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.

The research report titled “Farm Tractors: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the market, current trends, growth drivers, new product introductions, recent industry activity, and focus on major global market players. The report provides market estimates and projections in terms of value (US$) and volume (thousand units) for all major geographic markets including US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, South Korea, and Rest of Asia-Pacific), Middle East & Africa, and Latin America (Brazil and Rest of Latin America).