Global Farm Tractors

Report Overview

According to industry analyst Gleb Mytko, "Tractor sales rebounded at a double-digit annual pace in all regions in 2021, with the Africa/Mideast region, Central and South America, and Eastern Europe registering growth of more than 20%."

This Freedonia study analyzes the more than $55 billion global farm tractor market. The study provides agricultural tractor demand for 2011, 2016, and 2021, and forecasts for 2026 and 2031. We also offer annual data for all countries for the 2018-2025 period. This study also presents farm tractor demand by type (wheel tractors, crawler tractors, and pedestrian-controlled tractors) for 20 countries. Finally, it evaluates market share for the top six manufacturers worldwide, such as AGCO, Deere, and Kubota.

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• advances in global farming agricultural activity and rising agricultural commodity prices, leading to farm income growth
• farmers increasingly replacing aging machinery and investing in newly developed agricultural technologies as they face a variety of workforce issues (e.g., skilled operator shortages, rising wages, new protections for works)
• high levels of government support for their respective agricultural sectors, ranging from direct subsidies to farmers to programs promoting advanced farming practices to more specialized initiatives (such as a farm machinery rental schemes in India)
• government and industry initiatives designed to insulate farmers from the impact of climate change, reduce the environmental impact of farming, and promote technological innovation in the agricultural sector

Asia/Pacific, North America, & Western Europe Account for Vast Majority of Absolute Gains

• The growing use of state-of-the-art tractors – including automated, and electric and hybrid models – will be the leading driver of market gains in countries such as Australia, Japan, South Korea, and Taiwan.
• In developing nations, farmers will increasingly purchase tractors as they shift away from manual farming techniques.

Demand by Region

• perform multiple functions
• are suitable for a wide range of applications, ranging from orchards to grain farming
• have compatibility with numerous attachments
• are available in most countries
• have long lifespans

• their massive replacement needs
• the introduction of newly developed models, including those that automate key functions
• the incorporation of new technologies – ranging from sophisticated sensors to advanced hybrid and electric engines – which will drive up machinery prices and contribute to gains in value terms

Agricaltural Commodity Pricing

Changes in commodity prices, and thus farm income, are a key factor in the outlook for the global farm tractor industry. Key commodities include: 

• corn

• dairy products

• fresh vegetables

• potatoes

• rice

• soybeans

• sugar cane

• wheat

Commodity prices vary around the world, especially at the local level. However, the increasingly global scope of the agricultural industry results in prices settling around global averages.

Crop yields in a given year also affect price. Years with higher than average yields will generally result in lower prices for agricultural goods, while years when crop yields are low can drive up prices.

Fluctuations in crop prices can influence the types of crops produced in a country, as low prices for a certain crop can cause farmers to plant other, more profitable crops for future harvests. Many national governments subsidize crops and offer aid to farmers in an effort to maintain farm production, particularly for strategically important agricultural commodities. However, not all crops are subsidized nor do all nations participate in farm subsidies.

Unlike many industries, where raw material or commodity prices can result in reducing or eliminating production, agricultural commodities are essential for sustaining a healthy population, and thus many farmers continue to grow and produce crops even when prices are low. However, low crop prices do impact a farmer’s ability or willingness to invest in farm tractors – as when crop prices are low there may not be sufficient capital to purchase a new top-of-the-line tractors. In these instances, farmers may choose to repair existing tractors or purchase either lower-priced new tractors or used tractors.