Global Tractor Market Expected to Grow Rapidly by 2030

The global tractor market is on a growth curve and is anticipated to rise further due to the increased demand for efficient farming equipment and technological advancements. Furthermore, the market is going to witness high growth rates from 2021 to 2030. It is because of the growing adoption of modern farming practices and the availability of modern tractor models.

Key Growth Drivers

Tractor equipment would be a growth driver as it cuts labour inputs and saves operational time, hence enhancing productivity in agriculture. Modern tractors that now feature automatic and semi-automatic technology have brought precision, cut down downtime, and improved crop yield.

Higher kharif sowing, ploughing, and planting are the other factors driving up the demand. Now, due to row cropping, orchard farming, and even gardening, many farmers depend on tractors. Such easy availability of financing options has also forced more individuals to buy tractors.
Trends in the Industry

The farming sector is changing with innovations in farming machinery. For instance, autonomous agricultural technology was launched in 2018 when Mahindra & Mahindra Ltd. introduced a driverless tractor. These developments, coupled with accelerated growth in investments in R&D, are drivers for the market.

Tractors, the primary force behind the transformation of agriculture, are driving growth in the Indian industry. They are the main drivers that transform agriculture. Leading manufacturers worldwide roll out innovative products suitable for the needs of Indian farmers.

Segmentation of the Market

The segmentation of the global tractor market is provided below. It is based on power output, drive type, application, and region. 

• Power Output: The market consists of various categories, such as less than 30 HP, 30-50 HP, 50-100 HP, and more than 100 HP. The market leader in 2020 was the 30–50 HP segment. These tractors balance affordability and functionality and are, hence, suitable for small to medium farms.
• Drive Type: Two-wheel drive and four-wheel drive are the two categories of tractors. Due to their extensive use and cost, the 2-wheel drive sector led the market in 2020. However, 4WD tractors are getting famous, especially in regions where farming conditions demand a lot of traction and more power. 
• Application: Agriculture is the largest application segment and contributes the most to the market's revenue. Other applications are construction, mining, and logistics.

In the global tractor market, the Asia-Pacific region is the leader. It holds the maximum share in 2020.  Other regions like North America, Europe, and LAMEA (Latin America, Middle East, and Africa) also hold significant shares in the global market.

Top Players in the Market

Major companies shaping the global tractor market include:

• Mahindra & Mahindra Ltd.
• Escorts Limited
• CNH Industrial N.V.
• Tractors and Farm Equipment Ltd.
• Sonalika International Tractors Ltd.
• Deere & Company
• HMT Limited
• Force Motors Limited
• Kubota Corporation

These players focus on launching new products and expanding their market shares to meet the increasing need for efficient agricultural machinery.

Future Outlook:

During 2021-2023, the global tractor market will witness significant growth. Mechanization and agricultural innovation coupled with technology will require constant demand. As the market expands further, tractors will play an important supporting role in the agricultural sector for productivity and sustainable development.

The new trends and opportunities within this dynamic market will indeed offer great promise for industry players as well as farmers.