PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209900
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209900
According to Stratistics MRC, the Global Utility Tractor Market is accounted for $106 billion in 2022 and is expected to reach $165 billion by 2028 growing at a CAGR of 7.7% during the forecast period. A utility tractor is a low- to medium-horsepower tractor. Attachments are installed on utility tractors to enable them to perform maintenance, landscaping, and agricultural tasks. The utility tractors have three-point hitches, hydraulics, and power take-offs (PTOs). The tractors can therefore handle heavy tasks with great ease and effectiveness. The main drivers behind the growth of the utility tractor market include the rising demand for powered implements and 4-wheel drive tractors, the demand for new, mechanised farming or agricultural techniques, particularly in developing nations, and the increasing integration of cutting-edge technology with agricultural equipment.
According to the Federation of Automobile Dealers Associations of India, In December 2020, tractor sales in India increased by 35.49% yoy in december 2020. India, being the largest tractor producer and market in the world with the increase in sales it will eventually boost the market growth.
Rise in demand for mechanization among farmers
Tractor adoption has been fueled by farmers' increased purchasing power and the desire to increase farm yield. As a result, utility tractors are becoming more popular among small-scale and subsistence farmers in rural areas, which in turn is driving the market. Utility tractors are economical and can be equipped with mowers, log splitters, trailers, rotavators, and harrows, among other attachments. Compared to high power tractors, utility tractors are simpler to maintain and are simple to customise for use in agricultural and construction applications. Consequently, it is anticipated that the utility tractor market will grow as a result of the increased use of tractors in agricultural operations and the rising demand for mechanisation.
High fuel consumption and limited storage
The cost of ownership and operation is lower in utility tractors. Comparing it to conventional tractors, which are frequently too heavy for some tasks like moving cargo down steep hillsides, it has more versatility because its carrying size is less constricting. Moreover, they do not carry as much torque, which can cause faster wear out from stress, generally requires less maintenance than standard sized tractors. However, compared to their larger counterparts, these machines consume fuel much more quickly.
Rising technological advancements
Due to consumer demand, manufacturers are concentrating on technological advancement in utility tractors for energy-efficient and environmentally friendly tractors. Manufacturers of construction equipment are attempting to include a GPS-based advanced tracking system that will allow a driver to track the location of the wheeled utility tractors and increase their efficiency. The Asia Pacific region's farmers are also looking for utility tractors with specialised features that can meet their needs for efficient farming. So many domestic and international agricultural machinery manufacturers are developing new, technologically advanced utility tractors that can handle a variety of farming applications in order to meet consumer demand.
Unavailability of quick assistance
Many businesses in the market are unable to offer urgent support if the device malfunctions on a production website in a remote location, aside from routine maintenance. This contributes to customer dissatisfaction and increases their costs, which raises the overall cost of ownership. Such elements are hindering the market expansion.
Due to the implementation of lockdown to prevent the spread of the COVID-19 pandemic, sales of tractors in the end of first quarter and in the starting month of second quarter slightly declined in most of the countries. Because businesses were unable to obtain the raw materials, components, and other tractor parts needed for assembly and manufacturing, the production of tractors drastically decreased in 2020. Despite the fact that sales of tractors fell dramatically during the COVID-19's second wave, supply chains were strengthened and the market quickly recovered. Due to the release of the COVID-19 Omicron variant, sales have decreased once more in December 2021. However, the market is anticipated to quickly rebound in 2022.
The 4 Wheelers segment is expected to be the largest during the forecast period
The demand for 4 wheelers segment is anticipated to increase significantly in the coming years due to their increased efficiency and improved fuel economy. Due to this, the 4 Wheelers segment is expected to be the largest during the forecast period. When accelerating, the 4WD tractors offer remarkably high forward traction. Depending on the type of soil and environmental factors, the maximum power output of a 4-wheel drive vehicle increases from 12% to 45%. This is useful when driving in agricultural settings and on mild off-road terrain. Such factors are causing the rapid growth.
The Electric segment is expected to have the highest CAGR during the forecast period
Due to their low noise and emission-free operation, electric segment is anticipated to have the highest CAGR during the forecast period. Moreover, battery-powered tractors are being used more and more in dairy farms. Furthermore, the key players will benefit from R&D investments and technological advancements in developing nations against utility tractors, such as tailored features. Such factors are boosting the segment growth.
Region with Largest share:
Asia Pacific is expected to hold the largest market share during the forecast period. Utility tractors in terms of volume, accounting for more than 81% of the global market share in 2019. Increased agricultural investment and government encouragement of farm mechanisation have been the trend driving the rise in China. The demand for utility tractors in the Asia Pacific region is a result of investments and small farmers in India have benefited from custom hiring services, and a new breed of entrepreneurs has emerged who operate utility tractors for the benefit of small landowners.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to the quick technological advancement of utility tractors which is currently revolutionising agriculture in North America. Additionally, rising mechanisation in the agricultural sector, particularly in the US, and accelerating globalisation will pave the way for the growth of the utility tractor market in the region.
Key players in the market
Some of the key players profiled in the Utility Tractor Market include Mahindra and Mahindra Corporation, Kubota Corporation, Escorts Group, Tractors and Farm Equipment Limited (TAFE), Kuhn Group, Yanmar Company Limited, New Holland Agriculture, JCB India Limited, SDF S.p.A., Bucher Industries AG, Alamo Group Inc, Deere and Company, CNH Global NV, AGCO Corporation and CLAAS KGaA mbH.
In September 2021, IVECO a subsidiary of CNH Industrial and Nikola inaugurates joint venture manufactured facility for heavy duty trucks ulm in Germany.
In June 2021, CNH Industrial acquires raven industries, enhancing precision agricultural capabilities and scale.
In October 2021, Mahindra and Mahindra Corporation launch 3 new Yuvo tech+ tractors.
Drive Types Covered:
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