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According to a new market report published by Transparency Market Research, "agricultural tractors market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-2026" is expected to exceed US$ 100 Bn by 2026, expanding more than 4% during the forecast period.
The global agricultural tractors market is projected to expand at a CAGR of more than 4% between 2018 and 2026, according to a new research report by Transparency Market Research (TMR). According to the report, the global market is likely to be influenced by a range of political, economic, social, technical, and industry-specific factors. Middle East & Africa is likely to witness rapid increase in demand for agricultural tractors from countries in Africa, owing to the more fertile land near the valley of Nile and other rivers. Moreover, farmers from Africa are adopting automation in agriculture, which leads to increase in demand for agricultural tractors. Consequently, the market in the region is anticipated to expand at a CAGR of 5% during the forecast period.
Increasing demand from consumers for food products and expansion of the farming industry in some regions are likely to boost the agricultural tractors market. Accordingly, to the VDMA Economic Report 2015, automation in the agriculture industry in China increased from 34% in 2004 to 61% in 2014. Enhanced quality, decrease in production time, and cost-effectiveness are key factors driving the agricultural tractors market. More than 70% of global production of agricultural tractors takes place in China and India, which propels the market share held by Asia Pacific to about 80% of the global agricultural tractor market.
In terms of the drive type integrated in tractors, four-wheel drive (4WD) is a highly attractive segment of the market. Depending on the various systems designed or used, 4WD can provide significant forward traction during acceleration. It is especially helpful to carry out agricultural processes while driving on moderate off-road terrain. 4WD tractors are useful while driving through mud, sand, and other loose surfaces.
The introduction of autonomous tractors has been a major improvement among the numerous technological inventions witnessed in the global agricultural tractors market. Consequently, the autonomous tractors segment is likely to expand at a CAGR of more than 15% during the forecast period. Yanmar Co., Ltd., a prominent player in this agricultural tractors industry, has collaborated with Hokkaido University, Japan, to offer advanced driver-less tractors with highly advanced features. CNH industrial, another key manufacturer of agricultural tractors, has begun research and development in the concept of autonomous tractors.
In terms of geography, the global agricultural tractors market has been segregated into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific held a major share of the global market in 2017. Higher demand for agricultural tractors from farmers and large number of production of tractors in countries such as China and India are likely to boost the market in Asia Pacific during the forecast period. The market in Europe is not as prominent as other regions despite having larger demand for food products among consumers in the region. This is because most countries in Europe depend on the industrial sector and the region has less land for farming. Furthermore, shortage of labor for farm applications drives automation in the farm industry in Europe, which in turn is likely to boost the market for agricultural tractors in the region.
The global agricultural tractors market is highly unified as design, manufacturing, and assembling of agricultural tractors require considerably advanced technology, significant investment, skilled workers, and high precision. Furthermore, the market has seen the presence of major tractor manufacturers working in the industry for numerous years. Major share of the agricultural tractors market is held by key global players, as the market is highly consolidated. Major players operating in the global agricultural tractors market include CNH Industrial N.V., AGCO Corporation, Deere & Company, CLAAS KGaA GmbH, Mahindra & Mahindra India Limited, Kubota Corporation, Escorts Limited, Caterpillar, Inc., J.C. Bamford Excavators Limited (JCB), Yanmar Co., Ltd., Tractors and Farm Equipment Limited (TAFE), and SDF Group.