Demand for Compact Tractors to total US$ 4.2 Bn by 2031; Over One-third of Sales to Concentrate in Asia Pacific – Fact.MR Survey
Initially pegged at US$ 28.3 billion in 2020 and expected to add value worth US$ 10.8 billion during the forecast period, the compact tractors market is slated to show a bearish trend at a CAGR of 3.3% amid the COVID-19 pandemic. Fact.MR’s analytical research estimates that the market will witness acute dormancy due to the anticipated global economic slowdown and nationwide lockdowns to halt the spread of the virus.
Landscaping companies are staring at a bleak future with shuttered facilities and stilted operations. This has generated significant shortfalls in demand and consumption of compact tractors market. A tighter supply chain has led to dwindling output. Based on these trends, the global compact tractors market is anticipated to expand at a snail’s pace in the short-term forecast period. Growth is anticipated to accelerate with the implementation of containment strategies.
Key Takeaways of the Compact Tractors Market Study:
- The global compact tractors market is expected to grow at a CAGR of 3.1% in terms of volume and is anticipated to expand by 1.4X from 2020 through 2030.
- Compact tractors with engine power between 31HP- 40HP will hold maximum share in terms of value and are projected to create an absolute dollar opportunity of US$ 1.6 billion during the forecast period.
- Compact tractors with hydrostatic transmissions are expected to grow at a CAGR of 3.0% in terms of value, and are slated to experience a share erosion of 188 BPS by the end of the forecast period.
- By application, agriculture is expected to account for a major chunk of share in terms of value, and is projected to create an absolute $ opportunity of more than US$ 1.2 billion during the forecast period.
- South Asia & Oceania are poised to be potential market disruptors and are slated to hold maximum share in terms of value. The region is expected to gain 247 BPS on its market share in terms of value by the end of forecast period.
“Demand for compact tractors will witness a sharp dip in the foreseeable future with the COVID-19 pandemic continuing to ravage economies. However, manufacturers are strategizing on the development of new products which will inject growth in the compact tractors market in the second half of the forecast period.” Says the Fact.MR analyst.
Compact Tractors Market Analysis by Application
The agriculture segment is expected to grow 3.4% during the forecast period. Agriculture is one of the major applications of compact tractors, holding more than 30% of the market share during the forecast period.
Small-scale framers are increasingly adopting compact tractors as they are lightweight and allow crops to be handled carefully, reducing damage. Moreover, compact tractors are equipped with small farm implements such as front-end loaders and back-hoes, enabling farmers to complete various tasks on fields.
The outbreak of the coronavirus pandemic has compelled most of the governments to enforce lockdowns leading to stalled production and operations of manufacturing plants and a subsequent dip in inventory. Further, the shortage of raw materials hinders the absorption of compact tractors in agriculture.
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