The Global Market for Farm Tractors is Forecast to Reach 4.6 Million Units, Valued at US$71.7 Billion by 2020

Population Growth and Pressure On Food Sources & Productivity Spurs Opportunities for Farm Tractors, According to a New Report by Global Industry Analysts, Inc.

                                                                                                

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Farm Tractors market. The global market for Farm Tractors is forecast to reach 4.6 million units, valued at US$71.7 billion by 2020, driven by the growing population and the ensuing pressure on food production and productivity.

Farm tractors represent the largest segment of the global agricultural equipment market. Considered as the ‘workhorse’ of agriculture, farm tractors are the most versatile of equipment used for improving agricultural efficiency. Tractors are powered by high horsepower to control larger farm equipment, which include air seeders, nutrient applicators, planters, and tillage machinery. Strong population growth, need for food security, rising demand for energy crops, labor shortages, and low levels of mechanization in developing markets are the major factors driving current growth in the farm tractors market. Increasing use of alternative fuel tractors that run on diesel, CNG, LNG, kerosene, vegetable oil, and propane is also spurring growth in the market.

The market is expected to witness healthy growth in the coming years, driven by government subsidies and easy availability of credit. The growing preference for smaller tractors in developing countries owing to their better productivity and lower total cost of ownership will benefit growth in the market. The demand for high power tractors in developed economies such as the U.S and Europe will continue to gain momentum supported by the agriculture requirements of large farms. Design and technology of farm tractors have evolved over the years, as manufacturers continue to develop tractors which fulfill various requirements of farmers. Innovative designing and technological advancements in tractors that target myriad regional requirements are also expected to benefit market prospects. As mechanized agricultural technologies head towards sophistication, tractors with high horsepower, fuel efficiency and embedded intelligence, are poised to benefit. The market for agricultural equipment is extremely competitive due to the presence of several international as well as domestic suppliers of a vast range of equipment. Competition is further intensified with the presence of several specialty manufacturers as well as short-line providers. Pricing, quality, brand loyalty, as well as after-sale service are major factors influencing purchase decisions of consumers. A majority of industry players are multinational firms with assembly operations worldwide, either through subsidiaries or joint ventures. Most of the leading manufacturers of tractors have established production facilities in countries with low labor cost, in order to gain competitive advantage.

As stated by the new market research report on Farm Tractors, Asia-Pacific represents the largest market worldwide. Buoyed by the towering presence of China and India, the region also ranks as the fastest growing market over the analysis period with projected value and unit sales growing at a compounded annual rate of 6.4% and 4.1%, respectively.  Key factors driving growth in the region include growing population; arable land scarcity, low potential for expansion and the ensuing emphasis on yield per hectare of land; and favorable agro policies supporting sustainable farming practices. Also, the low level of engineering technology inputs in agriculture in the region offers untapped opportunities for growth.

Key players covered in the report include AGCO Corporation, Argo Tractors SpA, CLAAS KGaA mbH, CNH Industrial N.V., New Holland Fiat Pvt. Ltd., Steyr Landmaschinentechnik AG, Deere & Company (John Deere), Escorts Group, Daedong-USA, Inc., International Tractors Limited, Kubota Corporation, Mahindra Group, Same Deutz-Fahr Group, and Tractors and Farm Equipment Ltd. (TAFE), among others.

The research report titled “Farm Tractors: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, and other strategic industry activities of market participants.  The report provides market estimates and projections for major geographic markets, including the United States, 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), The Middle East & Africa, and Latin America (Brazil, and Rest of Latin America). 

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