Agricultural Tractors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Agricultural Tractors Market is Segmented by Engine Power (Less than 40 HP, 40 HP to 99 HP, 100 HP to 150 HP, 151 HP to 200 HP, 201 HP to 270 HP, 271 HP to 350 HP, and Greater than 350 HP), Type (Orchard Tractors, Row-crop Tractors, and Other Tractors), and Geography (North America, Europe, Asia-Pacific, South America, and Africa).

Market Snapshot

agricultural-tractor-market_Market Summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 4.4 %

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Market Overview

The global agricultural tractors market was valued at USD 60.31 billion in 2020 and is projected to register a CAGR of 4.4% over the forecast period (2021-2026).

During COVID-19, the sector has seen a sharp dip in the tractor business, and the most affected business could be the dealership network due to the disruption of the supply chain. Additionally, manufacturing units were not 100% active. Due to travel restrictions, production of goods got delayed, as supply was interrupted, resulting in a sharp decrease in tractor sales during the pandemic.

China and India lead in the number of tractors sold across countries. China has around 60.0% of its farm activities mechanized. Beijing included agricultural machinery in its ‘Made in China 2025’ campaign in 2018. The program is expected to help the country produce most of its farm equipment domestically, which is expected to increase the sales of tractors in China.

The farm mechanization level in India was recorded at 40.0%-45.0% in 2017. The penetration of farm equipment is slow, as almost 80.0% of small and marginal farmers own less than five hectares of land in the country. The agriculture sector in India has witnessed a substantial decline in the use of animal and human power in the agriculture sector. A large number of these are driven by fossil fuel-operated vehicles, such as tractors and diesel engines. This has resulted in a shift from the traditional agriculture process to a more mechanized process. Though the level of mechanization in India is lower than in other developing countries, like China and Brazil, it is certainly in a growing phase. In order to increase the mechanization level, the Indian government is promoting ‘Balanced Farm Mechanization’, by providing subsidies on various equipment and supporting bulk buying through front-end agencies, which is expected to strengthen the tractors market during the forecast period.

Scope of the Report

For this report, tractors used in agricultural operations, especially four-wheeled tractors, have been considered. The report does not cover other agricultural machinery and attachments for tractors. The agricultural tractors market is segmented by engine power (less than 40 HP, 40 HP to 99 HP, 100 HP to 150 HP, 151 HP to 200 HP, 201 HP to 270 HP, 271 HP to 350 HP, and greater than 350 HP), type (orchard tractors, row-crop tractors, and other tractors), and geography (North America, Europe, Asia-Pacific, South America, and Africa).

By Horse Power
Less than 40 HP
40 HP to 99 HP
100 HP to 150 HP
151 HP to 200 HP
201 HP to 270 HP
271 HP to 350 HP
Greater than 350 HP
By Type
Orchard Tractors
Row-crop Tractors
Other Tractors
By Geography
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Asia Pacific
Rest of Asia Pacific
South America
Rest of South America
South Africa
Rest of Africa

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Key Market Trends

Increasing Farm Mechanization in Developing Markets Driving Lower Engine Power Tractor Sales

With an engine volume of not more than 1,500 cc, these tractors occupy less space and can be used with greater flexibility. Ease of customization makes them more amenable to experimentation, and consequentially, manufacturers are willing to try new components and technologies in this segment before moving on to high-powered ones. These tractors are compact, with a mass of fewer than 4,000 lbs, and use less than 40 PTO HP to run attachments. Invariably, all these high-production, economical, and user-friendly compact tractors are being used by schools, parks, landscapers, cemeteries, and hobby farmers. Low horsepower tractors work well in soft soil conditions, such as river basins. The less than 20 HP tractors are mainly used for horticulture in India. In developing countries, the demand for lower HP tractors is high due to the low disposable income of farmers and high labor costs. Farmers prefer small and customized tractors for agricultural purposes due to small farmland sizes. Moreover, lesser fuel consumption by small tractors helps empower small and marginal farmers. Like India, the governments of developing countries are promoting farm mechanization by subsidizing the purchase of equipment and supporting bulk buying through front-end agencies.

agricultural tractors

China and India Driving Market Growth in Asia-Pacific

China has started focusing on the adoption of automated farming machinery through the introduction of driverless tractors. Owing to it, YTO Group Corporation launched its first driverless tractor in 2017 and is planning to conduct mass production as per the market demand. In order to boost the domestic production of farm machinery, the Chinese government framed a new agricultural machinery subsidy policy for the purchase of agricultural machinery, including tractors. The types of subsidy equipment cover 45 items in 23 categories and 11 categories, including farming and land preparation machinery, planting and fertilizing machinery, and field management machinery. The buyers of tractors above 60 HP and above can enjoy a subsidy of CNY 150,000.

The availability of abundant and cheap labor in India has largely confined farm mechanization to tractors. The penetration of tractors in the country is higher in Northern India, particularly in Punjab, Uttar Pradesh, and Haryana. Tractors are the largest segment in the Indian agricultural equipment category. India’s tractor export market comprises African and ASEAN countries, and it exports an average of 60,000 tractors, annually.

The Indian government is also putting efforts into mechanization in agriculture. The government aims to increase the growth of the agriculture sector through its Rashtriya Krishi Vikasa Yojana (RKVY). The scheme is being implemented throughout India with 100% central assistance for increasing the level of farm mechanization in India’s agriculture sector is a part of the scheme.

Agricultural Tractors Market Growth Rate by Region

Competitive Landscape

The agricultural tractors market is highly consolidated, with very few players cornering the majority of the market share. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, globally. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies in the coming years.

Recent Developments

In February 2021, TAFE manufacturers of Massey Ferguson tractors launched its new DYNATRACK Series, which is an advanced range of tractors that offer dynamic performance, sophisticated technology, unmatched utility, and versatility, all engineered into a single powerful tractor.

In October 2019, John Deere introduced a new 8 Family Tractor lineup that includes 8R wheel tractors, 8RT two-track tractors, and four-track tractors, the all-new 8RX. These new tractors come standard equipped with the latest precision ag technology.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat from Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 By Horse Power

      1. 5.1.1 Less than 40 HP

      2. 5.1.2 40 HP to 99 HP

      3. 5.1.3 100 HP to 150 HP

      4. 5.1.4 151 HP to 200 HP

      5. 5.1.5 201 HP to 270 HP

      6. 5.1.6 271 HP to 350 HP

      7. 5.1.7 Greater than 350 HP

    2. 5.2 By Type

      1. 5.2.1 Orchard Tractors

      2. 5.2.2 Row-crop Tractors

      3. 5.2.3 Other Tractors

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Italy

        6. Russia

        7. Poland

        8. Rest of Europe

      3. 5.3.3 Asia Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Africa

        1. South Africa

        2. Rest of Africa


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Claas Group

      2. 6.3.2 Deere & Company

      3. 6.3.3 Mahindra & Mahindra Ltd

      4. 6.3.4 CNH Industrial NV

      5. 6.3.5 Kubota Corporation

      6. 6.3.6 Massey Ferguson Limited

      7. 6.3.7 TAFE Ltd

      8. 6.3.8 Iseki & Co. Ltd

      9. 6.3.9 Yanmar Co.



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Frequently Asked Questions

The Agricultural Tractors Market market is studied from 2016 - 2026.

The Agricultural Tractors Market is growing at a CAGR of 4.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Claas Group, Deere & Company, Mahindra & Mahindra Ltd, CNH Industrial NV, Kubota Corporarion are the major companies operating in Agricultural Tractors Market.

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