Published on : Jan 18, 2016
A tractor is a vehicle that is specifically designed and manufactured to deliver a very high tractive effort at a very slow speed. It is used as a comprehensive machinery in agriculture. In the global agricultural equipment industry, a farm tractor is considered as the most important machinery and accounts for the largest share. Farm tractors are one of the most comprehensive equipments that is used for farming processes. Use of farm tractors helps in reducing the labor work and also produces a high output if compared to that of human labor.
The tremendously increasing demands of farmers over the past few decades have resulted in constant evolution and enhancement of farm tractors and other agricultural equipment. As a result, agricultural practices around the world are being mechanized at a very fast pace and advanced engineered farm tractors are being manufactured in order to provide increased output.
The global farm tractors market have been observing high growth in recent years; however the market had faced some ups and downs during 2008 and 2009 recession. The high demand for agricultural produce is the key factor that is expected to boost the demand for farm tractors in the global market in the next few years. On the other hand, in most of the developed nations, the high demand for high-end features in tractors such as HID lighting, cab suspension, and automated steering results in high cost of production, which is one of the major factors hampering the growth of this market in the coming years.
Talking about major geographies, Asia Pacific accounts for the largest share in the global farm tractors market. Asia Pacific is then followed by North America owing to the large scale farming done in these regions. The large farms in the U.S. demand for high power farm tractors; whereas, in India and China, low power farm tractors are in high demand.
The rapid growth of the global farm tractors market has encouraged many new entrants to be a part of this market and expand their product portfolio. Some of the prominent players operating in this market across the globe are AGCO, Escorts Group, and Kioti Tractor Division Daedong-USA.