Global Forestry and Agricultural Tractor Market By Type (4WD, 2WD), By Application (Agricultural, Forestry), By Region, And Segment Forecasts, 2023 to 2029

Agricultural and forestry tractors are special trucks that are designed to provide the highest level of strength at low speeds which makes them ideal for use in different areas that are challenging. In the agricultural sector they are used during planting, harrowing, disking, ploughing and tilling. In the forestry sector they are used in chipping as well as harvesting and removing timber. Some of the tools that can be installed on tractors include feller bunchers, chippers, forwarders, tedders, skidders, balers, field sprayers, field choppers, beet or potato harvesters, combine harvesters, seed drills, sugar cane harvesters, and compost turners, among others.

Market Drivers

Government Regulation Promoting Market Advancement

Accelerating market growth is anticipated by government efforts to introduce modern agricultural technologies. It is this increase in demand for mechanized farming and consequent reduction in human labor that will fuel such expansion. Moreover, research and development initiatives are moving at an alarming rate while machinery becomes more important as well as technology in agricultural practices and this too is expected to stimulate the market.

Advantages of Equipment

The diverse advantages of farm and forest tools will stimulate the market. They are particularly suitable for shoving, dragging, manipulating or lifting many implements, as the demand for enhanced energy utilization will predominantly influence an increase in market size. Furthermore, there is an increasing demand for types of tractors that are not only small but also easy to drive during construction works within urban spaces such as gardens. The adaptability and force of these tools makes them necessary for use in farming and woodland. 

Market Restraints

High Equipment Costs

Market growth is expected to be hindered by high equipment costs as well as an increase in maintenance expenses. Furthermore this kind of tractors could lose appeal because their performance might not matter when there isn't enough qualified personnel who know what they are doing.

Market Opportunities

There are significant opportunities for the tractor market because it is being used more than ever before for both efficient and sustainable farming or forestry methods. Tractor capabilities continue to improve from technological advancements alone like automation; GPS guided systems, all these things make for increased interest from agriculture industry players who want increased levels of production at minimized expense levels. The expansion of market opportunities through the development of electric and hybrid tractors supports worldwide aims for sustainability. The increasing activity around agriculture in Asia and Africa calls for massive growth of these countries with governments taking huge strides towards improving farming infrastructure most especially new or repair works on communication lines.

Market by System Type

Drive Systems: There are two types of systems used in the current market, 2WD or 4WD which have become well-known for better grip. 

Engine Systems: However, although diesel engines mostly remain in use there is an increasing usage of electricity and hybrid alternatives as requested by the need for continued existence. 

Transmission Systems : Continuously variable transmission (CVTs) that are fuel-efficient are becoming popular.

Hydraulic Systems: Advanced hydraulic systems enhance the capacity for lifting objects. 

PTO Systems: Power Take Off systems are important for powering different implements without problems. 

Control and Monitoring Systems: These involve GPS guidance, telematics, and IoT connectivity to help with precision farming and do real time performance monitoring.

Market by End Use

Farmers use tractors in planting, harvesting, tilling, and plowing. The use of precision agriculture technologies improves productivity and efficacy. In forest farming, tractors cultivate forest resources, transport logs and clear lands necessitating powerful and durable machines that can work in severe conditions. “In agriculture, tractors are used for planting, harvesting, tilling, and plowing. Precision farming technologies enhance productivity and efficiency. In forestry, tractors handle forest resources, move logs, and clear land, requiring strong, durable vehicles capable of operating in challenging conditions.” In both industries, the demand for versatile tractors that can handle different attachments and tools increases. There is also a rising inclination towards environment friendly and low fuel consuming tractors powered through sustainable practices and environmental laws. Growing agricultural activities as well as national drives to improve farming and forest infrastructure programs have seen developing countries’ emerging markets grow significantly.”

Market by Region

Asia Pacific 

The reason why Asia Pacific is projected as the area having the highest market stake is because farmers now know more about it; apart from that, people eat more which has led to escalation in food security issues coupled with a rise in population. High income level on average and advanced agricultural methods being used will add to the rate at which the market grows in this region.

North America

In North America, the extreme demand for tractors for agricultural purposes is anticipated to lead to considerable market growth. Market growth is expected to be driven by increased land cultivation demands and rising application of machinery in farming activities.

Competitive Scenario

The market study includes profiles of leading companies in the forestry and agricultural tractor sales market, evaluating their financial statements, key developments, strategic approaches, and market positions. The competitive landscape analysis covers partnerships, mergers and acquisitions, new product launches, and regional market presence.

Scope of Work:

Market Segmentation:

By type:

·        Overview

·        Wheeled Tractors

·        Track Tractors

By geography:

North America

·        The U.S.

·        Canada

Europe

·        France

·        The UK

·        Spain

·        Germany

·        Italy

·        Rest of Europe

Asia Pacific

·        China

·        Japan

·        India

·        South Korea

·        Southeast Asia

·        Rest of Asia Pacific

Latin America

·        Brazil

·        Mexico

·        Rest of Latin America

Middle East & Africa

·        GCC

·        South Africa

·       Rest of Middle East & Africa

By system type:

The forestry and agricultural tractor market segmentation by system type includes:

·        Drive System

·        Engine System

·        Transmission System

·        Hydraulic System

·        PTO (Power Take Off) System

·       Control and Monitoring Systems

By end use:

·        Agricultural

·       Forestry

Key Developments:

• In November 2022, a long-term agreement was signed between CNH Industrial N.V and Monarch Tractor for the development of fully electrified self-driving tractors. 

• The New 700 Vario Series from AGCO Corporation was launched in North America in August 2022 with state-of-the-art features. 

• In March 2021, CLAAS KGaAmbH presented the CLASS ARION 400 tractors featuring 4-valve technology and turbochargers.

• Kubota Corporation: An electric small tractor, the LXe261 is manufactured it by European companies in September 2023. 

• Mahindra & Mahindra Ltd.: In July 2022, they launched another series called Yuvo Tech+ which has more powerful and elegant tractors. 

• Tractors & Farm Equip Ltd: They introduced EICHER PRIMA G3 Series for the future with advanced cooling technology-May 2022.

FAQs

Q1. How big is the forestry and agricultural tractor market in 2031?

The global forestry and agricultural tractor market is expected to reach USD 134516.16 million by 2031.

Q2. At What CAGR the forestry and agricultural tractor market is expected to grow in the forecast period 2031?

The forestry and agricultural tractor market is expected to exhibit a CAGR of 3.9% by 2031.

Q3. What factors are driving the forestry and agricultural tractor market?

Drivers of this forestry and agricultural tractor market are increasing government regulation and benefits associated with equipment.

Q4. Who are the key players in the forestry and agricultural tractor market across the world?

Deere, New Holland, Kubota, Mahindra, Kioti, CHALLENGER, Claas, CASEIH, JCB, AgriArgo, Same Deutz, Fahr, V.S.T Tillers, BCS, Zetor, Tractors and Farm Equipment Limited, Indofarm Tractors, Sonalika International, YTO Group, LOVOL, Zoomlion, Shifeng, Dongfeng Farm, Wuzheng, Jinma, Balwan Tractors (Force Motors Ltd.), AGCO, and Grillp Spa.