Tractors Market Size (2024 - 2029)

Tractors Market Analysis

The Tractors Market size is estimated at USD 84.80 billion in 2024, and is expected to reach USD 114.5 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).

The tractor market has experienced steady growth in recent years, driven by factors such as increasing mechanization in agriculture, rising demand for high-horsepower tractors, and government initiatives supporting farm mechanization. The market size is substantial, reflecting the essential nature of tractors in enhancing agricultural efficiency. The adoption of precision farming techniques and the need for sustainable farming practices further contribute to the growth trajectory of the tractor market.

The market is characterized by the presence of leading global players, including John Deere, CNH Industrial (Case IH and New Holland), AGCO Corporation (Massey Ferguson and Fendt), and Kubota. These companies compete intensely, offering a diverse range of tractors with varying power capacities and features to cater to the diverse needs of European farmers. The competition is not only centered around product offerings but also involves service and support networks, as after-sales services play a critical role in the agricultural machinery sector.

Over the long term, the key factors contributing to the increase in worldwide tractor sales are increasing farm mechanization rates, especially in developing nations, rising farm labor costs, seasonal labor shortages, and shorter tractor replacement cycles. However, some of the prominent players in the industry are focusing on mergers and acquisitions and new product development in the market. For instance,

• The French start-up Seederal announced its venture into the development of an electric tractor in 2023. The company is currently in the process of constructing the electric tractor prototype, which is expected to possess a formidable power capacity of 160 hp. This initiative aligns with the global trend toward sustainable farming practices and the adoption of electric-powered agricultural machinery.
• In October 2022, At Kubota Connect, the manufacturer gave dealers a sneak peek at the new products. Series M7 Generation 4 The Kubota M7s are the company's largest tractors, aimed at livestock and forage producers.

Advancements in tractor technology have significantly influenced the European market. Precision farming technologies, such as GPS guidance systems, telematics, and automated steering, are increasingly integrated into modern tractors. These technologies enhance operational efficiency, optimize input usage, and contribute to sustainable agriculture by minimizing environmental impact. The adoption of precision farming practices is a notable trend, and farmers are investing in tractors equipped with smart technologies to improve productivity.

Asia-Pacific is expected to witness significant growth in the next five years as emerging key economies like India, China, and Japan are encouraging farmers in their countries by offering subsidized farm equipment and low credit rates to encourage tractor adoption. Such developments are likely to drive the demand for tractors in these regions.

Tractors Industry Segmentation

A tractor is a vehicle usually available with one or two small wheels in front and two large wheels at the back. It is used in agriculture, construction, and logistics applications to move attached implements such as rotavators, plowing, tilling, sowing, cultivation, and harvesting.

The tractors market is segmented by horsepower (below 40 HP, 40 HP - 100 HP, and above 100 HP), by drive type (two-wheel drive and four-wheel drive/all-wheel drive), and by geography (North America, Europe, Asia-Pacific, and the Rest of the World). For each segment, market sizing and forecast are given on the basis of value in USD billion.