Market Size of Agricultural Tractors Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 70.40 Billion |
| Market Size (2029) | USD 90.71 Billion |
| CAGR (2024 - 2029) | 5.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Agricultural Tractors Market Analysis
The Agricultural Tractors Market size is estimated at USD 70.40 billion in 2024, and is expected to reach USD 90.71 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
- Tractors are agriculture equipment that is used to perform farming operations such as plowing, tilling, and planting. They are also used for spreading fertilizers, clearing bushes, and other activities. The cost of labor has been increasing at significantly high rates due to the urbanization and migration of people to urban areas. The cost of farm labor is directly proportional to the cost of production. Mechanization can reduce labor wages. The increasing labor wages and the lack of farm labor have led to increasing rates of mechanization.
- Furthermore, the increased government support to raise farm mechanization for obtaining high yield by providing subsidies is helping to increase the number of tractors. Moreover, technological advancements are also catering to the increased mechanization and raising awareness among farmers about the benefits of farm mechanization.
- Numerous businesses have been releasing new agricultural tractors, allowing them to dominate the market with speedier product launches and advancements. Several major market players are spending on research and development in order to produce cutting-edge equipment and retain a strong market position. This factor drives the sales of tractors in the market. For instance, in 2020, Deere & Company launched a new 8 Family Tractor line-up that included 8R wheel tractors, 8RT two-track tractors, and the industry's first fixed-frame four-track tractors. These new tractors come equipped with the latest precision agriculture technology and allow customers to choose the machine configuration, options, and horsepower to best fit their operation. On the other hand, the lack of properly skilled labor for operating specialized and modern tractors may become a restraining factor for the tractor market.
Agricultural Tractors Industry Segmentation
A tractor is a farm vehicle that is used to pull farm machinery and provide the energy needed for the machinery to work. It helps to reduce the time required by farming operations and makes it easy. For the purpose of this report, tractors used in agricultural operations in farming have been considered. The report does not cover other agricultural machinery and attachments to the tractor. Tractors used for industrial and construction purposes are also excluded from the study.
The agricultural tractors market is segmented by engine power (lesser 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 types), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts for all the above segments in terms of value (USD million).
| By Horse Power | |
| Lesser 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 Types |
| By Geography | ||||||||||
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Agricultural Tractors Market Size Summary
The agricultural tractor market is poised for significant growth, driven by the increasing need for mechanization in farming operations. As urbanization leads to rising labor costs and a shortage of farm labor, tractors are becoming essential for tasks such as plowing, tilling, and planting. Government initiatives and subsidies aimed at enhancing farm mechanization are further propelling the market. Technological advancements in precision farming, including GPS and automated steering systems, are also contributing to the demand for tractors. Major industry players are investing in research and development to introduce innovative products, such as Deere & Company's new tractor line-up, which incorporates advanced precision agriculture technology. However, the shortage of skilled labor to operate these modern tractors poses a challenge to market growth.
The market is experiencing robust demand, particularly in developing regions like Asia-Pacific, where countries such as China, Japan, and India are leading in tractor sales. In China, the shift towards smaller tractors is supported by government initiatives like the 'Made in China 2025' campaign, which aims to boost domestic production of agricultural machinery. Similarly, in India, the government's promotion of 'Balanced Farm Mechanization' through subsidies and financial schemes is expected to strengthen the tractor market. The consolidation of the market is evident with major players like Deere & Company, Kubota Corporation, and CNH Industrial NV dominating the landscape. These companies are leveraging strategies such as new product launches and partnerships to maintain their market positions and drive growth during the forecast period.
Agricultural Tractors Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat from Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Horse Power
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2.1.1 Lesser than 40 HP
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2.1.2 40 HP to 99 HP
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2.1.3 100 HP to 150 HP
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2.1.4 151 HP to 200 HP
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2.1.5 201 HP to 270 HP
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2.1.6 271 HP to 350 HP
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2.1.7 Greater than 350 HP
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2.2 By Type
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2.2.1 Orchard Tractors
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2.2.2 Row-crop Tractors
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2.2.3 Other Types
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2.3 By Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Spain
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Poland
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2.3.2.8 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Africa
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2.3.5.1 South Africa
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2.3.5.2 Rest of Africa
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Agricultural Tractors Market Size FAQs
How big is the Agricultural Tractors Market?
The Agricultural Tractors Market size is expected to reach USD 70.40 billion in 2024 and grow at a CAGR of 5.20% to reach USD 90.71 billion by 2029.
What is the current Agricultural Tractors Market size?
In 2024, the Agricultural Tractors Market size is expected to reach USD 70.40 billion.
