Autonomous Tractors Market

Autonomous Tractors Market Growth Outlook (2023 to 2033)

The global autonomous tractors market is valued at US$ 1.5 billion in 2023. Overall market value is anticipated to reach US$ 13 billion by 2033, advancing at a remarkable CAGR of 24% from 2023 to 2033.

Autonomous tractors are self-driving tractors that use cutting-edge technologies to optimize efficiency while minimizing human involvement. Their steering, braking, speed, and navigation can be handled autonomously by a variety of systems, including lasers, global positioning systems (GPS), and cameras.

Autonomous tractors use data science, computer vision, and deep learning to help farmers with real-time soil testing, seed selection, planting, and field mapping. They also help to modify farming methods and make agriculture more mechanized. As a consequence, autonomous tractors are finding widespread use in the agriculture industry for harvesting, tillage, and seed sowing.

Several governments across the world have implemented various programs to help farmers pay off their loans and boost farm mechanization. The establishment of farm loan waiver programs pushes farmers to purchase farm equipment. Government subsidies are vital in a country's agriculture sector.

• The United States Farm Service Agency (FSA) offers secured and direct farm ownership and operation loans to family-size farmers who are unable to acquire commercial credit through a farm credit system institution, a bank, or other lenders. FSA loans can also be used to purchase land, equipment, livestock, seed, feed, and supplies.
• The US Department of Agriculture has announced many financing schemes, including a direct farm ownership down payment program. The maximum loan amount rose from US$ 200,000 to US$ 250,000, while the fixed amount for conservation loans grew from 70 to 75%.

Farm equipment such as tractors, combine harvesters, and others are costly, making it difficult for many farmers to acquire such equipment with minimal funds.

• Rashtriya Krishi Vikas Yojana is a state government initiative in India that offers farmers a 100% subsidy. The project seeks to expand the agriculture sector while keeping natural resources, agro-climatic, and technology in consideration. The government also offers agricultural machinery, as well as aid for farm mechanization and women-friendly equipment and supplies.
• The NABARD (National Bank for Agriculture and Rural Development) loan program includes a 30% discount on the purchase of tractors. Aside from that, farmers can receive up to a 100% subsidy on additional agricultural machinery to boost their production.

Such strong government efforts will encourage farmers to adopt autonomous farm equipment and raise agricultural production. Moreover, farmers are also increasingly adopting autonomous tractors due to their efficiency and accuracy. Self-driving tractors can seed and till precisely. This increases agricultural precision, resulting in improved yields and financial returns.

Report Attributes	Details
Market Size in 2023	US$ 1.5 Billion
Forecasted Market Value (2033)	US$ 13 Billion
Global Market Growth Rate (2023 to 2033)	24% CAGR
North America Market Share (2022)	38%
Leading Tractor Type	Semi-autonomous Tractors
Key Companies Profiled	Mahindra & Mahindra Ltd KINZE Manufacturing, Inc Kubota Corporation AGCO Corporation Deere & Company Iseki & Co., Ltd Bobcat Company CNH Industrial NV

Why are Autonomous Tractors Attracting Worldwide Attention?

“Scarcity of Farm Workers to Spur Demand for Autonomous Tractors”

Farm labor prices are growing as agricultural labor becomes scarce. Using fundamental demand-supply economics, the cost of farm labor relates specifically to the percentage of a country's overall population employed in agriculture. Agriculture employs a greater proportion of the population in emerging economies. Nonetheless, the percentages have reduced over time as more individuals migrate to cities each year.

• As per the World Bank's statistics, agricultural employment declined dramatically from 29.54% in 2014 to 25.21% in 2019.
• The percentage of agricultural employees in India is expected to fall by 26.8% by 2050, according to the Indian Council of Food and Agriculture.

As a result, farmers are embracing technologies like autonomous agricultural tractors that can be efficient in light of the current problem. These factors are raising the sales of autonomous tractors.

Which Aspect Can Adversely Impact the Sales Growth of Autonomous Tractors?

“High Cost of Autonomous Tractors and Lack of Technical Expertise”

Vehicle automation is used by businesses to boost efficiency while decreasing expenses. However, vehicle automation is quite costly and requires a significant investment. Furthermore, a lack of technical expertise among farmers about robotic vehicles can negatively impact market growth.

Country-wise Insights

Why is the United States a Key Market for Autonomous Tractor Manufacturers?

“Strong Government Support for Sustainable Farming & Production Practices”

According to Fact.MR, a market research and competitive intelligence provider, North America captured 38% of the global market for autonomous tractors in 2022. North America is dominating the worldwide market due to the increased disposable income of farmers, lack of skilled agricultural labor, and the adoption of advanced technologies.

The United States is the market leader in the region. The government's backing for sustainable production practices such as precision farming, which incorporates machine learning (ML), artificial intelligence (AI), and the Internet of Things (IoT), is increasing the demand for automated technologies. As a result, the United States market is experiencing significant expansion.

As the agriculture sector in the United States transitions to smart farming, heavy equipment manufacturers such as Georgia-based AGCO, Deere & Co, and others are concentrating on the development of autonomous electric tractors.

• For example, Foxconn began the production of autonomous electric tractors at an Ohio factory on August 10, 2022.

Why are South Korea and Japan Exhibiting High Demand for Autonomous Tractors?

“Shortage of Farm Labor in These Countries”

The demand for autonomous tractors is escalating in Asia Pacific due to the rapidly expanding agriculture industry in developing nations such as China and India. Moreover, South Korea and Japan are also witnessing high demand for autonomous tractors due to the shortage of farm labor in these countries.

• For example, as per Japan's Ministry of Agriculture, Forestry, and Fishing, the number of Japanese mainly involved in farming fell to 1.5 million in 2019 from 1.76 million in 2014.

What Makes Germany a Dominant Market in Europe?

“Increasing Usage of Autonomous Tractors by German Farmers”

The European market is growing at a significant pace. Germany is a major market for self-driving tractors in Europe. Over 28% of European agricultural machinery and equipment components are produced in Germany.

Moreover, farmers are progressively using agricultural mechanization to replace physical labor with a more cost-effective, readily available, and efficient way of agricultural operations. Hence, to save time and resources, they are moving toward autonomous tractors, which are improving farm production and agricultural yield per acre.

Category-wise Insights

Why Do Farmers Prefer Semi-autonomous Tractors Over Fully Autonomous Tractors?

“Cost Factor and Safety Offered by Semi-autonomous Tractors”

Semi-autonomous systems work independently enough within acceptable distances that the farmer can react if difficulties arise, making them more practical than completely autonomous systems.

Due to the presence of the operator on agricultural vehicles, the safety of such a semi-autonomous system is guaranteed without the integration of expensive sensors and complex sensor fusion algorithms, making them the most affordable for farmers to purchase, particularly in emerging economies.

Why is Demand for Radar Sensors Snowballing?

“Cost Efficiency and Uniqueness of Radar Sensors”

Radar sensors can measure the distance, velocity, and angle of moving objects and can operate in practically all weather conditions. They are less expensive than LiDAR systems but more specialized than cameras, making them a better alternative than other components manufacturers choose for autonomous tractors. As a result, the demand for radar sensors is increasing rapidly.

The global positioning system (GPS) is also in high demand. The combination of geographic information systems (GIS) and global positioning systems (GPS) has made it possible to construct and implement precision agriculture, also referred to as site-specific farming.

Precision farming uses GPS-based technologies for farm planning, soil sampling, field mapping, crop scouting, tractor guidance, and yield mapping. Thanks to GPS, farmers can work in low-visibility field conditions such as fog, dust, rain, and darkness.

Competitive Landscape

Key players in the autonomous tractors market are pursuing strategies such as collaborations, acquisitions, investments, R&D activities, and new developments to maintain and expand their overseas footprint. Furthermore, many start-ups operating in the global market are concentrating on developing electric autonomous tractors.

• Monarch, a U.S.-based start-up, manufactures AI-powered electric autonomous tractors. The start-up is engaged in the design and development of electric self-driving tractors for farming. The tractors are outfitted with a comprehensive camera and sensor suite that maps and tags each crop while providing real-time alerts. The vehicle has AI-powered full-body awareness, swappable batteries, and slope stability.
• Deere & Company acquired Bear Flag Robotics for US$ 250 million in August 2022. The acquisition will speed up the development and deployment of farm automation equipment. It will also assist John Deere in meeting its long-term aim of developing more creative tractors with advanced technologies to fulfill unique customer demands.
• In April 2022, Mahindra & Mahindra and Kubota joined forces in Japan to deliver products, services, and solutions to fulfill customer needs via resource sharing. Under the terms of the agreement, the companies will broaden their current field of original joint equipment manufacturing supply, concentrating on tractors, combine harvesters, rice transplanters, and implements and supporting equipment.
• Deere & Company stated in January 2022 that it had developed a completely driverless tractor for large-scale farming.
• Massey Ferguson revealed The MF NEXT, a spectacular new concept tractor, in January 2022. It is a vehicle that incorporates Massey Ferguson's DNA and aims to make tractor technology more user-friendly, accessible, and cost-efficient.

Key Segments of Autonomous Tractors Industry Research

• By Type :

  • Fully Autonomous Tractors
  • Semi-autonomous Tractors

• By Component :

  • LiDAR
  • Radar
  • Ultrasonic Sensors
  • GPS

• By Power Output :

  • Up to 30 HP
  • 31 to 100 HP
  • 101 HP & Above

• By Application :

  • Tillage
  • Seed Sowing
  • Harvesting
  • Other Applications

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa