Nov 10, 2020   SOURCE: BusinessWire

Global Tractors Market Growth, Trends, and Forecasts 2020-2025 - Rising Demand for Mechanization, Along With An Increasing Number of Medium-scale Farmers - ResearchAndMarkets.com

The "Tractors Market - Growth, Trends, and Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

The tractors market is expected to register a CAGR of 4.59%, during the forecast period, 2020-2025.

The rising demand for mechanization, along with an increasing number of medium-scale farmers, is driving the adoption of tractor hiring in Ghana and other African countries, majorly in the south of Sahara. This is expected to allow tractor owners to fully utilize their machines while providing services to farmers who cannot afford their own tractors.

The market is also gaining momentum owing to the technological advancements that are revolutionizing the farming and agricultural processes. For instance, the implementation of agricultural tractors with self-driving capabilities is expected to increase productivity and efficiency in agriculture. Companies, such as CNH Industrial NV, Escorts Limited, and Deere and Company, already launched concepts for their autonomous and electric tractors.

For instance, in February 2019, Escorts Group unveiled India's first automated tractor idea. To cultivate these technologies, Escorts Group has united with many leading companies such as Microsoft, Reliance Jio, Trimble, Samvardhana, Motherson Group, WABCO, AVL, and BOSCH.

Key Market Trends

40 HP - 100 HP tractor segment is Projected to Grow at a Fast Pace

The 40 HP-100 HP segment of the market studied was valued at USD 30.42 billion in 2019.

Tractors in the 40 HP-100 HP range, generally referred to as utility tractors, are witnessing high demand across the world, including developed and developing countries, due to their capability to handle additional agricultural tasks. They can be fitted with equipment, such as rakes, scrapes, seed drillings, and spreaders. They are ideal for use in mid-size farmland, ranging from 2 hectare to less than 10 hectare.

With the rising importance and increase in subsidies pertaining to the agricultural sector, primarily from governments across various regions, a considerable number of small-scale farmers are focusing on adopting tractors within the 40 HP-100 HP segment. This is expected to drive the market's growth during the forecast period. In India, Pradhan Mantri Kisan Tractor Yojana 2020 provides up to 50% of subsidy on new tractor purchases, with the objective of providing tractors to all the farmers in the country.

At times, low-end versions of this category compete with compact tractors and high-end versions compete with the next power band, making them potential substitutes to the other two segments. They have 3-5 cylinders and nearly 30-gallon fuel tanks to suit the additional farm requirements. Any tractor manufacturer that can include other utilities in the tractors of this band is expected to witness growth. In this power band, manufacturers are focusing on introducing four-wheel drive version tractors. Companies, such as John Deere, are focusing on electrification and zero emission hybrid and electric energy drives. The autonomous and semi-autonomous electric tractors being developed by John Deere have a power range of up to 500 kW, and they increase productivity by nearly 30%.

The COVID-19 outbreak has significantly impacted this segment of the market in Europe and North America. Italy recorded a decline of more than 21% in the sale of tractors in the month of March 2020.

Competitive Landscape

Some of the major companies dominating the market studied are John Deere, CNH Industrial, AGCO Corp., Kubota Corp., CLASS, Mahindra & Mahindra Limited, Kuhn Group, Yanmar Co. Ltd, and Escorts, and they capture a significant share of the market in 2019.

In 2019, John Deere led the agricultural tractor market, due to its increased tractor sales in South America, especially from Argentina, and steady growth was observed in the Asia-Pacific region. The other major players in the market are Tractors and Farm Equipment Limited (TAFE), Deutz-Fahr, Sonalika, Force Motors, and Zetor.

The other market shareholders include many domestic and international manufacturers, like Sonalika, Deutz-Fahr, Force Motors, Zetor, Tafe, and Same, who witnessed a significant share of the global agricultural tractors market in 2019.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Drivers

4.2 Market Challenges

4.3 Industry Attractiveness - Porter's Five Forces Analysis

5 MARKET SEGMENTATION

5.1 By Horsepower

5.1.1 Below 40 HP

5.1.2 40 HP - 100 HP

5.1.3 Above 100 HP

5.2 By Drive Type

5.2.1 Two-wheel Drive

5.2.2 Four-wheel Drive/All-wheel Drive

5.3 Geography

6 COMPETITIVE LANDSCAPE

6.1 Vendor Market Share

6.2 Company Profiles

6.2.1 Deere and Company

6.2.2 CNH Global NV (includes New Holland and Case IH)

6.2.3 AGCO Corporation (includes Massey Ferguson, Valtra, Fendt, and Challenger)

6.2.4 CLAAS KGaA mbH

6.2.5 Mahindra and Mahindra Corporation

6.2.6 Kubota Corp

6.2.7 Escorts Limited

6.2.8 Tractors and Farm Equipment Limited (TAFE)

6.2.9 Kuhn Group (Subsidiary of Bucher Industries)

6.2.10 Yanmar Company Limited

6.2.11 Deutz-Fahr

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/r/qanypa