Agricultural Tractor Market is anticipated to grow at a CAGR of 5.13% to reach US$27,877.434 million by 2028

agricultural tractor market

The agricultural tractor market was valued at US$19,641.678 million in 2021 and is anticipated to grow at a CAGR of 5.13% over the forecasted period to reach a market size of US$27,877.434 million in 2028.

The market for agricultural tractor market is significantly impacted favourably by precision farming and the expanding usage of agricultural technology to boost output.

As per the report, the global agricultural tractor market is expected to grow at a significant pace.

The agricultural tractor market is at the vanguard of modern farming evolution, playing a critical role in increasing agricultural efficiency and production globally. Tractors have become vital assets for farmers, transforming conventional farming techniques via mechanization. This dynamic industry is marked by ongoing technical breakthroughs, with a broad selection of tractors designed to fulfil the changing demands of the agricultural sector. As global food demand rises, the agricultural tractor market is expected to develop steadily, fueled by factors such as increased farm mechanization, precision agriculture methods, and the quest for sustainable and resource-efficient farming solutions. The interaction of innovation, environmental concerns, and the pursuit of peak performance characterizes the landscape of this critical industry, which shapes the future of contemporary agriculture.

The market is witnessing multiple collaborations and technological advancements, for instance, In August 2023, Mahindra introduced seven new variants of their lightweight 4WD tractor, the “Mahindra OJA”. The new launch is part of the company’s efforts to improve Indian farming.

The agricultural tractor market has been categorized based on engine power, type, vehicle type, mode of operation and geography.

Based on engine power the global agricultural tractor market is divided into less than 40 HP, 41 to 100 HP and more than 100 HP. The worldwide agricultural tractor industry is expected to undergo a substantial transition in the future years, with 41 to 100-horsepower tractors emerging as the dominant category. This mid-range power category is predicted to expand rapidly because of its adaptability, which caters to a wide range of farming operations. Farmers are increasingly valuing the balance of power and economy provided by tractors ranging from 41 to 100 horsepower, which makes them suited for a variety of agricultural jobs. Furthermore, technological developments and a focus on increasing agricultural productivity are expected to fuel demand for this category, cementing its position as the market leader.

Based on type the global agricultural tractor market is divided into utility tractors, row crop tractors, orchard type, industrial tractors, and other tractors. The worldwide agricultural tractor market is expected to increase significantly in the future years, with utility tractors emerging as the primary market segment. These flexible machines can handle a variety of agricultural duties, giving farmers greater flexibility and efficiency in their farming operations. The growing desire for automation, along with technological improvements and precise farming, is fueling the appeal of utility tractors. Furthermore, their flexibility in various agricultural operations makes them a popular option among farmers worldwide. As agriculture evolves with new technology, utility tractors are expected to maintain their market dominance, contributing considerably to the industry’s expansion.

Based on the vehicle type the global agricultural tractor market is divided into gasoline diesel and electric. The future trajectory of the global agricultural tractor industry indicates a significant movement toward electric tractors emerging as the dominant category. Considering an increased emphasis on sustainability and environmental concerns, the agriculture business is seeing a shift toward electric vehicles. Electric tractors have benefits such as decreased carbon emissions, cheaper operating costs, and increased efficiency. Governments and agricultural stakeholders throughout the world are promoting the use of electric technology, accelerating the spread of electric tractors. While gasoline and diesel-powered tractors continue to play a role, the growing trend toward electrification places electric tractors at the forefront of influencing the future of the agricultural tractor industry.

Based on mode of operation the global agricultural tractor market is divided into manual tractor and autonomous. The worldwide agricultural tractor industry is set to undergo a dramatic transition towards autonomous tractors in the next years, putting them as the main category. The growing use of modern technology, such as GPS-guided systems and artificial intelligence, is boosting demand for autonomous tractors, which improve efficiency and precision in farming operations. Autonomous tractors provide benefits such as decreased worker reliance, better production, and optimized resource usage. As agricultural practices shift towards smart farming, the autonomous tractor segment is likely to expand significantly, altering the landscape of the agricultural machinery industry.

Based on Geography the Asia-Pacific region is expected to become the dominant force in the agricultural tractor market in the next years, thanks to several factors pushing its agricultural sector. Rapid population increase, urbanization, and rising food consumption are driving the need for more efficient and sophisticated farming techniques. Several Asia-Pacific governments are making significant investments in agricultural automation to boost production and assure food security. Furthermore, the region’s varied agroclimatic conditions need adaptable and technologically sophisticated tractors, increasing in demand. The adoption of precision farming techniques and the inclusion of smart technologies enhance the attractiveness of the Asia-Pacific agricultural tractor market, positioning it as a key participant in the worldwide agricultural machinery industry.

As a part of the report, the major players operating in the global agricultural tractor market, that have been covered are Mahindra & Mahindra Limited, Deere & Company, Tractors and Farm Equipment Limited, CNH Industrial N.V., Kubota Corporation, AGCO Corporation, Force Motors, Standard Corporation India Limited, Sonalika Group.

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This analytics report segments the global agricultural tractor market on the following basis:

  • By Engine Power
    • Less than 40 HP
    • 41 to 100 HP
    • More than 100 HP
  • By Type
    • Utility Tractors
    • Row Crop Tractors
    • Orchard Type
    • Industrial Tractors
    • Other Tractors
  • By Vehicle Type
    • Gasoline and Diesel
    • Electric
  • By Mode of Operation
    • Manual Tractor
    • Autonomous
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • Spain
      • United Kingdom
      • France
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • South Africa
      • Others
    • Asia Pacific
      • China
      • Japan
      • Australia
      • India
      • Others