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Global $75B Agriculture Tractor Market: Size, Trends, Competitive Analysis and Forecasts (2019-2024)

/EIN News/ -- Dublin, Jan. 21, 2020 (GLOBE NEWSWIRE) -- The "Global Agriculture Tractor Market-Size, Trends, Competitive Analysis and Forecasts (2019-2024)" report has been added to ResearchAndMarkets.com's offering.

The agricultural tractors market is forecasted to grow at a CAGR of 5.7% during 2019-2024.

Tractors have become a necessity in the current global agriculture system. The utilization of tractors for agriculture in North America and Europe has been mainstream. However, with the industrialization of Agriculture in these regions, the consumption of tractors is expected to increase. Adoption of precision farming and promotion of farm mechanization in Asia-Pacific and South America has triggered the growth in Agriculture tractor market.

Growing Adoption of Mechanization is Driving Tractor Sales

Farm Mechanization has led to far-reaching developments in agriculture in North America and Europe. Machines such as tractors, combines, harvesters, and others increased the output of farms produce. The dwindling number of farmers & farm laborers and expensive labor cost is forcing the farmers to switch to mechanization. Changing weather conditions, rain patterns and emphasis on increasing output are other demand driving factors of the tractor market in North America and Europe. However, high cost and less versatility of tractors is a hindrance in the growth of the market.

Asia-Pacific, South America, and Africa region have a large number of smallholder farmers with fragmented land holdings. The farmers in these regions are resource-poor and have restricted purchasing power. Lack of availability of financial products focused on farm equipment hinders the growth of the tractor market in these regions. Furthermore, the underdeveloped supply chains to support the servicing and maintenance of tractors and agricultural machinery restricts the expansion of the market.

However, growing farm income, surges in international food commodity prices, support from Government to increase productivity and increasing private investments in Agriculture has brought optimism in the agriculture landscape in Asia, South America and Africa. These factors are expected to push farm mechanization and thus the demand for tractors.

Utility tractors are general purpose machine designed for plowing and driving other equipment. Utility tractors account for major market share. Garden tractors are forecasted to be the fastest growing segment to grow at a CAGR of 6.3% from 2019 to 2024. Driverless tractors are the opportunity segment in the market, with the product being currently in pipeline of many key players. Tractors meant for hill agriculture is another opportunity segment in the market.

Asia-Pacific - The Fastest Growing Region

The global agricultural tractors market is dominated by the Asia-Pacific region, with India and China together accounting for more than 60% revenue share in 2018. The push from the Chinese Government for Farm mechanization and promote agricultural machinery to achieve higher crop yields and the creation of larger-scale, more efficient farms has created a demand for tractors, farm tools, and equipment. Availability of farm subsidies has boosted the sales of tractors in China.

Indian agriculture has long been faced with problems of reducing farm labors, rising labor charges, changing monsoon pattern, unpredictable weather and reducing farmlands. To revamp the agriculture sector, the Government has allotted subsidies to the agriculture sector, framed policies to push mechanization and introduced training programs to ensure implementation of mechanization. All these factors are boosting the usage of tractors in agriculture. The Indian tractor market is expected to maintain a steady momentum over the forecast period.

North America accounts for the second largest revenue share of the tractor market. The region is the hub of technological and product innovations in the market. The U.S. and Canada are the major markets in the region but tractor sales are forecasted to be fastest in Mexico. The rising cost and dwindling numbers of agriculture labors have forced farmers in Europe to adopt mechanization and automation, boosting the sales of tractors. Adoption of precision farming practices has led to increased farm output. The profitability of precision farming and farm mechanization is leading to increased farmers expenditure on farm equipment. U.K., Spain, Germany, and Russia are the major markets for tractor sales in Europe.

Key Strategies of Major Players

The agricultural tractors market is highly consolidated with a few players accounting for the majority of the market share. Investments in R&D to develop innovative products and features, strengthening the distribution channel and acquisitions are the major strategies adopted in the market. Expansion in developing countries and mergers to consolidate the market reach are other strategies adopted by key players in the market. South-East Asia and Eastern Europe is the target market for business expansion for many key players.

Major players in the market are Deere & Company, CNH Industrial, AGCO, Kubota, TAFE, The Escorts Group, Mahindra & Mahindra, SDF, Claas, Argo Tractors, among others.

Key Deliverables

  • Market trends since 2015 and five-year forecasts of market growth
  • Detailed analysis of the micro and macro elements influencing demand trends
  • Identifying opportunity spaces across segments and countries
  • Supply & demand side trend and analysis
  • Price trend analysis, investment prospects and competition pattern
  • Insights on the growth potential of the market in key countries
  • Detailed analysis of major producers covering financial investments & strategies adopted
  • Competitive landscape of the industry

Industry Dynamics

Drivers

  • Growing Access to Subsidies and Credits for Farm Machinery in Asia
  • Push for Agriculture Mechanization from Policy Makers
  • Focus to Increase Cropping Intensity
  • Dwindling Agriculture Laborers Due to Urbanization

Restraints

  • Diminishing Area Under Agriculture
  • Increased Number of Fragmented Landholding in Asia
  • Consolidating Farmland Under Contract Farming & Co-Operatives

Opportunities

  • Growing Emphasis on Precision Farming
  • Hill Agriculture
  • Gender Friendly Tools and Equipment
  • Crop Specific Package of Machines

Companies Profiled

  • AGCO Corp.
  • Claas KGaA mbH
  • CNH Industrial N.V
  • Deere and Company
  • Deutz-Fahr
  • Escorts Limited
  • Kubota Corporation
  • Kuhn Group
  • Mahindra & Mahindra Ltd.
  • Tractors and Farm Equipment Ltd.
  • Yanmar Company Limited

For more information about this report visit https://www.researchandmarkets.com/r/c0oe1f

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

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