Global Farm Tractors

Global Farm Tractors

Global farm tractor demand is projected to increase 7.0% annually to $77.8 billion in 2026. However, a significant portion of market value growth – particularly during the first half of the forecast period – will be mostly the result of higher prices that have resulted from high rates of inflation around the world, supply chain issues, and a chip shortage. In unit terms, demand will increase just 1.1% per year off of a relatively healthy 2021 base. Real gains are expected to grow at a faster pace in the latter part of the forecast period as the global economy continues to normalize. Growth in this period will be bolstered by:

• advances in global farming agricultural activity and rising agricultural commodity prices, leading to farm income growth
• farmers increasingly replacing aging machinery and investing in newly developed agricultural technologies as they face a variety of workforce issues (e.g., skilled operator shortages, rising wages, new protections for works)
• high levels of government support for their respective agricultural sectors, ranging from direct subsidies to farmers to programs promoting advanced farming practices to more specialized initiatives (such as a farm machinery rental schemes in India)
• government and industry initiatives designed to insulate farmers from the impact of climate change, reduce the environmental impact of farming, and promote technological innovation in the agricultural sector

Asia/Pacific, North America, & Western Europe Account for Vast Majority of Absolute Gains
The large Asia/Pacific market is projected to register the largest gains during the forecast period; multiple developing and mature markets will perform well through 2026:

• The growing use of state-of-the-art tractors – including automated, and electric and hybrid models – will be the leading driver of market gains in countries such as Australia, Japan, South Korea, and Taiwan.
• In developing nations, farmers will increasingly purchase tractors as they shift away from manual farming techniques.

Governments in countries such as China, India, and Thailand will play active roles in the development of their agricultural sectors. Multiple government and nongovernment-funded projects will promote sustainable and more advanced farming techniques, thereby generating demand for tractors. In addition, the replacement of pedestrian-controlled tractors with wheeled and crawler models will drive gains in dollar terms.
The favorable growth prospects of the mature West European and North American markets can be attributed to the significant tractor replacement needs of both regions. Farmers in Western Europe and North America invest heavily in technology because of their large financial resources and high levels of government support; consequently, they will be among the first adopters of newly developed tractors. The intensification of agricultural sector workforce issues – as well as adoption of new regional and national regulations – will drive investment in newly developed farming technologies.

Study Description

This Freedonia study analyzes the more than $55 billion global farm tractor market. The study provides agricultural tractor demand for 2011, 2016, and 2021, and forecasts for 2026 and 2031. We also offer annual data for all countries for the 2018-2025 period. This study also presents farm tractor demand by type (wheel tractors, crawler tractors, and pedestrian-controlled tractors) for 20 countries. Finally, it evaluates market share for the top six manufacturers worldwide, such as AGCO, Deere, and Kubota.
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