June 22, 2024
Agricultural Tractor Market
Ict

Agricultural Tractor Market Poised to Grow Due to Technological Advancements

The global agricultural tractor market includes farm tractors that are primary meant for agricultural activities such as plowing, tilling, seeding, harvesting and more. Agricultural tractors are equipped with advanced features that aid in agricultural tasks with higher efficiency. Manufacturers are increasingly focusing on developing energy efficient, autonomous and telematics integrated tractors to enhance farm productivity.

The global agricultural tractor market is estimated to be valued at US$ 76015.76 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The global agricultural tractor market is driven by the need for large-scale farming and mechanization in the agriculture sector. Technological advancements are allowing tractors to be integrated with automation, collision avoidance systems, auto- guidance and more. This is improving efficiency and significantly reducing farm labor requirements. Autonomous tractors provide accurate seeding, weeding and harvesting across large land areas. Telematics integration allows remote monitoring of fleets for optimized operations and maintenance.

Market Dynamics:

Agricultural Tractor Market Poised to Grow Due to Technological Advancements: Technological innovations in agricultural tractors, as referenced in the heading, are a key driver promoting growth of the market. Advancements such as autonomous driving, precision agriculture technologies and telematics integration are making tractors smarter and more efficient. This is supporting higher grain and crop yields to meet growing global food demand. technologies are allowing real-time field monitoring and fleet management for improved cost-effectiveness.

Demand for Increased Farm Productivity Drives the Market: Another major factor propelling the agricultural tractor market growth is the rising demand for higher agricultural productivity and output. As global population continues to rise, there is increasing pressure on farmers to cultivate more crop per acre of land. Mechanized tractors help boost per hectare yields by aiding fast and large-scale seeding, fertilizing, tilling and harvesting operations. This is fulfilling the rising global demand for food grains and commodities.

Segment Analysis

There are mainly three segments in the agricultural tractor market – two-wheel drive tractors, four-wheel drive tractors and others. Four-wheel drive tractors dominates the market with over 60% share as it offers better traction and maneuverability compared to two-wheel drive tractors. The four-wheel drive tractors segment is further divided into below 80 horsepower and above 80 horsepower. The below 80 horsepower sub-segment dominates due to its use for regular field work like tilling, seeding and harvesting.

PEST Analysis

Political: Governments in developing countries provide subsidies on agricultural tractors to promote farm mechanization and increase productivity. This boosts the sale of tractors.

Economic: Rising population is increasing the demand for food which is augmenting the use of agricultural tractors for intensive farming. Higher farm income also encourages farmers to buy new tractors.

Social: More youngsters are disinclined towards farm activities creating shortage of farm labor. This is propelling the deployment of tractors for mechanized agricultural activities.

Technological: Introduction of auto-steering, GPS, auto transmission and connectivity feat

Key Takeaways

The Global Agricultural Tractor Market Growth is estimated to be valued at US$ 76015.76 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030.

The global agricultural tractor market is expected to witness high growth between 2023 to 2030 supported by increasing farm mechanization especially in Asia Pacific and Latin America. Asia Pacific dominates the market with over 50% share led by China, India and Indonesia. China has the largest agricultural tractor market due to large farm size and subsidies for farm mechanization.

Key players operating in the agricultural tractor market are Archer Daniels Midland Company, Cargill, Incorporated, E. I. du Pont de Nemours and Company, Ingredion Incorporated Koninklijke DSM N.V., Tate & Lyle plc, FMC Corporation, and Omega Protein Corporation. These players are focusing on introducing intelligent and autonomous features in tractors to improve farm productivity.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it