Turkey Agricultural Tractor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.8 Billion |
| Market Size (2029) | USD 2.30 Billion |
| CAGR (2024 - 2029) | 5.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Turkey Agricultural Tractor Market Analysis
The Turkey Agricultural Tractor Market size is estimated at USD 1.8 billion in 2024, and is expected to reach USD 2.30 billion by 2029, at a CAGR of 5.60% during the forecast period (2024-2029).
- Turkey's agricultural tractor market plays a vital role in the nation's expansive agricultural sector, which is one of the largest globally. Agriculture significantly bolsters Turkey's economy, impacting employment, rural development, and food security. Tractors, essential for farm mechanization, enhance productivity and efficiency in a nation cultivating over 30 million hectares.
- Turkey's tractor market sees robust demand for both domestic and imported models, spurred by the push for mechanization across its varied agricultural landscapes. Tractors find applications in grain cultivation, horticulture, orchards, and livestock farming. As farms trend toward commercialization, there's a notable shift to medium and high-horsepower models.
- In recent years, Turkey has emerged as one of Europe's largest tractor markets, with annual sales ranging between 50,000 to 70,000 units, according to Turkish government statistics. With agriculture contributing 6-7% to the GDP and employing about 17% of the workforce, the push for mechanization is evident. Tractors are central to this evolution, facilitating efficient land use and boosting productivity.
- Furthermore, the Turkish government actively bolsters the agricultural tractor market, offering subsidies, grants, and low-interest loans to farmers for new machinery purchases. Initiatives like the Agricultural Mechanization Support Scheme motivate farmers to upgrade their equipment, fueling demand for newer tractor models. Turkey's state-owned Ziraat Bank plays a pivotal role in this landscape, offering loans for tractors and agricultural mechanization. In 2023, Ziraat Bank extended TL 40.8 billion (USD 1.19 billion) in tractor loans to nearly 62,000 customers, underscoring its commitment to enhancing agricultural mechanization for improved efficiency and profitability.
Turkey Agricultural Tractor Market Trends
Increasing Cost of Farm Labor Driving Demand for Tractors
- In Turkey, the rising cost of farm labor is driving an increased demand for tractors. This trend mirrors a global shift where factors like rising wages, urban migration, and agricultural labor shortages are nudging farmers toward mechanization.
- As rural populations dwindle and urban migration intensifies, agricultural wages have surged. Consequently, manual labor has become pricier. For instance, as per the data released by the Turkish Statistical Institute, the average wages of permanent agricultural workers was 6,547 TL (USD 191.5) in 2022 which increased and reached 13,425 TL (USD 392.6) in 2023. To counter this, farmers are turning to tractors and machinery, aiming to sustain or boost productivity while leaning less on human labor.
- Modern tractors and farm equipment empower farmers to boost productivity and cut down operational time. Given the unpredictable weather and mounting competition, Turkish farmers are increasingly relying on tractors to achieve higher yields with reduced labor. Furthermore, as the world pivots towards precision agriculture, leveraging data and technology to refine farming practices, there's a growing emphasis on technologically advanced tractors. This evolution aligns with Turkey's broader agricultural modernization efforts.
51 - 75 HP Range Tractors Market in Increasing
- The rising demand for 51 to 75 HP tractors in Turkey stems from a blend of economic, technological, and agricultural factors. These tractors offer an ideal mix of affordability, versatility, and efficiency, catering perfectly to Turkey’s dominant small and medium-sized farms. Coupled with the push for modern, cost-effective solutions, this horsepower range is poised for continued robust growth. Small and medium-sized farms, which dominate Turkish agriculture, typically have smaller fields. These fields don’t necessitate the high power of larger tractors, making the 51 to 75 HP range ideal. Tractors in this range offer sufficient power for daily tasks while remaining compact and maneuverable for smaller, fragmented plots.
- Moreover, the 51 to 75 HP tractors' versatility allows them to plow, till, spray, and transport goods. This adaptability is vital for small to medium farms that rely on a single machine for multiple functions. These tractors are more affordable than their larger counterparts, both in initial purchase price and operational costs. This affordability strikes a balance between cost and capability for budget-conscious small to medium-sized farms.
- Additionally, these tractors typically boast better fuel efficiency than larger models, a crucial factor for farmers aiming to minimize operational costs. With fluctuating fuel prices, farmers prioritize machines that accomplish essential tasks without excessive fuel consumption. Such considerations have bolstered the overall tractor sales. For instance, data from The Turkish Association of Agricultural Machinery & Equipment Manufacturers shows tractor sales in Turkey increased from 66,943 units in 2022 to 77,901 units in 2023.
- Turkish farms cultivate high-value specialty crops, including fruits, vegetables, olives, and nuts. These crops demand precision farming techniques and tractors adept at navigating smaller, irregularly shaped fields or orchards. The 51 to 75 HP tractors strike the right balance, being compact enough for these environments yet powerful enough for essential implements. Coupled with the push for modern, cost-effective solutions, this horsepower range is poised for continued robust growth.
Turkey Agricultural Tractor Industry Overview
The Turkish agricultural tractor market is consolidated, with major players such as Erkunt Traktor Sanayii AS, Hattat Holding AS, AGCO Corporation, CNH Industrial NV, and Tumosan Tractors. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market globally.
Turkey Agricultural Tractor Market Leaders
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Erkunt Traktör Sanayii AS
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Hattat Holding AS
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AGCO Corporation
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CNH Industrial NV
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Tumosan Tractors
*Disclaimer: Major Players sorted in no particular order
Turkey Agricultural Tractor Market News
- May 2024: SDF, a leading global manufacturer of tractor diesel engines, inaugurated a sprawling 10,000-square-metre facility in Bandirma, Turkey. This state-of-the-art factory is primarily focused on producing FARMotion engines and precision machining.
- March 2024: AGCO and AgRevolution showcased new solutions from Fendt, Massey Ferguson, and Hesston by Massey Ferguson at National Farm Machinery in Louisville, Kentucky.
Turkey Agricultural Tractor 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 Cost of Farm Labor
4.2.2 Increasing Government Initiatives
4.2.3 Technological Advancements
4.3 Market Restraints
4.3.1 Rising Cost of Fuel and Input
4.3.2 Environmental and Regulatory Challenges
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Horse Power
5.1.1 Less Than 50 HP
5.1.2 51 HP to 75 HP
5.1.3 76 HP to 100 HP
5.1.4 151 HP to 200 HP
5.1.5 More Than 100 HP
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Erkunt Traktr Sanayii AS
6.3.2 CNH Industrial NV
6.3.3 Tumosan Tractors Europe
6.3.4 Uzel Corporation
6.3.5 Hattat Holding AS
6.3.6 AGCO Corporation
6.3.7 Turk Tractor and Agricultural Machinery Corporation
6.3.8 Deere & Company
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Turkey Agricultural Tractor Industry Segmentation
The agriculture tractor is a self-propelling vehicle used principally for agricultural purposes. For this report, the tractor used in agricultural operations has been considered. The Turkey Agricultural Tractor Market is segmented by horsepower (Less Than 50 HP, 51 to 75 HP, 76 to 100 HP, 151 HP to 200 HP, and More Than 100 HP). The report offers the market size and forecasts in terms of value in USD for all the above segments.
| Horse Power | |
| Less Than 50 HP | |
| 51 HP to 75 HP | |
| 76 HP to 100 HP | |
| 151 HP to 200 HP | |
| More Than 100 HP |
Turkey Agricultural Tractor Market Research FAQs
How big is the Turkey Agricultural Tractor Market?
The Turkey Agricultural Tractor Market size is expected to reach USD 1.8 billion in 2024 and grow at a CAGR of 5.60% to reach USD 2.30 billion by 2029.
What is the current Turkey Agricultural Tractor Market size?
In 2024, the Turkey Agricultural Tractor Market size is expected to reach USD 1.8 billion.
Who are the key players in Turkey Agricultural Tractor Market?
Erkunt Traktör Sanayii AS, Hattat Holding AS, AGCO Corporation, CNH Industrial NV and Tumosan Tractors are the major companies operating in the Turkey Agricultural Tractor Market.
What years does this Turkey Agricultural Tractor Market cover, and what was the market size in 2023?
In 2023, the Turkey Agricultural Tractor Market size was estimated at USD 1.70 billion. The report covers the Turkey Agricultural Tractor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Turkey Agricultural Tractor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Turkey Agricultural Tractor Industry Report
Statistics for the 2024 Turkey Agricultural Tractor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Turkey Agricultural Tractor analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Turkey Agricultural Tractor Market Report Snapshots
