Dec 13, 2021   SOURCE: BusinessWire

Agricultural Tractors Global Market Growth, Trends and Forecasts 2021-2026: Increasing Farm Mechanization in Developing Markets Driving Lower Engine Power Tractor Sales - ResearchAndMarkets.com

The "Agricultural Tractors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.

The global agricultural tractors market was valued at USD 60,468.9 million in 2020 and is projected to reach USD 81,909.0 million by 2026, while registering a CAGR of 5.2% over the forecast period (2021-2026).

Key Market Trends

Increasing Farm Mechanization in Developing Markets Driving Lower Engine Power Tractor Sales

With an engine volume of not more than 1,500 cc, these tractors occupy less space and can be used with greater flexibility. Ease of customization makes them more amenable to experimentation, and consequentially, manufacturers are willing to try new components and technologies in this segment before moving on to high-powered ones. These tractors are compact, with a mass of fewer than 4,000 lbs, and use less than 40 PTO HP to run attachments. Invariably, all these high-production, economical, and user-friendly compact tractors are being used by schools, parks, landscapers, cemeteries, and hobby farmers. Low horsepower tractors work well in soft soil conditions, such as river basins.

The less than 40 HP tractors are mainly used for horticulture. In developing countries, the demand for lower HP tractors is high due to the low disposable income of farmers and high labor costs. Farmers prefer small and customized tractors for agricultural purposes due to small farmland sizes. Moreover, lesser fuel consumption by small tractors helps empower small and marginal farmers. Like India, the governments of developing countries are promoting farm mechanization by subsidizing the purchase of equipment and supporting bulk buying through front-end agencies.

Asia Pacific Dominates the Market

In the Asia Pacific, China, Japan, India lead in the number of tractors sold across countries. China has around 60.0% of its farm activities mechanized. According to data from the National Bureau of Statistics of China, China produced 617,700 tractors in 2019. Large and medium-sized tractors gradually replaced small tractors. As of the end of 2019, China boasted 22.24 million agricultural tractors, including 4.44 million large- and medium-sized tractors. The government included agricultural machinery in its 'Made in China 2025' campaign in 2018. The program is expected to help the country produce most of its farm equipment domestically, which is expected to increase the sales of tractors in China.

The agriculture sector in India has witnessed a substantial decline in the use of animal and human power in the agriculture sector. A large number of these are driven by fossil fuel-operated vehicles, such as tractors and diesel engines. This has resulted in a shift from the traditional agriculture process to a more mechanized process. In order to increase the mechanization level, the Indian government is promoting 'Balanced Farm Mechanization', by providing subsidies on various equipment and supporting bulk buying through front-end agencies, which is expected to strengthen the tractors market in India. Thus, the implementation of programs by the governments in the region along with the increasing tractor usage across the region are expected to drive the market during the forecast period.

Competitive Landscape

The global agricultural tractor market is consolidated, with the major players occupying the major share of the market in 2020. The Deere and Company, Kubota Corporation, CNH Industrial NV, AGCO Corporation, and CLAAS KGaA mbH are the major players in the market New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, globally.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.3 Market Restraints

4.4 Industry Attractiveness - Porter's Five Forces Analysis

5 MARKET SEGMENTATION

5.1 Horse Power

5.1.1 Less than 40 HP

5.1.2 40 HP to 99 HP

5.1.3 100 HP to 150 HP

5.1.4 151 HP to 200 HP

5.1.5 201 HP to 270 HP

5.1.6 271 HP to 350 HP

5.1.7 Greater than 350 HP

5.2 Type

5.2.1 Orchard Tractors

5.2.2 Row-crop Tractors

5.2.3 Other Tractors

5.3 Geography

6 COMPETITIVE LANDSCAPE

6.1 Most Adopted Strategies

6.2 Market Share Analysis

6.3 Company Profiles

6.3.1 CLAAS KGaA mbH

6.3.2 Deere & Company

6.3.3 Mahindra & Mahindra Ltd

6.3.4 CNH Industrial NV

6.3.5 Kubota Corporation

6.3.6 AGCO Corporation (Massey Ferguson Limited)

6.3.7 Tractors and Farm Equipment Ltd

6.3.8 Iseki & Co. Ltd

6.3.9 Yanmar Holdings Co. Ltd

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

8 AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET

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