The global compact tractor market, which was initially valued at US$ 28.3 billion in 2020 and is predicted to add value worth US$ 10.8 billion over the forecast period, is expected to demonstrate a bearish trend at a CAGR of 3.3 percent due to the COVID-19 pandemic. Fact. According to MR’s study, the market would experience severe dormancy as a result of the expected global economic slowdown and statewide lockdowns to prevent the virus from spreading.
With shuttered buildings and stifled operations, landscaping companies face a gloomy future. This has resulted in major demand and consumption deficits in the compact tractor industry. Production has decreased due to a tighter supply chain. Based on these tendencies, the worldwide compact tractor market is expected to grow slowly in the near future.
Compact Tractors Market: Key Takeaways
- In terms of volume, the worldwide compact tractor market is estimated to increase at a CAGR of 3.1 percent from 2020 to 2030, increasing by 1.4X.
- Compact tractors with engine power between 31 and 40 horsepower will have the highest market share in terms of value, with an absolute dollar potential of US$ 1.6 billion expected during the projection period.
- Compact tractors with hydrostatic transmissions are predicted to expand at a CAGR of 3.0% in terms of value, but will lose 188 BPS in market share by the end of the forecast period.
- Agriculture is predicted to account for a significant portion of the market in terms of value, with an absolute dollar opportunity of more than US$ 1.2 billion during the projection period.
- South Asia and Oceania are expected to be market disruptors with the largest market share in terms of value.
“With the COVID-19 pandemic wreaking havoc on economies, demand for compact tractors will plummet in the near future.” Manufacturers, on the other hand, are planning the development of new items that will propel the compact tractor market forward in the second half of the projection year.” According to the Fact.MR analyst.
Compact Tractors Market Analysis by Application
During the projection period, the agriculture segment is expected to grow at a rate of 3.4 percent. Agriculture is one of the most common uses for compact tractors, accounting for over 30% of the market throughout the projection period.
Compact tractors are becoming more popular among small-scale framers because they are lightweight and allow crops to be handled carefully, decreasing damage. Compact tractors are also equipped with tiny farm implements like front-end loaders and back-hoes, allowing farmers to execute a variety of chores on the farm.
The coronavirus epidemic has forced most governments to impose lockdowns, resulting in stopped production and operations at manufacturing companies, as well as a drop in inventory. Furthermore, a scarcity of raw materials stymies compact tractor adoption in agriculture.