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Farm Tractors Market By Power Output (UP to 30HP, From 31HP To 100HP, From 101HP To 200HP, From 201HP To 300HP, Above 300HP), By Drive Type (Two-Wheel Drive (2WD) And Four-Wheel Drive (4WD)), By Mode Of Operation (Manual Tractors And Autonomous Tractors) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

Industry Outlook

The global farm tractors market is trying to recover from its current state of regression with a global market value of US$ 8.15 Bn in 2017 and anticipated to exhibit a growth with a CAGR of 5.7% from 2018 t0 2026. Farm tractor manufacturers have witnessed significant setbacks in terms of production volume as well as profits between 2014 and 2016. Languishing commodity prices affected the spending power of farmers and cultivators to buy new agricultural machinery. However, tractors and farm equipment manufacturers across the globe are optimistic regarding the revival of farm tractors market owing to continuously growing demand for food grain and other agricultural products in long term. The global demand for food grains is expected to rise from 3 billion tonnes in 2010 to a staggering 4.5 billion tonnes in 2050 as stated by the Chairperson and CEO of the world’s third largest tractor manufacturer (by units) i.e. Tractors and Farm Equipment Ltd (TAFE). In 2017, Deere and Co., world’s second largest farm equipment and tractor manufacturer (by sales) registered growth in sales in past four years. The aforementioned incidents are clearly highlighting positivity in the revival of tractors market in the following years.

Market Synopsis

 Farm Tractors Market

The ‘31HP to 100HP’ power output segment exhibited its dominance in the overall farm tractors market

In 2017, farm tractors with power output ranging from 31HP to 100HP was most dominating in the overall farm tractors market in terms of value. Such tractors are widely used for multiple farm applications and extensively procured by farmers and cultivators of corn, soybean and vegetables, among others. Higher demand for such tractors is observed especially in developing nations where farmers are more inclined towards cultivating cash crops. Sales of tractors above 100HP are proportional to direct profits earned by the farmers. Stagnation in direct profits earned by farmers from 2011 to 2015 has affected the sales of farm tractors with power output 100HP to 200HP. Heavy applications such as towing hay wagons, thrashers and windrowers among others are carried out by tractors with power output ranging from 200HP to 300HP. In addition, extremely heavy towing applications such as towing combines has been done by farm tractors with power output above 300HP. However, application for both power range tractors is limited to large agricultural fields and primarily used in developed regions such as North America and Eastern Europe. Furthermore, rising sales of self-propelled combines and other agricultural equipment have affected the sales of farm tractors with power output 201HP to 300Hp and above 300HP segment.

 Farm Tractors Market

‘Two-wheel drive (2WD)’ farm tractors are expected to lead the overall market from 2018 to 2026

Low cost has been one of the major drivers for two-wheel drive (2WD) tractors segment to flourish in developing countries of Asia Pacific, Middle East & Africa and Latin America. 2WD tractors with low to medium power output are preferred by most of the small and medium scale farmers and cultivators. However, with rising need to tow heavy and large agricultural equipment, there has been a growing demand for 4WD tractors that offer higher power and torque. Therefore, 4WD tractors segment is expected to witness considerable growth during the forecast period.

 Farm Tractors Market

Favorable government policies in Asia Pacific to set the stage for farm tractors market growth

Approximately 45% tractors of the total worldwide units sold are registered in Southeast Asian countries namely, China and India. Government policies for development of agriculture in emerging countries especially in the Southeast Asia region have created a positive outlook for farm tractor manufacturers as well as consumers. Strategies such as loans granted for agricultural development and encouragement for mechanized farming has empowered small and medium-scale farmers with an average of just 2 hectares of land to buy and maintain farm tractors in regions such as South Asia, Southeast Asia, Africa and the Balkans. Furthermore, countries in Asia Pacific, Latin America and Middle East & Africa regions are expected to contribute substantially in global farm tractors production and consumption in terms of number of units from 2018 to 2026.

 Farm Tractors Market

Historical & Forecast Period

2016 – Historical Year

2017 – Base Year

2018-2026 – Forecast Period

This research report presents the analysis of each segment from 2016 to 2026 considering 2017 as the base year for the research. Compounded Annual Growth Rate (CAGR) for each respective segments are calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

Farm tractors market report furnishes quantitative analysis along with latest market trends. The market is segmented on the basis of power output, drive type, mode of operation and geography. The research study will help farm tractor manufacturers and market stakeholders with meaningful market insights in order to come out with better strategic initiatives in the farm tractors market.

By Power Output (2016–2026; US$ Bn)

  • Up to 30HP
  • From 31HP to 100HP
  • From 101HP to 200HP
  • From 201HP to 300HP
  • Above 300HP

By Drive Type (2016–2026; US$ Bn)

  • Two-wheel Drive (2WD)
  • Four-wheel Drive (4WD)

By Mode of Operation (2016–2026; US$ Bn)

  • Manual Tractors
  • Autonomous Tractors

Geography Segment (2016–2026; US$ Bn)

  • North America
    • U.S.
    • Rest of North America
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • Japan
    • India
    • Rest of APAC
  • Rest of the World (RoW)
    • Latin America
    • Middle East and Africa (MEA)

Farm Tractors Market

Stiff competition to keep major tractor manufacturers on their toes

Overall farm tractors market is highly fragmented in nature characterized by more than 300 companies with numerous brands and joint ventures across the globe. Major farm tractor manufacturers have been striving extensively in order to maintain their market position. Entering into joint ventures with local tractor manufacturers has been one of the key strategies adopted by tractor manufacturers from North America and Europe regions. AGCO Corporation, Deere & Company and CNH Industrial N.V., among others rely on strategic partnerships with local companies such as… in Europe and Asia Pacific to expand their geographical presence and distribution network. In addition, research and development has been a vital strategy incorporated by several other manufacturers. Major international players have identified Southeast Asia especially, China and India as their major market hub and are formulating their strategies according to the vision. The competition is expected to become more intense with the revival of farm tractors market during the forecast period from 2018 to 2026 according to the research study conducted by Credence Research. The research study comprises profiles of top 15 farm tractor manufacturers including CNH Industrial N.V., AGCO Corporation, Deere & Company, CLAAS KGaA mbH, Mahindra & Mahindra India Limited, Kubota Corporation, Escorts Limited, Caterpillar, Inc., J.C. Bamford Excavators Limited (JCB), Yanmar Co., Ltd., Tractors and Farm Equipment Limited (TAFE), Alamo Group, Inc., Daedong Industrial Company, Ltd., SDF Group and Zetor Tractors A.S.

Key questions answered in this report

  • What are the latest market trends in the farm tractors market and valuable opportunities for the players?
  • How regulatory frameworks and government policies affect the global as well as regional farm tractors market?
  • Which are the prominent range of products manufactured by the key players?
  • Which is Largent and fastest growing segment in terms of power output, drive type and mode of operation?
  • Which are the most lucrative geographical region/ country for overall farm tractors market?
  • What is the market size and trend in emerging markets such as Asia Pacific, Middle East & Africa and Latin America?
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Published Date:  Mar 2018
Category:  Agriculture
Report ID:   59020
Report Format:   PDF
Pages:   120
Rating:    4.2 (24)
Delivery Time: 24 Hours to 48 Hours   
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