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Electric Farm Tractor Market Size

Report ID: GMI8279
Published Date: Feb 2024
Report Format: PDF

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Electric Farm Tractor Market Size

Electric Farm Tractor Market was valued at USD 155.6 million in 2023 and is estimated to register a CAGR of over 10% between 2024 & 2032. The increasing innovations and advancements in Electric Vehicle (EV) technology are spurring the electric farm tractor industry. Manufacturers are developing more efficient electric motors, high-capacity batteries, and advanced power management systems, resulting in improved performance, longer operating ranges, and faster charging times for these tractors.

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For instance, in November 2023, TAFE launched a new electric tractor that offers a 20-kW power output, featuring a highly efficient transmission, low noise powertrain, and a powerful electric motor with over 90% efficiency. This innovative design improved performance and sustainability, catering to the evolving needs of modern agriculture.

The surge in government subsidies and incentives is driving the electric farm tractor market by significantly reducing the upfront costs for farmers looking to adopt EVs. These subsidies and incentives often cover a portion of the purchase price or provide tax credits, making electric tractors more affordable. For instance, in November 2023, the Indian government extended the benefits of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme for electric tractors. Under this scheme, financial incentives are provided to manufacturers, dealers, and consumers of EVs including tractors.

Electric Farm Tractor Market Report Attributes
Report Attribute	Details
Base Year:	2023
Electric Farm Tractor Market Size in 2023:	USD 155.6 Million
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	10%
2032 Value Projection:	USD 364.6 Million
Historical Data for:	2018 - 2023
No. of Pages:	220
Tables, Charts & Figures:	300
Segments covered:	Tractors, battery, drivetrain, and application
Growth Drivers:	Increasing technological advancements in batteries Growing demand for sustainable agriculture Increasing fuel prices globally Rising government regulations on emissions Surge in government subsidies and incentives
Pitfalls & Challenges:	High initial costs and maintenance expenses Limited range concerns

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Electric farm tractors offer a restricted operating range on a single battery charge, leading to range anxiety among users. This limitation can be a significant barrier for farmers with large fields or extensive operations, as they may require continuous usage throughout the day without the opportunity for frequent recharging. Without sufficient range, farmers may experience downtime or productivity losses, making it challenging to fully transition to electric farm tractors for their agricultural activities.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

Industry size for electric farm tractor reached USD 155.6 million in 2023 and is set to expand at over 10% CAGR between 2024 and 2032 owing to the increasing innovations and advancements in EV technology.

The light-duty tractor segment accounted for an electric farm tractor market share of 37% and is projected to grow by 2032 due to the increasing demand for smaller, more versatile, and efficient agricultural machinery.

Asia Pacific held more than 32% revenue share of the electric farm tractor industry in 2023 and is estimated to expand at a notable CAGR through 2032 attributed to the increasing government initiatives promoting sustainable agriculture and rising adoption of advanced farming technologies in the region.

Some of the top electric farm tractor firms are Alke, Deere & Company Escorts Limited, Fendt, Kubota Corporation, Monarch Tractor, Motivo Engineering, Solectrac Inc., Sonalika, and Yanmar Holdings.