Tractor Market Research Report—Global Forecast till 2032

Tractor Market Research Report Information By Power Output (Less Than 30 HP, 30-50 HP, 51-100 HP, and More Than 100 HP), By Drive Type (2 Wheel Drive and 4 Wheel Drive), By Application (Agriculture, Construction, Mining, and Logistics), and By Region (North America, Europe, Asia-Pacific, and Rest Of The World) – Market Forecast Till 2032

ID: MRFR/AM/10504-HCR | 128 Pages | Author: Swapnil Palwe | September 2023         

Tractor Market Overview

Tractor Market Size was valued at USD 66.9 Billion in 2022. The Tractor market industry is projected to grow from USD 69.9 Billion in 2023 to USD 99.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2023 - 2032). Small farms' growing demand for compact tractors and technological advancements like the incorporation of telematics into agricultural tractors, are the key market drivers enhancing the market growth.

Tractor Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Tractor Market Trends

  • Increase in demand for compact tractors on small farms is driving the market growth

Growth is anticipated to be fueled by the rise in demand for smaller tractors on small farms and technological advancements like the integration of telematics with agricultural tractors. Additionally, it is anticipated that the industry will expand favorably over the next eight years due to the swift adoption of mechanization. The market is also expected to expand as a result of the movement of farm workers to cities, which would cause a labor shortage. The Tractor Market is expanding as a result of an increase in government investment on new infrastructure and construction projects, which in turn boosts demand for tractors for transportation applications. The Australian government, for instance, has doubled its spending on infrastructure-related projects. From 2018 to 2020, spending climbed by 10.3%. Construction tractors also provide improved tractor technology and operational efficiency. The expansion of the worldwide tractor market is fueled by this.

The expansion of the worldwide tractor market is fueled by a rise in the mechanization of agricultural machinery, including tractors, in nations like India, Brazil, China, and others. The market is expanding because to the increase in demand for highly efficient tractors for numerous purposes, including planting, sowing, and others. Tractors with a power output range of 50-100 HP are being offered by major firms like Mahindra & Mahindra Ltd and Escorts Limited. Mahindra & Mahindra Ltd., for instance, sells the Mahindra NOVO tractor. It produces 64.1 HP of power. Its powerful engine makes it ideal for conditions with heavy and sticky soil. A reliable cooling system is present. For harrow and mulcher uses, it is employed.

The worldwide tractor market is expanding due to an increase in demand for high performance tractors for muddy and heavy soil conditions. Major companies like Mahindra & Mahindra Ltd., John Deere India Private Limited, and VST Tillers and Tractors Ltd., for example, are engaged in providing tractors with power output greater than 100 HP. Deere & Company, for instance, sells the John Deere 6120 B tractor for use in farming and mulching operations. It is more dependable and costs less to maintain. It is utilized in farming processes like tilting, sowing, transporting, and puddling. Its four-cylinder, turbocharged John Deere Power Tech engine produces 120 HP.

With the least amount of resources, using tractors in farming tasks increases productivity. To promote modernized farming, governments in developing nations generously subsidize the purchase of agricultural tractors. In the years to come, it is anticipated that rising demand for the replacement of out-of-date agricultural equipment will fuel the market's expansion. Additionally, producers are promoting their tractors by making consumers generous incentives, which drives the market's growth. As an illustration, one of the top agricultural brands, New Holland Agriculture, has announced a 6-year transferrable guarantee on all tractors sold in India, commencing as of October 2, 2020. This offer helped the business increase consumer confidence in the reliability and durability of its tractors. Manufacturers and financial service providers are working together to give farmers financial aid for the purchase of tractors. Over the forecast period, it is anticipated that growing technological advancements in agricultural equipment and rising manufacturer investment in the development of electrically powered automated tractors would create profitable prospects for market expansion. Thus, driving the Tractor market revenue.

Tractor Market Segment Insights

Tractor Power Output Insights

The Tractor Market segmentation, based on power output, includes less than 30 HP, 30-50 HP, 51-100 HP, and more than 100 HP. The 30-50 HP segment dominated the global market in 2022. The low price, small size, and better convenience provided by tractors with less than 40HP to carry out all essential farming tasks can be credited for the significant growth. The majority of farmers in the Asia Pacific region, where 85% of farmlands are smaller than 10 hectares, choose to use these pieces of equipment.

Tractor Drive Type Insights

The Tractor Market segmentation, based on drive type, includes 2 wheel drive and 4 wheel drive. The 2 Wheel Drive segment dominated the Tractor Market in 2022. Long-term aspects that are anticipated to fuel demand in the 2 wheel drive category, particularly in the Asia Pacific market, include low upfront costs and improved maneuverability. In India, middle-class farmers favor 2WD tractors over other models. But the operating costs for farmers have already increased due to a rise in diesel prices, which is expected to be one of the main concerns over the projected period.

Tractor Application Insights

The Tractor Market segmentation, based on application, includes agriculture, construction, mining, and logistics. The agriculture segment dominated the global market in 2022. The demand for tractors is being driven by precision farming and a rise in the usage of farm equipment to increase production. The tractor business is also being driven by an increase in the number of farm training programs that encourage the widespread use of agricultural machinery.

Figure 1: Tractor Market, by Application, 2022 & 2032 (USD Billion)

Tractor Market, by Application, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Tractor Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Tractor market dominated this market in 2022 (45.80%). Precision farming and a surge in the use of farm equipment to boost output are driving the demand for tractors. An growth in farm training programs that promote the wider use of agricultural machinery is another factor driving the tractor industry. Moreover, China’s Tractor market held the largest market share, and the Indian Tractor market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Tractor Market Share By Region 2022 (Usd Billion)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Tractor Market accounted for the healthy market share in 2022. The North American region's market is anticipated to be driven by a lack of skilled personnel. The big firms' presence in the area is a stabilizing influence for the market. In the coming years, it is anticipated that technological development in these areas would increase demand for automated agricultural tractors. Further, the U.S. Tractor market held the largest market share, and the Canada Tractor market was the fastest growing market in the North America region.

Europe Tractor market is expected to register significant growth from 2023 to 2032. The surge in demand for large agricultural tractors, mainly from Italy, Greece, and Lithuania, is blamed for the expansion. Additionally, during the course of the forecast period, the increased demand for autonomous tractors is anticipated to propel regional market expansion. On the other hand, it is anticipated that a prolonged waiting period for new tractor purchases due to production delays may impede market growth over the projection period. Further, the German Tractor market held the largest market share, and the U.K Tractor market was the fastest growing market in the European region

Tractor Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Tractor market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Tractor Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Tractor Industry to benefit clients and increase the market sector. In recent years, the Tractor Industry has offered some of the most significant advantages to medicine. Major players in the Tractor market, including Tractors and Farm Equipment Ltd, Kubota Corporation, Deere & Company, Mahindra & Mahindra Ltd., Force Motors Limited, CNH Industrial N.V., Sonalika International Tractors Limited, HMT Limited, Escorts Limited, V.S.T. Tillers & Tractors Ltd, are attempting to increase market demand by investing in research and development operations.

The Mahindra Group's flagship company, Mahindra & Mahindra Ltd (M&M), is a multifaceted corporation. It operates in key sectors including transportation, aerospace, agribusiness, aftermarket, information technology, consulting, components, clean energy, financial services, infrastructure, industrial and construction equipment, two-wheelers, retail, steel, hospitality, IT services, transportation, and logistics. The US, France, Finland, India, Japan, Africa, China, and Australia are among the countries where it has production plants. Additionally, the business runs facilities for research and development. Along with North America, M&M also has operations in India, South Korea, Japan, and Italy. Mumbai, Maharashtra, India is home to the M&M company. Mahindra introduced three new YuvoTech+ tractors in October 2021, all of which are outfitted with cutting-edge modern technology that offers the maximum torque and fuel efficiency.

Advanced goods and services are offered by Deere & Co. (John Deere). It produces and sells forestry, construction, and agricultural machinery as well as related service components. The company's product line comprises machinery and service components used in construction, earthmoving, material handling, and timber harvesting, as well as agriculture and turf equipment and related service parts. Additionally, it offers extended equipment warranties, wholesale financing, and financing for the sales and leasing of both new and old equipment. The business runs manufacturing facilities that it owns. It owns and rents administrative buildings and research facilities all over the world. The business sells its goods in North America, Africa, Asia-Pacific, the Middle East, and Europe through a network of dealers and distributors. The headquarters of John Deere are in Moline, Illinois, in the US. In August 2021, John Deere unveiled the new 6155MH Tractor, which offers performance and dependability that have been field-tested and are useful for cultivating, harrowing, or towing harvester trailers.

Key Companies in the Tractor market include

Tractor Industry Developments

November 2022: The T8 tractor with Raven Autonomy, an autonomous grain cart harvest application, made its debut at SIMA 2022 for New Holland.

Tractor Market Segmentation

Tractor: Power Output Outlook

  • Less Than 30 HP

  • 30-50 HP

  • 51-100 HP

  • More Than 100 HP

Tractor Drive Type Outlook

  • 2 Wheel Drive

  • 4 Wheel Drive

Tractor Application Outlook

  • Agriculture

  • Construction

  • Mining

  • Logistics

Tractor Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 66.9 Billion
Market Size 2023 USD 69.9 Billion
Market Size 2032 USD 99.4 Billion
Compound Annual Growth Rate (CAGR)  4.50% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2019- 2021
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Growth Factors, Market Competitive Landscape, and Trends
Segments Covered  Power Output, Drive Type,  Application and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Tractors and Farm Equipment Ltd,Kubota Corporation,Deere & Company,Mahindra & Mahindra Ltd.,Force Motors Limited,CNH Industrial N.V.,Sonalika International Tractors Limited,HMT Limited,Escorts Limited,S.T. Tillers & Tractors Ltd
Key Market Opportunities Rise in the mechanization of agricultural machinery
Key Market Dynamics Increase in demand for compact tractors on small farms and transportation applications

Frequently Asked Questions (FAQ) :

The Tractor Market Drive Type was valued at USD 66.9 Billion in 2022.

The global market is projected to grow at a CAGR of 4.50% during the forecast period, 2023-2032.

Asia Pacific had the largest share in the global market

The key players in the market are Tractors and Farm Equipment Ltd, Kubota Corporation, Deere & Company, Mahindra & Mahindra Ltd., Force Motors Limited, CNH Industrial N.V., Sonalika International Tractors Limited, HMT Limited, Escorts Limited, V.S.T. Tillers & Tractors Ltd

The 30-50 HP Power Output dominated the market in 2022.

The 2 Wheel Drive, Drive Type had the largest share in the global market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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