Global Electric Tractor Market 2024–2033

Reports Description

The rising government initiatives for adopting electric tractors are boosting the market’s growth.

According to Custom Market Insights (CMI), The Global Electric Tractor Market size was estimated at USD 118 Million in 2021 and is expected to reach USD 132 million in 2022 and is expected to hit around USD 250 Million by 2030, poised to grow at a compound annual growth rate (CAGR) of 13% from 2022 to 2030. 

The report examines the Electric Tractor market’s drivers and restraints and their impact analysis. Also, the report mentions global opportunities prevailing in the Electric Tractor market.

Electric Tractor Market: Overview

The newest generation of tractors created by agricultural equipment manufacturers is electric farm tractors. Batteries power electric farm tractors as opposed to traditional diesel-powered tractors. These tractors offer numerous benefits over conventional tractors, including increased efficiency and production in the agricultural sector.

The market for electric tractors is still in its infancy. However, electric vehicle technology is undergoing increased research and development, which is anticipated to extend the battery life supplied by these tractors and hence boost efficiency.

Electric Tractor Market: COVID–19 Impact Analysis

The COVID-19 standard has had a considerable impact on the Electric Tractor market. Both production and COVID-19 have had a significant effect on the Electric Tractor market. New Electric Tractor production and sales were halted globally as the entire ecosystem was overturned. OEMs’ businesses suffered since they had to wait for the lockdowns to be released before they could begin production. The demand for new Electric Tractors is anticipated to increase as economies gradually recover from the pandemic. However, a recent COVID-19 outbreak brought on by new strains could obstruct recovery in some areas. As a result, depending on the COVID-19 scenario, makers of Electric Tractors would have to alter manufacturing levels between nations.

Component production was also stopped during the COVID-19 epidemic because small Tier II and Tier III manufacturers were cash-strapped. As a result, production stopped during the epidemic, followed by a demand decline. This could have a significant effect on Electric Tractor firms. In addition, the second wave in India also impacted auto sales, which slowed the expansion of the Electric Tractor sector.

Electric Tractor Market: Growth Drivers

Government initiatives

Governments from many nations have pushed for using electric farm tractors and other agricultural equipment. As a result, traditional agricultural practices have given way to a more contemporary method. For instance, the Indian government is promoting electric-powered farm tractors by offering subsidies on agricultural electric tractors, which is projected to improve the electric tractors market. This is being done to increase the level of green mechanization. As a result, the government program should offer plenty of prospects for the need for electric farm tractors to expand.

Reduced fuel costs and carbon emissions

Electric farm tractors are becoming more popular as consumers realize the advantages of lower fuel costs, reduced carbon emissions, and increased energy efficiency. Moreover, the use of electric farm tractors is expanding rapidly to ensure the vehicle’s dependability. Other crucial factors predicted to fuel market growth include the introduction of cutting-edge technologies and the increasing use of these technologies in the automotive sector.

Electric Tractor Market: Segmentation Analysis

In our research scope, the Global Electric Tractor market is segmented into battery type, drivetrain technology, and application. Based on drivetrain technology, the hybrid electric tractors segment is estimated to witness a high CAGR during 2022-2030. Hybrid vehicles, which operate on fuel and battery, are a great starting point for future growth in the market for electric tractors. Solar panels, windmills, or water wheels can all be used to power the tractors. Due to the infrastructure, hybrid tractors now dominate the market.

The market is classified into light-duty tractors, medium-duty tractors, and heavy-duty tractors based on application. The demand for light-duty vehicles is expected to lead the market for electric tractors on a global scale, followed by the need for medium-duty vehicles. Light-duty tractors are preferred by farmers because they have superior battery performance due to their reduced curb weight, which is one of the factors contributing to their popularity.

Report Scope

Key Insights: 

• As per the analysis shared by our research analyst, the Electric Tractor market is estimated to grow annually at a CAGR of around 13% over the forecast period (2022-2030).
• In terms of revenue, the Electric Tractor market size was valued at around USD 118 million in 2021 and is projected to reach USD 250 million by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• The Electric Tractor market research offers a comprehensive analysis of the present market and projections through 2020–2030 to help find possibilities to profit from the existing market.
• The study includes data on the significant market drivers, challenges, and opportunities and their effects.
• The study elaborates on the SWOT analysis and Porter’s Five Forces model.
• The market study’s value chain analysis gives a comprehensive picture of the stakeholder’s responsibilities.

 Recent Development

• April 2022: GUSS Automation and John Deere formed a joint venture in Kingsburg, California. The first semi-autonomous orchard and vineyard sprayers were developed by GUSS (Global Unmanned Spray System).
• March 2022: Solectrac announced a certified dealer in the Pacific Northwest to support and service customers. As part of its statewide strategy, Solectrac, a producer of electric tractors and an operating subsidiary of Ideanomics, announced the installation of a new certified dealer in the Pacific Northwest.

Regional Landscape

The Asia-Pacific region is expected to notice a high CAGR in the global market for electric tractors due to the quickly rising demand for tractors in China and India. The area holds a leading position in the market from a geographic standpoint, which reflects this. The agricultural industry is a crucial component of the Indian economy. Tractors are, therefore, necessary for accomplishing large-scale operations. The need for electric tractors has also increased significantly in the region, which is being carried out to boost the field’s total production.

Competitive Landscape

The market for Electric Tractors is in the infancy stage. To retain their market position, these businesses employ strategies such as new product developments, partnerships, contracts, and agreements. Some of the results related to new product launches are:

2021: John Deere introduced a new material collection system and a mechanical grapple to its lineup of frontier equipment for compact utility tractors. The new Frontier MC2014 and MC2120 PTO-driven material collection systems for John Deere 1, 2SC, 2LC, and 3R compact utility tractors have a 14- and 20-bushel capacity, respectively. In addition, with John Deere 120R, 220R, and 300E loaders, the new Frontier MG20F mechanical grapple is compatible.

2021: The HARVEST e-tractor was introduced by Motivo Engineering. It draws power from different electrical systems, solar panels, and windmills. One HARVEST unit may power a home, convey goods to the market, and plow a field on the same day.

Prominent Players:

• Alke
• Deere & Company
• Cummins Inc.
• Escorts Limited
• Fendt
• Motivo Engineering
• Kubota Corporation
• Solectrac Inc.
• Sonalika
• Yanmar Holdings Co. Ltd.
• Monarch Tractor
• AutoNxt Automation Pvt. Ltd.
• Celestial
• EcoFactor
• Ztractor

The global Electric Tractor market is segmented as follows:

By Battery Type

• Lead-Acid Battery
• Lithium-Ion Battery
• Others

By Drivetrain Technology

• Battery Electric Tractor
• Hybrid Electric Tractor
• Plug-in Hybrid Electric Tractor

By Application

• Heavy-Duty Tractor
• Medium-Duty Tractor
• Light-Duty Tractor

On the basis of Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America