The "U.S. Tractors Market - Industry Analysis & Forecast 2022-2028" report has been added to ResearchAndMarkets.com's offering.
In 2021, the less than 50 HP segment accounted for the largest share due to its compact size and flexible operational capabilities.
North America accounts for almost 11% of the global agriculture tractor market in terms of volume. In North America, the United States represents a high level of farm mechanization. The U.S. is a global leader in agriculture exports. Despite its high population density, the country has more than half of its area under agricultural land, covering more than 900 million acres.
The region has been increasing its production capacity to feed the ever-growing population. This increase can be attributed to the fact that the country's farmers have started to adopt farm mechanization practices and are improving their crop production by reducing the yield gap. The region has witnessed a massive increase in farm mechanization, both in terms of agricultural and industrial productivity, over the past four decades, driven by the technological renaissance.
The government is also creating strategies to enhance the welfare of farmers by converting agriculture into a viable activity by paving the way for new machinery purchases. The awareness about advanced agriculture equipment to improve per hectare yield, reduce the overall cost of crop production, and increase the income-centric inclination of farmers is boosting the sale of new machinery in the country.
MARKET TRENDS & OPPORTUNITIES
Agriculture has long been a significant source of income for the country's economy, and the government has been sustaining and empowering farmers. The government also launched several policies and missions to help farmers by providing them with financial assistance, better infrastructure, competitive crop prices, loan waivers, and subsidies such as USDA assistance and Agricultural loans.
The production of tractors for export accounts for a considerable share of the country. In 2020, almost $4 billion worth of tractors were exported from the US.
Increasing the number of technologically advanced tractors and implements is the solution to save money and time and increase yields. The government is keen on increasing the farm mechanization rate among farmers, boosting the demand and sales of new machines and equipment.
The corporations in the country are enabling small and medium-scale farmers to buy agricultural machinery for their farms on credit. Among the agriculture machinery, tractors represent more than 55% of the total machinery sold in the US.
Electric tractors are widely used in the industry for various indoor and outdoor applications. The rising trend of automation and increasing environmental concerns will accelerate growth. Farmers in developed countries are looking for these machines to reduce the cost of fuel and replace them with their standard machines.
In 2021, the less than 50 HP segment recorded high growth in the United States.
The younger generation of farmers has realized the difference in the engine's power output and the power transmitted through the PTO shaft. Farmers also know that tractors in the same HP range can provide varying HP in the PTO shaft. Such facts make potential buyers look for other options and make informed purchase decisions.
The overall market in the US is registering growth because of increased retail sales of less than 50hp. Tractors in the power range of less than 50 HP are likely to be the most significant contributors to the industry's growth in the country.
Insights By Wheel Drive: Mid-range HP 2WD dominates the US agriculture market.
Among the several models available in the country, 2WD tractors are the most favored by farmers. Ease of driving and flexibility during light loads and plain fields are significant factors boosting the demand for two-wheel-drive machines. Most retail brands, including John Deere, and Massey Ferguson, are the top preferred choices among farmers in the 2WD segment in the United States.
Insights By Region-Wise: The Midwest region shows a higher demand.
The US agriculture landscape can be divided into four regions (Northeast, Midwest, South, and West). The tractor market in the country is currently in the growth stage, and manufacturers are seeking capacity augmentation. The country's Northeast region still has little farm mechanization, and vendors can explore these regions with a portfolio of small tractors suitable for the region's rolling hills and low mountains.
Midwest and South regions reportedly show a higher demand for agriculture tractors than the country's other regions. A strong market is expected to come from the South region during the projected period.
Other Prominent Vendors
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Report Highlights
7.1 Report Coverage in Terms of Data
8.2 Increasing Adoption of Precision Farming
8.3 Government Support to Farmers
8.4 Role of Mechanization in the Agriculture Sector
8.5 Agricultural Land Holding Structures
8.6 Import & Export Analysis
8.7 Technological Advancements
8.8 Impact of COVID-19
9 Market Landscape
9.1 Market Overview
9.1.1 Major Labor Shortages in the Agriculture Sector
9.2 Market Size & Forecast
10.1 Market Snapshot & Growth Engine
10.2 Market Overview
10.3 Less Than 50 Hp
10.4 50-100 Hp
10.5 Above 100 Hp
11 Drive Type
11.1 Market Snapshot & Growth Engine
11.2 Market Overview
12.1 Market Snapshot & Growth Engine
12.2 Market Overview
13 Market Opportunities & Trends
13.1 High Local Production Capacities in the US
13.2 Development of Smart and Autonomous Tractors
13.3 Increasing Potential for Electric Tractors
14 Market Growth Enablers
14.1 Fiscal Support to Farmers Through Loans & Subsidies
14.2 Reducing Workforce Boosting Farm Mechanization
14.3 Growth in Agricultural Productivity & Exports
14.4 Socio-Demographic Changes in the US
15 Market Restraints
15.1 Climate Change Adversely Impacting Agricultural Activities
15.2 Volatility in the Cost of Raw Materials
15.3 Rising Demand for Used & Rental Tractors
16 Five Forces Analysis
For more information about this report visit https://www.researchandmarkets.com/r/i30nfp
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