Tractor Market

Tractor Market Outlook (2024 to 2034)

Projected to expand at 6.3% CAGR over the next ten years, the global tractor market size is expected to jump from a value of US$ 80.36 billion in 2024 to US$ 148.04 billion by the end of 2034, as mentioned in the updated report by Fact.MR.

Increasing adoption of new-age techniques in the agricultural sector in various countries, including Brazil, China, India, etc., is set to generate growth opportunities for market players. Application of tractors in the agriculture sector is expected to remain significant. Increasing awareness among more farmers about the benefits of agricultural tractors in modern farming practices is anticipated to lead to their growing preference. Advancements in agricultural machinery, such as tractors, etc., enable farmers to achieve larger production volumes.

Increasing food consumption around the world is stimulating farmers to improve their overall production of crops. The surging trend of mechanization of multiple types of agricultural tasks is set to gain tremendous momentum across geographies. Modern tractors are comparatively more effective and are also used in multiple types of non-agricultural implementations as well.

Apart from farming operations, there are various tractors, which are deployed in construction areas, brick kilns, road making, and even for commutation purposes. An increase in mining and construction activities across various parts of the world is estimated to generate demand for tractors for their effective operation capabilities. An expansion of some large-scale industries, such as mining, construction, etc., is forecasted to result in a growing preference for tractors in the coming 10 years.

• East Asia is forecasted to capture 23.6% share of global market revenue by the end of 2034.
• Worldwide demand for tractors for use in agricultural activities is forecasted to increase at a CAGR of 6.6% and reach a value of US$ 114.87 billion by 2034-end.
• Sales of tractors in South Korea are projected to climb at a CAGR of 6.7% from 2024 to 2034.

Report Attribute	Detail
Tractor Market Size (2024E)	US$ 80.36 Billion
Forecasted Market Value (2034F)	US$ 148.04 Billion
Global Market Growth Rate (2024 to 2034)	6.3% CAGR
Japan Market Growth Rate (2024 to 2034)	7.1% CAGR
Market Share of 2-wheel Drive Tractors (2034F)	82.6%
North America Market Share (2034F)	16.8%
Key Companies Profiled	Deere & Co.; KIOTI Tractor; Mahindra & Mahindra Limited; Tractors and Farm Equipment Limited; JCB, Inc.; Doosan Bobcat Inc.; KUBOTA Corporation; ARGO Tractors; Escorts Limited; AGCO Corporation; New Holland; CLAAS; Caterpillar Inc.; Yanmar Co., Ltd.

Which Market Dynamics are Positively Influencing Adoption of Tractors?

“Growing Investments in Agricultural Equipment”

In recent years, there has been a significant increase in the implementation of multiple types of agricultural equipment considering good return on investment. Further, this is expected to offer a more viable business structure for the majority of farmers. Governments in numerous potentially high growth countries, such as India, Brazil, etc., are implementing policies to help get easy access to farmers with different types of modern and advanced agricultural equipment.

Improved availability of credit, concentration on increasing productivity, emergence of contract farming, farmer subsidiary on the cost of equipment, and opportunities for employment in urban locations are forecasted to create growth opportunities for market players.

What is Preventing More Widespread Utilization of Tractors?

“Lack of Skilled Labor and Higher Cost of Tractors”

With constantly changing consumer requirements, the designs of tractors are also evolving. These improvements include heavy investments in R&D activities, which generally lead to expensive finished products. In addition, manufacturers encounter challenges in minimizing the cost of production. Product effectiveness is crucial from a farmer’s perspective but affordability need not be overlooked. Lack of ample operating knowledge among respective end users is also set to emerge as one of the key hurdles against market growth. The increasing sophistication of tractors is projected to lead to operational complexities.

How are Startups Expected to Establish a Strong Foothold in This Business?

“Focus on Advancements in Tractor Technology”

Constant innovations in the agriculture sector considering digital technology are estimated to open multiple paths for a smart agricultural future. Startups trying to enter into this business are constantly putting efforts into innovation and product differentiation at economical prices. Tractors based on state-of-art technology along with remote sensing and GPS technologies are projected to make farming more productive and accurate.

Country-wise Insights

East Asia is anticipated to contribute 23.6% share of global market revenue by the end of 2034, as opined in the updated report by Fact.MR, a market research and competitive intelligence provider. Growing support from the government in the region for agricultural mechanization is estimated to positively influence tractor market trends. Various tractor manufacturers are offering products with automation, robotics, GPS, and other features to improve product effectiveness.

Why is the United States a Prominent Market for Tractor Manufacturers?

“Easy Credit Loans and Investments in Agricultural Machinery”

Attribute	United States
Market Value (2024E)	US$ 12.67 Billion
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 21.11 Billion

The United States is evaluated to hold 84.7% share of the North American market revenue share by 2034. Significant efforts are taken in the country for a higher level of farm mechanization. More farmers in the United States are investing in agricultural machinery, such as tractors, etc. Farmers in the country are expected to get benefits from the facilities provided for easy credit loans for purchasing agriculture machinery.

Why are Tractor Manufacturing Companies Thriving in China?

“Supportive Government Policies for Agricultural Mechanization”

Attribute	China
Market Value (2024E)	US$ 11.98 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 22.11 Billion

China is calculated to account for a share of 63.3% of the market in East Asia by 2034-end. The presence of various smallholder farmers in China along with the rising government support for agricultural mechanization is forecasted to contribute to tractor market growth. Moreover, innovations in tractors and other farming machinery and technology are projected to have a significant role in creating prospects for market players in the country. GPS, robotics, and other related technologies are set to help market players get a competitive edge.

Category-wise Insights

Based on the use of tractors as heavy fieldwork equipment, more companies are taking a keen interest in developing tractors with hydraulic systems. These tractors are expected to offer various advantages based on fuel consumption, fluid transmission, and simple operability. These hydraulic tractors are anticipated to remain economical options for farmers in the coming years.

Which Type of Tractor is Widely Preferred across the World?

“High Use of 2-wheel Drive Tractors”

Attribute	2-wheel Drive (2WD)
Segment Value (2024E)	US$ 67.42 Billion
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 122.28 Billion

2-wheel drive tractors are forecasted to account for 82.6% share of the global market by the end of 2034. Rising emphasis on redesigning 2-wheel drive tractors with ease of use and more power is estimated to increase their demand. In addition, more farmers are investing to upgrade their farming equipment and purchase advanced ones to match their requirements. Some of the prominent tractor manufacturers are coming up with more effective features including additional effectiveness for working in confined areas, fuel efficiency, etc.

Will the Agricultural Sector Continue Being the Mainstay of Tractor Companies?

“Constantly Increasing Use of Tractors for Multiple Farming Practices”

Attribute	Agricultural
Segment Value (2024E)	US$ 60.62 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	USs$ 114.87 Billion

The agricultural sector is approximated to occupy 77.6% of the tractor market share by 2034-end. Tractors are closely associated with various farming practices, including harrowing, tilling, sowing, plowing, etc. Moreover, farming tractors also find applications for pulling or pushing the machinery, thus helping in the convenient operation of farming activities. These factors are forecasted to further contribute to the expansion of the tractor market size.

Competitive Landscape

Leading tractor manufacturers are focusing on developing more advanced products to enrich their product portfolio and thus get a competitive edge. Management of supply chain systems, offering quality products, new product launches, collaborations, etc., are some strategies helping market players to increase their reach.

For instance :

• New Holland, in 2022, re-launched a T7 intelligent tractor with more advanced features, including precision land management (PLM) intelligence, better visibility, etc., to respective drivers.

Key players in the tractor market are Deere & Co., KIOTI Tractor, Mahindra & Mahindra Limited, Tractors and Farm Equipment Limited, JCB, Inc., Doosan Bobcat Inc., KUBOTA Corporation, ARGO Tractors, Escorts Limited, AGCO Corporation, New Holland, CLAAS, Caterpillar Inc., and Yanmar Co., Ltd.

Fact.MR provides detailed information about the price points of key manufacturers of tractors positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of Tractor Market Research

• By Product Type :

  • 2-wheel Drive (2WD)
  • 4-wheel Drive (4WD)

• By Engine Type :

  • 22 to 25 HP
  • 26 to 60 HP
  • 61 to 140 HP
  • 141 to 400 HP
  • 401 to 620 HP

• By Mechanism :

  • Electric
  • Hydraulic
  • Hybrid

• By Application :

  • Agriculture
  • Industrial
  • Utility

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA