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Turkey Agricultural Tractor Market Size (2024 - 2029)

The Turkish agricultural tractor market is experiencing steady growth, driven by the increasing value generated within the country's agricultural sector. Despite challenges such as reduced agricultural land and fragmented plots, the market size continues to expand, with a significant portion of tractors in use being older models. The demand for tractors, particularly those with higher horsepower, remains strong due to their versatility in agricultural operations. Additionally, the export market for Turkish tractors is robust, benefiting from competitive pricing compared to European counterparts, which has contributed to the market's growth trajectory.

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Market Size of Turkey Agricultural Tractor Industry

Turkey Agricultural Tractor Market Summary
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

Turkey Agricultural Tractor Market 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 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
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Turkey Agricultural Tractor Market Size Summary

The Turkish agricultural tractor market is experiencing steady growth, driven by the increasing value generated by the country's agricultural sector. Despite challenges such as a decrease in total agricultural area and fragmented land, the demand for tractors remains robust, with a significant portion of the existing fleet being over 25 years old. The market is characterized by a strong preference for tractors in the 60+ HP range, which are favored for their versatility in performing multiple agricultural operations. Major players like TurkTraktor are pivotal in this market, not only by maintaining high sales volumes but also by investing in research and development to enhance agricultural productivity. The domestic production base is substantial, with eight manufacturing plants catering to both local and export markets, supported by favorable economic conditions such as a skilled labor force and competitive energy prices.

The Turkish government plays a crucial role in promoting agricultural mechanization, which has historically been dominated by foreign companies. This support has bolstered the domestic economy and encouraged local manufacturers to focus on both domestic and international markets. Companies are actively engaging in expansions and product developments, particularly in the popular 50-75 HP power segment. The market is consolidated, with key players like Erkunt Traktör Sanayii AS, Hattat Holding AS, AGCO Corporation, CNH Industrial NV, and Tumosan Tractors leading the way. Strategic initiatives such as new product launches, partnerships, and acquisitions are common, with recent collaborations like the joint venture between Deere & Co. and the Hattat Group highlighting the market's dynamic nature. These efforts, along with government incentives like VAT exemptions, are expected to sustain the growth trajectory of the Turkish agricultural tractor market.

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Turkey Agricultural Tractor Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Cost of Farm Labor

      2. 1.2.2 Increasing Government Initiatives

      3. 1.2.3 Technological Advancements

    3. 1.3 Market Restraints

      1. 1.3.1 Rising Cost of Fuel and Input

      2. 1.3.2 Environmental and Regulatory Challenges

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Horse Power

      1. 2.1.1 Less Than 50 HP

      2. 2.1.2 51 HP to 75 HP

      3. 2.1.3 76 HP to 100 HP

      4. 2.1.4 151 HP to 200 HP

      5. 2.1.5 More Than 100 HP

Turkey Agricultural Tractor Market Size FAQs

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.

In 2024, the Turkey Agricultural Tractor Market size is expected to reach USD 1.8 billion.

Turkey Agricultural Tractor Market Report Snapshots

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