Low HP Tractor Market - Global Outlook and Forecast 2018-2023
This market research report on global low HP tractor market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by horsepower type (Below 40 HP and 40-100 HP) and by geography (North America, Europe, APAC, Latin America, and MEA).
Low HP Tractor Market - Overview
The economic prosperity of developed countries the US, the UK, and Japan are contributed by the exponential growth of the agricultural industry resulting in increased demand in the global low HP tractor market. The contribution of the secondary and tertiary sector across emerging countries in India, China, and the Sub-Saharan African region will boost the GDP of economies and sales in the global market. Climatic shifts due to rapid urbanization and deforestation are impacting the agricultural yield and promoting the development of innovative agriculture equipment in the global market. The introduction of smart tech solutions will aid to mitigate the negative effects of agriculture and meet the rising demand for food in the market. The farmers are leveraging advanced technology such as GPS and telematics in their tractors to enhance the agricultural productivity in the global market. The implementation of advanced technology in agriculture machines will help increase the productivity and efficiency resulting in a higher yield in the market. Furthermore, the increasing the incidences of droughts, flash floods, unpredictable rainfall, and temperature fluctuations will contribute to the adoption of these machines in the global market. Government initiatives to promote farm mechanization will propel the development of the global low HP tractor market over the next few years.
The integration of precision farming that manages the plantation of crops takes place as per soil specification will help in the evolution of the market. The increasing penetration of low HP machines in countries such as Thailand, Indonesia, Bangladesh, and Africa will contribute to the revenues in the global market. The global low HP tractor market is anticipated to produce volumes of over 2550 thousand units by 2023, growing at a CAGR of approximately 5% during 2017-2023.
Low HP Tractor Market - Dynamics
The growing emergence of custom hiring center model is boosting the adoption of new machines in the global low HP tractor market. The custom hiring of farm machinery refers to renting out of farm machinery such as tractors for a defined period. It is a “pay as per use” model that enables small-scale farmers to use innovative machines at affordable rates in the global market. The establishment of custom hiring centers augments the increase farm mechanization across the world market. These centers are helping in the adoption of climate-resilient practices and technologies across farms and are offering cost saving on cultivation by providing employment to skill labors in the global market. Moreover, the subsidies and funding initiatives established by government agencies will result in the evolution of the global low HP tractor market. For instance, in India, custom hiring centers for farm implements were established in 100 National Innovations on Climate Resilient Agriculture villages that will successfully empower small farmers to improve agriculture operations.
Low HP Tractor Market - Segmentation
This market research report includes a detailed segmentation of the market by products and by geography.
Low HP Tractor Market – By Horsepower Type
Introduction of semi-professional machines of <40 HP will boost demand in the global low HP tractor market during the forecast period
The global low HP tractor market by horsepower type is categorized into <40 HP and 40-100 HP. The below 40 HP segment dominated the majority of the market share in 2017, growing at a CAGR of around 5% during the forecast period. The growing demand for <40 HP machines across emerging countries and developed nations such as the US will drive the growth of this segment in the global market. The introduction of semi-professional tractors has attracted a large customer base in small-scale agriculture farms and hobby farmers in the global market. The adoption of intensive farming practices in regions of India, China, and Europe will boost the demand for machines of the power segment between 40 to 50 HP in the global market. The adoption of row- crop farming structure and horticulture will help in the growth of this segment in the market. The rising number of small-scale farmers in countries in APAC and Africa that are the smallest users of precision farming equipment and highly use the traditional and basic equipment to plow their fields will help in the development of this segment. The continuous government support and investments from foreign countries in the Middle East region will have a positive impact on the global low HP tractor market.
Low HP Tractor Market – By Geography
Demand for connected technology systems in North America to drive the global low HP tractor market during the forecast period
The geographical segment is divided into North America, Europe, APAC, Latin America, and MEA. North America occupied the largest market share in 2017, growing at a CAGR of more than 3% during the forecast period. The growing adoption of farm mechanization across the US and Canada will fuel the growth of the market in North America. The availability of easy credit loans on the purchase of agriculture machinery will drive sales in the North American market. The increasing focus of the government on sustainable farm practices and technology integrated agricultural models will create lucrative opportunities for leading vendors operating in this region in the global market. Some of the top players in the North American market include AGCO, CNH, Deere, Kubota, and Mahindra. The emergence of small farmers holding land between 1–2 ha is pumping up the demand for low horsepower machiner in the US and Canada. Such factors will help companies gain a larger market share in North America during the forecast period. Furthermore, the dynamic food consumption habits driven by demographic changes and loss in natural productivity of agricultural land will contribute to the demand in the global low HP tractor market.
Key Countries Profiled
The key countries profiled in the report are:
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook