Global Four Wheel Drive Tractor Market - 2022-2029

Global Four Wheel Drive Tractor Market - 2022-2029

Market Overview

A four-wheeled tractor is a type of tractor that has more advanced technological features than two-wheeled tractors because its utilization and function have been adjusted based on human needs. A four-wheel-drive tractor consists of a four-wheel drive axle that can distribute power to all its wheels simultaneously. It helps in providing less slippage, and great traction with better performance.

The main types of four-wheel-drive tractors are less than 40 horsepower (HP) tractors, 40HP to 100HP tractors, 100HP to 200HP tractors, and above 200HP tractors. Less than 40HP tractors are tractors powered by less than 40 horsepower. These tractors are operated manually and autonomously. These tractors are used in farming, construction, and others.

The global four wheel drive tractor market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 4.12% during the forecast period (2022-2029).

Market Dynamics: Increase in mechanization is driving the growth of the market

The increase in mechanization in the agriculture industry is contributing to the growth of the four-wheel-drive tractors market. Four-wheel drive tractors provide better traction, more pulling power, fuel-efficient, longer service intervals, and distribute power to all wheels depending on the requirement. For instance, according to a report by the PWC and Federation of Indian Chambers of Commerce & Industry (FICCI) in 2019, the US and Europe’s farm mechanization level is 95%, Russia’s mechanization level is 85%, and Brazil has 75%. Thus, the rise in mechanization in agriculture increases the need for better traction, fuel-efficient tractors, which in turn are propelling the demand for four-wheel drive tractors as the farmers also demand four wheel tractors to ease the process of farming.

Furthermore, the growing adoption of agricultural equipment is considerably high in developing and developed countries where agriculture is a major contributor for the market, which in turn is boosting the rate of harvesting. Thus, the increasing population is fuelling the demand for agricultural product consistently, which further boosts the demand for four-wheel tractors. Presently, farmers require large and more powerful tractors for heavy applications in farming in order to boost agricultural yield that is adding to the growth of the market

Market Segmentation: Agriculture stands for the highest share in global four-wheel drive tractor market

In 2021, the agriculture segment had the highest revenue share of YY percent. The key reason four wheel drive tractors are so popular & demanded in the agricultural industry is due to the versatility they offer. In addition, whether it’s loading heavy-duty materials or cutting grass with a flail mower, the power in all four wheels makes the task easier and more efficient because of the improved traction. Furthermore, the increased mechanical advancements in agriculture industry owing to increased demand for agriculture products, enables farmers to use the equipments which help them ease the process with better and faster results. As a result, various companies are launching the tractors to fulfill consumer demands which add to the growth of segment. For instance, in July 2022, Mahindra Tractors launched six new tractor models under the recently launched Yuvo Tech+ brand which includes 4-wheel drives tractors.

Geographical Penetration: North America is the dominating region during the forecast period

In 2021, North America had the highest revenue share of almost YY percent. The region has well-developed agriculture, construction, and other sector, where the demand for agricultural products is increasing. Farmers in U.S. prefer to use 4-wheel drive tractors for the process of farming to make the process easy and give the expected results which adds to the growth of the market. In addition, the mechanization is increasing in countries such as U.S., Canada and Mexico owing to increased demand for equipments such as 4-wheel drive tractors in the industries such as agriculture, construction & mining and others which adds to the growth of the market.

Competitive Landscape:

The global four wheel drive tractors market is competitive and comprises players such as AGCO Corporation, Deere & Company, Escorts Limited, Komatsu Corp, Mahindra & Mahindra Ltd, SAME DEUTZ-FAHR Italia S.p.A., Kubota Corporation, Deutz-Fahr, Massey Ferguson Limited and SDF Group among others. The four wheel drive tractor market competitiveness is estimated to increase over the forecast period as the key players focus on various strategies such as agreements and product innovation for various end use industries. Moreover, rising research and development activities of product innovation for and increased mechanization enables the new product launches and advancement in farming process.

For instance,
• In March 2021, Keestrack, a Belgium-based company that is engaged in the manufacturing of mining, recycling, and construction equipment company had signed an agreement to acquire Goldoni for an undisclosed amount. The acquisition expands Keestrack’s business in the agricultural market and parallelly grows in the construction industry.

COVID-19 Impact: Negative impact on global four-wheel drive tractor market

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, business close, and travel bans. Agriculture, food and beverages, construction is among the major industries suffered from intense disruptions such as restrictions on the supply chain and the shutdown of warehouse plants. In addition, the shutdown of the companies, factories production facilities in various countries have disrupted the whole supply chains. It has negatively impacted manufacturing activities, delivery schedules, and various goods sales. Multiple companies have already announced possible delays in product deliveries and a decline in future sales of their products.

Furthermore, the restrictions on production and service of industries such as construction & mining, agriculture, food and others led to decline in the demand for four wheel drive tractor which impacted the market and led to loss of revenue for the market. Moreover, the restrictions imposed by governments in North America, Asia, and Europe and increased prices due to that are affecting geographical expansion, business collaboration and partnership opportunities for the manufacturers of four wheel drive tractors. Thus, these factors have hindered the growth of the market.

The global four wheel drive tractor market report would provide an access to approximately 69 market data tables, 62 figures and 175 pages