Published Date : 06 Apr 2023
The global agricultural tractors market growth is driven by the increasing use of self-driving agricultural tractors, rising demand for compact tractors on small farms, rapid adoption of mechanization, and increasing demand from developing countries.
The agricultural tractors market was USD 3,014 thousand units in 2022, and it will hit USD 5,422.91 thousand by 2030, advancing at a rate of 6.05% by the end of this decade.
A motor vehicle that's exclusively or mainly used for agricultural purposes is known as a tractor. An agricultural tractor is a four-wheeled or track-laying vehicle used to pull farm machines. It makes farming activities easier and saves time. The agricultural tractor is used for plowing, transporting, hauling, cultivating, planting, reaping, harvesting, or any other agricultural purposes on any farm or private property. It is also used for transporting from one farm to another. Tractors play a crucial role in farmers’ life, as the entire farming process is dependent on the tractor. Tractors make farming operations more efficient and convenient.
A tractor is a type of farm machine that can use as a scraper, digger, or bulldozer. The farm tractor is not operated on any highway to transport a payload or for any other commercial function. The cost of labor is significantly increasing owing to rapid urbanization as well as the migration of people to cities. Farm labor costs are directly linked to production costs. Mechanization has the potential to lower labor wages. Due to the rising labor wages as well as the scarcity of farm labor resulting in rising rates of mechanization. Moreover, it is projected to accelerate the market growth during the forecast period. To assist farmers, the government has undertaken several favorable initiatives and programs.
The most common types of tractors used in the agriculture sector such as utility tractors, compact tractors, row crop tractors, implement carrier tractors, two-wheel tractors, and garden tractors. Compact or mini tractors are suited for agricultural operations including plowing vast gardens, fields, and pastures. These tractors can be used to collect low-hanging fruits, prune trees, and do a variety of other tasks. Additionally, the market has grown as a result of the increasing government initiatives of offering subsidies to farmers and lower interest rates on loans. Furthermore, technological developments have transformed farming and agricultural processes are projected to boost agricultural tractors market expansion in the coming years.
Track and Trace Solutions Market Report Scope:
|Market Size in 2023||USD 5.85 Billion|
|Projected Forecast Value in 2032||USD 28.9 Billion|
|Growth Rate||19.42% from 2023 to 2032|
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|By Engine Power||
|By Driveline Type||
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Afric|
The Asia Pacific region had a dominant share of over 67% in terms of volume. The growth of the region is attributed to favorable government initiatives and increasing tractor demand in countries such as India, and China. China and India are the largest producers of wheat and rice. Owing to the increasing agricultural activities, the sales of agricultural tractors rise. Every year, between 600,000 and 700,000 agricultural tractors are sold.
On the other hand, the Europe market is expected to register a rapid CAGR during the forecast period. Huge farms in various European countries, notably the United Kingdom, the Netherlands, Hungary, Denmark, and Spain, are primarily accountable for this growth. Europe is responsible for 38% of all farms globally. With the availability of advanced modern technology and the lack of availability of farm labor in the region. Farmers are increasingly adopting tractors in agriculture to save time and resources, save expenses, and boost productivity. France, along with other European countries, has been a pioneer in mechanizing agriculture.
Increasing farm mechanization in emerging economies
The growing use of farm technologies to increase output is driving the rising demand for tractors. To create superior outcomes from machine operations, agricultural equipment can use technology such as high-precision positioning systems. Farm mechanization is the development and use of advanced machines that can replace human and animal labor in agricultural activities. Mechanization has a considerable favorable influence on crop costs, production value, revenue, and return rate. Some of the important benefits of farm mechanization such as save time, promoting large-scale farming, increasing output, improvement in the quality of products, use of less human labor, and reduction in the cost of production.
Lack of skilled labor
The lack of skilled labor to operate advanced and modernized tractors is projected to hamper the growth of the global agricultural tractors market and is likely to limit the expansion of the global agricultural tractors market during the forecast period. In addition, robots, drones, and precision agriculture are some of the other agricultural technologies that are rapidly being deployed, which may reduce the need for tractors.
Government initiatives for the rapid development of agricultural activities
Several governments such as India, the United States, China, and others support the rapid development of agricultural activities. The various types of subsidies offered by the government to support farmers in agricultural activities. For instance, The Indian government has numerous programs concerning agricultural equipment, such as loan-cum-subsidy for tractor purchases. Furthermore, under NABARD guidelines, any farmer with eight acres of land can obtain a nine-year tractor loan at a 12.5% interest rate.
Major Key Players:
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