The global farm tractors market is projected to reach a valuation of US$ 120 billion by 2032, as per data released by Fact.MR, a market research and competitive intelligence provider.
Farm tractors are generally used for a variety of farming operations, such as tilling, plowing, and planting fields. They are also utilized for spreading fertilizer, removing bushes, and other agricultural tasks. Customers can choose from a broad selection of farm tractors. Farm tractors have capabilities ranging from less than 40 HP to more than 200 HP, making them ideal for a wide range of farming operations.
Increasing urbanization has resulted in a labor scarcity for agricultural activities. This scarcity is projected to drive up demand for farm tractors. The use of tractors in farm operations increases production while using the fewest resources. Governments in developing and developed nations provide large subsidies for the purchase of farm tractors to promote modernized farming.
Moreover, the increased need to replace obsolete agricultural machinery is likely to boost the demand for farm tractors during the forecast period. Furthermore, manufacturers are pushing their tractors by offering consumers attractive incentives, which is expected to raise the sales of farm tractors.
Manufacturers are also partnering with financial institutions to give farmers financial support to purchase farm tractors. Moreover, growing technological advancements in farming machinery and increased manufacturer investment in the creation of electrically powered automated tractors are expected to provide lucrative market growth prospects throughout the forecast period.
Key Takeaways from Market Study
- The global farm tractors market is valued at US$ 71 billion in 2022.
- The market is predicted to expand at a CAGR of 5.3% from 2022 to 2032
- Global demand for farm tractors is likely to touch US$ 120 billion by 2032.
- Asia Pacific held 73.5% share of the global farm tractors market in 2021.
- The European market is expected to expand at a CAGR of 4.1% during the forecast period.
- The North American market is projected to grow at a CAGR of 3.3% through 2032.
“Rapid adoption of mechanization in agriculture and favorable government initiatives are powerful factors expected to drive the global farm tractors market during the forecast period,” says a Fact.MR analyst
Winning Strategy
Short-term obstacles for OEMs include high raw material prices, a shortage of skilled staff, and a shortage of semiconductor components. However, strategic activities such as collaborations and innovations are likely to alleviate such obstacles during the forecast period.
For instance:
- CLAAS expanded its collaboration with Carraro Firm, an international group that is a leader in transmission systems for specialist tractors and off-road vehicles. Following this expanded collaboration, the two businesses will concentrate on the creation and production of compact and special tractors, as well as the supply of tractor gears and axles.
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global farm tractors market, presenting historical demand data (2017-2021) and forecast statistics for the period of 2022-2032.
The study divulges essential insights on the market on the basis of power output (up to 30HP, 31HP to 100HP, 101HP to 200HP, above 200 HP) and drive type (two-wheel drive (2WD), four-wheel drive (4WD)), across five major regions (North America, Europe, Asia Pacific, Latin America, and MEA).
