmers from several parts of the world rely on tractors for being the most essential agricultural machinery. By undertaking heavy fieldwork operations, tractors have emerged as a robust commodity in the global agriculture industry.
New range of tractors entering the market are exhibiting higher efficiency in terms of fuel consumption and performance. Manufacturers are also focusing on lowering the carbon footprint of tractors for supporting their utility in sustainable farming. Furthermore, farmers are enrolling into training programs for extending their abilities in operating advanced tractors that come with a range of functionalities beyond their conventional purpose in tilling, plowing and harrowing.
Fact.MR observes that the adoption of tractors witnessed an impressive growth in the past decade. According to its forecast study, the global market for tractors is assessed to witness sales of over 3,100 thousand units of tractors by the end of 2026. The study also foresees that during the period, 2017-2026, the global tractors market will reflect a CAGR of 3.2% in terms of value.
Market Taxonomy
|
Region |
Engine Types |
Mechanism Type |
Application Type |
|
North America |
22 to 25HP |
Electric |
Utility Tractors |
|
Latin America |
25 to 60HP |
Hydraulic |
Row Crop Tractor |
|
Europe |
60 to 140HP |
Hybrid |
Orchard Type |
|
Japan |
140 to 400 HP |
Industrial Tractor |
|
|
APEJ |
400 to 620 HP |
Garden Tractor |
|
|
MEA |
Rotary Tillers |
||
|
Implement Carrier |
|||
|
Earth Moving Tractors |
(Additional information, including cross-sectional data and country-wise analysis & forecast is available in the report)
Large Scale Farming to Drive the Demand for Tractors Equipped with 60-140 HP Engines
In 2017 and beyond, around 30% of tractors sold globally will be equipped with 60-140 HP engines. The report identifies that increasing adoption of large-scale farming is driving the need for tractors with high power engines. Governments are providing lucrative funding for large-scale farming, which extends the budgets of farmers in buying tractors with high power engines. From the manufacturing standpoint, high prices of 60-140 HP tractors will translate into high profit margins in the view of their growing sales. The demand for 140-400 HP tractors is also pegged to surge towards the end of the forecast period. By the end of 2026, nearly 330 thousand units of 140-400 HP tractors are pegged to be sold globally.
Hydraulic Mechanism to Remain Sought-After; Garden Applications to Register Fast Volume Growth
Majority of tractors manufactured globally will be developed on a hydraulic mechanism. The advantages of hydraulic tractors in terms of efficient fuel and fluid transmissions, economical utility and conservative power consumption will drive their sales in the near future. Throughout the forecast period, more than 50% of tractors sold globally will be developed on hydraulic mechanism. It is further estimated that gardening application of tractors will gain traction through 2026. Over the forecast period, garden tractors are expected to reflect the highest volume CAGR of 3.7%, reflecting rampant adoption. The report also foresees that utility tractors will be a high volume growth application in the global market. By the end of 2026, more than 740 thousand units of utility tractors are pegged to be sold worldwide.
Arrival of Driverless Tractors to Redefine Market Dynamics
Leading manufacturers of tractors are expected to focus on improving the safety of tractors by incorporating technologies and remodeling the structure of tractors, thereby eliminating the chances of rollovers. Companies such as Caterpillar, Deere & Company, Tractors and Farm Equipment Limited, Kubota Corporation, AGCO Corporation, Claas KGaA mbH, New Holland, McCormick Tractor, Escorts Limited., Bobcat (a Doosan company), Mahindra & Mahindra Limited, KIOTI Tractor (subsidiary of Daedong Industrial Company, Ltd.), Yanmar America Corporation and JCB, are observed as the key manufacturers of tractors in the world. With the advent of autonomous driving technologies, self-driving tractors will be penetrating the agricultural machinery industry in the near future. Driverless tractors will revolutionize the global landscape for tractor manufacturing. Advanced sensors and IoT technologies will be integrated with tractors to transform their functioning for meeting the future farming needs.
Note: The insights mentioned here are of the respective analysts, and do not reflect the position of Fact.MR
Fact.MR’s Holistic Outlook on the Future of Global Tractor Market
An exclusive study by Fact.MR offers in-depth forecast on how the global demand for tractors will evolve in the near future. The study offers estimated valuations on the global tractors market for its forecasted expansion during the period, 2017-2026. By providing objective information, the report caters to key concerns of tractor manufacturers and analyses the impact of latest market trends. From changing guidelines on the development of agricultural equipment and soaring levels of food consumption to advancements in farming techniques and increasing integration of IoT technologies in the operability of heavy fieldwork machineries, a range of factors have been considered for gauging their impact on the growth of global tractors market through 2026. The report serves as a credible business document to tractor manufacturers aiming at extending their global market presence and staying ahead of the competition.
Delivering a Roadmap on Tractor Utility for Next Generations
By employing a collaborative research approach, this study aims to address the key shortcomings inhibiting the sales of tractors. After identifying these concerns, a comprehensive analytical methodology has been incorporated in finding their solutions. Information from individual market players has been procured, wherein individual stake of companies on global tractor sales has been assessed. This information has been quantified and aggregated across multiple parameters. Statistical forecasting techniques and tested market formulations have been exercised in developing accurate forecast on the global tractors market.
The study assesses the impact of government policies, industrial regulations and agricultural loan schemes on the adoption of tractors. With high interest rates on tractor loans being observed as key deterrent for market growth, valuable information on overcoming such impediments is also provided in distinct chapters compiled in this study.
Forecasted market size valuations have been validated through multiple levels of quality checks. By sourcing information from authentic databases, the validity of this information remains unhampered. Data-points procured from such processes have been illustrated in the form of segmental analysis and forecast. From type of engines, mechanism and applications to regional assessment, the global tractors market has been analyzed across multiple segments and sub-segments. Qualitative information reflecting latest market trends has been infused with this data to support the forecast market size estimations. Potential market related statistics, regional diversity in terms of regulations and trade policies, supply chain breakdown and cost structure of tractor manufacturing are also some of the underscored chapters analyzed in this study.
Detailed Assessment of Competitors & Valuable Manufacturing Insights
Companies that have been partaking in the manufacturing of tractors for years, and those that aim to continue being relevant in the future of global tractors market have been profiled in the report. An in-depth competitor analysis of these companies provides information on the strengths and weaknesses in an unbiased manner. Market entry barriers, high profit manufacturing practices, pricing analysis, and latest technological developments have been analyzed to deliver key foresights on the global tractor manufacturing landscape. The scope of this report is to enable tractor manufacturers in capturing untapped opportunities for business development. Inferences provided through the analysis in the report are designed for answering the key concerns of tractor manufacturing companies. Lucrative regions, new technologies and emerging applications have been revealed in the report for improving the understanding of these players towards future market direction.
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Tractors Market Forecast, Trend Analysis & Competition Tracking - Global Market insights 2017 to 2026