Agricultural Tractors Market Scenario Planning & Strategies for 2034

Agricultural Tractors Market Trends, Review and Key Business Drivers

The global Agricultural Tractors Market is projected to grow steadily from 2023 to 2034, driven by increasing mechanization in farming, rising demand for high-efficiency agricultural equipment, and government initiatives supporting modern farming techniques.

Introduction

The agricultural tractors market is an integral sector of the automotive industry. This industry deals in manufacturing and distribution of tractors for agricultural operations. These tractors come in different engine options consisting of less than 40 HP, 41-100 HP, more than 100 HP and others. Some of these tractors are equipped with 2WD while some others are integrated with 4WD systems. It is available in various propulsion comprising of electric and ICE. The growing development in the agricultural sector has contributed to the industrial expansion. This market is expected to rise significantly with the growth of the agricultural sector in different parts of the world.

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• According to the India Brand Equity Foundation, around 316 million tons of food grain were produced in 2021-22 that increased to 331 million tons in 2022-23.

Highlights of the Agricultural Tractors Market

• Asia Pacific held the dominant share of the agricultural tractors market due to the rising demand for food crops in this region.
• Europe is expected to grow with a significant CAGR due to growing demand for autonomous tractors in this region.
• The 2WD segment dominated the market due to its cost-effectiveness and high fuel efficiency.
• The less than 40 HP segment led the market due to its increasing application in agricultural sector.

Agricultural Tractors: Figures and Stats

• According to the Krishak Jagat Organization, around 65478 tractors were sold in India during September 2024.
• According to the Association of Equipment Manufacturers, U.S. sales of 4-wheel drive tractors increased by 4.8% in August 2024 from the previous year.
• According to the European Agricultural Machinery Association, around 158,100 agricultural tractors were sold in the EU region during 2023.
• According to the AEA, around 10241 agricultural trucks were registered in UK during 2024.

Industry Leader Announcement

In August 2023, Mr. Vikram Wagh, CEO of Farm Division at Mahindra & Mahindra Ltd announced that, “The OJA tractor range introduces a paradigm shift in Indian agriculture. With 4WD capabilities as standard, pioneering automation controls amplify precision and performance across the range. Reducing operator effort and elevating farm productivity enables us to further embrace fast growing segments like horticulture and grape farming to redefine mechanized farming. Featuring three advanced technology packs – PROJA, MYOJA, and ROBOJA – we proudly present OJA as India's global innovation. OJA will be exclusively made in Zaheerabad, our youngest tractor manufacturing facility. The range will be available for customers in India starting October."

Competitive Landscape

The agricultural tractors market is a developing industry with the presence of various dominant players. Some of the prominent companies ruling this industry comprises of AGCO Corporation; CLAAS KGaA mbH; CNH Industrial N.V.; Deere & Company; Escorts Limited; KUBOTA Corporation and some others. These market players are constantly engaged in developing agricultural tractors and adopting several strategies to sustain their dominant position in this industry.

• According to the annual report of AGCO, the revenue of the company in 2022 was US$ 12651.40 million that increased to US$ 14412.40 million in 2023.

Market Segmentations

By Engine Power

• Less than 40 HP
• 41 to 100 HP
• More than 100 HP

By Driveline

• 2WD
• 4WD

By Propulsion

• Electric
• ICE

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa