DUBLIN--(BUSINESS WIRE)--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 3.83%, during the forecast period, 2020-2025.
The tractor segment, which covered a major share of 39% in the agricultural machinery market in 2018, is anticipated to remain a major machinery segment during the forecast period, owing to the increasing demand for high horse-power tractors, ranging above 40 horsepower (HP) (i.e. utility tractors and row crop tractors), from the matured markets, such as Europe and North America.
Increasing arable land area, along with the demand for agricultural mechanization in the matured and emerging markets, is driving the tractor market, globally.
Four-wheel drive tractors being very less in number, in comparison to two-wheel drive tractors, are expected to see a considerable growth over the forecast period, due to rising demand for efficient power utilization by eliminating the loss of torque due to low traction conditions.
The rising demand for mechanization and the increased number of medium-scale farmers are the primary factors that have created a demand for tractor hiring in Ghana and other African countries, majorly in the south of the Sahara. This is expected to allow tractor owners to fully utilize their machines, while also providing services to farmers who cannot afford their own tractors. Small farmers in African countries, such as Nigeria, cannot afford tractors. However, an Uber-like program has been gradually expanding in the country, which makes it possible for farmers to get temporary access to tractors in demand.
Key Market Trends
Tractors above the 100 HP Range are Projected to Grow at a Fast Pace
Tractors above the 100 HP range, generally referred to as farm tractors, which can handle almost all agricultural tasks, are suitable for commercial farming. However, they generally come with a huge price tag.
They possess four to six cylinders and have huge engines of volume, varying from 2500-6000 cc. Hydraulics are fitted to these tractors for lifting and clearing purposes in the fields. Telematics are also being introduced for these tractors in a significant scale for auto steer systems.
As productivity in the agriculture field continues to rise, so does the need for more power in tractors. Larger engines mean large-sized tractors, which might not be practical for the existing infrastructure that customers have. Also, tier-4 emission standards are adding a significant amount of cost to the prices of large-sized tractors.
Emerging economies, such as China, India, and Brazil, with a high governmental thrust for agricultural development, are poised to become the greatest markets for these farm tractors.
Asia-Pacific Dominates the Global Market
Asia-Pacific dominated the tractors market, and the region is expected to witness the fastest growth rate during the forecast period.
In the Asia-Pacific region, India is the biggest market for tractors followed by China. India holds the second-largest agricultural land in the world. The agricultural sector, which is the backbone of the Indian economy, contributes majorly to the country's GDP. As of February 2018, it was estimated that over 58% of rural Indians had depended on agriculture for their livelihood, with the sector contributing around 17-18% to the country's GDP.
The consistent growth of the agricultural sector is driving the agricultural machinery market in the country. Government initiatives, such as Tractor Subsidy Scheme, Kisan Credit Card, and National Mission on Agricultural Mechanization, have been continuously contributing to the growth of the agricultural machinery market in the country. Additionally, easy availability and access to low-cost credit may also drive the market toward growth, in turn, helping the farmers to obtain high yield, invest in assets, and earn more income.
Japan is acclaimed as being the most agriculturally mechanized country in Asia-Pacific.
- The Japanese machinery market grew from 2013 onward, owing to the brisk demand attributable to greater purchasing power among farmers, as rice prices remained high and individual allowance, as a part of the support system operated by the government.
- This has led to increasing expenditure by farmers on the new machinery, as well as the maintenance of old machinery.
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 a steady growth 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, Zetor, and others.
The other market shareholders include many domestic and international manufacturers, like Sonalika, Deutz-Fahr, Force Motors, Zetor, Tafe, and Same, had witnessed a significant share of the global agricultural tractors market in 2019.
Key Topics Covered
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
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
5.3.1 North America
5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Deere and Company
6.2.2 CNH Global . (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
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/hfmbmb