Electric Farm Tractor Market Forecasts to 2028 – Global Analysis By Mode of Operation (Manual, Autonomous), Power Source (Battery Operated, Solar Powered), Application, and By Geography

Electric Farm Tractor Market Forecasts to 2028 – Global Analysis By Mode of Operation (Manual, Autonomous), Power Source (Battery Operated, Solar Powered), Application, and By Geography

According to Stratistics MRC, the Global Electric Farm Tractor Market is accounted for $131.76 million in 2021 and is expected to reach $311.91 million by 2028 growing at a CAGR of 13.1% during the forecast period. Electric farm tractors are tractors that use an electric motor to obtain drive as opposed to the conventional internal combustion engine. Electric farm tractors use a series of batteries to generate power and have fewer mechanical parts. Electric farm tractors are the new generation of tractors that are being developed by agricultural equipment manufacturers.

Market Dynamics:

Driver:

Increasing demand for electric tractors

The demand for electric farm tractors is increasing as it is beneficial for reducing fuel costs, mitigating carbon emissions, and escalates using energy sources efficiently. Moreover, to ensure the vehicle's reliability, the use of electric farm tractors is increasing significantly. Further, the introduction of advanced technologies and the rising adoption of these technologies into the automotive industry are other critical aspects likely to drive market growth.

Restraint:

Implementation of stringent emission norms

An increase in carbon footprint has enforced governments across the globe to implement stringent emission norms, thereby creating a negative impact on the growth of farm tractors. In many countries, CO2 emission targets were set at limits. The regulations focused on reducing average CO2 emissions by 31% in the coming years. The commission imposed excess emission premiums on the manufacturer for each g/km that is exceeded for all registered vehicles if the manufacturer exceeds a specific emissions target. Furthermore, stringent CO2 emission regulations impacted the manufacturing expenditure. Thus, such limitations affected the growth of the ICE-based farm tractor, thus directly driving the market for electric farm tractors.


Opportunity:

The rise in government initiatives

Governments of various countries have further promoted the adoption of electric farm tractors and other agricultural machinery. This has resulted in a change from the traditional agriculture practice to a more modernized process. For instance, to raise the green mechanization level, the Indian government is encouraging electric-powered farm tractors, by providing subsidies on the agricultural electric tractors, which is expected to strengthen the electric tractors market. Thus, the government initiative is likely to provide ample opportunities for the growth of the electric farm tractor market.

Threat:

Growth of the rental market

The purchase of farm equipment such as tractors and harvesters is a major investment in agricultural activities and accounts for the maximum share of the global market. All the steps involved in the equipment need a huge investment, which is reflected in the cost of the machinery made available to farmers. The inability of small farmers to invest a high amount results in the low penetration of farm equipment in emerging countries. The high cost of agricultural machinery limits their sales and thereby slow down the growth of the electric farm tractor market, especially in emerging countries.

The four-wheel segment is expected to be the largest during the forecast period

The four-wheel segment is estimated to have a lucrative growth owing to the changing requirements in farming activities such as covering a larger acre of land or the need to pull large-size implements and the availability of low-powered tractors with four-wheel drive.

The hybrid electric farm tractor segment is expected to have the highest CAGR during the forecast period

The hybrid electric farm tractor segment is anticipated to witness the fastest CAGR growth during the forecast period as hybrid vehicles are a great starting point for further growth in the electric farm tractor market as these vehicles are run by both fuel and battery. The tractors can be charged by a water wheel, windmill, or solar panels. Hybrid tractors have thus gained market dominance owing to the infrastructure.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to increasing Gross Domestic Product (GDP), infrastructure investments, rising per capita income, growing inclination toward mechanization, and government initiatives for FDI have creating more opportunities for the farming business.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period owing to technological advancements and government support. In addition, leading players in the electric farm tractor market are operating in the North American region, which gives a wide range of options to the growers purchasing electric farm tractors.

Key players in the market

Some of the key players profiled in the Electric Farm Tractor Market include CLAAS KGaA mbH, Yanmar Co. Ltd., SOLECTRAC, Mahindra and Mahindra, Kubota Corporation, J.C. Bamford Excavators Ltd., Escorts Limited, Dongfend, Caterpillar Inc, AGCO Corporation and John Deere.

Key Developments:

In Nov 2021, John Deere launched a new material collection system and a mechanical grapple to its compact utility tractor line-up frontier equipment. The new PTO-driven Frontier MC2014 and MC2120 material collection systems offer 14- and 20-bushel capacity respectively for John Deere 1, 2SC, 2LC, and 3R compact utility tractors. The new Frontier MG20F mechanical grapple is compatible with John Deere 120R, 220R, and 300E loaders.

In August 2021, AGCO Corporation launched the Massey Ferguson® VE Series planters. This full line of planters from rigid and folding-frame planters to narrow transport and track planters offers growers straightforward, dependable, durable planters that deliver consistent, accurate seed placement for optimum yields.

Types Covered:
• Light & Medium-Duty Tractor
• Heavy-Duty Tractor

Mode of Operations Covered:
• Manual
• Autonomous

Drive Types Covered:
• Two-Wheel
• Four-Wheel

Drivetrain Technologies Covered:
• Battery Electric Farm Tractor
• Hybrid Electric Farm Tractor
• Plug-in Hybrid Electric Farm Tractor

Power Sources Covered:
• Battery Operated
• Solar Powered

Applications Covered:
• Harvesting
• Seed Sowing
• Tillage (Primary & Secondary Tillage)
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances