U.S. Tractors Market – Industry Analysis & Forecast 2022-2028
U.S. tractors market is expected t grow at a CAGR of 3.82% during 2022-2028
In 2021, the less than 50 HP segment accounted for the largest share due t its compact size and flexible operational capabilities.
North America accounts for almost 11% of the global agriculture tractor market in terms of volume. In North America, the United States represents a high level of farm mechanization. The U.S. is a global leader in agriculture exports. Despite its high population density, the country has more than half of its area under agricultural land, covering more than 900 million acres. The region has been increasing its production capacity t feed the ever-growing population. This increase can be attributed t the fact that the country's farmers have started t adopt farm mechanization practices and are improving their crop production by reducing the yield gap. The region has witnessed a massive increase in farm mechanization, both in terms of agricultural and industrial productivity, over the past four decades, driven by the technological renaissance.
The government is als creating strategies t enhance the welfare of farmers by converting agriculture int a viable activity by paving the way for new machinery purchases. The awareness about advanced agriculture equipment t improve per hectare yield, reduce the overall cost of crop production, and increase the income-centric inclination of farmers is boosting the sale of new machinery in the country.
a) The Agriculture Tractor Market in the country grew by 17.7% in 2020 compared t 2019. The increase in crop production and tractor sales was due t favorable monsoon rains in 2020 and 2021, which helped t recover post-COVID-19 pandemic
b) The Government schemes and initiatives t facilitate credit and improve agriculture-related operations are the major drivers contributing t the growth of the overall value chain.
c) The United States exports agricultural products t developing countries such as China, where the food demand is relatively high due t its population. Therefore, the farm’s income in the country is relatively more robust than in other parts of the world.
d) In 2020, almost $4 billion worth of tractors were exported from the US, accounting for nearly 8.7% of worldwide exports. Canada, Australia, and Germany were the top export markets for tractors in 2021.
e) In 2021, US-based manufacturer Solectrac announced the launch of its new 70 HP, 60 kWh electric tractor. Specially designed for heavy-duty farm and vineyard operations. The machine can run for up t eight hours on a single charge with a 60-kWh battery.
MARKET TRENDS & OPPORTUNITIES
a) Agriculture has long been a significant source of income for the country’s economy, and the government has been sustaining and empowering farmers. The government als launched several policies and missions t help farmers by providing them with financial assistance, better infrastructure, competitive crop prices, loan waivers, and subsidies such as USDA assistance and Agricultural loans.
b) The production of tractors for export accounts for a considerable share of the country. In 2020, almost $4 billion worth of tractors were exported from the US.
c) Increasing the number of technologically advanced tractors and implements is the solution t save money and time and increase yields. The government is keen on increasing the farm mechanization rate among farmers, boosting the demand and sales of new machines and equipment.
d) The corporations in the country are enabling small and medium-scale farmers t buy agricultural machinery for their farms on credit. Among the agriculture machinery, tractors represent more than 55% of the total machinery sold in the US.
e) Electric tractors are widely used in the industry for various indoor and outdoor applications. The rising trend of automation and increasing environmental concerns will accelerate growth. Farmers in developed countries are looking for these machines t reduce the cost of fuel and replace them with their standard machines.
The research report includes a detailed segmentation by HP type, wheel drive, and countries.
Insights By HP Type
In 2021, the less than 50 HP segment recorded high growth in the United States.
The younger generation of farmers has realized the difference in the engine's power output and the power transmitted through the PT shaft. Farmers als know that tractors in the same HP range can provide varying HP in the PT shaft. Such facts make potential buyers look for other options and make informed purchase decisions.
The overall market in the US is registering growth because of increased retail sales of less than 50hp. Tractors in the power range of less than 50 HP are likely t be the most significant contributors t the industry’s growth in the country. Some of the factors favoring the sale of less than 50 HP range are as follows:
ii. Presence of hard soil in Midwestern states
iii. Flexible and low-cost
Segmentation by Horsepower
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook