Mobility Foresights


Global Tractor Engine Market 2019-2025

April 20, 2021
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  • Standard and articulated tractors across the globe continue to get an increase in power as the implements become wider, larger, and heavier and continued demand is expected to further increase the working speed.
  • OEMs are losing interest in Dual fuel-powered tractors (CNG & Diesel) with the focus now shifting towards hybrid models.
  • At least 10 out of 35+ tractor manufacturers globally have plans to introduce electric/hybrid tractors by 2023.
  • European agricultural equipment industry sales volumes for the year 2020 were down in all segments, however, the market started recovering by the second half of the year.
  • In North America with the COVID-19 impact, the industry required some flexibility for machines to be fitted with transition engines already manufactured and procured before the crisis.
  • From the past four decades, the tractor industry in India has been growing at a compound annual growth rate (CAGR) of 10%.



Agriculture mainly depends upon farm mechanization and farmers. Penetration of tractors is imperative. The tractor is a means of production, cultivation, transport, construction, electricity generation, and is also used for non-agricultural purposes.

In addition to agricultural, social and economic growth drivers of mechanization, macroeconomic and intrinsic factors.

Growing population and demand, urbanization, surge in tractor exports, improved flow of engine technologies is also necessitating the adoption of mechanized solutions.


India, China and US are the top 3 tractor markets globally, accounting for ~60% share of global tractor sales. The European farm tractor market retails about 180,000-200,000 units annually.

In US, after tier- 4 emission standards phased out in 2015, cooled EGR, DPF and DOC became a standard fitment, Now the replacement market for SCR and DPF cleaning has become bigger.

European Institutions rightly amended the most urgent aspects of Stage V Regulation and extended deadlines for the production and placing on the market of NRMM and tractors fitted with transition engines <56 kW and ≥130 kW by 12 months till December 31, 2020.

In 2020, due to the disruption of the supply chain, the production schedule of the tractor facilities was not able to return to regular production. Orders received from the domestic market were far more satisfactory than in 2019, which has been a rather bad year. Moreover, the market demand is ahead of supply in many tractor models for now.

It remains to be seen if tractor registrations will confirm this return to pre-COVID levels for the second half of the year and if the lost business for the first half will be even partly recovered.




The global tractor engine market is estimated at $XX Billion in 2020 and growing at XX% CAGR till 2025.

In Europe and North America, Variable geometry turbo-equipped engines have been growing in volume. Compact emission treatment units including selective catalyst reduction, diesel particulate filter and diesel oxidation catalyst are also gaining prominence.

In terms of engine specs, the tractors in Asia are vastly different from their European and American counterparts. Markets of India and China are dominated by low-power output tractors(<40hp) whereas the US and European markets are dominated by >50hp tractors.





Tractor sales in India in past four years have grown by 12% CAGR but in FY 2019 the industry will de grow




New Holland is investing in new products by expanding its machinery solutions. They also highlighted some of the new products which are planned to hit the market in the first half of 2021. Methane-Powered Tractor will be delivered to select customers in Europe before entering the product range later in the year.


Companies are widely acknowledging the most effective and fuel-efficient methods of meeting present and future EPA emissions requirements. The technology has already been proven in Europe and by introducing it early, customers will have the opportunity to reduce their fuel use and improve their overall productivity. It also gives the number of farm equipment makers a head start on the competition.


The partnerships will be formed to test a new bio-methane tractor prototype as well as electrification of implements for vineyards and orchards. The AGCO’s tractor is powered by a methane-fuelled engine developed with sister brand FPT Industrial which provides diesel-like performance. The use of methane helps to reduce emissions; the engine also offers noise reductions and lower operating costs.


  1. Fiat Powertrain Technologies
  2. Kubota
  3. CNH Industrial
  4. John Deere
  5. Mahindra
  6. Escorts
  7. Cummins
  8. CASE New Holland
  9. Hubei Fotma Machinery Co. Ltd
  10. New Holland Agriculture
  11. Swaraj
  12. TAFE
  13. Sonalika
  14. Escorts
  15. Massey Ferguson
  16. Kubota
  17. VST
  18. Deutz Fahr
  19. Case IH
  20. CLAAS
  21. STEYR
  22. Challenger
  23. Yanmar
  24. FPT
  25. Mercedes-Benz
  26. MAN
  27. SDF
  28. Deutz AG
  29. Simpson



  1. Opportunity for tractor engine sub-component suppliers, by region, by OEM, 2019-2025
  2. Sales breakdown of global tractor sales by engine type, output, and model
  3. Upcoming tractor models, by powertrain
  4. Revenue growth and strategic analysis of tractor engine manufacturers globally
  5. Opportunities in the tractor engine after-treatment market
Sl no Topic
1 Market Segmentation
2 Scope of the report
3 Abbreviations
4 Research Methodology
5 Executive Summary
6 Introduction
7 Insights from Industry stakeholders
8 Cost breakdown of Product by sub-components and average profit margin
9 Disruptive innovation in the Industry
10 Technology trends in the Industry
11 Consumer trends in the industry
12 Recent Production Milestones
13 Component Manufacturing in US, EU and China
14 COVID-19 impact on overall market
15 COVID-19 impact on Production of components
16 COVID-19 impact on Point of sale
17 Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18 Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19 Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20 Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21 Product installation rate by OEM, 2020
22 Incline/Decline in Average B-2-B selling price in past 5 years
23 Competition from substitute products
24 Gross margin and average profitability of suppliers
25 New product development in past 12 months
26 M&A in past 12 months
27 Growth strategy of leading players
28 Market share of vendors, 2020
29 Company Profiles
30 Unmet needs and opportunity for new suppliers
31 Conclusion
32 Appendix


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