The global tractor engines market to grow at a CAGR of 6.68% during the period 2017-2021.
The growth of the agricultural sector has a direct impact on the tractor engine market as tractors are required for cultivation purposes. The majority of the growth in the tractor engine market is likely to come from APAC, constituting about 71% of the global tractor engine sales in 2016. India and China are the main contributors to the global tractor engine market. The two biggest regions responsible for the overall market volume of tractor engines have fairly similar market characteristics.
According to the report, one of the major drivers for this market is high labor wages. The increase in labor wages for agricultural laborers increases the cost of production and decreases farmers' profitability. APAC countries such as India and China are experiencing a rise in the minimum wage of agricultural laborers due to government intervention.
The latest trend gaining momentum in the market is increasing consolidation of fragmented land in Europe and Americas. There is a growing trend of consolidation of land size in the Americas and Europe since the return from the larger farms is much greater than the smaller farms. Large companies such as the US Farm and Ranch Supply stores in the US, Monsanto, and Archer-Daniels Midland have started dominating the agricultural market.
- High labor wages
- Developing global agriculture industry
- Unorganized tractor rental market in APAC
- Expansion of tractor rental market
- Intermediate layers curbing farmers' purchasing power
- Stringent emission norms for agricultural tractors
- Increasing consolidation of fragmented land in Europe and Americas
- Growing focus on 31 hp-50 hp tractors in APAC
- Adoption of advanced automotive powertrain technologies
- John Deere
Other prominent vendors
- Mahindra & Mahindra
- Case New Holland
- Massey Ferguson
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