Rising Global Population and Growing Food Demand to Surge the Farming Activities and the Adoption of Farm Tractors

Introduction

The farm tractor market size was valued at 63.9 USD billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.75% from 2022 to 2030 and reach around 105.6 USD billion. Farm Tractor is low-speed traction, high-power vehicle, and power unit is mechanically comparable to a car or truck but is suited for off-road operation. Wheeled, which is the oldest style, and continuous track are the two primary forms. Scrapers, bulldozers, and diggers are examples of tractors used in agriculture, construction, and road construction. The power-takeoff accessory used to run stationary or drawn machinery, and implements is a prominent component of tractors in numerous applications.

Market Dynamics

Market Drivers

• Farm Tractors' Compact Size and Low Cost are Driving Their Adoption

In developing economies, low horsepower farm tractors are becoming more common. Because of its low cost and small size and its advantages connected to all general agricultural tasks, the low horsepower farm tractors of 40 horsepower have the largest market share.

• Farm Loan Waivers and Credit Financing from the Government Schemes

Government offers various initiatives globally to relieve farmers from their loans and promote farm mechanisms. A farm loan release scheme program has motivated farmers to purchase farm equipment like farm tractors for overall growth and profit. For example, the US Farm Service Agency (FSA) gives guaranteed and direct farm ownership and operation loans to small-scale farmers who cannot obtain commercial credit through a bank, farm credit system institution, or other lenders.

• The Various Features of a Four-Wheel-Drive Contribute to its Popularity

Four-wheel drive dominates the market during the forecast period. For farming applications, the four-wheeler drive tractor is adaptable and appropriate. The four-wheel-drive tractor also has better ground traction than the two-wheel-drive tractor; thus, they are more popular for loader applications, tilling, crop protection, hauling and mowing.

Market Restraints

• Market Growth for Tractor Rental

There is a significant amount required for purchasing equipment like tractors and harvesters, so sometimes farmers go for the rental equipment option. Small farmers cannot invest a considerable amount of money; in emerging countries, farm equipment adoption is low. Renting is more cost-effective than purchasing a tractor with a loan from typical institutes.

Market Opportunities

• Farming with More Accuracy

Efficiency and productivity are the main objectives of the farmer in the agriculture industry for meeting the requirement of the rising population. For farmers, precision farming is more suitable for producing more with less. This technology has probably addressed the issue of global food scarcity more efficiently. Precision farming improves operational efficiency, reduces the gap between supply and demand, and enhances production.

Segmental Insights

The market for farm tractors is classified into four categories: drive type, system type, design type, power output, and region. The farm tractor market is divided into two types of drive: two-wheel drive and four-wheel drive. The market is divided into three categories: without loaders, front loaders, and backhoe loaders. Tractors without CAB and tractors with CAB are separated by design type. The farm tractor market is divided into four categories based on power outputs: less than 40 horsepower, 41-99 hp, 100-150 hp, 150-200 hp and more than 200 hp.

The market is divided into orchard tractors, row-crop tractors, and other tractors. Over the forecast period, the Orchard tractors segment is expected to increase the most. These tractors are small and lightweight, making them ideal for various agricultural tasks. Also, when compared to other sorts, they are inexpensive. The segment is expected to rise during the projected period due to the increasing adoption of orchard tractors in emerging nations.

Regional Insights

 It is divided into four regions: Asia-Pacific, Europe, North America, and LAMEA.

Asia Pacific dominated the Farm Tractor market, which is likely to continue over the forecast period. The agricultural sector's substantial presence in rising APAC countries such as China, India, and others has made APAC the largest market for agricultural machinery. Over the forecast period, government initiatives in Asian countries to encourage the adoption of new farming techniques are expected to fuel market expansion. The farm sector is expected to rise as the export of various agricultural goods increases.

Europe, followed by North America, is likely to see strong growth. A shortage of trained laborers drives the market in European and North American countries. The major companies in the region support the market. In the coming years, technological improvement in these regions is projected to drive demand for autonomous agricultural tractors. Market expansion in North America is expected to be caused by rising demand for agricultural goods in the food and beverage industry.

Competitive Players

1. John Deere
2. AGCO Corporation
3. CNH Industrial
4. CLAAS (Germany)
5. Kubota (Japan)
6. Mahindra & Mahindra (India)
7. SPF Group (Italy)
8. J C Bamford Excavators
9. Iseki (Japan)

Recent Developments

Recent Developments

Segmentation

1. By Design Type
   1. Orchard Tractors
   2. Row-Crop Tractors
2. By Horse Power
   1. Less than 40 H.P.
   2. 40–99 HP
   3. 100–150 HP
   4. 151–200 HP
   5. 201–270 HP
   6. 271–350 HP
   7. 350 HP and above
3. By Drive Type
   1. Two-Wheeler Drive
   2. Four-Wheeler Drive
4. By Operation
   1. Manual tractor
   2. Autonomous tractor