Tractor Market

The global tractor market is expected to see an upward consumption trend, with an anticipated CAGR of +2.6% in volume and +4.1% in value from 2022 to 2030. China leads in both consumption and production, followed by the United States and India. Ireland recorded the highest growth rate in market size. Agricultural and forestry tractors dominate exports, with road tractors for semi-trailers and pedestrian-controlled tractors following. Average import prices varied by product type, with crawler tractors being the highest priced. The average export price per unit increased by 14% in 2022, with Mexico having the highest export price and Thailand the lowest.

Market Forecast

Driven by increasing demand for tractors worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.6% for the period from 2022 to 2030, which is projected to bring the market volume to 6.4M units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.1% for the period from 2022 to 2030, which is projected to bring the market value to $172.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Tractors

Global tractor consumption fell slightly to 5.3M units in 2022, reducing by -3.9% against the previous year. The total consumption volume increased at an average annual rate of +2.1% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed in certain years. As a result, consumption reached the peak volume of 5.5M units, and then reduced slightly in the following year.

The global tractor market value reduced slightly to $124.4B in 2022, waning by -4.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.5% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. As a result, consumption attained the peak level of $130.2B, and then fell in the following year.

Consumption By Country

China (1.1M units) constituted the country with the largest volume of tractor consumption, accounting for 21% of total volume. Moreover, tractor consumption in China exceeded the figures recorded by the second-largest consumer, the United States (482K units), twofold. The third position in this ranking was taken by India (424K units), with an 8.1% share.

In China, tractor consumption increased at an average annual rate of +2.8% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: the United States (+3.9% per year) and India (+4.0% per year).

In value terms, the largest tractor markets worldwide were the United States ($20.2B), China ($13.8B) and Brazil ($9.8B), together accounting for 35% of the global market. Belgium, Ireland, Pakistan, India, Germany, France, Mexico, Indonesia, Ethiopia and Japan lagged somewhat behind, together comprising a further 31%.

Among the main consuming countries, Ireland, with a CAGR of +48.7%, recorded the highest growth rate of market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of tractor per capita consumption was registered in Ireland (56 units per 1000 persons), followed by Belgium (18 units per 1000 persons), Mexico (1.7 units per 1000 persons) and France (1.5 units per 1000 persons), while the world average per capita consumption of tractor was estimated at 0.7 units per 1000 persons.

In Ireland, tractor per capita consumption expanded at an average annual rate of +50.8% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Belgium (+25.2% per year) and Mexico (+1.3% per year).

Production

World Production of Tractors

In 2022, approx. 4.6M units of tractors were produced worldwide; with a decrease of -4.9% compared with the previous year. Overall, production, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2018 when the production volume increased by 17% against the previous year. As a result, production attained the peak volume of 4.9M units. From 2019 to 2022, global production growth remained at a lower figure.

In value terms, tractor production contracted to $85.7B in 2022 estimated in export price. In general, production recorded a mild shrinkage. The pace of growth was the most pronounced in 2018 when the production volume increased by 15%. As a result, production reached the peak level of $109.6B. From 2019 to 2022, global production growth failed to regain momentum.

Production By Country

China (1.3M units) remains the largest tractor producing country worldwide, accounting for 28% of total volume. Moreover, tractor production in China exceeded the figures recorded by the second-largest producer, India (539K units), twofold. The third position in this ranking was held by Mexico (300K units), with a 6.6% share.

From 2012 to 2022, the average annual growth rate of volume in China amounted to +3.2%. In the other countries, the average annual rates were as follows: India (+4.1% per year) and Mexico (+3.9% per year).

Imports

World Imports of Tractors

After two years of growth, purchases abroad of tractors decreased by -8.6% to 2.7M units in 2022. In general, imports, however, posted buoyant growth. The most prominent rate of growth was recorded in 2021 when imports increased by 74% against the previous year. As a result, imports attained the peak of 2.9M units, and then fell in the following year.

In value terms, tractor imports contracted slightly to $60.2B in 2022. The total import value increased at an average annual rate of +2.0% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 when imports increased by 39% against the previous year. As a result, imports attained the peak of $62.1B, and then shrank in the following year.

Imports By Country

The countries with the highest levels of tractor imports in 2022 were Belgium (358K units), the United States (346K units) and Ireland (290K units), together amounting to 37% of total import. Romania (102K units), Spain (98K units), France (96K units), the Netherlands (80K units), Canada (79K units), Germany (70K units), Poland (67K units), Italy (47K units), Ukraine (44K units) and the Philippines (44K units) took a minor share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Ireland (with a CAGR of +50.8%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($14.6B) constitutes the largest market for imported tractors worldwide, comprising 24% of global imports. The second position in the ranking was taken by France ($4.1B), with a 6.8% share of global imports. It was followed by Canada, with a 6.2% share.

In the United States, tractor imports expanded at an average annual rate of +6.2% over the period from 2012-2022. In the other countries, the average annual rates were as follows: France (+3.0% per year) and Canada (-0.9% per year).

Imports By Type

Agricultural and forestry tractors was the key type of tractors in the world, with the volume of imports resulting at 1.6M units, which was near 60% of total imports in 2022. Road tractors for semi-trailers (731K units) held a 28% share (based on physical terms) of total imports, which put it in second place, followed by pedestrian-controlled tractors (12%).

From 2012 to 2022, average annual rates of growth with regard to agricultural and forestry tractors imports of stood at +5.4%. At the same time, pedestrian-controlled tractors (+8.0%) and road tractors for semi-trailers (+5.1%) displayed positive paces of growth. Moreover, pedestrian-controlled tractors emerged as the fastest-growing type imported in the world, with a CAGR of +8.0% from 2012-2022. Pedestrian-controlled tractors (+2.4 p.p.) significantly strengthened its position in terms of the global imports, while the shares of the other products remained relatively stable throughout the analyzed period.

In value terms, the largest types of imported tractors were agricultural and forestry tractors ($29.8B), road tractors for semi-trailers ($28.3B) and crawler tractors ($1.7B), with a combined 99% share of global imports.

In terms of the main imported products, agricultural and forestry tractors, with a CAGR of +3.5%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other products experienced more modest paces of growth.

Import Prices By Type

In 2022, the average tractor import price amounted to $22,625 per unit, picking up by 5.9% against the previous year. In general, the import price, however, showed a noticeable reduction. The growth pace was the most rapid in 2016 when the average import price increased by 22%. Over the period under review, average import prices hit record highs at $35,477 per unit in 2018; however, from 2019 to 2022, import prices stood at a somewhat lower figure.

Prices varied noticeably by the product type; the product with the highest price was crawler tractors ($131,120 per unit), while the price for pedestrian-controlled tractors ($1,255 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by agricultural and forestry tractor (-1.8%), while the other products experienced a decline in the import price figures.

Import Prices By Country

In 2022, the average tractor import price amounted to $22,625 per unit, with an increase of 5.9% against the previous year. Overall, the import price, however, saw a perceptible setback. The most prominent rate of growth was recorded in 2016 an increase of 22% against the previous year. Over the period under review, average import prices reached the peak figure at $35,477 per unit in 2018; however, from 2019 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Italy ($49,672 per unit), while Ireland ($1,101 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ukraine (+5.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Tractors

In 2022, shipments abroad of tractors decreased by -12.1% to 2M units for the first time since 2019, thus ending a two-year rising trend. The total export volume increased at an average annual rate of +2.7% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 with an increase of 41% against the previous year. As a result, the exports attained the peak of 2.2M units, and then declined in the following year.

In value terms, tractor exports amounted to $63.1B in 2022. The total export value increased at an average annual rate of +1.5% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2021 when exports increased by 36% against the previous year. Over the period under review, the global exports hit record highs in 2022 and are likely to see gradual growth in the near future.

Exports By Country

The Netherlands (189K units), China (165K units), Belgium (151K units), Japan (134K units), Germany (132K units), India (129K units), Thailand (110K units), the United States (104K units), Mexico (98K units), South Korea (96K units), France (90K units) and the UK (84K units) represented roughly 75% of total exports in 2022. Italy (71K units) took a little share of total exports.

From 2012 to 2022, the biggest increases were recorded for Thailand (with a CAGR of +24.6%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, Germany ($10.3B), Mexico ($10B) and the Netherlands ($5.7B) constituted the countries with the highest levels of exports in 2022, together accounting for 41% of global exports. The United States, France, Belgium, Japan, China, Italy, the UK, India, South Korea and Thailand lagged somewhat behind, together comprising a further 39%.

In terms of the main exporting countries, South Korea, with a CAGR of +9.8%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

Agricultural and forestry tractors represented the key exported product with an export of around 1.1M units, which finished at 54% of total exports. It was distantly followed by road tractors for semi-trailers (683K units) and pedestrian-controlled tractors (221K units), together creating a 46% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the key exported products, was attained by pedestrian-controlled tractors (with a CAGR of +15.6%), while the other products experienced more modest paces of growth.

In value terms, the largest types of exported tractors were road tractors for semi-trailers ($33.3B), agricultural and forestry tractors ($27.9B) and crawler tractors ($1.6B), together accounting for 100% of global exports.

Agricultural and forestry tractors, with a CAGR of +2.8%, saw the highest growth rate of the value of exports, among the main exported products over the period under review, while shipments for the other products experienced more modest paces of growth.

Export Prices By Type

The average tractor export price stood at $32,025 per unit in 2022, picking up by 14% against the previous year. Overall, the export price, however, continues to indicate a mild decrease. Over the period under review, the average export prices reached the maximum at $36,581 per unit in 2019; however, from 2020 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exported products. In 2022, the product with the highest price was crawler tractors ($168,975 per unit), while the average price for exports of pedestrian-controlled tractors ($1,316 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by agricultural and forestry tractor (+0.8%), while the other products experienced a decline in the export price figures.

Export Prices By Country

The average tractor export price stood at $32,025 per unit in 2022, with an increase of 14% against the previous year. In general, the export price, however, continues to indicate a slight downturn. Over the period under review, the average export prices reached the peak figure at $36,581 per unit in 2019; however, from 2020 to 2022, the export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Mexico ($101,683 per unit), while Thailand ($3,263 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+9.5%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform