Driverless Agricultural Tractors to Boost US Market
The growth originate from the US for the agricultural tractor market in North America is 77%. The US is the key market for the agricultural tractor market in North America. Market growth in this region will be slower than the growth of the market in other regions.
The growth originate from the US for the agricultural tractor market in North America is 77%. The US is the key market for the agricultural tractor market in North America. Market growth in this region will be slower than the growth of the market in other regions. The high level of farming activities in 2021 will facilitate the agricultural tractor market growth in the US over the forecast period. The agricultural tractor market in North America size is expected to increase by 25.98 thousand units from 2021 to 2026, registering a CAGR of 2.43%, according to the latest research report from Technavio.
Drivers & Challenges of Agricultural Tractor Market 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.
However, 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.
Segmentation & Revenue Generating Segment of Agricultural Tractor Market in North America
The agricultural tractor market in North America analysis includes segmentation by engine capacity and geography.
The agricultural tractor market share growth in North America by the low power segment will be significant for revenue generation. On average, a low-power agricultural tractor with 24 hp consumes about one liter of fuel per hour. This is opposed to 14 liters of fuel consumption in tractors with 150 hp. This efficiency attracts various small and mid-sized farmers to purchase low-power agricultural tractors. Thus, the popularity of low-hp agricultural tractors has increased over the years and is expected to drive market growth during the forecast period.
