Tractor Market Size

Tractor Market size was valued at USD 77.79 Billion in 2023 and is poised to grow from USD 82.08 Billion in 2024 to USD 126.16 Billion by 2032, growing at a CAGR of 5.52% during the forecast period (2025-2032).

'John Deere & Company', 'CNH Industrial N.V.', 'AGCO Corporation', 'Kubota Corporation', 'Mahindra & Mahindra Limited', 'SAME Deutz-Fahr S.p.A.', 'ARGO SpA', 'Yanmar Co., Ltd.', 'TracFone Wireless, Inc.', 'Escorts Limited', 'Tafe Motors Limited', 'PT Astra International Tbk', 'LS Mtron Ltd.', 'Sampo Rosenlew Ltd.', 'CLAAS KGaA mbH & Co KG', 'JCB Inc.', 'New Holland Agriculture N.V.', 'Mitsubishi Heavy Industries Ltd.', 'Volvo Construction Equipment AB', 'SDF Group'

It relates the rising population worldwide directly to increased agricultural production and is one of the important reasons for the growing demand for tractors. To cater to increased food demands, farmers are now using tractors to perform all the necessary chores such as planting, harvesting, or plowing. These devices facilitate more massive farming activities, and combined with greater productivity, allow farmers to farm more land within less time. Food security is increasingly a very urgent requirement globally and as farmers realize that purchasing new machinery raises productivity and aids in sustainable farming, tractor sales are predicted to increase.  

Alternative Fuels and Electrification: The tractor market is undergoing an emerging trend of electrification and more utilization of alternative fuel. The threat of carbon emissions and environmental is making the producers invest more in electric and hybrid tractor models. Environmentally conscious farmers will be interested in these vehicles because they not only offer silent functions and reduce dependence on fossil fuels but save running costs. On top of that, when biofuels and hydrogen-powered tractors are developed, the market is set to become yet more diversified. This supports global sustainability goals and fosters innovation in agriculture as more farmers seek higher output while leaving as little environmental impact as possible. 

Asia-Pacific held the largest share of the global tractor market over the forecast period due to the massive presence of smallholder farmers in the region and increasing government support for agricultural mechanization. Innovations in tractors and their companion technologies are significant in the region. Traction manufacturers are incorporating technological aspects like robotics, automation, and GPS in such tractors to counter the competition from Chinese companies, which is selling its merchandise at a lower price than international participants. In addition, the government of each country is seriously pursuing several initiatives to enhance the mechanism in farming. For instance, to boost the development of the tractor market in India, the Government put forward schemes, such as the Rashtriya Krishi Vikas Yojana, that provides incentives to farmers, and National Bank for Agriculture and Rural Development (NABARD), providing incentives.