The continuously growing agriculture sector, along with an increasing preference for modern equipment, drives the global agriculture compact tractors market growth. The demand for food is increasing with a continuously growing population. As per the recent forecasts offered by the United Nations, the world population is anticipated to reach 8.5 billion by 2030 and expand further to 9.7 billion by 2050. As a result, the demand for agricultural produce is increasing rapidly, which burdens farmers to enhance the yields of their farms. Hence, the increasing scale of agriculture activities propels the demand for agriculture compact tractors.
In January 2024, LS Mtron Co., a South Korean manufacturer of heavy machinery and electronic components, introduced the new MT2·MT2E small tractor series in North America. The two models from this series—the premium MT2 and the budget MT2E—are designed to improve operational convenience in restricted places and are appropriate for small-scale farming. This product lineup was designed for various jobs, including an easy-to-use shuttle for smooth forward and reverse operations, and dual pedals suited for transferring soil or gravel. Such product development activities by agriculture compact tractor manufacturers fuel the agriculture compact tractors market growth.
Compact tractors, usually known as compact utility tractors, are primarily used for small farm activities such as plowing, mowing, planting, tilling, and hauling. They are smaller in size and capacity, and more beneficial for small-scale farms, fruit and nut yards, vineyards, gardens, and lawns. Compact tractors consume less fuel and have low maintenance requirements, which results in low operational costs.
Asia Pacific dominates the agriculture compact tractors market owing to the large scale of farming activities in countries such as China and India. However, North America and Europe are expected to register strong CAGR values during the forecast period. The US is one of the major producers of nuts and fruits. As per the data published by the US Department of Agriculture in 2022, small family farms accounted for 88% of the total farms in the US. Thus, the presence of a large number of small farms in the US is a key factor that benefits the agriculture compact tractors market in this country.
Government policies and supportive initiatives such as funding boost the number of small-scale farms in different countries. For instance, the US Department of Agriculture offers a Microloan Program to small-scale and beginner farmers that enables them to get up to US$ 35,000 in loans through simple applications. Further, in 2023, the government of Guyana announced an initiative through its National Pathway for Food Systems program. As part of this project, farm input supplies and a one-time cash grant were provided to smallholder farmers and participants in continuing socioeconomic empowerment programs around the nation. Such government initiatives are empowering small-scale farmers to adopt farming equipment, including compact tractors. Moreover, these programs and initiatives create a conducive environment for small-scale agricultural farms in developing and developed nations, ultimately resulting in the expansion of the agriculture compact tractors market size.
The agriculture compact tractors market analysis has been carried out by considering the following segments: Type, Capacity, and Application. On the basis of capacity, the market is segmented into below 30HP, 30HP-40HP, and 40HP-60HP. The 40HP-60HP and 30HP-40HP segments collectively account for more than 50% of the agriculture compact tractors market share. These tractors are suitable for medium-sized farms for tasks such as plowing, tilling, planting, and harvesting. For instance, Farmtrac launched its new Farmtrac 60 Powermaxx tractor in 2024. This tractor has a 55 HP engine and offers several features.
The geographic scope of the agriculture compact tractors market report entails North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America) Asia Pacific accounted for the largest agriculture compact tractors market share in 2022.
The North American agriculture compact tractors market is segmented into the US, Canada, and Mexico. The agriculture sector in North America, particularly in countries such as the US, Canada, and Mexico, majorly drives the demand for agriculture compact tractors. The expansion of the agriculture sector and continuous product developments would continue to boost the market in this region in the future. As per the data published by the US Department of Agriculture in 2021, the agriculture sector contributed approximately US$ 1.264 trillion to the US GDP in 2021, accounting for 5.4% of the national GDP. As per the data published by the Canadian Government in 2022, the agriculture and agri-food sector makes a significant contribution to the Canadian economy. Canadian agricultural commodity sales, growing at an annual rate of 5.6%, totaled US$ 87.7 billion in 2022. The rising number of small land farms results in a greater demand for compact tractors, which provides new growth avenues for vendors. Further, many key players in the United States are now focusing on developing fully automated compact tractors, and such developments are expected to bring new agriculture compact tractors market trends in North America in the coming years.
The regional trends and factors influencing the Agriculture Compact Tractors Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Agriculture Compact Tractors Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 5,572.4 Million |
| Market Size by 2030 | US$ 7,549.5 Million |
| Global CAGR (2022 - 2030) | 3.9% |
| Historical Data | 2020-2022 |
| Forecast period | 2022-2030 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Agriculture Compact Tractors Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Agriculture Compact Tractors Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
AGCO GmbH, Yamaha Tractors, Solis, Bobcat Company, Mahindra Tractors, Kubota, John Deere, Massey Ferguson, and New Holland are among the prominent players profiled in the agriculture compact tractors market report. In addition to these players, several other important companies were studied and analyzed during this study to get a holistic overview of the global utility compact tractors market.
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the global agriculture compact tractors market. A few recent developments by key agriculture compact tractors market players, as per press releases, are listed below:
August 2023
Case IH launched its new Farmall Subcompact 25SC tractors. This newly launched model is the smallest tractor in the Case IH’s portfolio. The new tractor has an engine range from 25 HP to 115 HP.
APAC
February 2023
Bobcat introduced a new compact tractor line-up, namedthe 1000, 2000 and 4000 series. The series has nine compact tractors models that are differentiated on the basis of the engine power. These tractors have a power range between 25 to 85 HP.
Europe
The List of Companies - Agriculture Compact Tractors Market
Continuous adoption of electric vehicles owing to increased focus on sustainability is one of the trends that is expected to drive the demand of the electric agriculture compact tractors market.
AGCO GmbH, Yamaha Tractors, Solis, Bobcat Company, Mahindra Tractors, Kubota, John Deere, Massey Ferguson, and New Holland are the key market players operating in the global agriculture compact tractors market.
Regions such as Europe, North America and Asia-Pacific will boost the growth of the agriculture compact tractors market during the forecast period. This growth is owing to the rise in investment for the adoption of the modern agriculture equipment and vineyards in the regions.
Many compact tractor manufacturers are focusing on developing fully automated compact tractors. Such development is projected to generate lucrative opportunities for the agriculture compact tractors market during the forecast period.
High customization options and low cost of compact tractors are a few of the factors contributing to the expansion of the agriculture compact tractors market size. Farming requires a wide range of agricultural equipment, and tractors form an unintegral part of this set of equipment. Purchasing various farm equipment can be expensive, whereas low prices of a small tractor provide some relief to agriculturists and farm owners. Lower price is especially a primary factor driving the adoption of agriculture compact tractors in in agriculture-dominating economies such as China and India, which are home to numerous small and low-margin farmers.