In 2021, the United States' tractor market was valued at 23.7 billion U.S. dollars. It is projected that by 2027, the size of this market will increase by a compound annual growth rate of some 0.25 percent, reaching 24.5 billion U.S. dollars.

The North American Agricultural Tractor Machinery Market Report is Segmented by Type (below 40 HP, 40-100 HP, Above 100 HP, and 4 WD Farm Tractors) and Geography (United States, Canada, Mexico, and the Rest of North America). The Report Offers the Market Size and Forecasts for Volume in (Units) and Value in (USD) for all the Above Segments.

The Report Covers Global Tractor Market is Segmented by Horsepower (Below 40 HP, 40 HP - 100 HP, and Above 100 HP), by Drive Type (Two-Wheel Drive and Four-Wheel Drive/All-Wheel Drive), and by Geography (North America, Europe, Asia-Pacific, and the Rest of the World). The Report Offers Market Size and Forecasts in Terms of Value in USD Billion for all the Above Segments.

Market Size statistics on the Tractors & Agricultural Machinery Manufacturing industry in United States

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The agricultural tractor market share in North America is expected to increase to 25.98 thousand units from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 2.43%.

This agricultural tractor market in North America research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the agricultural tractor market in North America segmentation by the following:

Engine capacity - Low power, mid-power, and high power 
Geography - US, Canada, and Mexico

The agricultural tractor market in North America report also offers information on several market vendors, including AGCO Corp., CLAAS KGaA mbH, CNH Industrial NV, Deere and Co., Escorts Ltd., Kubota Corp., Kverneland AS, Mahindra & Mahindra Ltd., SDF SpA, and Tractors and Farm Equipment Ltd. among others.

What will the Agricultural Tractor Market Size in North America be During the Forecast Period?

Download the Free Report Sample to Unlock the Agricultural Tractor Market Size in North America for the Forecast Period and Other Important Statistics

Agricultural Tractor Market in North America: Key Drivers, Trends, and Challenges

The introduction of driverless agricultural tractors is notably driving the agricultural tractor market growth in North America, although factors such as the availability of agricultural tractors on a rental basis may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the agricultural tractor industry in North America. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Agricultural Tractor Market Driver in North America

The introduction of driverless agricultural tractors is one of the key drivers supporting the agricultural tractor market growth in North America. 
The global population has seen rapid growth, accompanied by greater environmental awareness, and therefore farmers must produce more food more sustainably with the same amount of land. Ultimately, autonomous technology will make a difference in the years to come. 
The factors that will drive the adoption of autonomous tractors are freeing up skilled labor, which can be redeployed, 24/7 working capability, advanced obstacle detection, and others. Such factors are expected to drive market growth during the forecast period.

Key Agricultural Tractor Market Trend in North America

The use of telematics in tractors is another factor supporting the agricultural tractor market growth in North America. 
Telematics allows farmers to collect information regarding the operations of their tractors, the exact location of the vehicle, and the distance traveled to calculate the total utilization rate of the fleet.
Tractor companies are integrating telematics services in tractors to provide increased utility to buyers. Software companies are developing software that allows farmers to understand and manage data from telematics. 
Trimble Inc. developed Connected Farm software, which uses Farm Works software to manage the data received from the tractor's telematics.
The software uses wireless technology or cellular technology to effectively transfer the data in real-time. such developments are expected to drive market growth during the forecast period.

Key Agricultural Tractor Market Challenge in North America

The availability of agricultural tractors on a rental basis is hindering the agricultural tractor market growth in North America. 
Renting agricultural equipment is a global trend based on the needs of the farmers.
The purchase of high-cost machinery is not an option for small-scale farmers who use tractors for a period of three to six months. This is because the average time a tractor is used on the field is 120 days per year. Therefore, it is much more feasible for a small-scale farmer to rent the equipment instead of purchasing it.
As more farmers opt for agricultural tractors on a rental basis, it curtails the growth prospects of new units of agricultural tractors.

This agricultural tractor market in North America analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Agricultural Tractor Market Vendors in North America?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

AGCO Corp.
CLAAS KGaA mbH
CNH Industrial NV
Deere and Co.
Escorts Ltd.
Kubota Corp.
Kverneland AS
Mahindra & Mahindra Ltd.
SDF SpA
Tractors and Farm Equipment

North America tractor market is expected to reach 391,799 unit shipments by 2028 from 301,989 units in 2022, growing at a CAGR of 4.43%.

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US Agricultural Tractor Machinery Market Forecast 2024-2028

The US agricultural tractor machinery market size is forecast to increase by USD 3.84 billion, growing at a CAGR of 5.31% between 2024 and 2028. The growth rate of the market depends on several factors including the rising demand for food production, government support for agricultural development, and increasing availability of rental agricultural tractor machinery.

AGCO Corp. provides a range of agricultural tractor machinery, including the Fendt 1100 Vario MT tractor, Fendt 1000 Vario tractor, Fendt Cargo T955 telehandler, Fendt Cargo T740 telehandler, Fendt Katana forage harvester, Fendt Cutter mowers, and Fendt Slicer mowers. CLAAS KGaA mBH also offers, agricultural tractor machinery, featuring models such as the Crop Tiger Terra Trac combines, Dominator 40 Terra Trac combines, Crop Tiger 40 Multicrop combines, Jaguar 800 forage harvesters, and Jaguar 25 forage harvesters, among others.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamic

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Driver - Rising demand for food production

The rising demand for food production is notably driving market growth in the US. Given the rising population in the US, the demand for food is expected to rise significantly during the forecast period. Additionally, agricultural tractors serve as indispensable tools in meeting this demand by enabling farmers to efficiently cultivate larger areas of land and boost agricultural productivity. Furthermore, from soil preparation and planting to crop maintenance and harvesting, tractors streamline essential farming tasks, allowing farmers to scale up their operations to meet the growing food requirements.

Moreover, the expansion of agricultural activities into previously uncultivated or underutilized land areas also drives the demand. As urbanization in the US intensifies, there is a need to reclaim marginal lands and employ modern farming techniques to maximize their agricultural potential. Tractors enable farmers to mechanize operations in challenging terrains, such as hillsides or remote areas, thereby unlocking new opportunities for agricultural production. Hence, the increasing demand for food production will drive growth in the US during the forecast period.

Key Trends - Increasing mechanization in agriculture

The increasing mechanization in agriculture is an emerging trend shaping market growth. As tractors are versatile machines, play a pivotal role in mechanizing various farming operations such as plowing, planting, cultivating, and harvesting. Modern tractors are equipped with advanced features such as GPS guidance systems, automated steering, and precision farming technologies, which enhance operational accuracy and reduce the wastage of resources such as fuel, seeds, and fertilizers.

Furthermore, mechanized farming practices help mitigate risks associated with weather variability and labor shortages, thereby ensuring greater resilience in the face of challenges such as workforce fluctuations. Therefore, increasing mechanization in agriculture will drive the growth of the market in the US during the forecast period.

Significant Challenge - High costs of agricultural tractor machinery

The high cost of agricultural tractor machinery hampers the growth. In the case of farmers, especially those operating small to medium-sized farms, the substantial upfront investment required to purchase tractors and related equipment can be prohibitive. The average cost of machinery in the US typically ranges from USD 30,000 to USD 150,000, depending on factors such as size, horsepower, features, and brand. Also, the high cost limits the ability of farmers to invest in modern mechanized farming technologies, thereby hindering widespread adoption and market expansion.

Additionally, the high cost can exacerbate disparities in access to modern farming equipment, perpetuating inequalities within the agricultural sector. Large commercial farms or agribusinesses with greater financial resources may have the ability to invest in advanced and high-capacity tractors, giving them a competitive advantage over smallholder farmers who cannot afford similar equipment. Hence, the high costs will hinder the growth during the forecast period.

Market Segmentation by Type, Application and Geography

Type Segment Analysis:

The market share growth by the wheel tractor segment will be significant during the forecast period. It is a versatile agricultural vehicle primarily used for towing or pulling heavy loads, plowing fields, and performing other farming tasks. Furthermore, tractors come in various sizes and power ratings, depending on

Projected to expand at 6.3% CAGR over the next ten years, the global tractor market is expected to jump from a value of US$ 80.36 billion in 2024 to US$ 148.04 billion by the end of 2034, as mentioned in the updated report by Fact.MR.

Report Attribute	Detail
Tractor Market Size (2024E)	US$ 80.36 Billion
Forecasted Market Value (2034F)	US$ 148.04 Billion
Global Market Growth Rate (2024 to 2034)	6.3% CAGR
Japan Market Growth Rate (2024 to 2034)	7.1% CAGR
Market Share of 2-wheel Drive Tractors (2034F)	82.6%
North America Market Share (2034F)	16.8%
Key Companies Profiled	Deere & Co.; KIOTI Tractor; Mahindra & Mahindra Limited; Tractors and Farm Equipment Limited; JCB, Inc.; Doosan Bobcat Inc.; KUBOTA Corporation; ARGO Tractors; Escorts Limited; AGCO Corporation; New Holland; CLAAS; Caterpillar Inc.; Yanmar Co., Ltd.

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 12.67 Billion
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 21.11 Billion

Attribute	China
Market Value (2024E)	US$ 11.98 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 22.11 Billion

Category-wise Insights

Attribute	2-wheel Drive (2WD)
Segment Value (2024E)	US$ 67.42 Billion
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 122.28 Billion

Attribute	Agricultural
Segment Value (2024E)	US$ 60.62 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	USs$ 114.87 Billion

The global farm tractor market is calculated at a size of US$ 78.46 billion in 2024. As per this latest research by Fact.MR, worldwide sales of agricultural tractors are projected to increase at a CAGR of 5.3% to top US$ 131.5 billion by the end of 2034.

Report Attribute	Detail
Farm Tractor Market Size (2024E)	US$ 78.46 Billion
Forecasted Market Value (2034F)	US$ 131.5 Billion
Global Market Growth Rate (2024 to 2034)	5.3% CAGR
East Asia Market Share (2024E)	42.1%
North America Market Value (2024E)	US$ 20.16 Billion
Two-wheel Drive (2WD) Segment Value (2034F)	US$ 100.5 Billion
Up to 30 HP Segment Value (2034F)	US$ 27.1 Billion
Key Companies Profiled	Kubota Corporation; Mahindra & Mahindra Ltd.; Claas KGaA mbH; Antonio Carraro; Escorts Group; Force Motors Ltd.; New Holland Agriculture; Yanmar Co., Ltd.; Indo Farm Equipment Limited; AGCO Corporation; Argo Tractors S.p.A; CNH Industrial Österreich GmbH.

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 18.39 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 30.76 Billion

Attribute	Japan
Market Value (2024E)	US$ 8.47 Billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 14.38 Billion

Category-wise Insights

Attribute	Two-Wheel Drive (2WD)
Segment Value (2024E)	US$ 55.22 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 100.5 Billion

Attribute	Up to 30 HP
Segment Value (2024E)	US$ 15.46 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 27.1 Billion

In 2015, John Deere held the greatest share of the sales volume of tractors in the European market. 18.6 percent of all tractors sold in Europe that year were produced by this American Corporation. John Deere was followed by the FIAT-controlled company New Holland with 15.8 percent of the European tractor market share.

CNH and AGCO held together almost 45 percent of the European market for tractors in 2015

Even if John Deere on its own controlled 18.6 percent of the market in 2015, it is important to notice that New Holland, Case IH and Steyr together accounted for 24.1 percent of the market share in 2015. These three companies all belong to the Case New Holland Group (CNH). Tractor manufacturers Challenger, Fendt, Massey Ferguson and Valtra, on the other hand, are held by the American agricultural equipment manufacturer AGCO. If this AGCO Group is taken into account, John Deere is pushed to the third position. AGCO would then hold 20.7 percent of the market share with 21.1 percent for Case New Holland, AGCO’s net income for 2015 was 264 million dollars. John Deere registered alone 1941 millions of dollars .

John Deere net income also stems from a diversification of products and business segments

John Deere registered a net income that was more than double of the two AGCO ad CNH conglomerates put together. The reason behind this could be John Deere’s diversified range of products and sources of income. In 2018, the company recorded 792 millions of U.S. dollars in operating profit. John Deere also increases its net income by producing and selling construction machinery. In 2017, its sales of construction equipment were valued at around 5.72 billion dollars.

The U.S. agri-tractor market is projected to grow US$26.3 Bn by 2032 at a 6.0% CAGR, driven by tech, labor costs, and precision farming demand

The U.S. Agricultural Tractor Market size was valued at USD 32.62 billion in 2023 and is projected to reach USD 53.77 billion by 2032, exhibiting a CAGR of 7.4 % during the forecasts period. The U. S. agricultural tractor is an important component of the farming business since it supplies a variety of tractors that are required to support various activities in farming. Agricultural tractors can be used in plowing, tilling, planting and transporting crops and animals in crop and livestocks farming. They are available in different sizes and power outputs to meet the different demands of farming basing on the sizes of the farms and the level of production that one wishes to achieve. It has numerous uses such as: land preparation, plant and crop operations, and a means of transportation. Some of the trends affecting the market are growing use of technologies like GPS and IoT, the use of electrification/autonomy in tractors, and the growing trend of compact tractors for specific services. The agricultural tractor market is in a constant state of change because of the advancement in technology and incorporation of sustainable farming. Recent developments include: In August 2023, Kalmar, part of Cargotec, signed an agreement to acquire the product rights of the electric terminal tractor product line from Lonestar Specialty Vehicles (LSV) in the United States. As part of the transaction, LSV will transfer the immaterial assets for Kalmar and act as Kalmar’s contract manufacturing partner for the acquired electric terminal tractor product range. , In October 2023, Yanmar America, a leading provider of innovative agricultural and industrial solutions, is set to dazzle attendees at Equipment Expo 2023 with the debut of its cutting-edge e-tractor concept. This all-new development from Yanmar marks the first public appearance of the innovative electric tractor concept, offering users a versatile powertrain selection tailored to their specific work needs. .

The South American Tractor Market Report is Segmented by Horsepower (Below 80 HP, 81 HP To 130 HP, and Above 130 HP), Type (Orchard Tractors, Row-Crop, and Other Types), and Geography ( Brazil, Argentina, Rest of South America). The Report Offers the Market Size and Forecasts for Volume in (units) and Value in (USD) for all the Above Segments.

The U.S. agricultural tractors market, valued at $16.90 billion in 2025, is projected to experience robust growth, driven by several key factors. Increased agricultural productivity demands, fueled by a growing global population and shifting dietary preferences, necessitate the adoption of advanced farming technologies. This translates to a higher demand for efficient and powerful tractors, particularly in the higher horsepower segments (40-100 HP and above 100 HP). Furthermore, precision farming techniques and automation are gaining traction, leading to increased investment in tractors equipped with advanced GPS and sensor technologies. The market is segmented by horsepower (below 40 HP, 40-100 HP, above 100 HP) and tractor type (utility, row crop, garden & orchard, other). While the utility tractor segment currently holds a significant market share, the demand for specialized tractors like row crop and orchard tractors is also experiencing growth due to the increasing diversification of agricultural practices. Government initiatives promoting sustainable agriculture and technological advancements also contribute positively to market expansion. However, factors like fluctuating fuel prices and the overall economic climate may act as restraints on growth. Major players like Deere & Company, AGCO Corporation, and Kubota Corporation dominate the market landscape, competing on technological innovation, pricing strategies, and distribution networks. The 7.30% CAGR projected through 2033 indicates sustained market expansion. This growth is likely to be more pronounced in regions with significant agricultural output and favorable government policies. Within the U.S. market, the adoption of high-horsepower tractors is anticipated to accelerate, driven by the increasing size of farms and the demand for larger-scale operations. The market is also expected to witness increasing integration of data analytics and connectivity features, enabling farmers to optimize their operations and improve yields. Competition among established players will remain intense, with a focus on product innovation, after-sales service, and strategic partnerships to consolidate market share and gain a competitive edge. The continued focus on sustainability and efficiency within agricultural practices will shape product development and innovation strategies, further fueling the growth of the U.S. agricultural tractors market. Recent developments include: February 2023: CLAAS launched the XERION tractor line with powertrain modifications, enhanced hydraulic flow, and increased versatility.March 2023: CNH Industrial purchased Augmenta Company to accelerate the growth of their innovative Sense & Act technology in agriculture. This is an important development for the agriculture business that will further support dealers by differentiating equipment through value-added technology.April 2022: Kubota North America Corporation (KNA) expanded the new 280-acre, Research and Development Center in the state of Georgia, United States, to meet the needs of tractors for North American customers. Kubota has invested more than USD 85 million to bring the new facility online, and it will open with 70 engineering and technical employees.. Key drivers for this market are: Technological advancements drive Market Growth, Shortage of Labor In the Agriculture Sector; Government Support to Enhance Farm Mechanization. Potential restraints include: Technological advancements drive Market Growth, Shortage of Labor In the Agriculture Sector; Government Support to Enhance Farm Mechanization. Notable trends are: Increasing Cost of Farm Labor Driving Demand for Tractors.

The tractor market in Latin America is expected to reach volumes of around 87 thousand units by 2023, growing at a CAGR of more than 4% during 2018-2023.

Horsepower range: Tractors with horsepower below 40 HP are popular for small-scale farming and landscaping applications. Tractors in the 40-100 HP range are versatile and widely used in various farming operations. Above 100 HP tractors are employed for heavy-duty tasks such as plowing and harvesting.Tractor type: Utility tractors are multi-purpose machines used for a variety of tasks, including cultivating, planting, and harvesting. Row crop tractors are designed for row crop cultivation, while garden & orchard type tractors are specialized for use in vineyards and orchards. Other tractor types include compact tractors and crawlers. Recent developments include: December 2022: CNH Industrial has introduced new Automation and Autonomy Solutions to its Ag Tech portfolio in Phoenix, Arizona, USA. These innovations, including Driverless Tillage and Driver Assist Harvest solutions from Raven, as well as Baler Automation from Case IH and New Holland, aim to enhance equipment automation and autonomy. The implementation of these technologies seeks to address farmers' productivity challenges and improve overall efficiency in agricultural operations., April 2022: Deere & Company and GUSS Automation have collaborated to establish a joint venture with an LLC in Kingsburg, California. Global Unmanned Spray System (GUSS) specializes in semi-autonomous sprayers designed for orchards and vineyards.. Key drivers for this market are: Rising demand for agricultural products Government initiatives supporting agriculture. Potential restraints include: High initial investment costs Fluctuations in commodity prices. Notable trends are: Adoption of digital farming technologies Increasing use of alternative fuels.

In 2023, the global tractor market was valued at around 57 billion U.S. dollars. This represents an increase of two percent compared with the previous year.

Autonomous Tractors Market size is expected to be worth around USD 10.6 Bn by 2034 from USD 2.0 Bn in 2024, growing at a CAGR of 18.2%

The Report Covers the Global Used Tractors Market and is Segmented by Horsepower (Below 40 HP, 40 HP - 100 HP, and Above 100 HP) and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The Report Offers Market Size and Forecasts for all the Above Segments in Terms of Value (USD).

A tractor is a machine used for agricultural purposes and other tasks in fields. There are a variety of horsepower segments available for agricultural tractors, ranging from less than 50 HP to 50–100 HP, and more than 100 HP.

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Market Size
Forecast Market Size
CAGR
Fastest Growing Segment
Largest Market
Key Players