Renub Research: Global Tractor Market Set to Plough Ahead, Reaching $111.22 Billion by 2033

Agricultural Tractors Market Overview

The growing need for automated solutions in contemporary farming is driving the rapid evolution of the agricultural tractor market. Precision agriculture, less manual work, and increased output are all made possible by tractors. To maximize field operations, farmers are implementing tractors equipped with cutting-edge technology, such as automation, telematics, and GPS, as the global demand for food increases. Trends such as climate change adaptation and sustainable agricultural methods also have an impact on this sector. Adoption is being aided by government incentives and assistance for agrarian modernization, especially in developing nations. For small-scale farmers, obstacles, including high upfront investment costs and restricted access to funding, still exist. In general, the agricultural market exhibits a significant trend toward sustainability, efficiency, and the integration of technology.



Horse Power

Lesser than 40 HP

40 HP to 99 HP

100 HP to 150 HP

151 HP to 200 HP

201 HP to 270 HP

271 HP to 350 HP

Greater than 350 HP



According to Renub Research, the growing adoption of agricultural mechanization is expected to propel the Agricultural Tractors market to USD 68.87 billion by 2024. The market is expected to reach USD 111.22 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.47% between 2025 and 2033.



Key information covered in the report.

Base Year - 2024

Historical Period - 2020-2024

Market Forecast - 2025-2033

Market - US$ Billion



Request a free sample copy of the report: https://www.renub.com/global-tractor-market-p.php



Market Dynamics

Drivers



The advent of agricultural tractors with no drivers:

The market is growing as a result of a rise in tractor registrations in industrialized nations linked to higher global farmer expenditure. Furthermore, the continuous expansion of the country's agricultural sector, the rapid adoption of mechanization of farming initiatives, and the increasing penetration of self-driving tractors are all contributing to the market's growth. Additionally, developments in India's agricultural sector, including the introduction of innovative farming equipment like tractors, fuel market expansion. Additionally, throughout the projected period, the market is expected to develop due to increased demand for tractors resulting from higher plowing, Kharif planting, and plating applications in agricultural operations.



Type

Orchard Tractors

Row-crop Tractors

Other Types



Limitations

The extremely prosperous renting sector:

A very successful rental business is restraining the market's expansion. Additionally, tractors and harvesters, for example, account for a substantial portion of the global rental market and represent a significant investment in agricultural operations. The cost of the equipment that farmers may purchase reflects all the procedures involved in its production, distribution, and design. Furthermore, small farmers' inability to make significant financial investments contributes to the poor penetration of farm equipment in emerging economies. Utilizing agricultural equipment enables farmers to increase productivity and reduce turnaround times, ultimately enhancing overall efficiency and profitability. Additionally, renting farm equipment is more affordable than purchasing it with a traditional bank loan through a financial institution. These elements are what are holding back the market's expansion.



Application

Harvesting

Seed Sowing

Spraying

Others



Opportunities

The acceleration of technical advancement:

One of the primary drivers of the market's expansion is the increasing adoption of new and advanced technologies in the agricultural industry to enhance global production. Additionally, the percentage of the population working in agriculture, the growing use of precision farming, basic demand-supply economics, and labor migration from urban to rural regions all have an impact on the market for agricultural tractors. Additionally, government programs that provide farmers with cheaper borrowing rates and financial support are contributing to the market's expansion throughout the predicted period. Additionally, during the projection period, market expansion is supported by increasing farm cash receipts, or revenue and profit from farming.



Asia-Pacific Dominating the Market

The market for agricultural tractors in the Asia-Pacific region is expanding significantly due to the introduction of innovative products by local manufacturers. To achieve greater yields and economies of scale, farmers in China, Japan, Indonesia, Thailand, Vietnam, Sri Lanka, and India are expanding their businesses. More than 70% of Vietnam's cultivated land is mechanized, and farmers can now more easily get tractors thanks to government assistance programs. Vietnamese farmers often rely on tractor rental services due to limited local production. THACO Industries, a division of the THACO Group, made a USD 550 million investment in 2022 to set up mass manufacturing facilities for semi-trailers, auto components, agricultural machines, and other equipment for both local and international markets.

Large and medium-sized tractors are gradually being replaced by tiny tractors, according to China's National Bureau of Statistics. There were 4.4 million big and medium-sized tractors in the nation by the end of 2023. Tractor sales in China may rise as a result of the 'Made in China 2025' initiative's inclusion of agricultural machinery, which attempts to promote domestic farm equipment manufacture. The rise of the tractor market in the Asia-Pacific region is being driven by government assistance for farm mechanization and growing farm wages. The Pradhan Mantri Kisan Tractor Yojna, for example, was launched by the Indian federal government in 2022 and provides farmers with a 50% subsidy on tractor purchases through direct beneficiary transfers.



Countries

North America

United States

Canada

Europe

France

Germany

Italy

Spain

United Kingdom

Belgium

Netherlands

Turkey

Asia Pacific

China

Japan

India

Australia

South Korea

Thailand

Malaysia

Indonesia

New Zealand

Latin America

Brazil

Mexico

Argentina

Middle East & Africa

South Africa

Saudi Arabia

UAE



Innovations Expected to Transform Tractor Efficiency by 2030

By 2030, several technical developments are expected to enhance tractor efficiency significantly. Among the most significant innovations are:

Smart Technologies and Precision Agriculture

Tractors will be able to optimize field operations, minimize overlaps, reduce input waste, and enhance yield outcomes through the integration of GPS navigation, IoT sensors, and real-time data analytics.

By applying seeds, fertilizer, and pesticides to specific locations, precision agtech reduces expenses and its negative environmental impacts.

Alternate Powertrains and Electrification

Given their lower emissions, cheaper running costs, and increased energy efficiency, electric and hybrid tractors are predicted to proliferate.

This trend will be further fueled by developments in battery technology and the use of renewable energy sources.

Autonomous Tractors and Automation

Robotic and autonomous tractors that can function with little to no human assistance would boost productivity, save labor costs, and enable continuous operation around the clock.

For navigation, obstacle identification, and task execution, these systems utilize artificial intelligence (AI), machine learning, and advanced sensors.



Important Market Company Insights for Agricultural Tractors

Concepts for their autonomous and electric tractors have been commercially introduced by major players in this market, including Deere & Company, CLAAS KGaAmbH Escorts Ltd., SOLECTRAC, and Monarch. For instance, VST Tillers Tractors Ltd. and ZETOR TRACTORS jointly built two best-in-class tractors in the 45 HP and 50 HP categories, which they displayed at their operations in India and the Czech Republic in November 2022.

Deere & Company manufactures and builds heavy equipment drivetrains and diesel engines, lawn care equipment, and agricultural and forestry machines. The business also produces and sells more heavy manufacturing equipment. The Company provides services to a wide range of sectors, including government and military, engines and drivetrain, forestry, construction, landscaping and grounds maintenance, sports turf, and agriculture.

AGCO Corporation is a producer of agricultural equipment situated in the United States. Tractors, combines, foragers, hay tools, self-propelled sprayers, innovative agrarian technology, seeding equipment, and tillage equipment are just a few of the goods and solutions that the firm creates and markets.



Key Players Analysis

John Deere's

CNH Industrial

AGCO Corporation

KUBOTA Corporation

Mahindra & Mahindra

ClaasKGaAmbH

Escorts Ltd.

Titan Machinery Inc.



Market News for Agricultural Tractors

August 2024: India's first locally produced tractor with more than 100 horsepower was unveiled by CNH brand New Holland. With an engine that complies with the TREM-IV emission standard, the WORKMASTER 105 offers the Indian market cutting-edge performance and technology.

In February 2024, Deere & Company introduced the high-horsepower, autonomous 9RX series tractor, featuring cutting-edge technology to enhance sustainability, efficiency, and production.

Media Contact:

Company Name: Renub Research

Contact Person: Rajat Gupta, Marketing Manager

Phone No: +91-120-421-9822 (IND) | +1-478-202-3244 (USA)

Emailrajat@renub.com

About the Company:

Renub Research is a Market Research and Consulting Company. We have more than 15 years of experience especially in international Business-to-Business Researches, Surveys and Consulting. We provide a wide range of business research solutions that helps companies in making better business decisions. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our wide clientele comprises major players in Healthcare, Travel and Tourism, Food Beverages, Power Energy, Information Technology, Telecom Internet, Chemical, Logistics Automotive, Consumer Goods Retail, Building, and Construction, Agriculture. Our core team is comprised of experienced people holding graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, Human Resource, Bio-Technology, Medicine, Information Technology, Environmental Science, and many more.

This release was published on openPR.