Influenced by various technological advancements, the global agricultural tractors market is estimated to reach a market valuation of $ 63 million by the end of 2022 and reach $ 113 million by 2032.
According to the recent report by the market research and consulting agency Fact.MR, the global agricultural tractors sales went up by 4% CAGR during 2015- 2021 and anticipated to grow at a CAGR of 6% between 2022-2032.
The report noted that the growing food demand has burdened the agriculture industry worldwide. Farmers use agricultural tractors to sow, plough, and spray crops to increase production. Likewise, the adoption of tractors is rapidly growing due to improved mechanisation.
To make tractors more efficient and easy to operate, companies integrate electric power. For instance, in August 2021, Solectrac announced that its e70N electric tractor was available for sale. The tractor consists of an electric engine equivalent to 70 horsepower. The launch is part of the Bay Area Quality Management District's Funding Agriculture Replacement Measures for Emissions Reductions Demonstration Programme (FARMER) in the United States.
As the world's population grows, so does the need for food, driving an increase in food crops cultivation and resulting in a demand for agricultural tractors.
As a result of strict lockdowns imposed during the COVID-19 pandemic, prospects declined, especially in the first half of 2020. Moreover, these lockdowns hindered all agricultural activity, so agricultural tractors were not used. Nevertheless, a gradual resurgence has been noted as the curbs have loosened.
Agricultural tractor manufacturers are focusing on improving the efficiency of their machines by making them automatic and electric. Furthermore, the cost efficiency and convenience of 2WD tractors are increasing the demand for agricultural tractors. Thus, agricultural tractor sales are expected to exceed $ 113 Mn by registering a CAGR of 6% by 2032, the report said.
In the agricultural tractor market, Asia Pacific is expected to hold a market share of more than 70%. On the other hand, a market share of more than 40% is expected for agricultural tractors in Europe during the forecast period. Agricultural tractors with less than 40 HP engine power are expected to hold more than 45% of the market. The 2WD tractor segment is expected to hold more than 75% of the market for agricultural tractors.
Some of the key players in the tractor manufacturing segment include CNH Industrial, Deere, Kubota, International Tractors, CLAAS, Escorts, Mahindra, AGCO, Yanmar and TAFE.
Growth Drivers
Farmers are focusing on improving existing models by mechanising tractors, which is expected to enhance sales of agricultural tractors.
Tractor companies are increasingly focusing on integrating electric power to make them easier to operate. Moreover, farmers increasingly use automatic tractors to reduce their workload and optimise crop cultivation.
However, different forms of high costs associated with the tractors and the government imposed import taxes on tractors can be a major restraint for the growth of this market, the report said.
Market players are currently challenged by a shortage of skilled workers, high raw material prices, and high prices for semiconductor components. In addition, market players and dealers cannot meet consumer demand due to low inventory levels, the research company noted.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: Mahindra,