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Autonomous Electric Tractor Market by Component (Sensor, GPS, Vision System, Other Components) by End-user (Tillage, Harvesting, Seed Sowing, Other Applications): : Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

The autonomous electric tractor is an unmanned agricultural machine used for farming purposes. The advanced technology includes sensors and machine vision systems to perform various agricultural tasks. The autonomous farm vehicle delivers a high tractive effort (or torque) at slow speeds. The tractor uses GPS and other wireless technologies to operate without a driver. The autonomous electric tractor market is expected to cross-market at USD 2,856.8 million in 2027 from USD 640.3 million in 2020. It is expected to grow at a CAGR of over 24.1% during the forecast period.

Autonomous Electric Tractor Market

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Need to Increase Productivity to Meet Ever Rising Demand for Farm Produce     

The market growth is expected to be driven by improved crop yield efficiency and productivity provided by these tractors and changes in government initiatives to adopt new technologies. The increase in the average age of farmers in developed and developing countries demands more technical assistance to carry out our farming activities. Moreover, countries like the U.S. and Australia are facing labor shortages which drive the demand for autonomous electric tractors. With the help of autonomous farming vehicles, farmers can carry out their activities around the clock. Autonomous electric tractors facilitate farmers with a more reliable way to operate with the help of features such as automatic steering.

High Cost of Autonomous Electric Tractors to Hinder the Market Growth

The high initial investment is required for autonomous electric tractors compared to traditional tractors. Although autonomous electric tractors increase productivity and efficiency, they can only be affordable to large-scale farmers. However, the investment in autonomous electric tractors is not viable for small farmers in countries like India and China, where the average farm size is less than a few acres. This, in turn, is expected to pose a major threat to the growth of this industry.

Consequences of COVID 19 on Autonomous Electric Tractors Industry

Although COVID 19 had minimal impact on agricultural activities worldwide, demand for farm vehicles has remained intact. However, the manufacturing industry had a severe impact, and production, supply chain, and sales were hit due to COVID 19. This was the major reason behind the decline in the autonomous electric tractors industry. However, governments around the world have formulated policies to deal with COVID-19 and have increased the pace of vaccination. As a result, the world economy is likely to restore within a few months, and demand is expected to touch the pre-COVID 19 levels soon.

North America to Dominate the Global Autonomous Electric Tractor Market

The North American market is projected to account for the highest revenue share in the global market due to the rising demand for autonomous electric tractors and the high spending power of customers. A major reason for the growing demand for autonomous electric tractors in the region is the large size of farms, constant shortage of labor, and growing pressure to achieve higher productivity. Apart from this, farmers in the region have easy access to technological advancement, favorable government policies, better availability of finance, etc. are some of the major factors mobilizing the growth of the autonomous electric tractors industry.

Europe is the second leading market for autonomous electric tractors. The region is witnessing a lucrative growth rate due to growing demand from Germany, Italy, and France. Japan, China, and Australia will mainly drive market growth for the autonomous electric tractors industry in the Asia Pacific. Japan, China, and Australia are early adopters of autonomous electric tractors. However, going forward, the demand is likely to increase from countries such as India, Vietnam, Thailand, Malaysia, Indonesia, etc. Apart from those, Brazil is another significant market for autonomous electric tractors. Proximity to the U.S. and the large average size of farms is a major reason for the strong growth of autonomous electric tractors in the country.      

The Sensor leads Global Autonomous Electric Tractor Market

Sensor, GPS, Vision System, and Other Components in the Autonomous Electric Tractor Market. In 2020, the GPS segment accounted for the largest share of the Autonomous Electric Tractor Market. However, the GPS segment is anticipated to grow at the fastest CAGR during the forecast period.

Tillage Segment to Govern the Demand for Autonomous Electric Tractors 

Autonomous electric tractors find a wide range of applications in farmland. Major functions performed by an autonomous electric tractor include harvesting, tillage, sowing, etc. Among all, tillage is the most dominating application market for autonomous electric tractors and holds the largest share among all applications of autonomous electric tractors. Wide-ranging activities made autonomous electric tractors dynamic farming equipment. However, continuous research & development in the field of autonomous electric tractors industry is likely to bring more evolutions in the farming industry. Frequently changing customer preferences are compelling manufacturers to focus on extensive research & development for the development of innovative products. For instance, Deere & Company, one of the leading global manufacturers of autonomous electric tractors, has recently expanded its portfolio of tractors with the addition of Joker. Joker is a fully autonomous electric tractor with articulated steering and a tracked single axle.

Moreover, another manufacturer Escorts Limited has launched its foray into the autonomous farming solutions market with the launch of India's first autonomous concept electric tractor at its annual innovation platform. The unmanned tractor, also known as Farmtrac (26E) or more commonly Farmtrac Atom 26, was manufactured in collaboration with seven technology giants such as Microsoft, Bosch, Reliance Jio, AVL, Trimble, Samvardhana Motherson Group, Wabco, and brought the power of next-generation digital vehicle technology to enable precision-based farming.

Furthermore, an Indian start-up company called AutoNxt has developed an autonomous electric tractor called Hulk, which is a solution to the country's lack of skilled workers. It is expected that such developments will greatly promote the growth of the automatic tractor market.

Frequently asked questions

Sensor, GPS, Vision System, etc. are major components of autonomous electric tractor, out of which GPS segment dominated the global market with just under two third share in the global market. Dominance of GPS segment can be attributed to the abundance of its availability across the world.

Some of the major players operating in autonomous electric tractor industry include AGCO Corporation, Autonomous Solutions, Inc., Autonomous Tractor Corporation, CNH Industrial, Deere & Company, KINZE Manufacturing, Kubota Corporation, Mahindra & Mahindra, Trimble, and Yanmar. The top six players collectively account for over 45% share in the global market.

Tillage is the largest application of autonomous electric tractor which held over 50% share in the global consumption in 2020

North America hold the largest share owing to large demand of autonomous electric tractor in agriculture industry

The market is anticipated to grow at a CAGR of 24.1% throughout the forecast period, in terms of revenue

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Published Date:  Aug 2021
Category:  Automotive & Transportation
Report ID:   60401
Report Format:   PDF
Pages:   120
Rating:    4.3 (64)
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