Agricultural tractors are self-propelled vehicles that provide power and traction to mechanize agricultural tasks such as plowing, disking, harrowing and more. They are equipped with power take-off systems and three-point hitch for operating agricultural implements. Tractors allow farmers to save time and labor costs by completing farm work efficiently. Key components of tractors include engine, transmission, rear axle, power take-off system, hydraulic lift and hitch. Most modern tractors offer advanced features such as GPS, auto steering and variable flow hydraulics. The global agricultural tractor market is driven by substantial mechanization of agriculture across developing regions to cater to growing global food demand.
The global Agricultural Tractor Market is estimated to be valued at US$ 87.16 Bn in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the major trends in the agricultural tractor market is the growing adoption of autonomous or driverless tractors. Leading tractor manufacturers are developing autonomous tractors equipped with advanced technologies such as GPS, auto guidance systems, collision detection and more. For instance, John Deere launched autonomous 8R tractor in 2018 capable of performing agricultural tasks without human intervention. Autonomous tractors enables farmers to maximize productivity while reducing labor costs substantially. The development of technologies like artificial intelligence, computer vision, machine learning will further drive the autonomous agricultural equipment market during the forecast period.
Porter’s Analysis
Threat of new entrants: The agricultural tractor market requires large investments and has significant capital requirements which pose a barrier for new players to enter.
Bargaining power of buyers: Individual buyers have low bargaining power compared to large agriculture equipment dealers who negotiate pricing and purchase in bulk.
Bargaining power of suppliers: A few large multinational companies dominate the supply market for agricultural tractor components giving them strong bargaining power over OEMs.
Threat of new substitutes: There are no cost-effective substitutes for agricultural tractors currently available.
Competitive rivalry: The global agricultural tractor market is moderately competitive with the presence of large international brands and regional manufacturers.
Key Takeaways
The Global Agricultural Tractor Market Growth expected to witness high over the forecast period of 2024 to 2031. The global Agricultural Tractor Market is estimated to be valued at US$ 87.16 Bn in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period 2024 to 2031.
Regional analysis: The Asia Pacific region is projected to account for over 50% value share of the global market by 2031 driven by countries like China, India, Indonesia and Thailand. China is the largest market globally supported by government policies promoting mechanization. India is also a major contributor to growth given the large agriculture sector and ongoing farm consolidation initiatives by the government.
Key players: Key players operating in the Agricultural Tractor Market include Xuzhou Jianping Chemical,Xuzhou Yongli Fine Chemical,Xuzhou Hongda Chemical,Huaian Huayuan Chemical,Jiangxi Jixiang Pharmchemical,Shijiazhuang Zhonghao Chemical,Suzhou Hantai Chemical, and Xuzhou Weiruipu Chemical. The market remains highly consolidated with top players accounting for the majority share. Companies are focusing on expanding their product portfolio and international presence through acquisitions and partnerships.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
