TRACTOR ENGINE MARKET

KEY FINDINGS

• 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%.

INTRODUCTION

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.

TRACTOR ENGINE MARKET DYNAMICS

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.

New SA Series Utility Tractors are released by Yanmar. The SA line of versatile compact tractors from Yanmar America Corporation has been updated. Yanmar has made major performance improvements to this tough and dependable tractor model based on feedback from its owners.

The SA series of tractors are made for people who share their love of the outdoors and adhere to the principle of treating the land with respect. They have increased comfort and efficiency with this makeover of the SA series so that clients may do more on their land. Beginning in June, the US market began selling the brand-new SA series. 

The brand-new SA series guarantees precise control with an exceptional blend of strength and effectiveness. All-new SA223 models from Yanmar have a net power of 19.4 HP, SA325 models have a net power of 21.7 HP, and SA425 models have a net power of 21.7 HP. All models include Yanmar's 10 year/3000 hour limited powertrain warranty and are assembled in Yanmar's cutting-edge Adairsville factory in the United States.

With dual range speeds, differential lock as standard, and True Position Control on the 3-point hitch, the SA223 provides exceptional performance in a small tractor.Dual rear remote valves and a 12V outlet are standard on the SA325 and SA425 to make it easier to use a variety of tools and accessories, including those that use hydraulic power.

An effective and clean diesel engine The SA series is powered by Yanmar's own strong and dependable, 3-cylinder, liquid-cooled, clean diesel engine. Yanmar designs and manufactures all of its engines with Japanese engineering and quality. These tried-and-true workhorses provide lightweight, long-lasting power with low fuel consumption, clean emissions, and minimal noise and vibration.

TRACTOR ENGINE MARKET SIZE AND FORECAST 

The global tractor engine market is estimated at $XX Billion in 2023 and growing at XX% CAGR till 2030.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 IN INDIA (WORLD`S BIGGEST TRACTOR MARKET)

TRACTOR ENGINE MARKETRECENT DEVELOPMENT

The two new tractors of Solis Yanmar , theYM 342A and YM 348A,are calibrated to provide improved production and performance, according to a press statement from the business.The new YM3 series was created using Yanmar's 110-year-old expertise in diesel engines and is completely customized to meet the needs of Indian farmers and the environment there. The tractors are equipped with fully synchromesh gear, a push-button PTO, and maximum weight to meet the needs of farmers who use them for farming and other specialized applications. 

For the comfort of farmers, theYanmar YM3series has an aerodynamic hornet design, a 4-way adjustable seat, and power steering. In combination with balancer shafts, the 4-cylinder engine's Mono Plunger FIP and feather-touch 8F+8R shuttle shift transmission deliver exceptional performance by eliminating noise and vibration.

The Yanmar Supernova engine was used in the tractors to create an ideal design.For extended, fatigue-free working hours during a variety of operations, the engineers ensured that the YM series tractors delivered zero noise and zero vibration. To meet the unique needs of farmers, Solis Yanmar will keep introducing new tractor models. 

TheJohn Deereautonomous tractor's primary function is to feed people worldwide. Additionally, farmers must deal with the inherent uncertainties of farming, such as shifting weather and climate, variations in soil quality, and the presence of weeds and pests, as well as

TRACTOR ENGINE MARKETCOMPETITIVE LANDSCAPE

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.

TRACTOR ENGINE MARKET GEOGRAPHY OVERVIEW

North America 

The North American market, particularly the USA, will be one of the prime markets for (Tractor Engine) due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive. 

Europe 

The European market, particularly Western Europe, is another prime market for (Tractor Engine) due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for (Tractor Engine) are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period. 

Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe. 

There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of (Tractor Engine) in the region. 

Asia 

Asia will continue to be the global manufacturing hub for (Tractor Engine Market) over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.    

There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon. 

Africa 

Africa is expected to see the largest growth in (Tractor Engine Market) over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape. 

RoW 

Latin America and the Oceania region will showcase growth over the forecast period in (Tractor Engine Market). In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region. 

TRACTOR ENGINE MARKET MARGIN COMPARISON

INNOVATION INVESTMENTS BY REGION

USA– $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region. 

Europe– EIC is investing €1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments. 

Asia– There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia. 

Africa– Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing. 

Latin America – The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region. 

Rest of the World– The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand. 

TRACTOR ENGINE MARKETREPORT WILL ANSWER THE FOLLOWING QUESTIONS

1. Opportunity for tractor engine sub-component suppliers, by region, by OEM, 2023-2030
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