Lawn and Garden Tractor Market - Global Outlook & Forecast 2022-2027

Lawn and Garden Tractor Market - Global Outlook & Forecast 2022-2027

The global lawn and garden tractor market is expected to grow at a CAGR of 4.97% during 2022-2027.

MARKET OUTLOOK

• The market is witnessing significant growth, mainly driven by the launch of new product models with higher efficiency, enhanced battery power, and increased mowing capabilities. Vendors are increasingly focussing on constant innovation to sustain themselves in the market. Apart from mowing grass, garden and lawn tractors are used for mowing snow, cleaning leaves, applying fertilizer, and others. Moreover, the increasing government initiatives & activities to expand green acreage are boosting the lawn and garden tractor market growth. Furthermore, the garden equipment industry prospects in the North American region have improved. In addition, tractors are becoming a mainstream product, which has increased the end-user adoption rate in the lawn and garden market.
• The garden and lawn tractors are compact utility tractors with a heavy-duty design used for mowing garden yards, green cover areas, and others, which are highly influenced by the weather conditions. The demand for lawn and garden tractors arises in summer and spring, increasing time spent on lawn care activities. On the other hand, golf courses are becoming more popular across developed and developing countries. The golf courses require regular ground maintenance and upkeep of the field, which necessitates using lawn and garden tractors.
• The constant development of lawn and garden tractors is to maintain a sustainable presence in the market. There have been considerable developments in tractors regarding features and models. For instance, high-capacity lawn and garden tractors are expanding as plantation areas are developed, lawns are replaced, new landscapes are designed, and the installation of residential buildings and malls, theme parks, and others boosts the lawn and garden tractor market demand. These factors will likely propel the lawn and garden tractor product demand in developing economies such as India, Vietnam, China, and Brazil.

MARKET TRENDS AND OPPORTUNITIES

Incorporate Lawn And Garden Tractor With Technology

• Rapid technological advancements in recent years have led to the emergence of new technologies for lawn care equipment. These technologies help enhance the effectiveness and efficiency of lawn care machines. Such as the, AI technology enables electric drive tractors to make decisions and figure out the best path for mowing, till gardens, and grade driveways. The smart autonomous lawn tractor is inbuilt with a Global Positioning System (GPS) that allows the equipment to move automatically throughout the facility. The equipment also uses smart technology for mapping the facilities, with increased capabilities for computing power in a small footprint that can be controlled using a smartphone in combination with low-cost optics and sensors. Thus, incorporating such technology with the equipment will drive product sales in the lawn and garden tractor market during the forecast period.

Growth In Commercial Construction

• In 2020, there was a steep decline in the commercial sector due to the hard-hit hotel & motel industry and sports & convention centers. The commercial sector has been witnessing constant growth since 2021 with the reopening of the economy. The construction of hotels, amusement parks, private & government offices, and sports & convention centers is growing, supporting the commercial sector's lawn and garden tractor market. Hotels and resorts are also key contributors to the demand for lawn and garden tractors. The construction of various hotels and office spaces is expected to support market growth in the coming years. Such as, in Manhattan, 12 million square feet of new office space are expected to be available by 2022. Hence, expanding office spaces is expected to boost the green acreage across large office buildings, supporting the market's demand for lawn and garden tractors.

SEGMENTATION ANALYSIS

INSIGHTS BY PRODUCT TYPE

The global lawn and garden tractor market by product type is segmented into lawn tractors and garden tractors. In 2021, the lawn tractor market held a revenue share of 76.68% globally. It is expected to grow enormously during the forecast period due to its mowing and tilling performance in distinct soil conditions. The ability of lawn tractors to handle slopes is the main reason for their growth. These tractors have a large customer base in sports turf, golf, large parks, and hobby farm industries.

Vendors continue introducing new models, improving existing features, and adding various attachments to tractors. For instance, Steiner launched the Steiner 450 tractor in 2022. The tractor is equipped with a strong engine, hydraulic system, articulating, wide stance, an oscillation frame, new hydraulic weight transfer, traction boost system, mowing capabilities, and more than 25 attachments; the tractor can perform a whole range of activities from sweeping to snow blowing.

Segmentation By Product Type

• Lawn tractors
• Garden tractors

INSIGHTS BY FUEL TYPE

The gas-powered land and garden tractor dominated the global lawn and garden tractor market in terms of both revenue and unit shipments in 2021. The high power and better efficiency drive the demand for these lawn and garden tractors in the market. However, the rising fuel cost in various countries such as Poland and others is expected to hamper the demand for these lawn and garden tractors in the market during the forecast period. With its robust design, a gas-powered lawn and garden tractor remains in demand and thus proves to be an excellent choice for tougher and more demanding work. Gas-powered lawn and garden tractors do not have to be charged and are not limited in range by a cord. In 2021, the gas-powered lawn and garden tractor market accounted for a revenue and unit shipment share of 72.67%and 79.46%, respectively.

Segmentation By Fuel Type

• Gasoline-Powered
• Battery-Powered
• Propane-Powered

INSIGHTS BY END-USER

In 2021, the professional landscaping services segment accounted for a revenue share of 37.32% in the global lawn and garden tractor market. It was expected to witness an incremental growth of USD 339.06 million during the forecast period. The US has over 600,000 landscaping service providers throughout the country. Most of these landscaping service providers are smaller players with limited geographical presence and a focus on specific offerings. Professional landscaping services have started to gain a reputation in developing economies, including China, India, Brazil, and others, due to the low disposable revenue of the public. Moreover, the growing investment among professional landscapers will likely propel the demand for this end-user segment.

Segmentation By End-User

• Professional Landscaping Services
• Golf Courses & Other Sports Arenas
• Residential
• Government & Others

INSIGHTS BY DRIVE TYPE

The global lawn and garden tractor market by drive type is segmented into 2-wheeled and 4-wheeled tractors. In 2021, 2WD lawn and garden tractors dominated the market, accounting for a revenue and unit shipment share of 77.23% and 80.43%, respectively. The 2WD tractor can have better maneuverability and is ideally suited for flat terrain with many obstacles, including shrubs, flower beds, and other lawn ornaments. Factors such as low cost, better maneuverability, and ease of reversing the equipment drive the demand for these lawn and garden tractors in the market. Some examples of 2WD lawn and garden tractors include KÖPPL - Model Series 500, Ginko - Model R 702 Series, Twist - Model 5, and others.

Segmentation By Drive Type

• 2 Wheeled Tractor
• 4 Wheeled Tractor

INSIGHTS BY HORSEPOWER

In 2021, 18-24 HP lawn and garden tractors dominated the global lawn and garden tractor market, accounting for a revenue and unit shipment share of 39.63% and 40.05%, respectively. Developing countries like the US and Japan's economic prosperity contributes to the enormous potential growth. Home gardening, farming activities, and other green areas propel market growth among other countries in the global market.

Segmentation By Horsepower

• < 18 HP
• 18 – 24 HP
• > 24 HP

INSIGHTS BY START TYPE

In 2021, the push-type lawn and garden tractor accounted for a revenue share of 71.45% in the global lawn and garden tractor market. It was expected to witness an incremental growth of USD 691.12 million during the forecast period.

Nowadays, most lawn and garden tractor vendors like honda and Hayter are shifting to electric push button type technology rather than recoil starter rope or key start. The electric push button starts the engine effortlessly instead of pulling a recoil starter cord to turn over the engine. So the push-button technology drove the lawn tractor segment in the forecast period.

Segmentation By Start Type

• Push Start
• Key Start

INSIGHTS BY DISTRIBUTION CHANNEL

The offline distribution channel is expected to dominate the global lawn and garden tractor market and account for a revenue share of 62.19%. This segment is expected to witness an incremental growth of USD 470.42 million during the forecast period. Factors such as the broader reach in areas that lack better connectivity and high consumer trust associated with personally experiencing the quality of products are driving the growth of this segment. Although the online channel holds a relatively lower share in the lawn and garden tractor market, it is expected to grow at a higher CAGR of 5.94% (by value) during the forecast period.

The proliferation of e-commerce and raising awareness of the benefits of online purchases, such as heavy discounts, occasional offers, and rising demand for convenience, is driving the growth of the online segment.

Segmentation By Distribution Channel

• Offline
• Online

GEOGRAPHICAL ANALYSIS

North America's lawn and garden tractor market was valued at USD 1 billion in 2021 and accounted for the largest global revenue share of 39.16% in 2021. A large residential sector and numerous golf courses across the region support the demand for the equipment. North America has the largest number of golf courses worldwide. The US and Canada together account for more than 18,700 golf courses. The US opened more than 25 new golf courses nationwide in 2019−2020. Most golf courses across the country are public facilities and allow free playing, encouraging greater participation among people. Hence, the presence of many golf courses across the region is expected to support the lawn and garden tractor market growth during the forecast period.

Europe is expected to be one of the fastest-growing geographical segments at a CAGR of 5.61% (by revenue) in the global lawn and garden tractor market during the forecast period. Factors such as rising urbanization, increasing regional investments, and the rapidly growing construction of residential & commercial spaces with a green cover drive the demand for lawn and garden tractors. Europe, considered one of the largest and leading markets in the gardening equipment segment, is mainly expected to be driven by residential end-users that are profoundly increasing their usage.

Companies are expected to use robust ground management equipment, increasing the need for landscaping services in the area. A growing number of commercial spaces, along with the number of public parks and lawn areas, are also boosting the demand for garden tractors in the region.

Segmentation by Geography

• North America
• US
• Canada
• Europe
• UK
• Germany
• France
• Italy
• Spain
• Sweden
• Netherlands
• Belgium
• Poland
• Switzerland
• Finland
• Austria
• APAC
• China
• Australia
• Japan
• South Korea
• India
• Latin America
• Brazil
• Mexico
• Argentina
• Middle East & Africa
• Saudi Arabia
• UAE
• South Africa

COMPETITIVE LANDSCAPE

The global lawn and garden tractor market is moderately fragmented, with many local and international players. As consumers expect constant advancements and upgrades in garden equipment, the increasingly changing economic environment may have a negative impact on vendors. The current situation pushes vendors to adjust and improve their value proposition to attain a good business presence. While the market is characterized by the presence of diversified international vendors and a few regional vendors, as foreign players will expand their market footprint, it would be increasingly difficult for regional vendors to compete with them, particularly in terms of technology and customer base. AriensCo, Deere & Company, Honda Motor Company, Husqvarna Group, and Kubota Corporation are the key vendors in the global lawn and garden tractor market. A rise in product/service expansions, technical advancements, and M&As are expected to exacerbate industry competitiveness further.

Vendors are using innovative market models to accelerate growth and concentrate on expanding their organization's portfolio. During the forecast period, many foreign players are expected to expand their presence worldwide, particularly in the APAC and Latin American regions' fast-developing countries, to gain more lawn and garden tractor market share. In addition, improving global economic conditions will boost demand expansion, making it an enticing time to introduce new products.

Key Vendors

• AriensCo
• Deere & Company
• Honda Motor Company
• Husqvarna Group
• Kubota Corporation

Other Prominent Vendors

• Stanley Black & Decker
• The Toro Company
• STIGA S.p.A
• Briggs & Stratton
• AGCO Corporation
• Emak S.p.A
• AL-KO Gardentech
• BOB CAT
• FARMTRAC TRACTORS EUROPE
• ISEKI & CO., LTD.
• GRASSHOPPER COMPANY
• COBRA
• TEXTRON INCORPORATED
• Yangzhou Weibang
• AS-Motor
• VICTA LAWNCARE PTY LTD
• CHERVON
• Generac Power Systems
• IHI Shibaura Machinery Corporation
• Masport

KEY QUESTIONS ANSWERED

1. How big is the lawn and garden tractor market?

2. What is the growth rate of the lawn and garden tractor market?

3. What will be the global lawn and garden tractor market share in shipments by 2027?

4. Who are the key players in the global lawn and garden tractor market?

5. What are the significant trends impacting the global lawn and garden tractor market?

6. Which region holds the largest global lawn and garden tractor market share?