The Global Market for Farm Tractors is Projected to Reach US$50.1 Billion by 2020
Agricultural Mechanization in Developing Countries Drives
Demand for Farm Tractors, According to a New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Farm
Tractors. The
global market for Farm Tractors is projected to reach US$50.1 billion by 2020,
driven by agricultural mechanization in developing countries.
Tractors are the ‘workhorse’ of agriculture and represent the most
versatile farming equipment. The global market for farm tractors is expected to
witness growth supported by the trend towards agricultural mechanization in
developing countries. The pressure on farmers to increase agricultural yield is
a key factor driving the mechanization trend. Other factors driving the trend include
improved availability of credit to farmers, shortage of skilled labor supply
and attractive government subsidies on farming equipment. The long-term
outlook for the market remains positive, guided by factors such as, growing
population, increasing pressure on food resources, steady economic growth and higher
farm asset values.
Small tractors are expected to witness robust demand in developing
countries due to the smaller land acreage ownership among farmers and benefits offered such as better productivity
and lower costs. The replacement market is
also expected to post steady growth, given the steadily expanding farming
equipment fleet worldwide. Technology developments that enhance both productivity and operational
comfort will influence demand for tractors. Rising energy costs are driving
demand for fuel efficient tractors, thus benefiting adoption of engineering
techniques such as vehicle-to-vehicle (V2V) control systems and continuously
variable transmission (CVT) and PTO (power take-off). The focus on sustainable
agriculture is driving interest in tractors utilizing
alternative fuel. Given the uncertainty
associated with the price and availability of fossil fuel, the farming sector
is increasingly looking for alternative fuel sources to power various farming
equipment.
As stated by
the new market research report on Farm Tractors, Asia-Pacific represents the largest
market worldwide. Growth in the region is led by food security goals in densely
populated countries such as China and India. The United States and Europe also
represent other major markets. The large sized farms in the United States offer
tremendous opportunities for tractors with higher horse power. High horsepower
4-wheel drive and row-crop tractors are therefore expected to witness strong
demand in the country.
Major players
in the market include AGCO Corp., CNH Industrial N.V., Daedong-USA Inc., Deere
& Company (John Deere), Escorts Group, Kubota Corporation., Mahindra Group,
Same Deutz-Fahr Group, and Tractors and Farm Equipment Ltd, among others.
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