Global Demand for Compact Tractors to total US$ 4.2 Bn by 2030; Over One-third of Sales to Concentrate in Asia Pacific: Fact MR Analysis
DUBAI--(Korea Newswire)--The compact tractor market, according to Fact.MR, is highly consolidated and competitive in nature. Increasing adoption of compact tractors for various agricultural activities has encouraged leading manufacturing companies across China and India to focus on expanding their production capacity.
Fact MR identifies Asia Pacific as the leading compact tractors market and China as an exceptionally lucrative pocket for sales. The demand for compact tractors will rise consistently in response to the increasing mechanization in farms across China, Japan, and South Korea.
Favorable policies will continue spurring surge in sales in China. For instance, “Made in China 2025” scheme focuses on producing a majority of agriculture equipment such as tractors and others in the country. Against this backdrop, the country has emerged as a hot-spot for compact tractor production and sales.
China will continue leading the compact tractors market in Asia-Pacific owing to the presence of the largest arable land in the world, over 118.9 thousand hectares, providing the largest area for the application of compact tractors. Due to the advent of mechanization, most of the small-scale farmers are shifting their preference to modern equipment, especially, for the cultivation of soybean in the Northern Province of China.
Some of the leading players across the world are emphasizing on the development of novel products to stimulate market growth. For instance, Deere & Company, one of the leading compact tractor manufacturing companies, launched a new compact 4M heavy-duty utility tractor in February 2020, which is available in 66 HP and 52 HP.
“The compact tractors market registered a sluggish growth amid economic disequilibrium brought about by the outbreak of COVID-19. To attract new customers and capitalize on available opportunities, leading market players are therefore focusing on introducing similar products with advanced functionalities. Product innovation will therefore remain their key strategy,” says a lead analyst at Fact.MR.
Impact of COVID-19 on Compact Tractors Market
As per Fact.MR, the demand for compact tractors decelerated on account of COVID-19 outbreak. The pandemic induced restrictions and lockdown implemented in China, Japan, South Korea, and other countries disrupted transportation and supply chain networks. This has caused remission in sales of compact tractors, negatively impacting growth in Asia-Pacific.
A number of leading manufacturers were compelled to suspend their operations due to disruption in supply chain of raw materials and shortage of labor amid lockdown, resulting in serious financial shortfalls. The decline in demand for products due to the outbreak is estimated to hinder the market growth of the market for the next few months.
Nevertheless, some companies are taking aggressive steps to support market growth. For instance, Deere & Company, a leading tractor manufacturing company, announced that it will spend over US$ 40 million to assist its suspension of supply chain in China. This is expected to help the market recuperate from the adverse impact of the pandemic in Asia Pacific.
The Fact.MR study also profiles leading players in the compact tractor market are:
· CNH Industrial NV
· AGCO Corp.
· Doosan Corp.
· Deere & Co.
· Escorts Ltd.
· Mahindra & Mahindra Ltd.
· Kubota Corp.
· Sonalika International Tractors Ltd.
· Yanmar Holdings Co. Ltd.
· Tractors and Farm Equipment Ltd.
Key Questions Answered by the Report
· The report offers insight into compact tractors demand outlook for 2021-2031
· The market study also highlights projected sales growth of compact tractors between 2021 and 2031
· Compact tractors market survey identifies key growth drivers, restraints, and other forces impacting prevailing trends
· Compact tractors market survey presents evaluation of current market size and technological advancements within the industry
· Compact tractors market share analysis of the key companies within the industry and coverage of strategies such as mergers & acquisitions, joint ventures, collaborations or partnerships, and others
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Read Global Market Survey Report Here: https://www.factmr.com/report/3940/compact-tractor
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This is a news release distributed by Korea Newswire on behalf of this company.