Farm Tractor Market: Current Analysis and Forecast (2021-2027)

Report Description

Farm Tractor Market is expected to grow at a CAGR of around 4.5% over the forecast period (2021-2027). The Farm tractor market is expected to grow considerably due to rising food demand, population expansion, water scarcity, insufficient arable land, and soil fertility deterioration, the global agricultural business is experiencing production-specific issues. As a result, there is an increase in mechanization innovation, which is expected to boost farming efficiency. According to a new United Nations estimate released today, the current global population of 7.6 billion people will grow to 8.6 billion in 2030, 9.8 billion in 2050, and 11.2 billion in 2100. The growing trend in population size is likely to continue, with around 83 million people adding to the world’s population per year. To feed this larger, more urban, and richer population, cereal production will need to rise to about 3 billion tonnes from 2.1 billion today and annual meat production will need to rise by over 200 million tonnes to reach 470 million tonnes.

The market is growing due to an increase in the demand for operational efficiency and profitability, as well as an increase in labor costs and technology advancements. The high expense of farm machinery, on the other hand, stifles market expansion.

Furthermore, Government initiatives for funding and assisting farmers with lower interest rates are also boosting the global agriculture tractor market. For instance, the Government of India as well as state governments have initiated several schemes that assist to diminish the plight of farmers. Under the PM Kisan Tractor Scheme (Yojana), the government has announced up to 50% Subsidy on buying new tractors.

World’s Population, Billion, 1950-2100

Some of the major players operating in the market include Deere & Company, Mahindra Group, Massey Ferguson, New Holland, Kutoba Corporation, Yanmar, Argo Tractors S.p.A., Farmtac, Valtra Tractor, Kioti Tractor, etc. Several M&A’s along with partnerships have been undertaken by these players to boost their presence in different regions.

Insights Presented in the Report

“Amongst Power Output, ≤ 40 HP segment dominated the market in 2020”

By Power Output, Farm Tractor Market is classified into ≤ 40 HP, 41 HP-100 HP, >100 HP. The ≤ 40 HP segment leads the Farm Tractor Market. The large share of the ≤ 40 HP segment can be attributed to the competitive pricing offered by tractor manufacturers and these tractors carries almost all operations like mowing, ploughing, and pulling small trailers in the farm.

“Amongst Type, ICE segment dominated the market in 2020.”

Based on type, the Farm Tractor market is segmented into ICE, and Electric. The ICE segment contributed the maximum market to the Farm Tractor market. However, Capping greenhouse gas emissions and reducing air pollution on the farm challenges the place of the diesel tractor in future. Electric vehicles are replacing internal combustion engines (ICE) as the availability of affordable petroleum reserves is decreasing and CO2 emissions need to be reduced. Hence, Electric Tractor is expected to witness the highest CAGR over the forecast period.

“Amongst Operation, Manual holds significant market share in 2020.”

Based on Operation, the Farm Tractor market is segmented into Manual and Autonomous. Manual holds the highest share in the Farm Tractor market. However, witnessing the digitalization in every industry, autonomous tractor technology has the potential to grow significantly over the forecast year as these tractors provide ease in optimizing the on-farm operations and provide a safer and less stressful working environment for farm workers and their families.

“Amongst Drive Type, 4 Wheel Drive witnesses significant CAGR during the Forecast Period.”

Amongst Drive Type, the Farm Tractor Market is segmented into 2 Wheel Drive and 4 Wheel Drive. 2 Wheel Drive holds the highest share in the Farm Tractor market. However, with technological advances, the popularity of 4 wheel-drive tractors increased tremendously, hence, is expected to grow with the highest CAGR over the forecast period.

“Asia-Pacific represents as the largest market.”

For a better understanding of the market adoption of Farm Tractor, the market is analyzed for the countries such as North America (US, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia- Pacific), & Rest of World. Asia-Pacific dominated the market in 2020. Asia-Pacific is majorly an agrarian economy with majority of population deriving income from agriculture. Agriculture plays an important role in Asia-Pacific region. India and China are the top two countries experiencing significant market growth over the forecast period. It is estimated that these countries combined tractor sales of ~1.36M units.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional & country-level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Farm Tractor Market were the three major steps undertaken to create and analyze the adoption of Farm Tractor across various regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of Farm Tractor through company internal sources such as annual report & financial statements, investor presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Farm Tractor, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are by power output, type, operation, and by drive type. Further regional & country-level analyses were conducted to evaluate the overall adoption of the Farm Tractor Market in the global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as increase in need for operational efficiency & profitability, rise in labor cost, and growth in trend of mechanization, etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$)
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Farm Tractor Market in terms of products & services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Farm Tractor Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of power output, type, operation, and by drive type for the major country/region globally.

The main objective of the Farm Tractor Market Study

The current & future market trends of Farm Tractor were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional & country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Farm Tractor in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include of power output, type, operation, and by drive type
• Analyze the current and forecast market size of the Farm Tractor for the major regions & countries
• Major regions studied in the report include North America (United States, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), Asia Pacific (China, Japan, India, Australia, Rest of Asia- Pacific), and Rest of World
• Company profiles of the Farm Tractor Market players and the growth strategies adopted by them to sustain in the fast-growing market
• Deep dive regional & country level analysis of the industry