Farm Tractor Market

Farm Tractor Market Outlook (2024 to 2034)

The global farm tractor market is calculated at a size of US$ 78.46 billion in 2024. As per this latest research by Fact.MR, worldwide sales of agricultural tractors are projected to increase at a CAGR of 5.3% to top US$ 131.5 billion by the end of 2034.

Tractors play an important role in farm mechanization, allowing farmers to increase productivity and overall yield. Farm tractors are used to pull implements across the field for numerous farming operations such as tilling, planting, and harvesting crops. These tractors are also employed for soil preparation and are the most versatile piece of farm machinery. Farm tractors have useful features such as power and accessories that are mounted to them. Tillers, front-end loaders, spreaders, plows, box blades, and trailers are some of the most used accessories.

Global farm tractor market growth is being driven by increasing demand for safe and high-quality food items. Farm tractor companies are also benefiting from advantageous lending arrangements for farmers that allow them to invest in high-end agricultural machinery to boost farm output.

Key Market Growth Drivers

• An ongoing farm tractor market trend that is boosting product demand is increasing focus on technological innovations such as autonomous and electric tractors, which is leading to more environment-friendly and efficient farm tractors.
• Due to continuous advancements in machinery and fuel technology, tractors can now run on compressed natural gas, liquefied natural gas, vegetable oil, kerosene, diesel, and propane.
• Popularity of advanced technology such as automation, telematics, and GPS tractors is growing because these help in driving productivity and efficiency.
• Demand for farm tractors is rising as agricultural activities are continuously increasing across the world. Tractor use is rising among farmers as a means of improving output and more effective management of bigger farm areas.
• Governments in several countries are encouraging farmers to adopt tractors through financial incentives, low-interest loans, and subsidies to boost agricultural productivity.
• Need to cultivate previously uncultivated areas and the growth of agricultural operations are driving the need for farm tractors. When it comes to planting, clearing land, and other critical farming tasks, tractors are the ideal choice for these activities.

Report Attribute	Detail
Farm Tractor Market Size (2024E)	US$ 78.46 Billion
Forecasted Market Value (2034F)	US$ 131.5 Billion
Global Market Growth Rate (2024 to 2034)	5.3% CAGR
East Asia Market Share (2024E)	42.1%
North America Market Value (2024E)	US$ 20.16 Billion
Two-wheel Drive (2WD) Segment Value (2034F)	US$ 100.5 Billion
Up to 30 HP Segment Value (2034F)	US$ 27.1 Billion
Key Companies Profiled	Kubota Corporation; Mahindra & Mahindra Ltd.; Claas KGaA mbH; Antonio Carraro; Escorts Group; Force Motors Ltd.; New Holland Agriculture; Yanmar Co., Ltd.; Indo Farm Equipment Limited; AGCO Corporation; Argo Tractors S.p.A; CNH Industrial Österreich GmbH.

Why are Sales of Farm Tractors Increasing Steadily Worldwide?

“Increasing Popularity of Precision Farming Methods”

Precision farming and the growing use of advanced farm technologies to increase output are contributing to global farm tractor market size expansion. The agricultural tractor market is also benefitting from the rising number of farm training programs that promote the use of agricultural machinery on a large scale.

Precision farming is gaining popularity among farmers who want to produce more with fewer resources. Precision farming technology makes better use of seeds, water, fertilizers, soil, and agricultural equipment, culminating in greater yields and better quality. This farming technology is helping to efficiently tackle the problem of global food scarcity. Moreover, precision farming also enables farmers to increase productivity and boost operating effectiveness, thereby narrowing the supply-demand gap for agricultural products.

What Do Farm Tractor Manufacturers Need to Content With?

“Easy Availability of Rental Farm Tractors across Regions”

Farm equipment purchases such as harvesters and tractors are a huge investment. Farm machinery costs include all the procedures associated with developing, manufacturing, and distributing the equipment. Farm equipment adoption in developing countries is less due to small farmers' reluctance to invest large sums of money.

Many farmers rent farm equipment to increase output and turnaround time, which increases their business's profitability and efficiency. Renting farm equipment is less expensive than purchasing these machinery with a traditional loan from a banking institution.

Worldwide scarcity of agricultural workers, combined with rising labor wages, is driving the expansion of the farm equipment rental market. Modern agricultural equipment rental technology is becoming more important for operational profitability and efficiency. It enables small-scale farmers to rent expensive farming equipment to enhance their production.

Country-wise Insights

In 2024, East Asia is forecasted to lead with 42.1% of the worldwide farm tractor market share. Europe is a key market for farm tractors due to the vast agricultural areas in many European countries such as Germany, Spain, etc.

Why is Adoption of Farm Tractors High in the United States?

“Government Offering Subsidies & Tax Breaks to Boost Agricultural Output”

Attribute	United States
Market Value (2024E)	US$ 18.39 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 30.76 Billion

To encourage the use of contemporary agricultural machinery, federal and state governments in the United States offer various grants, subsidies, and tax breaks. These financial aids lessen the farmers' overall financial burden, enabling them to purchase more advanced machinery such as farm tractors, at more reasonable prices. Such incentives encourage farmers to replace their outdated tractors or equipment with more efficient, technologically updated models, thereby increasing the demand for new farm tractors by removing some of the financial barriers to machinery upgrades. Continuous modernization of the agricultural sector and improvements in farm outputs are being greatly aided by government support in the country.

Why are Farm Tractors Important for Agriculture Activities in Japan?

“Well-Established Food Processing Companies”

Attribute	Japan
Market Value (2024E)	US$ 8.47 Billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 14.38 Billion

Sales of farm tractors are increasing steadily in Japan due to the high emphasis on food security and self-sufficiency. Considering that Japan has less agricultural land as compared to many other countries, With the help of tractors, farmers are able to cultivate, tend, and harvest crops more efficiently, increasing agricultural productivity and guaranteeing a consistent supply of food. Well-established packaged and instant food companies in Japan heavily rely on local agricultural activities, which necessitates high adoption of farm tractors across the country.

Food processing companies widely use agricultural products as ingredients in their goods, which increases the demand for farmers' raw commodities. Farmers are utilizing farm tractors to boost output and efficiency in their agricultural activities such as planting, harvesting, and transporting crops, to satisfy this rising demand.

Category-wise Insights

Based on power output, the market is segmented into up to 30 HP, 31 HP to 100 HP, 101 HP to 200 HP, and above 200 HP farm tractors. Revenue from up to 30 HP farm tractors is high; however, demand for 31 HP to 100 HP farm tractors is projected to rise at 7.9% CAGR from 2024 to 2034.

Why are Two-Wheel Farm Tractors More Popular Than Other Variants?

“Affordability and Adaptability of Two-Wheel Farm Tractors”

Attribute	Two-Wheel Drive (2WD)
Segment Value (2024E)	US$ 55.22 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 100.5 Billion

Two-wheel farm tractors are more in demand in comparison with four-wheel variants because of their affordability, adaptability, and being an ideal fit for small-scale farming. Due to their lower cost, two-wheel tractors, also referred to as walk-behind tractors or power tillers, are more affordable for smaller farmers with tight budgets. Also, their small size and agility enable them to be operated effectively on limited areas of land and squeeze through tight gaps. These tractors are commonly utilized for various jobs such as transporting, harrowing, plowing, and tilling. They offer small-scale farmers a useful and affordable option for their operations.

Why are Farm Tractors of Up to 30 HP Power Output Widely Preferred?

“Ideal Choice for Small- and Medium-Scale Farming”

Attribute	Up to 30 HP
Segment Value (2024E)	US$ 15.46 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 27.1 Billion

Farm tractors of up to 30 HP output are widely used because they are best suited for small- and medium-size farming. Due to their relative compactness, these tractors are simple to handle around typical farm obstacles and in small places. Compact tractors with this power range harmoniously combine price and functionality. They are reasonably fuel-efficient and inexpensive to run and maintain, yet strong enough to tackle various activities such as tilling, plowing, and carrying, and using different tools.

Competitive Landscape

Key players in the farm tractor market are investing in technological developments to improve the productivity, efficiency, and precision of their products. The prime objective of these developments includes telematics, precision farming technologies, and mainly autonomous and semi-autonomous capabilities.

• In August 2023, under the 'OJA' sub-brand platform, Mahindra & Mahindra announced a new line of lightweight four-wheel drive tractors. There are seven variants in the range with 21 to 40 horsepower (HP) capacity.
• In August 2023, the T4 Electric Power Tractor, developed by New Holland Agriculture, was the first all-electric utility tractor with autonomous features to be launched in the market.
• In August 2021, Deere & Business acquired Bear Flag Robotics, an AgTech company. This acquisition will assist the former company in meeting consumer needs and growing its customer base.
• In July 2021, New Holland North America introduced the T7 Heavy-duty Tractor with PLM Intelligence to its farm tractor portfolio. The new tractor is designed to help farmers be more efficient by enabling them to multitask in a range of fields and transport applications.
• In February 2021, TAFE (Tractors and Farm Equipment), the maker of Massey Ferguson tractors, launched its new DYNATRACK Series, which is a modern variety of tractors that provide advanced technologies, dynamic performance, unparalleled utility, and flexibility, all concocted into a single powerful tractor.

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

Segmentation of Farm Tractor Market Research

• By Power Output :

  • Up to 30 HP
  • 31 HP to 100 HP
  • 101 HP to 200 HP
  • Above 200 HP

• By Drive Type :

  • Two-wheel Drive
  • Four-wheel Drive

• By Region :

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