North American Tractor Market
Dublin, May 10, 2023 (GLOBE NEWSWIRE) -- The "North America Tractor Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The North America agricultural tractor market is expected to reach 391,799 units by 2028 growing at a CAGR of 4.43% during the forecast period.
North America has over 376.8 million food consumers and is the fifth-largest food market in the world. The region witnessed a massive increase in farm mechanization in terms of agricultural and industrial productivity. North American region accounts for almost 11.4% of the global agricultural equipment market in volume. The region represents a high level of farm mechanization.
The penetration and adoption of farm mechanization practices across the region drive the sale of new agricultural tractors. The agriculture tractor market in North America declined by 14.1% in 2022 from 2021. The decline in crop production and tractor sales was due to supply chain shortages and increased raw material costs.
Increasing Use of Bioenergy in Tractors
Conventionally, farmers used diesel engine tractors known for their high power. Due to machine technologies, fuel, and engine advances, tractors are now more efficient and can complete tasks with fewer power requirements. The volatility in diesel prices hampers the budget management of farmers.
Technological Advance in Tractor Technology
A new frontier of innovation emerged as agriculture met digital technology, opening various paths to a smart agricultural future.
Tractor manufacturers are competitive, and companies constantly strive to innovate and ensure product differentiation at affordable prices. State-of-the-art technology-based tractors are currently available in the market. GPS and remote sensing make farming more accurate and productive.
SEGMENTATION INSIGHTS
INSIGHTS BY HORSEPOWER TYPE
In 2022, the less 50 HP segment recorded a high market share in North America. The major factor for the steady growth of the low-power range of tractors is the increased business turnover among hobby and livestock farmers. The sales of Above 100 HP tractors in the country are expected to grow during the forecast period as small and medium farmlands are likely to consolidate in the coming years.
INSIGHTS BY DRIVE TYPE
The agricultural tractor market in North America is dominated by low-range HP 2WD tractors, which accounted for a market share of more than 95% in 2022. Among the several tractor models available in the country, 2WD tractors are the most favored by farmers. The low relative cost of ownership, the sufficiency of features and haulage power, and convention make 2WD tractors more popular among farmers.
VENDOR LANDSCAPE
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John Deere, Massey Ferguson, and New Holland dominated the North American tractor market with a collective market share of over 30% in 2022. These brands have adopted several strategies to gain traction in the market.
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AGCO and John Deere provide direct financing to farmers to encourage them to buy agriculture equipment.
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The US witnessed high agricultural tractor sales in North America in the past few years. Leading vendors, such as John Deere and CNH Industrial, focus on the agricultural machinery market in the US and Canada.