Agricultural tractors are self-propelled vehicles that provide power and traction to pull, push, carry and operate farm implements and machinery for performing agricultural tasks. They are a vital component for mechanized farming and widely used in plowing, discing, harrowing and other field activities. With the growing demand for food supplies to support the increasing global population, there is immense pressure on farmers to boost agricultural productivity. This has augmented the need for farm mechanization and automation which is driving the demand for tractors.
The global Agricultural Tractor Market is estimated to be valued at US$ 76015.76 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for higher mechanization presents a lucrative opportunity for the agricultural tractor market. Mechanization enables timely execution of various farming activities and increases farm output. It helps reduce dependency on manual labor and allows efficient utilization of resources. Additionally, farm equipment rental services are gaining popularity in developing countries due to lack of affordable financing options for smallholder farmers. This has boosted the usage of tractors on rental basis for plowing, sowing and other operations. The rising popularity of tractor rental businesses is expected to drive the sales of new tractors, thereby supporting the market growth over the forecast period.
Porter's Analysis
- Threat of new entrants: Low economies of scale and high capital requirements make it difficult for new players to enter the agricultural tractor market. The presence of dominant players also pose barriers for new entrants.
- Bargaining power of buyers: The buyers or farmers have moderate bargaining power due to the availability of substitutes and dependence on tractors for farming activities. However, the availability of various models and brands increases buyer options.
- Bargaining power of suppliers: The suppliers of raw materials and components have low bargaining power owing to the large number of material suppliers and dependence of players on continuous supply.
- Threat of new substitutes: There exists moderate threat of new substitutes like automated harvesters and towed farm equipment that are continuously evolving. However, tractors remain indispensable for a variety of agricultural tasks.
- Competitive rivalry: Intense due to the presence of large global players and localized players competing on the basis of product innovation, brand, and price.
SWOT Analysis
Strengths:
- Indispensable farm equipment for activities like plowing, sowing, fertilizing, etc.
- Rising mechanization in the agriculture sector favoring tractor demand.
- Innovative product offerings with increased power, efficiency and multi-functionality.
Weaknesses:
- Seasonal demand and dependency on weather conditions and crop cycles.
- Rising raw material and operational costs putting pressure on margins.
Opportunities:
- Growth in agricultural output and government initiatives in developing countries.
- Adoption of driverless tractors and automation technology.
Threats:
- Trade wars and policies impacting export-dependent players.
- Substitution threat from automated harvesters and related farm machinery.
Key Takeaways
The Global Agricultural Tractor Market Size is expected to witness high growth over the forecast period. The market was valued at US$ 76015.76 Mn in 2023 and is projected to reach US$ 123456.98 Mn by 2030, exhibiting a CAGR of 6.6% during the forecast period.
Regional analysis: The Asia Pacific region currently dominates the global agricultural tractor market owing to large agriculture-based economies like India and China. The region accounted for over 40% of the global market share in 2023. North America and Europe are also sizable markets whereas markets in Latin America and Middle East & Africa are expected to grow at above average rates.
Key players: Key players operating in the Agricultural Tractor Market are Archer Daniels Midland Company, Cargill, Incorporated, E. I. du Pont de Nemours and Company, Ingredion Incorporated Koninklijke DSM N.V., Tate & Lyle plc, FMC Corporation, and Omega Protein Corporation. Major players are focusing on new product launches, partnerships with regional players and expanding to emerging markets through organic and inorganic growth strategies.
Get More Insights Here
https://www.newswirestats.com/agricultural-tractor-market-size-share-growth-outlook-2023/
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