Demand Analysis of Agricultural Tractors from 2015 to 2021 Vs Market Projections for 2022 to 2032
Global sales of agricultural tractors are expected to achieve a market value of US$ 63 million in 2022 and register a CAGR of 6% by accumulating a market value of US$ 113 million through the assessment period 2022-2032.
The global sales of agricultural tractor market grew by 4%. The rapidly growing population and consequently the need for food has increased the proportion of cultivation of food crops, increasing the demand for agricultural tractors in recent times.
During the COVID-19 pandemic, there was some downside in the prospects, especially in the first half of 2020, attributed to the imposition of stricter lockdowns. The enormity of these lockdowns prevented any agricultural activity from taking place, leading to the discontinuation of the use of agricultural tractors. However, as restrictions are eased, a gradual resurgence is being seen.
Manufacturers of agricultural tractors are focusing on improving their efficiency by making them automatic and electric. Moreover, the cost efficiency and convenience of using 2WD tractors are driving the demand for agricultural tractors. Thus, sales of agricultural tractors are expected to exceed US$ 113 million by registering a CAGR of 6% in the forecast period 2022-2032.
Key Drivers of Agriculture Tractor Market
Government initiatives to finance and support farmers with low interest rates are also giving a boost to the global agriculture tractor market. Increase in agricultural cash receipts, i.e. profit and revenue generated from farming, increases the affordability of tractors, which is anticipated to boost demand for agricultural tractors. For example, the Government of India as well as the State Governments have launched several schemes which help in alleviating the plight of the farmers.
Challenges in Agriculture Tractor Market
The COVID-19 pandemic has affected local as well as global automotive supply chains, manufacturing and R&D operations, thus disrupting the automotive industry. After the first wave of COVID-19, global economies have begun to open up automotive manufacturing and supply chain operations, thus returning the impact of COVID-19 on the industry to normalcy; However, a resurgence in COVID-19 cases in countries across Europe has forced governments to implement a second round of lockdown restrictions. As a result, uncertainty continues in the automotive industry. However, automotive and ancillary sales have improved over the past few months as a result of easing of lockdown restrictions and stagnant demand in times of lockdown.
Disasters like drought and floods can affect the crop and reduce the purchasing power of the farmers, thereby disrupting the agricultural tractor market.
Opportunities in Agriculture Tractor Market
The agriculture industry is under constant pressure to produce agricultural products to meet the growing population, which has forced farmers to focus on efficiency and productivity to run the business. Precision farming is becoming popular among farmers who want to produce more with limited resources. Hence, the demand for precision agriculture provides an opportunity for the agricultural tractor market, as it provides increased productivity to the farmers.
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