July 25, 2024
Agricultural Tractor Market
Ict

Agricultural Tractor Market Growth is Fueled by Increasing Demand for Vehicles Used in Farming Operations

The agricultural tractor is a vehicle used in farming operations such as tilling, planting, fertilizing, spraying and harvesting. Powered by a diesel or gasoline engine, an agricultural tractor provides power and mobility to agricultural machinery and implements such as plows, seeders, fertilizer spreaders and harvesters. It allows efficient farming on a large scale and saves significant time and labor cost compared to manual operations. The global agricultural tractor market enables mechanization of agriculture, higher productivity and farm output. Mechanization has become a necessity for small and large-scale farms with decreasing pool of farm labor.

The global Agricultural Tractor Market is estimated to be valued at US$ 76,015.76 million 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.

Market Key Trends:

One of the key trends in the agricultural tractor market is growing demand for compact tractors. Compact tractors are lesser in size, suitable for small farming operations on 3-5 acres of land and ideal for tasks like mowing grass, maintaining yards and gardens. They provide maneuverability and cost benefits for small land holdings. With increasing mechanization of small farms and need for multipurpose tractors, demand for sub-50 horsepower compact tractors is growing worldwide. Global players are focusing on launching new compact tractor models integrated with advanced technologies to improve their performance. For instance, in 2021, Mahindra & Mahindra introduced Swaraj TrakStar, a 35 HP compact tractor targeted at small farmers for varied farm and landscaping operations.

Porter’s Analysis

Threat of new entrants: The agricultural tractor market has moderate threat from new entrants due to high initial investment required and presence of major established players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated products from various manufacturers.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due suppliers due to presence of multiple raw material suppliers.

Threat of new substitutes: Threat from substitutes is low as agricultural tractors have limited substitutes.

Competitive rivalry: The market has high competitive rivalry due to presence of numerous international and domestic players competing on the basis of product quality, pricing, innovation etc.

Key Takeaways

The Global Agricultural Tractor Market Size is expected to witness high growth. The global Agricultural Tractor Market is estimated to be valued at US$ 76,015.76 million in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030.

North America dominates the market currently owing to large agriculture production areas in the U.S and Canada and growing mechanisation across farms. Asia Pacific is expected to be the fastest growing region with China and India being the major markets.

Key players operating in the agricultural tractor market includes 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. Key players are focusing on new product launches, expanding their regional presence and garnering higher market share.

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