Tuesday, November 26, 2019

The US tractor and Combine Harvester Market is Driven by Technological Advancements, Increasing Competition, Rising Wages of Farmers and New Government Initiatives: Ken Research


Analysts at Ken Research in their latest publication US Tractor and Combine Harvesters Market Outlook to 2024 – By Tractor Type (2WD and 4WD), By Tractor HP (<40 HP, 40-100 HP and >100 HP) and By Combine Harvester HP (Upto 250 HP, 250-350 HP and Above 350 HP)" believe that focusing towards incorporating new and advanced technologies within the equipment, sale of high efficiency combine harvesters, manufacturing fuel efficient equipment, providing after sales as well as financial services and focusing towards an extensive distribution network are some of the factors which are collectively going to help the market register a positive CAGR of 5.1% in terms of sales volume of tractors within US during the forecasted period 2019–2024.


“Increase in wagers of farmers coupled with advances in mechanization over the years has led to rise in demand for automated machines which would feed the increasing consumer demand for agriculture related products in the US”.

Market Demand: The US tractor market has shown steady growth in terms of sales value for the review period 2014-2018. However, there demand reduced for high HP tractors which led to lower sales of these tractors in the country. On the other hand combine harvesters have been suffered from decline both in terms of sales value and sale volume throughout the review period 2014-2018. It can be attributed to factors such as reduced commodity prices, weakening farm income and consumers shifting towards second hand agriculture equipment. However in 2017 and 2018 the market was observed to be recovering owing to farm income revival and introduction of agriculture equipment financing in the country. Major operations are conducted by three types of entities namely, domestic OEMs, international OEMs and distributors. A multitude of new business strategies were adopted by major players including new product launches, better marketing strategies and more focus towards after sale services in order to improve their overall sales value and volume within the market.

Extending Government Support: The US Department of Agriculture - USDA runs over 60 direct and indirect aid programs for farmers. Most of the direct aid goes to the farmers of a handful of crops such as corn, soybeans and wheat which eventually led to the market recovery. Major types of subsidies include insurance, agriculture risk coverage, price loss coverage, conservation programs, marketing loans, disaster aid, research and other support.
Technological Advancement: Majority of domestic OEMs in the US were observed to introduce tractors as well as combine harvesters with technologies such as GPS sensors and remote monitoring. Technological aspect plays a major role in terms of sales as better technology makes them more efficient and productive.

Market Dominance: Domestic OEMs such as John Deere established itself as market leader. The dominance of these players is majorly because of the trust and brand value attached with these players thus, making it difficult for domestic / local manufacturers to establish themselves. The major competing parameters for the entities include access of distribution and dealership network, price of the products offered, after sales services and digitalization in the equipments. Apart from that, the shift towards digital farming and its growing adoption is likely to drive competition in this particular market in the near future.

Key Segments Covered
By Tractor Type
Two-Wheel Drive (2WD)
Four-Wheel Drive (4 WD)

By Tractor HP
40 HP
40-100 HP
Above 100 HP

By Combine Harvesters HP
Up to 250 HP
250-350 HP
Above 350 HP

Key Target Audience
Existing Agricultural Equipment Companies
New Market Entrants- Domestic OEMs
New Market Entrants- Foreign OEMs
Agricultural Equipment Financing Companies
Government Bodies
Investors & Venture Capital Firms
Agricultural Equipment Manufacturers
Agricultural Equipment Distributors
Agricultural Equipment Associations

Time Period Captured in the Report:
Historical Period: 2014 -2018
Forecast Period: 2019-2024

Companies Covered:
John Deere
New Holland
AGCO
Mahindra
Kubota
CaseIH
Claas
Gleaner
Massey Ferguson
Other Players (Kioti, Yanmar, Zetor, Ventrac, Farmtrac, Deutz Fahr, Challenger, International Harvester, MacDon and Colombo)

Key Topics Covered in the Report
Executive Summary
Research Methodology       
US Agriculture Equipment Market Value Chain Analysis
US Agricultural Equipment Market Overview       
US Agriculture Equipment Market Ecosystem      
US Tractor Market   
US Combine Harvester Market       
Regulatory Framework in US Agricultural Equipment Market
Customer Profiling in US Agriculture Equipment Market
US Agriculture Equipment Second hand Market
Comparative Landscape in US Agriculture Equipment Market

For more information on the research report, refer to below link:

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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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