The North America Agricultural Tractors Market would witness market growth of 3.3% CAGR during the forecast period (2021-2027).
Population growth, water scarcity, a scarcity of arable land, and the loss of land fertility are all factors driving up consumer demand for food. In relation to meeting consumer demand, the agriculture industry has a number of challenges in terms of food production. Due to rapid industrialization, the majority of agricultural land around urban and rural communities is used for commercial purposes. This is mostly due to population migration from rural to urban areas.
Recently, the trends in the modern agricultural tractor industry to replace existing machinery with innovative machinery would generate higher demand for agricultural tractors. To boost efficiency, self-driving or driverless tractors replace the drivers with multiple hardware and software components. Self-driving tractors reduce human effort while increasing productivity.
Traditionally, farming has been a labor-intensive form of agriculture. Farmers are highly deploying agricultural technology, particularly tractors, as a substitute for manual labour. According to the World Bank statistics, the agriculture sector employed 1.5 percent of the total workforce in the United States in 2019, up from 1.4 percent in 2016.
According to the Canadian Agriculture Human Resource Council, Canada's farm labor shortage is predicted to increase to 123,000 workers by 2029, accounting for one out of every three positions, as shortages continue to wreak havoc on the sector's bottom line. The rapid contraction of farm labor has boosted the tractor market, resulting in increased demand for tractors in the region. Moreover, farming technologies have advanced dramatically as a result of changing industry trends that have led to the creation of more advanced agricultural technology. Sales of agricultural tractor machinery are driven by increased farm consolidation, a broad production base, and increased government assistance through subsidies. Therefore, these factors are estimated to open new growth avenues for the players operating in the regional Agricultural Tractors Market during the forecasting period.
The US market dominated the North America Agricultural Tractors Market by Country 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $12,042.5 million by 2027. The Canada market is estimated to grow at a CAGR of 5.7% during (2021 - 2027). Additionally, The Mexico market would witness a CAGR of 4.8% during (2021 - 2027).
Based on Driveline Type, the market is segmented into Two-wheel Drive, and Four-wheel Drive. Based on Engine Power, the market is segmented into Less than 40 HP, 41 to 100 HP, and More than 100 HP. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.
Free Valuable Insights: The Global Agricultural Tractors Market is Estimated to reach $81.4 Billion by 2027, at a CAGR of 4.2%
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AGCO Corporation, CNH Industrial N.V., Deere & Company, CLAAS KGaA mbH, Escorts Ltd., International Tractors Ltd., Yanmar Co., Ltd., Kubota Corp., Mahindra & Mahindra Ltd., and Tractors and Farm Equipment Ltd.
By Driveline Type
By Engine Power
By Country
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