Increased Demand in Forestry Applications Boosts Agriculture Compact Tractor Market Growth
With the progress of the urbanization trend, the demand for wood has increased rapidly across the world. As a result, the adoption of tractors in the woodlots and private forests is growing notably. In Europe, roundwood production increased by 3.8% in 2021, following a short decline in 2020. In 2022, the production levels reached to 510 million m3. In 2022, Germany was the leading producer of roundwood in the European Union (79 million m3), followed by Sweden and Finland (66–77 million m3). According to a new report published by the United Nations in 2022, global consumption of sawn wood, veneer, plywood, particleboard, pulp, and other primary wood products is expected to rise by 37% by 2050. Moreover, the global consumption of forest fuelwood would be in the range of 2.1–2.7 billion cubic meters by 2050, up from 1.9 billion cubic meters in 2020, representing an increase of 11–42%.
Apart from the increased wood consumption, the presence of a high number of private forests and woodlots is another factor that is driving the demand for agriculture compact tractors, particularly in North America and Europe. In addition, government-owned forests require agricultural equipment, especially tractors, for maintenance purposes. The US accounts for ~7.5% of the world’s forest area, encompassing more than 800 million acres overall. There are three types of forest ownership in the country: federal, state, and private. Federal and state governments manage public lands for conservational, production, and recreational purposes, among others. The federal government owns and administers 238.4 million acres, whereas the states, counties, and municipalities own and control 82.7 million acres. Private entities possess and manage 445 million acres, which includes both private corporate and private noncorporate ownership. Furthermore, some forested lands are designated for production and others for preservation. However, many forested lands are classified as multiple-use forestland, managed and used for a variety of purposes, including production, recreation, habitat, and aesthetics. Recognized timberland for production encompasses 521.4 million acres, whereas reserved forests that are conserved but not managed for timber harvest equal 74.2 million acres. Thus, the availability of a large number of private forests and timber-production forests, along with increased privatization and use for industrial purposes, drive the agriculture compact tractors market growth.
Agriculture Compact Tractors Market Analysis: Type Overview
On the basis of type, the agriculture compact tractors market is segmented into two wheel drive and four wheel drive. Four wheel drive type is projected to lead the market during the forecast period. 4WD small tractors make use of the dynamic movement of each wheel, which provides several advantages to operators. The adaptability provided by 4WD tractors is the primary reason for their popularity in the agricultural market. Compact tractors with four-wheel-drive capabilities can cross uneven terrain and steep hills. They offer better traction than other small tractors, allowing them to drive across wet and muddy terrain without being stuck. When moving heavy objects, the sturdy and durable front axle reduces front lifting and increases stability. The 4 Wheel Drive transmission technology boosts the tractor’s longevity by distributing weight evenly between both axle units.
The agriculture compact tractor market is primarily divided into North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). In terms of revenue, Asia Pacific dominated the agriculture compact tractor market in 2022.
The agriculture compact tractor market in Asia Pacific is further segmented into Australia, China, India, Japan, South Korea, and the Rest of Europe. China dominated the Asia Pacific agriculture compact tractor market in 2022. China is one of the world’s top rice producers and consumers, accounting for more than 40% of total rice production. Maize accounts for more than 33% of Chinese cereal production, and the country contributes 23% of worldwide maize output. Thus, strong agriculture growth along with the presence of domestic agriculture compact tractor manufacturers justify the dominance of this country in the agriculture compact tractor market in Asia Pacific. Continuous product development activities by compact tractor manufacturers in China also benefit the market. In addition, the experience and expertise of Chinese vehicle manufacturers in the electric and self-driving technology is expected to bring new agriculture compact tractor market trends in the coming years.
Agriculture Compact Tractors Market: Competitive Landscape and Key Developments
John Deere, Kubota, Massey Ferguson, Mahindra, Case IH, Montana Tractors, Fendt, and Sonalika International are among the prominent players profiled in the agriculture compact tractor market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. A few of the key developments as per press releases are mentioned below:
| Year | News | Country |
| April-2023 | Yanmar Europe showcased a comprehensive line-up of its latest Series E-587 and Series YM3 tractors. | Europe |
| June-2023 | Swaraj Tractors launched lightweight, compact tractors named Swaraj Target. | Asia Pacific |