Agriculture Tractor Market Size, Share, By Tractor Type, Engine Power, Driveline, Propulsion, Application, and Region - Trends, Analysis, and Forecast till 2035

• Agriculture tractor market size is expected to reach USD 13.5 billion by 2035.
• The target market was valued at USD 7.45 billion in 2024.
• Target market is expanding at a CAGR of 6.8%.

Agriculture tractor is a vehicle specially designed for providing high torque at lower speeds. It is especially used for agricultural production. Target Market is driven by rising global population resulting in surging demand for agricultural products, coupled with increasing consumer inclination towards small-sized tractors. In addition, easy availability of financing options, rising labor cost, shortage of skilled labor and increasing investments by leading agricultural machinery manufacturers are another factors propelling growth of the global market. Furthermore, technological advancements which increases the efficiency and cost-effectiveness of production is also anticipated to create opportunities for growth of the global market over the forecast period. However, high cost of agriculture tractors and equipment is the major restraining factor of the agriculture tractor market.

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024 due to Easy loan availability, favorable Minimum Support Price (MSP), and better monsoon.
• Europe is projected to be the fastest-growing market in the coming years. This is due to increased demand for large farm tractors, particularly from Italy, Greece, and Lithuania.

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Key Drivers of Target Market:

Increasing Number of Agriculture Machinery Training Programs is expected to Propel Market Growth

Farm training programs promoting the use of agriculture machinery can drive the agricultural tractor market growth. Agriculture machinery training programs or courses are one of the important component of agri education as it helps farmers to use new technologies or techniques for improving crop productivity, to incorporate scientific advances into their operations, to generate self-employment, to provide technical support, and among others.

• For Instance, in July 2024, The Directorate of Extension Education at Punjab Agricultural University (PAU) launched a three month training program titled “Integrated Crop Production” from August 1 to October 30, 2024. This initiative aims to enhance the technical skills of young farmers in agricultural enterprises and resource conservation.
• For Instance, in February 2024, CIMMYT-BISA-ICAR organized a two-week training program on conservation agriculture (CA) to demonstrate how CA can be a sustainable farming method and an effective tool for farmers and scientists in both irrigated and rained systems to manage agrifood system risks.

Restrains:

High Cost of Agriculture Tractors can hamper the Growth of the Market

Agriculture tractors are expensive as their production time is more, high labor costs, their complex market dynamics, high part and energy prices, and among others, which hamper market expansion.

• Counterbalance Statements: One of the major solutions to this problem is usage of AI or any advance technology for the purpose of reducing cost as it helps to decrease the labor costs as well as manufacturing process costs.

Opportunities:

New Innovations will Create Significant Opportunities in Upcoming Years

Technological development process of tractors is the most important source of power in the field of agriculture. New innovations in agriculture tractor are important as it help farmers to improve efficiency and output, to improve working conditions, reduce human errors, and address water scarcity challenges, among others. Additionally, advancements in precision agriculture, electrification, automation/robotics, and autonomous tractors, paralleled by new business models, are set to underpin strong revenue growth. 

•  For instance, in September 2024, The Indian tractor manufacturing company Mahindra Tractors has unveiled its first CBG (Compressed Bio-Gas) run Yuvo Tech+ tractor. The Yuvo Tech+ operates on compressed biogas, a highly sustainable fuel produced by biodegradable substances, such as farm food and other organic materials. This new fuel is less polluting and emits less CO2 than current CNG, which is based on fossil fuels.

The market is segmented into engine power, tractor type, driveline, propulsion, application, and region. 

Tractor Type

The agriculture tractor market by tractor type is segmented into orchard tractors, row-crop tractors, utility tractors, garden tractors, rotary tiller tractors, and others. The utility tractor segment holds the largest agriculture tractor market share with 22% in 2023. This is due to its versatility and affordability.

• For Instance, in August 2024, Bobcat Co. is expanding its tractor lineup with the launch of three utility tractors built for heavy-duty work i.e. the Bobcat UT6066, UT6566 and UT6573. The tractors offer reliable starts, swift travel speeds, long component life, easy service access and simple maintenance, as well as reduced noise and vibration for comfortable workdays behind the wheel.

Engine Power

On the basis of engine power, the agriculture tractor market is segmented into less than 40HP, 41 to 100 HP, and more than 100HP. The Less than 40 HP dominate the target market growth with 63% of total share as they are compact, affordable, can perform all basic agricultural tasks.

• For Instance, in August 2023, Mahindra & Mahindra, which has invested Rs 1,200 crore on its OJA platform, launched its sub-compact, compact, small utility tractors. The large utility tractors will be launched next year. The models range from 20 HP to 40 HP (14.91–29.82 kW). 

Driveline

The agriculture tractor market by driveline is segmented into 2WD and 4WD. 2WD segment is expected to dominate the target market growth due to its primary farming operations like sowing and planting, low upfront costs, and better maneuverability.

• For Instance, in October 2024, Swaraj Tractors, part of the Mahindra Group further strengthened its popular ‘Swaraj Target range’ with the introduction of the Target 625. Available in both 4WD and 2WD variants, Swaraj Target 625 is set to redefine the compact lightweight tractor category with its unmatched power, technology, and versatility. 

Propulsion

On the basis of propulsion, the agriculture tractor market is segmented into electric and ICE. The internal combustion engine (ICE) segment dominate the target market growth due to its reliability, widespread service networks, availability of parts, and among others. 

• For Instance, in May 2024, Automotive (auto) major Mahindra & Mahindra (M&M), readying to launch nine sport utility vehicles (internal combustion engine/ICE), seven Born Electric Vehicles (BEVs), and seven light commercial vehicles by 2030.

Application

The agriculture tractor market by application is segmented into harvesting, speed sowing, spraying, and others. The harvesting segment holds the largest share of the market due to the growing demand for agriculture tractors for harvesting.

• For Instance, in December 2023, Swaraj Tractors, a division of Mahindra & Mahindra, has unveiled its latest innovation, the Swaraj 8200 Smart Harvester, designed to cater to the needs of Indian farmers. The harvester demonstrated exceptional performance in harvesting crops like paddy and soya bean. 

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: Asia Pacific region is expected to dominate the growth of the market during forecast period with 75% of total share. The growth is attributed to the easy loan availability, favorable minimum support price, better monsoon, government support, and presence of agricultural organizations, among others.

• For Instance, in July 2024, Chennai headquartered agricultural major TAFE Motors and Tractors has announced a “cooperation” with German company DEUTZ for manufacturing of engines. As the beginning of a long-term cooperation, TAFE Motors will manufacture for Deutz up to 30,000 engines in 2.2 litre (50-75 hp) and 2.9 litre (75-100 hp) “to augment and complement the wide range of engines made by the group across emission standards.

Europe: Europe region is considered to be the fastest growing region in the target market due to increased demand for large farm tractors, particularly from Italy, Greece, and Lithuania, high demand for autonomous tractors, and among others.

• For Instance, in June 2024, Mahindra & Mahindra Ltd, the world’s largest tractor maker by volume, plans to expand its operations internationally by entering Western Europe and ASEAN (The Association of Southeast Asian Nations), as it looks to solidify its global position.

Agriculture Tractor Market Report Scope:

Attribute	Details
Market Size 2025	USD 7.9 Billion
Projected Market Size 2035	USD 13.5 Billion
CAGR Growth Rate	6.8% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherland, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Tractor Type:

• Orchard Tractors
• Row-Crop Tractors
• Utility Tractors
• Garden Tractors
• Rotary Tiller Tractors
• Others

By Engine Power:

• Less than 40 HP
• 41 to 100 HP
• More than 100 HP

By Driveline:

• 2WD
• 4WD

By Propulsion:

• Electric
• ICE

By Application:

• Harvesting
• Speed Sowing
• Spraying
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the agriculture tractor market include Mahindra & Mahindra Ltd., Deere & Company, KUBOTA Corporation, CLAAS KGaA mbH, and among Others. These key players focusing on different organic and inorganic strategies such as acquisition, merger, partnership, agreement, product launch and approval to expand their product portfolio and strengthen their market presence globally.

List of Key Players in the Market:

• Mahindra & Mahindra Ltd.
• Deere & Company
• KUBOTA Corporation
• CLAAS KGaA mbH
• AGCO Corporation
• Daedong-USA, Inc.
• Tractors and Farm Equipment Limited
• J C Bamford Excavators Ltd.
• Doosan Bobcat
• Argo Tractors S.p.A.
• Escorts Kubota Limited
• Caterpillar
• YANMAR HOLDINGS CO., LTD.
• CNH Industrial N.V.
• Massey Ferguson
• SDF S.p.A.
• Valtra Inc.
• Eicher Tractors

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• In September 2024, Mahindra & Mahindra, the world’s largest tractor manufactured by volume, launched the Mahindra 275 DI TU PP in Uttar Pradesh, Madhya Pradesh, & Rajasthan. Developed to meet the growing demand for high-capacity, powerful tractors for farmers the new tractor is set to redefine efficiency and performance for farmers.
• In May 2024, VST ZETOR Private Ltd., the joint venture between VST Tillers Tractors Ltd & HTC Investments, announced the launch of three best-in-class higher HP tractors. The three new tractors launched in the range of 41 to 50 HP are VST ZETOR 4211, VST ZETOR 4511, and VST ZETOR 5011.
• In February 2024, India's No.1 tractor export brand, Sonalika Tractors, elevated its India best-in-class product offering in 2024 and is thrilled to introduce India's biggest range of 10 'TIGER' advanced heavy-duty tractors in the 40 – 75 HP segment. Sonalika's latest range of tractors has been 'Designed in Europe' with 5 new engine options, which include the industry's best and biggest engines (CRDS & HDM+), the widest range of 5 different multi-speed transmissions to handle various operations and 3 different advanced & intelligent 5G hydraulics giving a choice of over 140+ auto settings.
• In March 2023, New Holland Agriculture, a brand of CNH Industrial, launched two of its latest tractor models, Blue Series Simba 30 and 5620 Power King - TREM – IV in Andhra Pradesh and Telangana region, at the KISAN Agri show in Hyderabad. The brand is displaying six tractors and three farming equipment at stall no. C101 of the trade show from 3^rd to 5^th March at the HITEX Exhibition Center at Izzathnagar.

Analyst View:      

The industry for agriculture tractor market is expected to witness substantial growth due to the rising global population resulting in surging demand for agricultural products, coupled with increasing consumer inclination towards small-sized tractors, easy availability of financing options, rising labor cost, shortage of skilled labor, and increasing investments by leading agricultural machinery manufacturers. New innovations and development, advanced technologies, and many collaborations and partnerships help to boost the growth of the market in upcoming years.

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Company Name	MAHINDRA & MAHINDRA LIMITED
Headquarter	Mumbai, India
CEO	Anish Shah
Employee Count (2024)	140, 619