April 18, 2024

“Autonomous Tractor Market Plows Ahead With Digitalization in Agriculture”

The autonomous tractor market is in trends due to increasing mechanization and digitalization in agriculture. Autonomous tractors, also known as driverless tractors, are equipped with advanced technologies like GPS, optical sensors, and collision avoidance systems that enable them to operate independently without a human operator. These tractors automate many farm tasks like seeding, planting, harvesting, and spraying while minimizing the costs associated with labor.

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. AGCO Corporation and Deere & Company collectively account for over 30% of market share.

The increasing shortage of farm labor around the world and rising labor costs are fueling demand for autonomous tractors. High labor requirements of farming activities like plowing, seeding, weeding discourages young generations from taking up agriculture. Autonomous tractors help address labor issues by automating such tasks.

Major tractor manufacturers are expanding their autonomous equipment offerings globally to capitalize on the growing mechanization of agriculture. For instance, AGCO launched its Fendt IDEAL combine harvester in Europe and Asia Pacific in 2022. John Deere expanded its driverless 8R tractor fleet across the Midwest region of the United States in 2021. Such global expansion initiatives are expected to drive the autonomous tractor market.

Market Key Trends
One of the key trends in the autonomous tractor market is the integration of AI and machine learning technologies. Advanced algorithms enable autonomous tractors to collect visual and geographical data, detect obstacles, optimize path planning and fuel efficiency. AI-powered farm robots and driverless tractors can learn from previous experiences to improve their decision making over time. This makes them more productive and efficient for complex agricultural operations.

Porter’s Analysis
Threat of new entrants: Low capital requirements and governmental support for startup companies are lowering the barrier for new entrants.
Bargaining power of buyers: Large fleet owners and rental service providers are in a strong position to negotiate lower prices from manufacturers due to higher purchase volumes.
Bargaining power of suppliers: The autonomous technology component suppliers have relatively high bargaining power due to their differentiated technologies and capabilities.
Threat of new substitutes: Emerging technologies in artificial intelligence, connectivity, and electric powertrains pose potential threats of substitution.
Competitive rivalry: Strong competition exists among major players to gain market share through new product introductions and advanced technologies.

Geographical Regions
North America currently dominates the autonomous tractor market in terms of value, led by the United States where large scale farming practices rely on agricultural machinery. The government support for development of autonomous and connected technologies in agriculture also contributes to high adoption.

The Asia Pacific region is expected to witness the fastest growth in the autonomous tractor market during the forecast period. This can be attributed to increasing mechanization of agriculture in countries such as China and India to improve farm productivity and manage shortage of farm labor.

*Note:

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