The Agricultural Tractor Machinery Market to reach $125 Billion by 2030; the increasing demand for agricultural production, shortage of agricultural labor, government initiatives to support mechanized agriculture, growing need for farm mechanization

The Agricultural Tractor Machinery Market size is estimated to reach $125 Billion by 2030, growing at a CAGR of 6.1% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Agriculture Tractor Machinery Market – By Type (Compact Tractor, Row Crop Tractor, Orchard Tractor, Implement Carrier Tractor and Others), By Mode of Operation (Manual and Autonomous), By Horse Power (Less Than 25 HP, 25-35 HP, 36-45 HP, 46-65 HP, 66-100 HP and Above 100 HP), By Wheel Drive (2-Wheel Drive and 4 -Wheel Drive), By Engine Type (Gasoline, Diesel, Electric and Hybrid), By Application (Tilling, Harvesting, Sowing, Ploughing, Hauling and Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

The main driver of the agricultural tractor machinery market is the rising global population which drives the need for higher agricultural productivity which in turn leads to the demand for farm machinery such as tractors. Additionally, the shortage of farm labour and need for mechanization of agriculture are also fueling the growth of the Agriculture Tractor Machinery industry during the forecast period.

APAC accounted for the largest share of 38% of the Agriculture Tractor Machinery Market in 2023. According to the FAO, China is the top producer of various crops, including rice, wheat, corn, pears, peaches, potatoes, lettuce, cabbage and other vegetables. As per data from the National Bureau of Statistics (NBS), China's grain output rose 1.3% year on year to a record high of 695.41 million tons in 2023. 119 million hectares of grain crops were sown in the country in 2023, a 0.5% increase over 2022. Having only 9% of arable land necessitates a robust agricultural machinery infrastructure to support efficient farming practices. Thus, the extensive agricultural production and the increasing demand for efficiency and productivity in the region, creates a favorable environment for the growth of the Agriculture Tractor Machinery Market.

Greece faces labour shortages in 17 occupations including agriculture, as revealed by the 2023 EURES report on shortages and surpluses. Additionally, Schengen News reports that Greece’s agricultural sector is facing a shortage of 180,000 workers. The growing shortage of agricultural labor is driving the demand for tractor machinery in the farming sector. Many areas are experiencing a decline in the labor force due to aging population and fewer young people entering farming professions. According to a February 2024 labour market information report from the Canadian Agricultural Human Resource Council (CAHRC), more than 100,000 jobs in agriculture or 1 in every 3 jobs in the industry are projected to be vacant by 2030. This shortage has created a gap in manual labor availability pushing farmers to seek mechanized solutions to maintain productivity. In regions like Europe and North America, where labor shortages are acute, mechanized farming solutions are becoming essential. The use of advanced agricultural machinery, such as high-efficiency tractors, enables farmers to reduce their reliance on manual labor while increasing operational efficiency and crop yields, helping them adapt to changing labor dynamics.

Government initiatives aimed at promoting farm mechanization are a significant driver in the agricultural tractor machinery market. In many countries, governments are offering subsidies, tax incentives and low-interest loans to encourage farmers to adopt modern agricultural equipment. These initiatives are designed to improve agricultural productivity, reduce manual labor dependency and enhance food security. In November 2023, Indian state, Jharkhand’s government launched a tractor distribution scheme for farmers. Under the scheme, farmers will be given 50% subsidy on the cost price for purchasing tractors. In June 2024, Pakistan’s Punjab government announced the launch of the Green Tractor scheme, aimed at providing farmers with small, medium and large tractors at subsidized rates to promote mechanization in the agricultural sector. Additionally, partnerships between governments and private players to promote technology transfer and local manufacturing are accelerating mechanization efforts further boosting the demand for agricultural tractors.

Key companies profiled in the Agriculture Tractor Machinery Market are Deere & Company, TAFE Ltd., Mahindra & Mahindra, CNH Industrial, Sonalika International, CLAAS, Kubota Corporation, AGCO Corporation, Deutz Fahr, Daedong Corporation and Others

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