Tractor Market Analysis

Tractor Market Analysis

To get key market trends

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Based on HP, the 31 - 100 HP segment recorded more than 50% of the market share in 2022, due to their versatility and suitability for medium-sized farms. Their adaptability allows farmers to efficiently tackle agricultural tasks, such as plowing, planting, and harvesting, increasing operational flexibility. These tractors are suitable for medium-sized farms, striking a balance between power and cost-effectiveness. Farmers with such landholdings find these tractors economically viable and productive, driving their popularity and significantly boosting industry demand.
 

Based on type, the farm tractor market held over 70% of revenue share in 2022. The introduction of diverse tractor platforms catering to specific farming needs is driving growth of the farm tractor segment in the market. By offering specialized platforms, such as sub-compact, compact, small utility, and large utility tractor, manufacturers address the varying horsepower requirements of farmers.
 

For instance, in August 2023, Mahindra Tractors, a division of M&M's Farm Equipment Sector, introduced its latest global tractor platform, OJA. This platform includes four sub-categories: sub-compact, compact, small utility, and large utility tractor. The sub-compact category is designed for tractor in the 20 – 25 HP range, compact for 21 – 30 HP, small utility for 26 – 40 HP, and large utility for 45 – 70 HP. There is a diverse range of options to meet the various agricultural needs.
 

Asia Pacific tractor market accounted for 40% of the revenue share in 2022. Chinese tractor industry is rapidly expanding due to the country's strong commitment to technological advancements and heavy investments in autonomous vehicle R&D. China's vast & growing urban population also demands innovative solutions for public transportation. Government support and favorable regulatory policies for autonomous vehicles have created a conducive environment for industry outlook. China's well-established manufacturing infrastructure and a growing market for electric buses align with the development of the tractor sector, making it a focal point for industry expansion in the country.