News in brief:
– The global agricultural tractors market is projected to reach $97.8 billion by 2031, with a CAGR of 5.6%.
– Key growth drivers include government support for agriculture, adoption of precision farming, and technological innovations.
– Asia-Pacific leads in market revenue, expected to grow at the fastest rate with a CAGR of 6.3%, driven by economic development.
Allied Market Research published a report forecasting a remarkable surge in the global agricultural tractors market. Titled “Agricultural Tractors Market by Power Output, Drive Type, Propulsion, and Operation,” it predicts a staggering $97.8 billion valuation by 2031, with an impressive Compound Annual Growth Rate (CAGR) of 5.6% from 2022 to 2031.
In 2021, the 30 to 50 HP segment dominated the market, capturing a third of the total share. This surge can be attributed to increased tractor utilisation in countries such as India, China, and the United States, according to the research outfit.
Notably, the more than 100 HP segment is poised for the highest CAGR of 6.6% during the latest forecast period, driven by heightened agricultural activities worldwide.
Government support for agricultural development, coupled with the rise in precision farming adoption, acts as a catalyst for market growth. Technological advancements in tractor design, particularly in fuel efficiency and zero-emission technologies, are also propelling the market forward.
The Asia-Pacific region emerged as the market leader in 2021, contributing to half of the total revenue. With a projected CAGR of 6.3%, this region is anticipated to witness the fastest growth again, fueled by significant economic developments across various countries.
In the upcoming years, the more than 100HP segment is expected to experience substantial growth, while four-wheel-drive tractors will dominate the market in terms of drive type. Electric and hybrid tractors are forecasted to lead the propulsion segment, while autonomous operations will spearhead tractor functionality.
