Agricultural Tractors Market Size, Share & Trends Analysis Report By Engine Power (Less Than 40 HP, 41 To 100 HP), By Driveline Type, By Region, And Segment Forecasts, 2023 - 2030

Agricultural Tractors Market Size, Share & Trends Analysis Report By Engine Power (Less Than 40 HP, 41 To 100 HP), By Driveline Type, By Region, And Segment Forecasts, 2023 - 2030

Agricultural Tractor Market Growth & Trends

The global agricultural tractor market demand is expected to reach 4,968.1 thousand units by 2030, expanding at a CAGR of 6.9% over the forecast period, according to a new study by Grand View Research Inc. Owing to urbanization and population movement to cities, labor costs have been rising at astronomically high rates. The price of farm labor is inversely correlated with the price of production. Labor pay may be affected by mechanization. Mechanization rates are rising as a result of rising labor wages and a shortage of farm labor.

Additionally, the increased government support for increasing farm mechanization for a high yield by offering subsidies is assisting the growth in demand for tractors. Furthermore, technical improvements are facilitating further farm mechanization and increasing farmer knowledge of its advantages. In order to dominate the market with quicker product introductions and improvements, many companies have begun releasing new agricultural tractors. In order to develop cutting-edge machinery and maintain a dominant market position, several significant market companies are investing in R&D.

The tractor industry is also being driven by the rise in farm training initiatives that support the widespread usage of agricultural equipment. These tractors can be utilized more versatilely and take up less room because their engines have a volume of no more than 1,500 CC. Because they are more susceptible to experimentation due to their ease of modification, manufacturers are more ready to test out novel components and technologies in this market before moving on to more powerful ones. In soft soil environments, such as river basins, low-horsepower tractors perform effectively. Horticulture is the primary usage of tractors with less than 40 HP. Due to farmers' low disposable money and high labor costs, lesser-horsepower tractors are in high demand in developing nations.

Agricultural Tractor Market Report Highlights

• The surge in demand for compact tractors on small farms and technological advancements, such as integrating telematics with agricultural tractors, are expected to drive market growth over the forecast period
• The outbreak of COVID-19 hampered product demand owing to the temporary suspension of production and supply chain disruption
• Key vendors in this space, such as Deere & Company, CLAAS KGaAmbH Escorts Ltd., SOLECTRAC, and Monarch, have commercially launched concepts for their autonomous and electric tractors