Asia-Pacific Agricultural Tractors Market Trends

Statistics for the 2023 & 2024 Asia-Pacific Agricultural Tractors market trends, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Agricultural Tractors trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Asia-Pacific Agricultural Tractors Industry

Row Crops Dominate Agricultural Tractors Market

  • In the Asia-Pacific agricultural tractors market, row crop tractors dominate, largely due to their efficiency with key regional crops. Crops like rice, wheat, and corn occupy over 50% of the region's agricultural land, necessitating farm mechanization, for planting, and management. These tractors, versatile in nature, handle tasks from planting to harvesting, proving to be a cost-effective choice for farmers. Their alignment with advanced technologies, such as GPS, resonates with the region's shift towards precision farming. Economically, row crop tractors cater to both small and large farms, bolstered by government subsidies. With the region advocating for increased mechanization and a rise in commercial farming, row crop tractors are well-positioned to navigate Asia-Pacific's diverse agricultural landscape.
  • The rising global demand for agricultural products, coupled with favorable government policies, technological advancements, and an expansion in the cultivated land is propelling the growth of the row-crop tractor market. For instance, according to The Food and Agriculture Organization (FAO), India's rice cultivation area increased from 45.7 million hectares in 2020 to 46.4 million hectares in 2022, highlighting the growing need for tractors in land preparation and cultivation. These factors are anticipated to significantly boost the demand for row-crop tractors, which are increasingly being recognized as versatile alternatives to manual labor, particularly as labor productivity is declining, leading to increased production costs. For instance, China experienced a 4.27% year-over-year drop in labor productivity in 2023, compared to a growth of 4.78% in the previous year.
Asia-Pacific Agricultural Tractors Market: Asia-Pacific Agricultural Tractor Machinery Market: Area Under Cultivation of Pulses in Hectares, Asia, 2020-2022

India Dominates the Market

  • The Economic Survey conducted by the Government of India highlights a strong relationship between farm mechanization and crop productivity, particularly the use of agricultural machinery such as tractors. It has been indicated that the adoption of agricultural machinery, including tractors, can potentially enhance crop productivity by up to 30% and reduce cultivation costs by 20%. According to the Tractor and Mechanization Association (TMA), total domestic tractor sales in the Financial Year (FY) 2023-24 were 874,504 units.
  • Leading tractor manufacturers are proactively responding to this growing demand by introducing innovative models tailored to meet regional requirements. To support farmers in acquiring agricultural equipment, key industry players are offering accessible loan options, thereby further stimulating the market. For instance, in April 2023, Mahindra's farm equipment division collaborated with the State Bank of India (SBI) to provide convenient financing options for tractors and farm machinery, facilitating easier access for farmers.
  • In addition to domestic players, significant international companies are also increasing their investments to establish a strong foothold in the Indian market. Notably, in 2024, New Holland, a brand under CNH Industrial, introduced the WORKMASTER 105, India's first 100+ HP TREM-IV tractor, marking a significant milestone for the company and the Indian tractor market.
  • The Indian tractor market is being driven by factors such as scarcity of farm labor, increasing farm wages, and governmental support for farm mechanization. Additionally, population growth, rising demand, and labor scarcities are making the adoption of mechanized solutions imperative for long-term and sustainable growth.
Asia-Pacific Agricultural Tractors Market: Asia-Pacific Agricultural Tractor Machinery Market : Tractors Sales in Units by Manufacturer, India, 2023

Asia-Pacific Agricultural Tractor Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)