Electric Farm Tractor Market Revenue Trends Analysis 2023-2028

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Electric Farm Tractor Market is expected to reach $234.0 million by 2028. Electric Farm Tractor Industry growing at a CAGR of 14.06% between 2023 and 2028.

The agriculture industry is one of the biggest industries in the world. Conventional agriculture requires ideal climatic conditions, land availability, and fertility, along with sufficient water availability. Tractors and other agricultural machinery are significant contributors to greenhouse gas (GHG) emissions in the agriculture sector. These emissions primarily come from the combustion of fossil fuels, such as diesel or gasoline, used to power the engines of these machines. The main emissions associated with tractors include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). In order to cater to the demands of the reduction in carbon emissions, the use of modern agricultural equipment is being promoted around the world. Thus, electric farm tractors market are expected to be a great driver toward growth in modern agricultural practices in the agricultural industry.

Electric farm tractors are offered multiple configurations with respect to tractor type, battery type, and drivetrain technology. Light-duty tractor , medium-duty tractor , and heavy-duty Electric tractors are offered by manufacturers. Farmers can opt for the tractors which they find suitable for their field operations. Also, by battery type, lithium-ion, lead-acid, and other battery type options are offered by the manufacturers. By drivetrain technology, electric farm tractors are offered in hybrid electric, plug-in hybrid electric, and battery electric specifications.

The electric farm tractor market was valued at $98.7 million in 2022 and is expected to reach $234.0 million by 2028, growing at a CAGR of 14.06% between 2023 and 2028. The electric farm tractor market is driven by several factors, including the surging demand for sustainable agriculture practices from the agriculture industry, electrification and automation of agriculture machinery, and energy storage systems. In recent years, electric farm tractor has registered an exponential surge in interest among farmers, manufacturers, and researchers from the agriculture industry, with sales of electric vehicles (EVs) reaching record heights.

The light-duty tractor has the largest share in the global electric farm tractor market and is expected to lead the application segment during the forecast period 2023-2028. The major demand for light-duty electric farm tractors is owing to their low curb weight, better battery performance, and low cost as compared to Heavy-Duty Tractors, which attracts the farmers toward these tractors.

Global Electric Farm Tractor Market (by Mode of Operation)

The manual segment accounted for the largest share of the electric farm tractor market in the year 2022 since the farmers are yet to be aware and technically skilled in autonomous technology, and it is expected to remain the same during the forecast period. The autonomous segment is anticipated to witness the highest growth rate during the forecast period 2023-2028. This is mainly due to the growing implementation and integration of digital and automation technologies in agricultural machinery.

The battery electric segment accounted for the largest share of the electric farm tractor market in the year 2022 since the lithium-ion battery-based electric vehicles are utilized by key manufacturers owing to their advantages, and it is expected to remain the same during the forecast period. The hybrid electric segment is anticipated to witness the highest growth rate during the forecast period 2023-2028. This is mainly due to the growing implementation and integration of fuel cell technologies with batteries in electric farm tractors. Other types of drivetrain technologies are not yet commercialized, hence the demand analysis for the same is not provided in the table.

Global Electric Farm Tractor Market (by Region)

Based on region, Asia-Pacific is expected to register the highest growth rate during the forecast period 2023-2028. This is due to ongoing efforts to digitize and electrify every industry, which will also benefit the electric farm tractor sector. Apart from this, the regional governments are enacting technology-friendly policies, which are expected to further have a significant impact on the market.

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North America dominated the electric farm tractor market in 2022 and is anticipated to uphold its dominance throughout the forecast period. The growth in the market is majorly driven by the increasing research and development activities and large-scale adoption of electric farm tractors. Furthermore, the average land sizes in North America are huge compared to other regions such as the Asia-Pacific. Thus, farmers in the U.S. and Canada have massive revenues, which they could invest in technology. On the other hand, in developing countries, due to smaller farm sizes and overpopulation, farmers generate fewer profit margins, which are eventually redeployed into the operations, limiting any possibilities of investments. Also the ongoing trend for automation is also expected to have a significant impact on market growth.

Competitive Landscape

The competitive landscape for the electric farm tractor market demonstrates an inclination toward companies adopting strategies such as product launch and development, business expansions, partnerships, and agreements. The major established players in the market are focusing on product launches and developments to introduce new technologies or develop their existing product portfolios. Solectrac, Inc, Monarch Tractor, Cellestial eMobility Private Limited, Kubota Corporation, Sonalika Group, Escorts Kubota Limited, Rigitrac Traktorenbau AG, Erisha Agritech, Ztractor, AutoNxt Automation, Autonomous Tractor Corporation, CLAAS KGaA mbH, EOX Tractors, EVE Srl , Amos Power, and SABI AGRI are some of the prominent players in the global electric farm tractor market.

The global electric farm tractor market has huge potential, and it is also positively impacted by a positive outlook toward digitization. However, the market currently needs inter-organizational collaboration as well as involving farmers in the development process so that products and solutions can be designed and developed to address the challenges being faced by the farmers and the industry. Hence, a rise in awareness among farmers and efforts from the government and private sector toward the development of sustainable agriculture is expected to drive the growth of the global electric farm tractor market during the forecast period.

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