Agricultural Tractors Market Size Worth $165.79 Billion By 2032 | CAGR: 6.7%

Agricultural Tractors Market Size Worth $165.79 Billion By 2032 | CAGR: 6.7%

The global agricultural tractors market size is expected to reach USD 165.79 billion by 2032, according to a new study by Polaris Market Research. The report “Agricultural Tractors Market Share, Size, Trends, Industry Analysis Report, By Engine Power (Less Than 40 HP, 41 To 100 HP, and More than 100 HP); By Driveline Type; By Region; Segment Forecast, 2023 - 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Market is driven by various factors including increasing global population, technological advancements, rising demand for food, government support, mechanization of agriculture, and the growing trend of precision agriculture. For instance, the implementation of the European Union's Common Agricultural Policy (CAP) and the United States Farm Bill is expected to increase demand over the forecast period. The demand for tractors is also influenced by the growing awareness of sustainable agriculture practices. These drivers have increased demand for more efficient and high-performing tractors that offer greater productivity and reduced operating costs.

The increasing disposable income of farmers is driving demand for agricultural tractors, particularly in emerging markets. For example, the government has launched various schemes in India to support farmers' income, such as minimum support prices for crops and subsidies for agricultural equipment. As a result, there has been a surge in tractor sales in recent years, with manufacturers such as Mahindra & Mahindra and TAFE reporting strong growth.

Higher incomes also lead to increased expectations for product quality, features, and after-sales services. For instance, in Brazil, where farmers have a relatively high level of disposable income, companies like AGCO and CNH Industrial have introduced advanced tractors with features such as GPS-based precision farming and telematics systems to monitor and optimize machine performance.

Government support in form of subsidies and financial incentives for farmers. According to National Bureau of Statistics data, 60% of China's farming activities are mechanized. Large and medium-sized tractors are being increasingly replaced by smaller tractors. At the end of 2020, there were 4.4 million large- and medium-sized tractors in China. Technological advancements in agriculture and increasing awareness about sustainable agriculture practices are further expected to contribute to the market's growth.

According to CEMA, in 2021, almost 230,000 tractors were registered across Europe, with nearly 180,000 of those being agricultural tractors. The number of registered tractors is the highest in at least ten years. France and Germany account for nearly four in ten tractors registered in Europe, while Italy, Poland, the United Kingdom, and Spain account for 35%.

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In India, the government has implemented several initiatives to increase the country's agricultural productivity, such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Pradhan Mantri Krishi Sinchai Yojana (PMKSY). These initiatives aim to enhance irrigation infrastructure, improve crop insurance, and promote the adoption of modern agricultural equipment, including tractors.

Agricultural Tractors Market Report Highlights

  • The less than 40 HP segment holds the majority market share due to its affordability, compact size, and convenience in performing basic farming operations, making it the preferred choice of farmers.
  • The 2WD segment had a significant market share in 2022, primarily driven by the low upfront costs and better maneuverability and these are the most preferred for small farm operations.
  • The Asia Pacific region is expected to see the largest growth in the market due to the increasing demand for food and government initiatives.
  • The global players include AGCO Corporation, CNH Industrial, Deere & Company, Escorts Limited, and Kubota Corporation.

Polaris Market Research has segmented the Agricultural Tractors market report based on engine power, driveline type and region:

Agricultural Tractors, Engine Power Outlook (Revenue - USD Billion, 2019 - 2032)

  • Less than 40 HP
  • 41 to 100 HP
  • More than 100 HP

     Agricultural Tractors, Driveline Type Outlook (Revenue - USD Billion, 2019 - 2032)

  • 2WD
  • 4WD

Agricultural Tractors, Regional Outlook (Revenue - USD Billion, 2019 - 2032)

  • North America
  • U.S.
  • Canada
  • Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Latin America
  • Argentina
  • Brazil
  • Mexico
  • Middle East & Africa
  • UAE
  • Saudi Arabia
  • Israel
  • South Africa