The tractor implements market is driven by the need to reduce time, cost, and labor on agricultural lands to improve land productivity. Tractor is one of the major agriculture equipment used globally. Different types of implements are attached to tractors during various phases of farming, which efficiently reduces the production cost and time. With an increase in the harvested area for cultivating crops such as rice, soybean, barley, and wheat, particularly in developing regions, the demand for tractor implements is increasing globally. For instance, according to the FAO, the production of corn is projected to increase by nearly 600% to reach 1.2 billion MT by 2027. This production is mainly projected to be witnessed in countries such as China and Brazil. Increase in the harvested area would further lead to the growing use of agricultural equipment. Due to these factors, the demand for agricultural equipment is projected to grow, particularly in developing countries in the next decade. The tractor implements market is projected to reach USD 76.1 billion by 2023, at a CAGR of 5.84% from USD 57.3 billion in 2018.
Governments in various countries are promoting agricultural mechanization for sustainable production by offering subsidies, tax exemptions, and investments. For instance, Sub-Mission on Agricultural Mechanization (SMAM) was initiated by the government of India in the year 2014-15, to promote agricultural mechanization in which training, testing, and demonstration of agricultural machinery and procurement subsidy was given to farmers. According to the Ministry of Agriculture and Rural Affairs of China, between 2005 and 2015, the country had offered USD 20.7 billion of subsidies to encourage the purchase of agricultural machineries. These factors further encourage farmers to purchase tractor implements.
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Shortage of farm labor and employment shift from traditional farming to other manufacturing and service sectors has fueled the pace of agricultural mechanization. These factors have encouraged farmers to use agricultural equipment and implements to perform agricultural practices in an efficient and better way. Thus, the shortage of farm labor has ultimately resulted in high demand for tractors and tractor implements, particularly in developed economies such as North America and Europe. In addition, the increasing acceptance of new technologies and higher labor cost in the countries of Europe and North America are the major factors that drive the market growth. However, in various developing economies, it is difficult for the farmers to invest in modern agricultural machineries, which is projected to inhibit the market growth over the coming years.
On the basis of phase, the irrigation and crop protection segment is projected to witness the highest growth from 2018 to 2023, due to their high demand in various phase operations. The demand for advanced agricultural techniques remains high in various regions such as the Asia Pacific and South America, where farmers are switching from traditional methods to advanced agriculture methods.
The Asia Pacific is projected to witness the fastest growth in the tractor implements market from 2018 to 2023. The growth of the agricultural sectors in countries such as India, Japan, and China is projected to promote market growth in the region. Increasing food demand and labor shortage have driven the growth of the tractor implements market in the Asia Pacific region. In addition, cultivation in this region is also supported by diverse climatic conditions, which leads to multiple crop growing sessions in a year.
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Rice cultivation and the predominance of small-scale manufacturers are widely seen in various countries of the Asia Pacific region. Moreover, crops such as rice, palm, and cotton are widely produced by farmers in several Southeast Asian countries. India is one of the largest manufacturers of agriculture equipment. Increasing demand for high productivity, labor shortage due to migration, increase in agricultural exports, and an increase in the labor cost are some factors encouraging farm mechanization in India. Therefore, the adoption rate of farm mechanization has increased exponentially in the last few years.
