United States Agricultural Tractor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.90 Billion |
| Market Size (2029) | USD 22.40 Billion |
| CAGR (2024 - 2029) | 7.30 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Agricultural Tractor Market Analysis
The United States Agricultural Tractor Market size is estimated at USD 16.90 billion in 2024, and is expected to reach USD 22.40 billion by 2029, at a CAGR of 7.30% during the forecast period (2024-2029).
- Driven by a vast agricultural sector and continuous investments in mechanized farming, the United States boasts one of the world's largest and most mature tractor markets. Steady growth in the U.S. tractor market is attributed to the rising mechanization in farming.
- Key drivers include a growing food demand spurred by population growth, technological innovations, and governmental backing for modern farming. Such dynamics have bolstered tractor sales nationwide. For example, sales of 4WD tractors in the United States saw a 9.4% uptick in May 2024 compared to May 2023, according to the Association of Equipment Manufacturers (AEM).
- The country's market caters to a diverse range of tractors, from compact models for smaller farms and landscaping to powerful machines designed for expansive commercial agriculture. Modern tractors in the United States are increasingly incorporating precision agriculture technologies, such as GPS, autonomous driving, telematics, and data analytics. These innovations empower farmers to boost yields, optimize fuel consumption, and cut labor costs.
- Additionally, there's a rising trend towards electric tractors and eco-friendly machinery, as firms aim to curb carbon emissions and adhere to stringent environmental standards. The momentum is also building for driverless and semi-autonomous tractors, with industry leaders like John Deere making significant investments in automation to enhance efficiency and trim labor expenses. The demand for sustainable farming and a decreased dependence on fossil fuels is likely to elevate the prominence of electric and hybrid tractors.
- In summary, while the United States tractor market thrives on technological advancements and the modernization of agricultural practices, it must navigate challenges like cost constraints and labor shortages in the future.
United States Agricultural Tractor Market Trends
Increasing Cost of Farm Labor Driving Demand for Tractors
In recent years, farmers, growers, and ranchers throughout the United States have expressed concerns about hiring an adequate number of qualified farmworkers at an economically viable wage. These challenges are particularly acute for labor-intensive sectors of United States agriculture. A prominent indicator of a tighter farm labor market in the United States is farmworkers' rising real (inflation-adjusted) wages. According to USDA, the daily wages of non-supervisory farm workers increased from USD 13.2 to USD 15.5 from 2019 to 2022. This increase in wages of farm workers is likely to lead to more demand for various farm technologies, such as agricultural tractors, in the country.
Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor with a more cost-effective, easily available, and more efficient means of agricultural operation. Tractors, the primary power source for driving agricultural machinery, have, thus, seen a phenomenal rise in sales in these countries during the study period. For instance, according to the Association of Equipment Manufactures, sales of agriculture tractors in the United States were 244,637 units in 2019, which increased to 250,265 units in 2023. Hence, the demand for agricultural tractors in the country is anticipated to increase during the forecast period.
Row Crop Tractors Dominate the Market
Row-crop tractors are designed to cater to diverse agricultural tasks, including plowing, harrowing, and weed control. They can also operate seed drills, water pumps, and belt pulley threshers. With their high ground clearance, these tractors minimize crop damage. Given these advantages and the expanding acreage of crops nationwide, the market is poised for growth.
In addition to this, the usage of row-crop tractors is helping to increase crop production, thereby raising the farmer’s income and making the tasks quicker and easier along with reducing the need for the workforce. Along with this, they bring accurate and timely results with minimal or no errors and complete the tasks in lesser time intervals.
Further, with an increase in the average farm size of the country row crop tractors are being increasingly used by growers. For instance, as per the United States Department of Agriculture, the average farm size in the United States in 2022 was 463 hectares which increased and reached 464 hectares in 2023. This is anticipated to support the growth of the market over the forecast period.
Moreover, in response to surging demand, in August 2024, AGCO Corporation, headquartered in United States, unveiled its AE50 award-winning Fendt 600 Vario Series tractor in North America. This latest addition to the Fendt lineup is designed to provide farmers with a versatile, high-performance tractor, proficient in handling a wide range of farm tasks with efficiency.
United States Agricultural Tractors Industry Overview
The agricultural tractors market in the United States is highly consolidated, with players including Deere & Company, CNH Industrial, Kubota Corporation , and Claas KGaA mbH. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the country. Further, expansions and investments in R&D are likely to be crucial strategies in the coming years.
United States Agricultural Tractors Market Leaders
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CLAAS KGaA mbH
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Deere & Company
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CNH Industrial N.V.
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Kubota Corporation
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AGCO Corporation
*Disclaimer: Major Players sorted in no particular order
United States Agricultural Tractors Market News
- February 2023: CLAAS launched the XERION tractor line with powertrain modifications, enhanced hydraulic flow, and increased versatility.
- March 2023: CNH Industrial purchased Augmenta Company to accelerate the growth of their innovative Sense & Act technology in agriculture. This is an important development for the agriculture business that will further support dealers by differentiating equipment through value-added technology.
- April 2022: Kubota North America Corporation (KNA) expanded the new 280-acre, Research and Development Center in the state of Georgia, United States, to meet the needs of tractors for North American customers. Kubota has invested more than USD 85 million to bring the new facility online, and it will open with 70 engineering and technical employees.
United States Agricultural Tractors Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & 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 Technological advancements drive Market Growth
4.2.2 Shortage of Labor In the Agriculture Sector
4.2.3 Government Support to Enhance Farm Mechanization
4.3 Market Restraints
4.3.1 High Initial Investments and Maintenance Cost of Farm Machinery
4.3.2 High Percentage of Small-Sized Farms Holdings
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Horse Power
5.1.1 Below 40 HP
5.1.2 40-100 HP
5.1.3 Above 100 HP
5.2 Tractor Type
5.2.1 Utility Tractors
5.2.2 Row Crop Tractors
5.2.3 Graden & Orchard Type Tractors
5.2.4 Other Tractor Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 AGCO Corporation
6.3.2 CNH Industrial N.V.
6.3.3 Deere & Company
6.3.4 KUBOTA Corporation
6.3.5 Mahindra and Mahindra Ltd.
6.3.6 The Case Corporation
6.3.7 Deutz-Fahr
6.3.8 CLAAS KGaA mbH
6.3.9 Daedong-USA, Inc.
6.3.10 Belarus Tractor
6.3.11 Massey Ferguson Limited
6.3.12 Caterpillar Inc.
6.3.13 SAME Deutz Fahr
6.3.14 Escorts Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
United States Agricultural Tractor Industry Segmentation
A tractor is a farm vehicle used to pull farm machinery and provide the energy needed for the machinery to work. For this report, tractors used in agricultural operations, especially four-wheeled tractors, have been considered. The United States agricultural tractor machinery market is segmented by horsepower into below 40 HP, 40-100 HP, and above 100 HP, and tractor type into utility tractors, row crop tractors, garden & orchard type tractors, and other tractor types. The report offers the market size and forecasts for volume (units) and value (USD) for all the above segments.
| Horse Power | |
| Below 40 HP | |
| 40-100 HP | |
| Above 100 HP |
| Tractor Type | |
| Utility Tractors | |
| Row Crop Tractors | |
| Graden & Orchard Type Tractors | |
| Other Tractor Types |
United States Agricultural Tractors Market Research FAQs
How big is the United States Agricultural Tractor Market?
The United States Agricultural Tractor Market size is expected to reach USD 16.90 billion in 2024 and grow at a CAGR of 7.30% to reach USD 22.40 billion by 2029.
What is the current United States Agricultural Tractor Market size?
In 2024, the United States Agricultural Tractor Market size is expected to reach USD 16.90 billion.
Who are the key players in United States Agricultural Tractor Market?
CLAAS KGaA mbH, Deere & Company, CNH Industrial N.V., Kubota Corporation and AGCO Corporation are the major companies operating in the United States Agricultural Tractor Market.
What years does this United States Agricultural Tractor Market cover, and what was the market size in 2023?
In 2023, the United States Agricultural Tractor Market size was estimated at USD 15.67 billion. The report covers the United States Agricultural Tractor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Agricultural Tractor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Agricultural Tractors Industry Report
Statistics for the 2024 United States Agricultural Tractors market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Agricultural Tractors analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
