Global Agriculture Tractor Market (2021 to 2026) – Featuring Mahindra & Mahindra, Kubota and Force Motors Among Others – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Agriculture Tractor Market – Forecasts from 2021 to 2026” report has been added to ResearchAndMarkets.com’s offering.
The agriculture tractor market is estimated to grow at a CAGR of 4.88% to reach US$25,494.261 million in 2026 from US$18,267.930 million in 2019.
Companies Mentioned
- Mahindra & Mahindra Limited
- Deere & Company
- Tractors and Farm Equipment Limited
- CNH Industrial N.V.
- Kubota Corporation
- AGCO Corporation
- Force Motors
- Standard Corporation India Limited
- Swadesh Motors & Tractors Ltd
Demand for tractors depends on the agriculture activity in the country and that invariably is dependent on monsoons and the minimum support price (MSP).. The increasing need for operational efficiency and the rise in labor costs are expected to boost the demand for agricultural tractors. The agricultural tractor market is gaining momentum due to the technological advancements in the farming and agricultural process.
In the modern agricultural tractor market, there is a need for the replacement of the existing machinery with advanced machines to fuel the market growth. Self -driving or driverless tractors are replacing the drivers with several hardware and software components to increase efficiency. Self-driving tractors minimize human effort while enhancing the output
There are two types of self-driving tractors available in the market:
- Autonomous
- Semi-autonomous tractors
Shortage of skilled labor and restricted accessibility to the labor mainly due to the migration of the people from the rural areas to the urban areas and increasing labor cost have driven the market for the agricultural tractors over the forecasted period. As per the data released by the UN, in 2018, around 55% of the global population lived in urban areas. This number is expected to reach 68% by 2050. However, the high cost of the agricultural tractors and the tax and tariffs are imposed on the tractors are restricting the market growth especially in developing economies. For instance, the government of India imposed a 29.8% import duty on agricultural tractors
Growing Population
With the growing population, the demand for tractors is increasing. Other key factors leading to the growth of the market are rapid urbanization, restricted accessibility to labor, growing demand for food, and technological advancement. The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics and movement of the labor from urban to rural areas are affecting the agricultural tractors market.
With increasing population and demand for the food, the farmers are expected to increase the yield. In India, agricultural tractors plays an important role in increasing the country’s agricultural output.
The major factors expected to boost the sales of the agricultural tractors during the forecasted period are the increased inclination for the less power output tractors and the rise in the penetration of the self-driving tractors
COVID-19 Impacts on the Market
COVID-19 has significantly impacted demand sentiments across consumer segments and is expected to lead to a sharp contraction in the country’s GDP in the financial year 2021. However, the expectation of growth in agricultural output remains a silver lining, and is expected to result in healthy cash flows for the farming community thus, it will be favorable for the tractor industry
The supply chain has been disrupted and the new strategy is producing and consuming from local business. Solid tax reform is required by the government to help smaller players. For instance, the Indian government has introduced the ‘Macro-Management Scheme of Agriculture’, according to this it provides a 25% subsidy on the tractors up to 35 PTO HP. While, the Canadian government have introduced a program ‘Canadian Agricultural Loans Act’ which provides the farmers the loan up to USD 500 thousand when purchasing the land or tractor and can also be used for repairing buildings.
Smart factories are becoming the norm in manufacturing and relying on technologies. The factories of the future are continuing to grow and develop. In Future, the factories are expected to rely greatly on sensor technology and will utilize data to guide the tasks of the workforce
Asia Pacific dominates the market
Market players are investing in the research and development to introduce technologically advanced agricultural machinery. The use of technologically advanced machines is anticipated to bolster market growth
The Asia Pacific has the largest share in the terms of volume. The Asia Pacific is likely to maintain the dominance in the market during the forecasted period. While Europe due to its large farm sizes is estimated to witness considerable growth in terms of the volume during the forecasted period.
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis
5. Agricultural Tractors Market Analysis, By Engine Power
6. Agricultural Tractor Market Analysis, By Types
7. Agricultural Tractor Market Analysis, By Vehicle Type
8. Agricultural Tractor Market Analysis, By Mode of Operation
9. Agricultural Tractor Market Analysis, By Geography
10. Competitive Environment and Analysis
11. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/14g4h3
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