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World Tractors

World demand to rise 6.8% annually through 2016
World demand for tractors is expected to increase 6.8 percent per annum through 2016 to $122 billion. A moderation in sales growth in many large, developing countries -- particularly Brazil, China, and India -- after a lengthy period of rapid gains will counterbalance a strong recovery in the US, Western Europe, and Japan from the effects of the 2008-2009 global economic recession.

Growth in China to lead Asia/Pacific gains
Demand for tractors in the Asia/Pacific region will be more than twice that of any other region in 2016, with China alone comprising 31 percent of the global total. Healthy population increases and economic growth in China and other developing Asian nations like India and Thailand will drive an expansion in construction activity in these countries and place heightened pressure on their agricultural sectors to become more efficient and productive, boosting associated tractor sales. Central and South America will post strong sales gains as well, due primarily to the large and increasingly mechanized agricultural sectors in Brazil and Argentina.

In the mature markets of the industrialized world, sales of tractors will continue to be largely determined by demand for replacement machinery and the efficiency gains provided by newer, more sophisticated equipment. During the 2008-2009 economic crisis, many tractor operators in the agriculture, mining, and construction sectors delayed replacing older machinery, and the inherent time lag in each of these markets in response to improving economic circumstances will govern tractor sales growth patterns going forward. While the mining and construction sectors tend to respond more slowly to changes in economic conditions due to the large amounts of capital that must be committed, the agricultural sector usually responds much more quickly. As a result, 2011 was the beginning of a spike in demand for agricultural tractors in many developed nations, while sales of mining and construction tractors had not yet rebounded to the same extent. This release of pent-up demand will act as a restraint on market growth for a number of years, until the start of a new replacement cycle.

Agricultural tractor sales to retain largest product share
Agricultural tractors will continue to account for the largest share of product sales in 2016, followed by tractors for construction and mining applications. However, due primarily to high 2011 levels of demand and the timing of replacement cycles in the US, Japan, and Western Europe, global agricultural tractor sales growth will slow through 2016. Greater construction expenditures and mining output in many areas of the world -- including the US, China, and India -- will drive healthy gains in these market segments.


PRESS RELEASE

World Demand for Tractors to Reach $122 Billion in 2016

World demand for tractors is expected to increase 6.8 percent per year through2016 to $122 billion, growing at the same pace as during the 2006-2011 period. Amoderation in sales growth in many large, developing countries -- particularly Brazil,China, and India -- after an extended period of rapid gains will counterbalance a strongrecovery in the US, Western Europe, and Japan from the effects of the 2009 globaleconomic recession. These and other trends are presented in World Tractors, a newstudy from The Freedonia Group, Inc., a Cleveland-based industry market researchfirm.

Demand for tractors in the Asia/Pacific region will be more than twice that of anyother region in 2016, with China alone comprising 31 percent of the global total.Healthy population expansion and economic growth in China and other developingAsian nations such as India and Thailand will drive an expansion in construction activityin these countries and place heightened pressure on their agricultural sectors tobecome more efficient and productive, boosting associated tractor sales. Central andSouth America will post strong sales gains as well, due primarily to the large andincreasingly mechanized agricultural sectors in Brazil and Argentina.

In the mature markets of the industrialized world, sales of tractors will continue tobe largely determined by demand for replacement machinery and the efficiencygains provided by newer, more sophisticated equipment. During the 2008-2009economic crisis, many tractor operators in the agriculture, construction, and miningsectors delayed replacing older machinery, and the inherent time lag in each of thesemarkets in response to improving economic circumstances will govern tractor salesgrowth patterns going forward.

Agricultural tractors will continue to account for the largest share of productsales in 2016, followed by tractors for construction and mining applications. However,due primarily to high 2011 levels of demand and the timing of replacement cycles in theUS, Western Europe, and Japan, global agricultural tractor sales growth will slowthrough 2016. Increased construction expenditures and mining output in many areas ofthe world -- including the US, China, and India -- will drive healthy gains in these marketsegments. On the other hand, demand for commercial and consumer tractors will behindered by limited opportunities for sales growth in the US due to strained municipalbudgets and a weakened golf industry.

  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table WORLD TRACTOR DEMAND (billion dollars)
  • MARKET ENVIRONMENT
    • General
    • World Economic Overview
      • Recent Historical Trends
      • World Economic Outlook
        • Table WORLD GROSS DOMESTIC PRODUCT BY REGION (billion 2010 dollars)
    • World Demographic Overview
      • Population
        • Table WORLD POPULATION BY REGION (million persons)
      • Nonurban Population
        • Table WORLD NONURBAN POPULATION BY REGION (million persons)
    • World Gross Fixed Investment Outlook
      • Table WORLD GROSS FIXED INVESTMENT BY REGION (billion 2010 dollars)
    • World Agricultural Outlook
      • Table WORLD AGRICULTURAL VALUE ADDED BY REGION (billion 2010 dollars)
    • World Construction Outlook
      • Table WORLD CONSTRUCTION EXPENDITURES BY REGION (billion 2010 dollars)
    • World Mining Outlook
      • Table WORLD MINING OUTPUT BY REGION (million metric tons)
    • Pricing Patterns
      • Table WORLD TRACTOR PRICING PATTERNS
    • Technology Trends
    • Used & Rebuilt Equipment
    • Legal & Regulatory Environment
  • OVERVIEW
    • General
    • Regional Overview
      • Demand
        • Table WORLD TRACTOR DEMAND BY REGION (million dollars)
      • Production
        • Table WORLD TRACTOR SHIPMENTS BY REGION (million dollars)
      • International Trade
        • Table WORLD TRACTOR NET EXPORTS BY REGION (million dollars)
    • Demand by Market
      • Table WORLD TRACTOR DEMAND BY MARKET (million dollars)
      • Agriculture
        • Table WORLD AGRICULTURAL TRACTOR DEMAND BY REGION (million dollars)
      • Construction
        • Table WORLD CONSTRUCTION TRACTOR DEMAND BY REGION (million dollars)
      • Mining
        • Table WORLD MINING TRACTOR DEMAND BY REGION (million dollars)
      • Consumer & Commercial
        • Table WORLD CONSUMER & COMMERCIAL TRACTOR DEMAND BY REGION (million dollars)
      • Other
        • Table WORLD OTHER TRACTOR DEMAND BY REGION (million dollars)
    • Demand by Type
      • Table WORLD TRACTOR DEMAND BY TYPE (million dollars)
      • Wheeled
        • Table WORLD WHEELED TRACTOR DEMAND BY REGION (million dollars)
      • Crawler
        • Table WORLD CRAWLER TRACTOR DEMAND BY REGION (million dollars)
      • Pedestrian-Controlled
        • Table WORLD PEDESTRIAN-CONTROLLED TRACTOR DEMAND BY REGION (million dollars)
  • NORTH AMERICA
    • North America: General
    • North America: Tractor Supply & Demand
      • Table NORTH AMERICA: TRACTOR SUPPLY & DEMAND (million dollars)
    • North America: Tractor Outlook & Suppliers
      • Table NORTH AMERICA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • United States
      • Table UNITED STATES: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table UNITED STATES: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Canada
      • Table CANADA: TRACTOR SUPPLY & DEMAND (million US dollars)
      • Table CANADA: TRACTOR DEMAND BY MARKET & TYPE (million US dollars)
    • Mexico
      • Table MEXICO: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table MEXICO: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
  • WESTERN EUROPE
    • Western Europe: General
    • Western Europe: Tractor Supply & Demand
      • Table WESTERN EUROPE: TRACTOR SUPPLY & DEMAND (million dollars)
    • Western Europe: Tractor Outlook & Suppliers
      • Table WESTERN EUROPE: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Germany
      • Table GERMANY: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table GERMANY: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • France
      • Table FRANCE: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table FRANCE: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Italy
      • Table ITALY: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table ITALY: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • United Kingdom
      • Table UNITED KINGDOM: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table UNITED KINGDOM: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Spain
      • Table SPAIN: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table SPAIN: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • The Netherlands
      • Table THE NETHERLANDS: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table THE NETHERLANDS: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Other Western Europe
      • Table OTHER WESTERN EUROPE: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table OTHER WESTERN EUROPE: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Table OTHER WESTERN EUROPE: TRACTOR SUPPLY & DEMAND BY COUNTRY (million dollars)
  • ASIA/PACIFIC
    • Asia/Pacific: General
    • Asia/Pacific: Tractor Supply & Demand
      • Table ASIA/PACIFIC: TRACTOR SUPPLY & DEMAND (million dollars)
    • Asia/Pacific: Tractor Outlook & Suppliers
      • Table ASIA/PACIFIC: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • China
      • Table CHINA: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table CHINA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • India
      • Table INDIA: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table INDIA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Japan
      • Table JAPAN: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table JAPAN: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • South Korea
      • Table SOUTH KOREA: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table SOUTH KOREA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Australia
      • Table AUSTRALIA: TRACTOR SUPPLY & DEMAND (million US dollars)
      • Table AUSTRALIA: TRACTOR DEMAND BY MARKET & TYPE (million US dollars)
    • Thailand
      • Table THAILAND: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table THAILAND: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Other Asia/Pacific
      • Table OTHER ASIA/PACIFIC: TRACTOR SUPPLY & DEMAND (million dollars)
      • Table OTHER ASIA/PACIFIC: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
  • OTHER REGIONS
    • Central & South America
      • Central & South America: General
      • Central & South America: Tractor Supply & Demand
        • Table CENTRAL & SOUTH AMERICA: TRACTOR SUPPLY & DEMAND (million dollars)
      • Central & South America: Tractor Outlook & Suppliers
        • Table CENTRAL & SOUTH AMERICA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Brazil
        • Table BRAZIL: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table BRAZIL: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Argentina
        • Table ARGENTINA: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table ARGENTINA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Other Central & South America
        • Table OTHER CENTRAL & SOUTH AMERICA: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table OTHER CENTRAL & SOUTH AMERICA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
    • Eastern Europe
      • Eastern Europe: General
      • Eastern Europe: Tractor Supply & Demand
        • Table EASTERN EUROPE: TRACTOR SUPPLY & DEMAND (million dollars)
      • Eastern Europe: Tractor Outlook & Suppliers
        • Table EASTERN EUROPE: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Russia
        • Table RUSSIA: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table RUSSIA: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Poland
        • Table POLAND: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table POLAND: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Other Eastern Europe
        • Table OTHER EASTERN EUROPE: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table OTHER EASTERN EUROPE: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
        • Table OTHER EASTERN EUROPE: TRACTOR SUPPLY & DEMAND BY COUNTRY (million dollars)
    • Africa/Mideast
      • Africa/Mideast: General
      • Africa/Mideast: Tractor Supply & Demand
        • Table AFRICA/MIDEAST: TRACTOR SUPPLY & DEMAND (million dollars)
      • Africa/Mideast: Tractor Outlook & Suppliers
        • Table AFRICA/MIDEAST: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Turkey
        • Table TURKEY: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table TURKEY: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Iran
        • Table IRAN: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table IRAN: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
      • Other Africa/Mideast
        • Table OTHER AFRICA/MIDEAST: TRACTOR SUPPLY & DEMAND (million dollars)
        • Table OTHER AFRICA/MIDEAST: TRACTOR DEMAND BY MARKET & TYPE (million dollars)
  • INDUSTRY STRUCTURE
    • General
    • Industry Composition
      • Table WORLD TRACTOR SALES BY COMPANY, 2011 (million dollars)
    • Market Share
    • Product Development & Manufacturing
    • Marketing & Distribution
    • Cooperative Agreements
      • Table SELECTED COOPERATIVE AGREEMENTS
    • Financial Requirements
    • Mergers & Acquisitions
      • Table SELECTED ACQUISITIONS & DIVESTITURES
    • Company Profiles
      • AGCO Corporation
      • ARGO SpA
      • Briggs & Stratton Corporation
      • Caterpillar Incorporated
      • Changzhou Dongfeng Agricultural Machinery Group Company Limited
      • Chelyabinsk Tractor Plant-Uraltrac Limited
      • China National Machinery Industry Corporation
      • CLAAS KGaA mbH
      • Concern Tractor Plants NV
      • Daedong Industrial Company Limited
      • Deere & Company
      • Doosan Infracore Company Limited
      • Escorts Limited
      • Fiat Industrial SpA
      • Foton Lovol International Heavy Industries Company Limited
      • Goldhofer AG
      • HTC holdings as
      • Husqvarna AB
      • Hyundai Heavy Industries Company Limited
      • Iseki & Company Limited
      • JCB Limited
      • John Bean Technologies Corporation
      • Komatsu Limited
      • Kubota Corporation
      • Liebherr-International AG
      • Lonking Holdings Limited
      • Mahindra & Mahindra Limited
      • MTD Products Incorporated
      • Same Deutz-Fahr Group SpA
      • Shandong Shifeng Group Company Limited
      • Terex Corporation
      • Toro Company
      • Tractors and Farm Equipment Limited
      • Trepel Airport Equipment GmbH
      • TUG Technologies Corporation
      • Volvo AB
      • WORLD Group
      • Xuzhou Construction Machinery Group Company Limited
      • Yanmar Company Limited
      • Zoomlion Heavy Industry Science and Technology Company Limited
    • Other Companies Mentioned in Study

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