The Tractor Market in Russia is Forecasted to Grow at a CAGR of 5.7% from the Year 2019 to 2024 - ResearchAndMarkets.com

DUBLIN--()--The "Russia Agriculture Tractors Market-Size, Trends, Competitive Analysis and Forecasts (2019-2024)" report has been added to ResearchAndMarkets.com's offering.

Russia covers 220 million hectares of fertile land accounting for 20% share of the world's fertile land. With the vast fertile land the country has the potential to feed two billion people. However, this potential is not fully utilized, since only 13% of the fertile land is cultivated. The agriculture in Russia is a booming sector and has been registering a CAGR of above 4% since 2015. The growth is forecasted to exceed 5% in the coming years mainly due to the food import ban imposed by the Government.

The Government has prioritized to increase local agricultural production as well as exports. Insufficient agricultural machinery and equipment is a key weakness to attain this goal. To support this goal, the Government provides state subsidies for farmers to invest in cutting-edge technology and increase output levels. The emphasis to increase farm yield has created a demand for farm mechanization and thus, agricultural equipment. In addition, the Government provides subsidies to the agricultural equipment manufacturers to promote domestic production and increase exports of agricultural equipment.

All these factors have created a positive environment for growth of tractor market in Russia. However, structural challenges such as high cost of tractors, high credit costs and geopolitical uncertainty force farmers to delay capital investments or look for cheaper options from local agricultural equipment producers. All these factors along with overall weakening of economic conditions and unstable political challenges limit the tractor market development in Russia.

Growth Opportunities in Russia

The current tractors used in Russian agriculture surpass the typical service age of 10-12 years. Thus, there is a growth opportunity for the tractor manufacturers to replace old tractors in coming years. In addition, there is huge gap between the ratio of agriculture land and the tractors available. On average, one tractor in Russia serves 247 hectares. According to the Government estimates, the agriculture sector needs around 55,000 tractors totaling to $5.5 billion annually. However, the annual sales of agriculture tractors in Russia is 12,000 units.

This huge demand-supply gap provides opportunity to the tractor manufacturers. However, high interest rates for purchasing agricultural equipment, reduction in government subsidies for agricultural producers, low growth in foreign investments in the sector and financial instability of Russian farming enterprises are obstructing the growth of the market. Tractornye Zavody, St. Petersburg Tractor Plant, CLAAS, Rostselmash, CNH-Kamaz Industry, John Deere (USA) are major players in the market.

Key Deliverables

  • Market trends since 2015 and five-year forecasts of market growth
  • Detailed analysis of the micro and macro elements influencing demand trends
  • Identifying opportunity spaces across segments
  • Supply & demand side trend and analysis
  • Price trend analysis, investment prospects and competition pattern
  • Insights on the growth potential of the market
  • Detailed analysis of major producers covering financial investments & strategies adopted
  • Competitive landscape of the industry

Key Topics Covered:

1. Introduction

1.1 Research Methodology

1.2 Scope of the Study

1.3 Assumptions

2. Summary

3. Industry Dynamics

3.1 Drivers

3.1.1 Growing access to subsidies and credits for Farm Machinery in Asia

3.1.2 Push for agriculture mechanization from policy makers

3.1.3 Focus to increase cropping intensity

3.1.4 Dwindling agriculture laborers due to Urbanization

3.2 Restraints

3.2.1 Diminishing area under agriculture

3.2.2 Increased number of fragmented landholding in Asia

3.2.2 Consolidating farmland under contract farming & co-operatives

3.3 Opportunities

3.3.1 Growing emphasis on Precision farming

3.3.2 Hill Agriculture

3.3.3 Gender friendly tools and Equipment

3.3.4 Crop Specific Package of machines

3.4 Porter's Five Forces Analysis

3.4.1 Bargaining power of Suppliers

3.4.2 Bargaining power of Buyers

3.4.3 Degree of Competition

3.4.4 Threat of Substitution

3.4.5 Threat of new entrants

3.5 Future Trends in the Industry

3.6 Value Chain Analysis

3.7 Industry Policies & Regulations

3.8 Market Innovations

4. Market Size and Forecast

4.1 Market Share, By Types

4.1.1 Utility Tractors

4.1.2 Row crop tractors

4.1.3 Garden Tractor

4.1.4 Orchard Tractor

4.1.4 Rotary Tillers

4.1.5 Others

4.2 Market Share, By Horse Power

4.2.1 Below 40 HP

4.2.2 40 HP-100 HP

4.2.3 Above 100 HP

4.3 Market Share, By Wheel Type

4.3.1 Two Wheel

4.3.2 Four Wheel

5. Competitive Analysis

5.1 Market Share Analysis

5.2 Growth Strategies of leading players

5.3 Investment and Development Prospects

5.3.1 Investment in past five years

5.3.2 Investment Opportunities

5.4 Competition Pattern

5.4.1 Concentration Ratio

5.4.2 Industry Competition

5.5 Price Trend Analysis

5.5.1 Product Classifications and Their Prices

5.5.2 Factors Influencing Prices

6. Company Profiles

6.1 AGCO Corp.

6.2 Claas KGaA mbH

6.3 CNH Industrial N.V

6.4 Deere and Company

6.5 Deutz-Fahr

6.6 Escorts Limited

6.7 Kubota Corporation

6.8 Kuhn Group

6.9 Mahindra & Mahindra Ltd.

6.10 Tractors and Farm Equipment Ltd.

6.11 Yanmar Company Limited

For more information about this report visit https://www.researchandmarkets.com/r/4eq0hc

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900