San Jose, California (PRWEB) March 12, 2013
GIA announces the release of a comprehensive global report on Farm Tractors markets. The global market for Farm Tractors is projected to reach US$44.2 billion by 2018, driven by the increasing demand for agricultural produce due to rapid mechanization of agricultural practices, and the advent of sophisticated and technologically advanced Tractors.
Tractors represent the largest segment of the global agricultural equipment market. Considered as the ‘workhorse’ of agriculture, tractors are the most versatile farming equipment. Design and technology of farm tractors has evolved over the years, as manufacturers continue to develop tractors which fulfill various requirements of farmers. As the global economy continues with mechanization of agricultural sector, it is expected to be opportunities galore for agriculture machinery such as tractors. Other demand drivers that continue to find favor in the tractors market include credit availability, scarcity of labor, and subsidies offered by government towards farm mechanization. Apart from these factors, season and weather conditions also dictate demand patterns in the farm tractors market.
Although farming is often touted to be recession proof, given the growing population and the ever present focus on food security and self-sufficiency, the farm tractors market was nevertheless impacted by the 2007-2009 recession, although moderately. However, by the year 2010, most of the regions managed to bounce back and post commendable gains, primarily due to the increase in global commodity prices and favorable government policies. The long-term outlook for the tractors market is positively guided by strong population and economic growth, and increase in demand for food in developing countries. Higher farm asset values and stronger farm real estate values warrant a strong outlook in the general farm economy, thus triggering increased demand for farm machinery such as tractors.
Innovative technologies that enhance productivity, operational comfort and cost efficiency are major factors that influence demand for tractors in the highly industrialized countries. The vehicle-to-vehicle (V2V) control system and the continuously variable transmission (CVT) PTO (power take-off) are expected to witness greater adoption by farmers in the developed regions as they ensure the much needed fuel efficiency and comfort along with enhancing the productivity. Apart from these factors, strong demand exist in developed regions for tractors embedded with advanced features including automated steering, front axle and cab suspension, universal touch-screen displays, multifunction joysticks, HID lighting, air-ride seats and provision for MP3 players. Although penetration of latest technologies is expected to continue in developed markets, where farming is highly mechanized, most of the developing markets are expected to take several years to adopt these innovations, chiefly due to the availability of cheap labor and prevalence of traditional farming methods.
Tractors’ utilizing alternative fuel is another product area, which is expected to witness greater activity in the coming years. Given the uncertainty as well as the price fluctuations and availability linked with fossil fuels, farming sector is looking for alternative and feasible fuel sources to power various farming equipments. In line with this trend, several agricultural equipment manufacturers are actively involved in the research, development and production of innovative tractors, which can utilize alternative fuels. In other words, as agriculture heads towards innovative mechanization, tractors with high horsepower, fuel efficiency and embedded with innovative technologies are poised to benefit in the long run.
As stated by the new market research report on Farm Tractors, Asia-Pacific represents the leading market for farm tractors, primarily due to the towering presence of two major markets of China and India, which together lead the global tractor market in terms of volume sales. Substantial potential exists in these countries due to the relatively lower levels of mechanization and presence of inefficient farm equipment. A major portion of tractor demand in the Asia-Pacific region is for low power tractors, as most of the farm sizes are average.
The US and Europe are the other significant region for tractor sales. The US is primarily dotted with large sized farms, which spells demand for machinery with greater horse power. Subsequently consumers in the US are displaying an increasing propensity for higher horsepower engines with a marked increase in demand for high horsepower 4-wheel drive and row-crop tractors. Across Europe, tractor manufacturers are developing distinct technologies to meet the unique demands of agricultural markets in Western Europe and Eastern Europe. Consumers from the densely populated Western European region prefer high-tech and highly maneuverable tractors for deployment in intensively cultivated farms lands. On the other hand, Eastern European consumers opt for rudimentary high-output equipment that is more suitable for expansive fields in the region.
Key factors which influence the performance of industry participants are supply and demand dynamics of commodity prices, interest rates and government policies and subsides offered for farm production. Leading manufactures in the tractor market are feeling the heat of competition from tractor manufacturers in developing countries, particular from the Asian region. Major players in the marketplace include AGCO Corp., CNH Global NV, Deere & Company (John Deere), Escorts Group, Kioti Tractor Division Daedong-USA, Inc., Kubota Corporation., Same Deutz-Fahr Group, Steyr Landmaschinentechnik AG and Tractors and Farm Equipment Ltd.
The research report titled “Farm Tractors: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the market, current trends, growth drivers, new product introductions, recent industry activity, and focus on major global market players. The report provides annual sales estimates and projections for Farm Tractors Market in terms of value (US$) and volume (thousand units) for years 2010 through 2018 by the following geographic markets - US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific, Middle East and Latin America. Also, a six-year (2004-2009) historic analysis is provided for additional perspective.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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