Asia Pacific Agricultural Tractors Market Report and Forecast 2025-2034

Asia Pacific Agricultural Tractors Market Size

The Asia Pacific agricultural tractors market is projected to grow at a CAGR of 3.50% between 2024 and 2032.

Asia Pacific Agricultural Tractors Market Outlook

• The Agriculture Infrastructure Fund (AIF) surpassed Rs. 30,000 crores in fund mobilization for agricultural projects as of January 2023. 

• In March 2024, Japanese agricultural equipment builder ‘Kubota’ announced that they are considering the idea of making in-house batteries for the electric versions of their farm equipment, due to the rising demand.

• According to industry reports from January 2024, ‘John Deere’, an American company that manufactures agricultural machinery, expects to launch autonomous battery-powered electric tractors in Australia in the year 2026.

Asia Pacific Agricultural Tractors Market Growth

The large areas of agricultural land and integration of advanced features such as GPS tracking into tractors propels the market growth. According to the World Bank, 60.05% of India's land area was used for agriculture in 2021. Meanwhile, China's agricultural land was estimated to be 55.46% in 2021. Rising number of tractors are further supporting the market.

Also positively influencing the Asia Pacific agricultural tractors market revenue is the consistent support from the governments. Regional governments are increasingly investing in the agriculture sector in terms of both infrastructure and research and development. In July 2020, India’s Agriculture Infrastructure Fund (AIF) was introduced which aims to provide all-around financial support to farmers, Agri-entrepreneurs, and farmer groups across the country.

Additionally, the market's key competitors are producing new goods in response to the growing demand from developing nations. For example, the third-largest tractor manufacturer, Tractors and Farm Equipment (TAFE), located in Chennai, introduced its new Dynatrack Series in February 2021. This series includes an advanced range of tractors that offers dynamic performance, sophisticated technology, unmatched utility and versatility, all engineered into a single powerful tractor.

Key Trends and Recent Developments

Food security concerns, rise in adoption of smart and sustainable technology solutions, as well as growing regional exports are accelerating the Asia Pacific agricultural tractors market value.

August 2024

Escorts Kubota, an acquired Indian subsidiary of the Japanese Agriculture Company, Kubota has submitted its investment plan of Rs.4,500 crores to one of India’s most agriculture-rich state, Uttar Pradesh. The intent is to acquire around 200 acres of land in the state to set up a new tractor manufacturing facility and begin production by 2028. The production will meet Kubota’s increasing agriculture tractors demand in entire Asia-Pacific region.

July 2024

TAFE Motors and Tractors Ltd., world’s third largest third largest tractor manufacturer based in India, has partnered with DUETZ AG, a German-based global leader in internal combustion engine manufacturing. The partnership will be executed in Alwar, Rajasthan (India), where the two will manufacture 30,000 DEUTZ range engines in 50-75 hp and 75-100 hp under license. While DUETZ will gain access to the Asia-Pacific Market through this move, TAFE will gain access to DUETZ’s world-class engine technologies.

March 2024

Leading futuristic Agriculture-tech company Daedong Group, based in South Korea, announced the development of its concept tractor, D-ACT on March 7, 2024. The tractor is the first of its kind to win the IF Design Awards in the Product and Professional Concept Categories from Asia due to its capability of functioning simultaneously as an ultra-compact mobility and agricultural robot. Mobility can detach from the tractor and function as a mode of transport, while the main unit can be used as an autonomous agricultural robot powered by AI.

October 2023

Weichai and Lovol, leading manufacturers of intelligent agricultural equipment globally, jointly released for the first time their tractor CVT series for intelligent agricultural application scenario at the International Agriculture Machinery Annual Professional Exhibition, 2023 held in China. The series covers 220-380 HP tractors that meet all operational needs such as large-scale ploughing, planting, and straw treatment with high torque reserve Weichai brand engine, the updated cab with A/C offering a panoramic view, ergonomic design makes operations easy and convenient.

Food Security Concerns Will Propel Agriculture Tractors Demand Growth

The increasing food security concerns due to rising global population will be a major driver of the market. The most populous countries in the world, China and India, are located in the Asia Pacific region, which is home to 60% of the world's population, or 4.3 billion people. As per industry reports, India's growing population, increasing labour costs, and shrinking cultivable land generate a need to mechanize the sector and shift to more efficient ways of farming and cultivating crops.

Increased Adoption of Smart Technology will Enhance Efficiency of Agriculture Tractors

The market is witnessing a drastic increase in the adoption of tractors with smart technology and farm data management tools. To cater to this demand, leading tractor manufacturers in the region such as New Holland have come up with their best-selling T3.50 tractors powered with the latest technology in precision farming and tools for real-time farm data management, alongside a diverse portfolio of autosteer solutions. Farmers, owners, and operators of TT3.50 tractors will easily track and optimise their machinery fleet and manage operation data from anywhere at any time.

Use of Electric Tractors Will Cater to Growing Awareness about Ecological Sustainability

To address the concerns of sustainable agriculture development, countries in the Asia Pacific region are witnessing increased use of electric tractors. The huge demand is being met by industry leaders such as the Silicon Valley-based Monarch Tractors and its development of world’s first fully electric, driver-optional, autonomously operating MK-V tractor range.

Rising Exports Will Increase Agriculture Tractor Industry Revenue

The Asia Pacific region is experiencing increased exports of farm tractors owing to new launches from leading manufacturers such as Mahindra and Mahindra. The company, which already has manufacturing bases in India, Japan, and Australia is planning to double its exports by 2027, through entry into major ASEAN markets such as Thailand, Indonesia, and the Philippines with its new lightweight tractor brand Oja.

Asia Pacific Agricultural Tractors Industry Segmentation

‘Asia Pacific Agricultural Tractors Market Report and Forecast 2024-2032’ offers a detailed analysis of the market based on the following segments.

Market Breakup by Engine Power

• Less Than 40 HP

• 41 to 100 HP

• More Than 100 HP

Market Breakup by Type

• Orchard Tractors

• Row-Crop Tractors

• Others

Market Breakup by Propulsion

• Electric

• ICE

Market Breakup by Country

• China

• Japan

• India

• ASEAN

• Australia

• Others

Asia Pacific Agricultural Tractors Market Share

Based on propulsion, electric tractors hold a significant share in the market. A greater focus is being paid by tractor manufacturers to the development of electric tractors as a greener option. Electric tractors are a cost-effective solution with less maintenance needs and offer excellent compliance with changing regulatory demands. This change demonstrates the agricultural sector's dedication to sustainability and is in line with international initiatives to lower carbon emissions and advance environmentally friendly farming technologies.

Leading Companies in Asia Pacific Agricultural Tractors Market

The market players are increasingly incorporating newer technologies in the manufacturing of tractors to stand out in the market.

• Kubota Corp. 

• CLAAS KGaA GmbH  

• Yanmar Holdings Co., Ltd.  

• CNH Industrial N.V.  

• ISEKI & Co., Ltd.    

• Truong Hai Group Corporation   

• Mahindra And Mahindra Ltd.  

• AGCO Corp.  

• Deere & Co.  

• Vietnam Engine and Agricultural Machinery Corporation  

• Tractors and Farm Equipment Limited  

• Others

Key Highlights of the Report

Asia Pacific Agricultural Tractors Market Report Snapshots

Asia Pacific Agricultural Tractors Market Size

Asia Pacific Agricultural Tractors Market Growth

Asia Pacific Agricultural Tractors Market Share

Asia Pacific Agricultural Tractors Companies