China will comprise 31% of the global tractor market
Cleveland, OH (PRWEB) March 06, 2013
World demand for tractors is expected to increase 6.8 percent per year through 2016 to $122 billion, growing at the same pace as during the 2006-2011 period. A moderation in sales growth in many large, developing countries -- particularly Brazil, China, and India -- after an extended period of rapid gains will counterbalance a strong recovery in the US, Western Europe, and Japan from the effects of the 2009 global economic recession. These and other trends, including market share and product segmentation, are presented in World Tractors, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Demand for tractors in the Asia/Pacific region will be more than twice that of any other region in 2016, with China alone comprising 31 percent of the global total. Healthy population expansion and economic growth in China and other developing Asian nations such as India and Thailand will drive an expansion in construction activity in these countries and place heightened pressure on their agricultural sectors to become more efficient and productive, boosting associated tractor sales. Central and South America will post strong sales gains as well, due primarily to the large and increasingly mechanized agricultural sectors in Brazil and Argentina.
In the mature markets of the industrialized world, sales of tractors will continue to be largely determined by demand for replacement machinery and the efficiency gains provided by newer, more sophisticated equipment. During the 2008-2009 economic crisis, many tractor operators in the agriculture, construction, and mining sectors delayed replacing older machinery, and the inherent time lag in each of these markets in response to improving economic circumstances will govern tractor sales growth patterns going forward.
Agricultural tractors will continue to account for the largest share of product sales in 2016, followed by tractors for construction and mining applications. However, due primarily to high 2011 levels of demand and the timing of replacement cycles in the US, Western Europe, and Japan, global agricultural tractor sales growth will slow through 2016. Increased construction expenditures and mining output in many areas of the world -- including the US, China, and India -- will drive healthy gains in these market segments. On the other hand, demand for commercial and consumer tractors will be hindered by limited opportunities for sales growth in the US due to strained municipal budgets and a weakened golf industry.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.