Tractor Implements Market (2022 - 2030)

Tractor Implements Market Summary

Furthermore, the increasing scarcity of skilled labor leads to the adoption of new equipment and tools, supportingindustry growth. For instance, according to the data published by the International Labor Organization (ILO), headquartered in Geneva, Switzerland, the percentage of people working in the agriculture sector globally decreased from 44% in 1991 to 26% in 2020.

It is expected that by 2025, China will have mechanized 75% of its crop plowing, planting, and harvesting processes. The rising adoption of modernized farm equipment is expected to fuel industry growth, which involves improving crop production and quality. Furthermore, the world’s rising population and increasing disposable income in various developing countries are increasing the global food demand. For instance, in July 2021, according to study findings by Wageningen University & Research, based out inthe Netherlands, food demand is expected to increase by between 35% to 56 % from 2010-2050.

This is shaping the market and boosting the adoption of various tractor implements to increase crop production. Several tractors implement manufacturers struggled to remain operational during the COVID-19 lockdowns, resulting in a sharp decline in business. The industry was negatively impacted in the first half of 2020. However, it bounced back and witnessed growth due to various significant global economies opening. In addition, manufacturers started adopting innovative strategies to recover from the pandemic.

For instance, in August 2021, Farmkart, an agricultural technology startup based out in India, launched rent4farm, a technology-enabled platform that provides unstructured agriculture equipment rental services. It offers competitive prices for renting advanced agriculture equipment and machinery.Although the prospects look promising, the industry is still faced with several challenges regarding the high capital costs of tractor implements, which is one of the bottlenecks for their adoption, especially for small farmers. Furthermore, farmers with small land holdings do not find it cost-effective to invest in tractor implements, which has resulted in one of the challenges hampering the industry growth.

Product Insights

The cultivator & tiller machinery segment dominated the industry and accounted for more than 33.3% of the overall revenue share in 2021. Farming activities are mechanized and automated with cultivators and tillers. In addition to increasing agricultural output, it also contributes to efficient utility usage. Modernization of agriculture, technological advancements, and the introduction of high-performance cultivators and tillers have increased the demand for cultivators and tillers. Companies develop and invest in new, advanced equipment that provides farmers with practical solutions for cultivating and plowing their fields. For instance, in June 2022, Vaderstad, based out in Sweden, launched a new disc cultivator, the carrier XT 425-625, which allows various machines to optimize their performance and provides better efficiency with low diesel consumption.

The harrow segment is expected to expand at the second-fastest CAGR from 2022 to 2030. The increasing focus on heavy residue management is a crucial factor driving the segment's growth. The agricultural industry relies heavily on harrowing for soil preparation, and several companies are launching harrows explicitly designed to handle heavy residues efficiently. For instance, in August 2021, Breviglieri launched Breviglieri Mekfarmer 80 Power Harrow with a packer roller for farmers to reduce the absorption of fuel and power consumption and provided better soil crumbling. Farmers can therefore maximize the use of fertilizers, seeds, and irrigation. The mechanization of farms contributes to the preservation of farm products and increases profitability and cost-effectiveness by reducing post-harvest losses.

Regional Insights

On the basis of geographies, the global industry has been further sub-divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region dominated the global industry in 2021 and accounted for the maximum share of more than 35.25% of the overall revenue. The region is projected to expand further at the fastest growth rate retaining its dominant position throughout the forecast period. This region has several primary drivers, including a growing population and the resultant need to increase yields. A growing number of farmers in developing countries are adopting automation and precision agriculture practices, which bodes well for cultivating and tilling machinery.

North America emerged as the second-largest regional market in 2021 and is projected to expand further at a steady growth rate during the forecast period. The countries in the North America region are increasingly adopting automation and smart farming solutions to meet the growing demand. These countries are experiencing labor shortages, which, in turn, is augmenting the adoption of mechanized farming products and solutions that perform a wide range of farm-related activities with maximum accuracy and productivity.

Key Companies & Market Share Insights

Companies are engaging in several growth strategies, such as partnerships, mergers & acquisitions, and product launches, to stay afloat in the competitive industry. For instance,in May 2021, CLAAS KGaA Mbh based out inHarsewinkel, Germany, acquired a minority stake in Dutch startup AgXeed B.V. The acquisition was intended to promote the commercialization of autonomous farming machines.Some of the prominent players in the global tractorimplements market include:

• Claas KGaA Mbh

• Deere & Company

• Kubota Corp.

• CNH Industrial N.V.

• Agco Corporation

• Tractors and Farm Equipment Limited (TAFE)

• SDF Group

• Mahindra & Mahindra

• J C Bamford Excavators Ltd. (JCB)

• Actuant

• Kuhn Group

• Alamo Group

Tractor Implements Market