North America Agricultural Tractors Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.39 Billion |
| Market Size (2029) | USD 21.32 Billion |
| CAGR (2024 - 2029) | 5.40 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Agricultural Tractors Market Analysis
The North America Agricultural Tractors Market size is estimated at USD 16.39 billion in 2024, and is expected to reach USD 21.32 billion by 2029, at a CAGR of 5.40% during the forecast period (2024-2029).
Farm mechanization such as tractors provides numerous advantages, including reduced time and labor requirements, decreased long-term crop production costs, minimized post-harvest losses, and increased crop yields and farm income. North America has emerged as the largest market for tractor technologies, primarily due to the rapid adoption of modern equipment in developed countries, facilitated by larger farm sizes and increased farmer awareness.
Despite agriculture's significance to the regional economy, the sector has experienced a substantial decline in employment, resulting in an annual labor shortage crisis. World Bank data indicates that employment in agriculture as a percentage of total employment in the United States decreased by 0.04%, reaching 1.62% in 2022. This labor shortage has led to increased wage rates, subsequently driving demand for farm tractors and contributing to market growth during the forecast period.
The growing need for sustainable farm operations has fueled demand for advanced and efficient tractors in recent years. According to the Association of Equipment Manufacturers (AEM), total farm tractor sales in the United States reached 250,265 units in 2023. Notably, sales of 4WD tractors increased by 31.7%, from 3,466 units in 2022 to 4,564 in 2023.
Government programs in North America have played a crucial role in promoting agricultural mechanization. These initiatives provide support and financing for purchasing agricultural tractors, as well as training for tractor operators. For instance, in March 2022, the Government of Canada invested over USD 860,000 in agricultural machinery innovation and technology to address industry challenges. These projects support Canadian agricultural technology companies in developing effective farm tractor solutions aimed at reducing waste, conserving resources, and improving efficiency.
North America Agricultural Tractors Market Trends
Increasing Adoption of Farm Mechanization and Shortage of Labor
The evolution of sophisticated agricultural machinery has transformed farming methods. Increased farm consolidation, a large production base, and enhanced government subsidies are propelling the adoption of agricultural tractor machinery.
North American farmers are increasingly embracing advanced technologies, including precision farming systems and smart agricultural machines. The market is characterized by strong sales of high-powered tractors, with models exceeding 40 HP dominating the market share. Leading manufacturers such as Deere & Company, AGCO Corp., and CNH Industrial NV are focusing on producing technologically advanced agricultural tractors, driving market growth. For example, in 2023, CLAAS introduced three new compact tractor series in North America: ELIOS 200, ELIOS 300, and AXOS 200. These tractors offer various technical features related to performance, power transmission, comfort, and payload, catering to diverse customer needs and applications.
The United States, Canada, and Mexico are experiencing significant farm labor shortages. A California Farm Bureau survey revealed that over 40% of farmers faced consistent labor shortages in various farm operations over the past five years. World Bank data shows that agricultural employment as a percentage of total employment in these countries decreased in 2022, reaching 1.62% in the United States, 1.28% in Canada, and 12.64% in Mexico, representing declines of 0.04%, 0.05%, and 0.43% respectively from the previous year. This labor scarcity has led to increased adoption of modern technologies, including tractors, to improve farm resource management.
The technological advancements in agricultural tractors in North America are contributing to improved efficiency and time-saving results. These factors are anticipated to drive market growth during the forecast period.
The United States is the Largest Market
Agriculture is a vital component of the United States economy. The United States Department of Agriculture reports that agriculture, food, and related industries contributed 5.6% of the GDP in 2023. Additionally, about 40% of the country's land is dedicated to agricultural purposes, including livestock grazing. This extensive agricultural land use encourages the adoption of agricultural machinery for various farming operations.
The United States is experiencing a trend of farm consolidation and increasing farm sizes, driving demand for agricultural tractors capable of large-scale operations. According to the United States Department of Agriculture, the average farm size in the country increased from 463 acres to 464 acres from 2022 to 2023. This growth in farm size necessitates the use of advanced agricultural tractors, contributing to market expansion.
Tractors above 100 HP and 4WD Farm Tractors are in high demand in the United States agricultural sector. The Association of Equipment Manufacturers (AEM) reports that retail sales of tractors above 100 HP increased by 5.2%, while 4WD tractors saw a 31.7% increase from 2022 to 2023. This growth in agricultural tractor sales indicates a positive trend for the market in the coming years.
Manufacturers are responding to the increasing demand for advanced machinery by introducing smart and specialty tractors. For instance, in November 2022, John Deere developed new 5EN and 5ML Series specialty tractors designed for work in narrow orchards and vineyards, incorporating new technologies. The combination of farm consolidation, rising tractor sales, and ongoing product innovations by manufacturers is anticipated to drive the growth of the agricultural machinery market in the United States during the forecast period.
North America Agricultural Tractor Machinery Industry Overview
The North American agricultural tractor machinery market is consolidated, with few players dominating the market. CNH Industrial NV, Deere & Company, AGCO Corp., SDF Group, and CLAAS Group are some of the major players operating in the market. The companies focus on strengthening their base by offering enhanced product features, competitive pricing, enhanced quality, increased scale of operation, and technological innovation. Along with innovations and expansions, investments in R&D and developing novel product portfolios will likely be crucial strategies in the coming years. These companies are making strategic partnerships with domestic companies to expand their distribution networks and launch new innovative tractors that cater to the needs of the farmers in this region.
North America Agricultural Tractor Machinery Market Leaders
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CNH Industrial NV
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Deere and Company
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CLAAS Group
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AGCO Corp.
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SDF Group
*Disclaimer: Major Players sorted in no particular order
North America Agricultural Tractor Machinery Market News
- September 2023: AGCO announced Agri-Service dealership expansion in Northern Idaho. Agri-Service acquired the Lewiston and Moscow, Idaho locations of AGCO dealer Blue Mountain Agri-Support Inc. This expansion allows Agri-Service to consolidate coverage for the entire AGCO portfolio of tractors in northern Idaho and southeast Washington.
- July 2023: The CLASS group launched two compact tractor series, AXOS 230 and 240, for advancement in parts of North America and Europe, especially for mixed and specialty crop farms as well as small-scale full- and part-time farms. It offers a host of different technical features relating to performance, power transmission, comfort, and payload to suit different customer specifications and fields of application.
- January 2023: John Deere partnered with Microsoft to bring new value and efficiencies to John Deere Dealers. The system will provide a common technology platform for many aspects of a tractor dealer's business, enabling new opportunities for growth, innovation, and customer insights for dealers.
North America Agricultural Tractors Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Adoption of Farm Mechanization and Shortage of Labor
4.2.2 Increasing Demand for Food Due to Population Growth
4.2.3 Government Support and Initiatives
4.3 Market Restraints
4.3.1 High Initial Investment and Maintenance Costs
4.3.2 Security Concerns in Modern Farming
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Below 40 HP
5.1.2 40-100 HP
5.1.3 Above 100 HP
5.1.4 4 WD Farm Tractors
5.2 Geography
5.2.1 United States
5.2.2 Canada
5.2.3 Mexico
5.2.4 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere and Company
6.3.2 AGCO Corp.
6.3.3 CLAAS Group
6.3.4 CNH Industrial NV
6.3.5 SDF Group
6.3.6 Kubota Corporation
6.3.7 Mahindra & Mahindra Ltd
6.3.8 Yanmar Holdings Co.
6.3.9 Mahindra & Mahindra Ltd.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Agricultural Tractors Industry Segmentation
A tractor is a type of agricultural vehicle used in farm operations to pull farm equipment and supply the energy required for that equipment to function. The North American agricultural tractor machinery market is segmented by type (below 40 HP, 40-100 HP, above 100 HP, and 4 WD farm tractors) and geography (United States, Canada, Mexico, and the Rest of North America). The report offers the market size and forecasts for volume in (Units) and value in (USD) for all the above segments.
| Type | |
| Below 40 HP | |
| 40-100 HP | |
| Above 100 HP | |
| 4 WD Farm Tractors |
| Geography | |
| United States | |
| Canada | |
| Mexico | |
| Rest of North America |
North America Agricultural Tractors Market Research FAQs
How big is the North America Agricultural Tractors Market?
The North America Agricultural Tractors Market size is expected to reach USD 16.39 billion in 2024 and grow at a CAGR of 5.40% to reach USD 21.32 billion by 2029.
What is the current North America Agricultural Tractors Market size?
In 2024, the North America Agricultural Tractors Market size is expected to reach USD 16.39 billion.
Who are the key players in North America Agricultural Tractors Market?
CNH Industrial NV, Deere and Company, CLAAS Group, AGCO Corp. and SDF Group are the major companies operating in the North America Agricultural Tractors Market.
What years does this North America Agricultural Tractors Market cover, and what was the market size in 2023?
In 2023, the North America Agricultural Tractors Market size was estimated at USD 15.50 billion. The report covers the North America Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Agricultural Tractors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Agricultural Tractor Machinery Industry Report
Statistics for the 2024 North America Agricultural Tractor Machinery market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. North America Agricultural Tractor Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
North America Agricultural Tractor Machinery Market Report Snapshots
