The tractor implements market is estimated to account for USD 57.3 billion in 2018 and is projected to reach USD 76.1 billion by 2023, growing at a CAGR of 5.84% during the forecast period. High labor cost and the need to reduce post-harvest losses are the key drivers for the growth of the tractor implements market.
The highly populated countries such as India and China in the Asia Pacific regions has created profitable growth opportunities for the market due to high food demand. These factors have encouraged mechanization of agriculture in the region for efficiently producing food crops, which can be enhanced by the use of highly advanced mechanical implements on the fields.
The Asia Pacific is projected to witness a high demand for tractor implements due to lack of funds available to farmers in developing countries to purchase exclusive machineries for various field processes, and the growing need to improve crop yield.
According to the FAO, the Asia Pacific region include developing countries such as India, Thailand, and Vietnam, where agriculture is growing at an exponential rate. Nearly 40% of the global arable land is present in this region.
Asia Pacific region is experiencing a shift in agricultural practices from the use of traditional tools towards farm mechanization. Rising urbanization has led to limited agriculture labor in rural areas of the Asia Pacific region, which has led to an increasing need for mechanized farming techniques by investing in agricultural implements. These factors are collectively projected to drive the market for tractor implements in this region.
The major players in the tractor implements market are CLAAS (Germany), Deere Company (US), Kubota Corporation (Japan), Mahindra and Mahindra (India), Tractor and Farm Equipment Limited (India), JCB (UK), CNH Industrial (US), SDF Group (Italy), Actuant (US), Kuhn Group (France), and Alamo Group (US).
These companies are focusing on introducing and manufacturing various tractor implements that are offered to farmers for speeding up their farming practices. Various strategies such as acquisitions, partnerships, and expansions were adopted by companies with regional competitors, research institutes, and academic institutions to enter the tractor implements market.