April 18, 2024

Autonomous Tractor Market is poised for growth in Automation Technologies

 

The Autonomous Tractor Market consist of advanced agriculture equipment that incorporates autonomous driving capabilities and automotive technologies to perform agricultural tasks with minimal or no human intervention. An autonomous tractor offers precision farming, remote operation and lower overall costs along with enhanced safety.

The Global Autonomous Tractor Market is estimated to be valued at US$ 1,248.2 Mn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the Autonomous Tractor Market are AGCO Corporation, Deere & Company, Mahindra and Mahindra Ltd, Autonomous Tractor Corporation, CNH Industrial, Kubota Corporation, Dutch Power Company (Alamo Group), Yanmar Co. Ltd, Zimeno Inc DBA Monarch Tractor, AutoNext Automation. Key players are focusing on technological advancement to develop more efficient autonomous tractors.

The growing demand for higher crop yields with limited arable land and declining agricultural labor is propelling the autonomous tractor market. Autonomous tractors help address issues of labor shortage and maximize efficiency. Furthermore, government initiatives to support adoption of modern agricultural equipment is also fueling market growth.

The global expansion of autonomous tractor market is facilitated by growing export of agricultural commodity across regions. Leading players have entered into partnerships with local players in foreign markets to increase local production and distribution of autonomous tractors. For instance, AGCO partnered with Lovol International to enter the Chinese autonomous tractor market.

Market key trends
One of the key trends in the Autonomous Tractor Market is real-time monitoring capability. Advanced technologies allow remote monitoring of field and tractor operations. Farmers can now track overall equipment health, fuel consumption, field conditions and more from a control room. This enables timely decision making and issue resolution. Features like geo-fencing, remote operation and telemetry further enhances productivity.

Porter’s Analysis
Threat of new entrants: Very high capital cost for R&D and manufacturing autonomous tractors acts as a barrier.

Bargaining power of buyers: Large buyers have more bargaining power due to their volume needs but technology complex nature reduces their influence.

 Bargaining power of suppliers: Suppliers of autonomous technology and components have some power but availability of substitute components balances it.

Threat of new substitutes: Threat exists from other autonomous equipment but tractors still have strong demand due to crop specific functions.

Competitive rivalry: Intense among technology majors to gain early mover advantage in this emerging autonomous zone.

Geographical Regions
North America dominates the market currently with over 40% share majorly driven by the U.S. owing to large agricultural lands and growers rapidly adopting autonomous tractors for labor shortage solutions and efficiencies.

Asia Pacific is witnessed as the fastest growing regional market projected to grow at a CAGR of above 25% during the forecast period majorly attributed to increasing mechanisation and digitalisation focus in large developing agriculture economies such as India and China to boost productivity.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it