Global Autonomous Tractor Market to expand at a CAGR of 26.10% by 2030

Introduction

Autonomous tractors are most advantageous for the people involved in the farm and agricultural segment of the economy. It is a modern technology that increases efficiency and minimizes the intervention of humans. These are driverless tractors. They provide many benefits, such as safety, fuel efficiency, and sharing. These vehicles are used in farms that automatically operate on their own; it comes with an intelligent system, which guides the entire system's functioning. Nowadays, farmers are getting more aware and acknowledge the presence of advanced technology, especially in their niche. Therefore, leading to the quick adaption of the technology in many developed and developing nations. More and more technological advancement also increases the benefits of autonomous tractors, directly propelling the demand in the global autonomous tractors market.

Market Dynamics

Increasing Population and Decrease in Arable Land to Lead the Market of Autonomous Tractor

The global population is growing exponentially, increasing the demand for food to meet hunger. According to the U.S. population division, the world's human population has increased nearly four-fold in the past hundred years. And which is surely increase to greater heights in the upcoming years. Almost every day, 200,000 people are added to the world population, meaning more demand for food. This directly pushes the industries indulging in farm activities and farmers to increase their level of productivity to meet the growing and endless demand in the market. And this increase in demand for food has to be satisfied with an equal supply of the same, meaning more productivity and efficiency, which is not possible with the employment of only human labor on the farm.

The farmers have gradually adapted the technology of autonomous tractors. Such driverless machines can operate on their own, saving time and labor costs for the farmers and increasing their efficiency and level of production. Which ultimately leads to growth in the Global Autonomous Tractor Market. Another driver of the growing autonomous tractor market is the decrease in arable land. It was reported by the World Bank which stated that the area of arable land has decreased from 0.20 hectares in 2011 to 0.19 hectares in 2016. This pushes the farmers to increase their production in the limited space, which urges them to move towards mechanized production, boosting the use of autonomous tractors. A limited area, and more production, meaning more efficiency and productiveness, directly raised the application of autonomous tractors in the farming segment, helping the farmers increase their income with the limited land available.

Impact of Covid-19

The impact caused by covid has positively impacted the overall market of the autonomous tractor. Although faced with bumps along the way, the demand for the autonomous tractor was gradually increasing. All the economies across the globe were degrading during the covid era, dealing with the widespread of such a deadly disease, the nations had to witness a fall in their GDP, the operations of the industries were halted, supply chains disrupted, and production had to stop, developmental projects delayed, the players of the market had to halt down their activities and operation. In summary, the industries and every economy had to go through a tough time. The autonomous tractor market also saw a disruption in the supply chain of the farm machines, with lower participation of the companies in the industry. It slowed down the production of devices and tools for agricultural purposes, and delays in deliveries were witnessed, negatively affecting the autonomous tractor's global market.

But at the same time, becauseofprohibited human travel and interaction in public places, the farmers and farm productsmanufacturing companies had to look for a better alternative to continue their operations. This brought the demand for the autonomous tractor to greater heights. Implementing the lockdown and public interaction caused interruption causing a cutting down of the market's operations. The social distancing norms of the government also disrupted the supply chain; companies and workers were unable to operate the equipment due to government-imposed lockdowns. This forced the farmers to lean towards technological machinery for working, like autonomous tractors. The efficiency of autonomous tractors helped increase the farmers' production, thus swinging the need for machines and growth in the global autonomous tractor market.

Regional Insights

Asia Pacific is predicted to have the most significant shareholding in the autonomous tractor market during the forecast period, growing at a CAGR of 26.6%. The region has countries like China, India, and Japan that rigorously engage in agricultural activities and increase the autonomous tractor's market scope. China has focused on using autonomous tractors in its farming practices to enhance productivity and overcome the labor shortage.

The country is also rapidly improving farm mechanization to produce crops like oilseed, cotton, rice, wheat, sugarcane, etc. Whereas Japan mainly involves the production and cultivation of fisheries, agriculture, etc. The autonomous tractors of Japan are highly in demand across the globe as they are known for their quality with convenient and compact sizes ensuring the user a great experience. These factors push the growth of autonomous tractors in the region.

North America will likely have a shareholding of USD 1,833 million, expanding at a CAGR of 27.25%.One of the biggest markets for autonomous tractors in North America is the United States. The large-scale farming operations in the nation, the continuous decline in the labor force, and the ongoing need to increase agricultural output are driving the market for autonomous tractors in the region.

To increase their market share, businesses are launching new autonomous tractors in the United States. In April 2021, Monarch Tractors, for instance, unveiled a 40-horsepower completely electric smart autonomous tractor to assist more effective and environmentally friendly farming methods in vineyards.

Key Highlight

• The Global Autonomous Tractor Market had a revenue holding of USD 818.4 million in 2021. It is expected to reach USD 6,556 million by 2030, growing at a CAGR of 26.01% during the forecast period (2022-2030).
• Based on horsepower, the above 100 Hp section will likely hold the largest market share, growing at a CAGR of 24.82%.
• Based on the automation, the semi-automated section is expected to hold the largest market share, growing at a CAGR of 26.10%.
• Based on regional analysis, the Asia Pacific will hold the largest share in the autonomous tractor market during the forecast period, growing at a CAGR of 26.6%.

Competitive Players

Competitive Players in the Market

• AGCO
• John Deere
• Mahindra and Mahindra Ltd
• Autonomous Tractor Corporation
• CNH Industrial
• Kubota Corporation AGCO Corporation
• Dutch Power Company Agrivi
• Yanmar Co. Ltd
• Trimble Inc.
• Kinze Manufacturing Inc.

Recent Developments

Market News

• 2022, during the press release at CES, John Deere revealed their fully autonomous tractor, which is ready for production.
• March 2022, Mahindra’s farm equipment sector sells 28,112 units in India
• CNH plans on bringing a significant number of autonomous equipment by 2025, making the farm industry automated.
• April 2022, Yanmar’s flagship X47 Express Cruiser received the iF Design Award 2022.
• AGCO’s Fendt® to display innovation solutions at 2022 Commodity Classic

Segmentation

Global Autonomous Tractor Market: Segmentation

By Horse Power

• Up to 30 Hp
• 31 Hp - 100 Hp
• above 100 Hp

By Automation

• Fully Automated
• Semi-Automated

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Africa