The Low HP tractor market size in india to reach 1,019 thousand units by 2024, growing at a CAGR of 6% during 2019-2024
India’s agriculture sector, with farming and allied activities, accounts for over 50% of the total population. The increasing importance of agriculture and farming across households propels the demand in the India low HP tractor market. Various government organizations allocate a sizable portion of the budget for infrastructure planning in the agriculture sector and its allied activities across India. The rising need for smart solutions that can effectively help to mitigate the negative effect on agriculture and meet the increasing demand for food will boost the demand in the Indian market.
The government initiatives and schemes that help improve the fertility of the soil, enhance access to irrigation water, improve organic and sustainable farming practices, and enhance mitigation of risks related to financial risks to farmers will encourage the adoption of innovative agricultural solutions in India. The awareness about advanced agriculture equipment, to improve per hectare yield, reducing the overall cost of crop production, and income centric inclinations of farmers are some of the factors attributing to the growing sales of new machinery in the Indian market. The government strategies to enhance the welfare of farmers by converting agriculture into a more viable activity are paving ways for leading manufacturers to launch innovative machinery in the market. The increasing focus on tractor rental services will propel the growth of the India low HP tractor market.
Key manufacturers are providing machines on rent to small farmers who cannot afford expensive tractors. For instance, Mahindra has launched a tractor rental services application, Trringo, in the Indian market. The increasing adoption of farm mechanization practices that improve crop production will drive transformation in the market over the next few years.
INDIA LOW HP TRACTOR MARKET TREND
The increasing adoption of precision agriculture methods and smart machinery drives the revolution in the India low HP tractor market. The declining number of people directly involved in agriculture and farming activities and the rise in water scarcity are factors leading to the adoption of precision agriculture solutions in India. The use of smart tractors will have the capability to operate innovative machines and collaborate with the latest agriculture application systems and equipment in the market. Some of the solutions offered by precision farming techniques include farm labor management, irrigation management, yield monitoring, field mapping, crop scouting, inventory management, fiscal management, and weather forecasting. The implementation of weather monitoring systems is becoming essential to forecast the adverse effect of climate on the entire crop cycle. These solutions will help to effectively mitigate the challenges against food production and increase the net income of farmers resulting in growing demand in the India low HP tractor market.
INDIA LOW HP TRACTOR MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Wheel Drive
TRACTOR DEMAND BY HORSEPOWER
Demand for technologically advanced solutions drives demand for 40-50 HP machines in the India low HP tractor market.
The India low HP tractor market by HP is divided into 0-20, 20-30, 30-40, 40-50, 50-60, and 60+. The 40-50 HP segment dominated approximately half of the total market share in 2018, growing at a CAGR of around 8% during the forecast period. The versaliatily of usage and power to perform the required farming tasks drives the demand for a 40-50 HP segment in the Indian market. This machinery is also used as operating generators for irrigation and operating both companies and domestically made harvesters and threshers. The vendors and government bodies are developing mechanization models which are economical and viable for medium-scale farmers to meet the growing cost of operations in the Indian market. The growing demand for advanced agriculture equipment to spearhead farm mechanization and the adoption of new and advanced implements among the farmers will propel the growth of this segment in the India low HP tractor market. The availability of new and advanced agricultural implements for different applications, including soil bed preparation, sowing, harvest, and post-harvest activities, and farm operations, will enhance the purchase sentiments of farmers.
The most popular 30-40 HP power range machines available in the Indian market are Mahindra, Swaraj, and Escorts. These machines are also used for extensive farming activities in the market. 20-30 HP machines are a popular choice among the small farmers of states like Punjab, Haryana, and Uttar Pradesh in the market. 0-20 HP products are used by farmers engaged in the cultivation of cotton, inter-culture operations, and orchards in the India low HP tractor market.
INDIA LOW HP TRACTOR MARKET– BY WHEEL DRIVE
Load pulling capacity of 4WD options to propel sales in the India low HP tractor market during the forecast period
The wheel drive segment in the India low HP tractor market is classified into 2WD and 4WD. 4WD is the fastest-growing segment in the market in 2018, growing at a CAGR of around 7% during the forecast period. The exponential use of 4WD machines for faster cultivation and quicker planting times, with seeds planted in the best conditions in the narrow planting window, drives the growth of this segment in the Indian market. These vehicles are fitted with duals or triples and modern rubber belted products, offering more excellent traction and higher pulling power. Such a wide range of power capacity allows framers to use it in a larger combination that can be operated greater width and speed in the market. These systems are designed to reduce the number of passes in the large field and soil compaction, resulting in higher yields and profits for farmers operating in the Indian market. Increased power output, better traction in fields during rains or wet ground, and the ability to operate heavier implements are significant benefits fueling the growth of this segment in the India low HP tractor market.
2WD machines are the most conventional and popular choice of farmers in the Indian market. These machines are more comfortable and offer ease of driving and maneuverability during light loads and plain fields to the farmers in the market. The fuel efficiency, added comfort for operating in confined spaces, and for light loader work are some of the major factors attributing to the adoption of these systems in the India low HP tractor market. Some of the most popular brands offering these products in the Indian market include Sonalika, Massey Ferguson, John Deere, Mahindra, and TAFE.
TRACTOR DEMAND BY ZONES
The adoption of farm mechanization in the North Zone propels demand in the India low HP tractor market.
The India low HP tractor market by zones is segmented into East, North, South, and West. The North zone occupied the largest market share in 2017, growing at a CAGR of around 6% during the forecast period. The increasing adoption and penetration of farm mechanization practices are propelling the growth of this zone in the Indian market. The extreme climatic diversities that vary between hot summers, nominal monsoons, and harsh winters will fuel the need for innovative products in the Northern zone in the market. The state of Punjab has the highest penetration and adoption of modern agriculture implements across the nation. The increasing use of an added number of tools will create lucrative opportunities for leading vendors in the India low HP tractor market.
In the South zone, states such as Kerala and Tamil Nadu have the highest percentage of hand-operated machines and tools in agriculture in the market. Additionally, farmers in the south zones are purchasing larger chassis in 40-50 HP in the market. In the West Zone, Madhya Pradesh is emerging as a high potential for new products and advanced agriculture tools in the India low HP tractor market.
KEY TRACTOR MANUFACTURERS AND MARKET SHARE
The India low HP tractor market is led by two major players that contribute to the competition in the country. The leading vendors are thriving on innovation in the Indian market. The manufacturers are increasingly investing in developing advanced agriculture technology for precision farming and machine automation in the market. The increase in technological innovations, product or service extensions, and M&A will drive the level of competition in the Indian market. The development of innovative products will help the vendors gain a larger India low HP tractor market share during the forecast period.
The Low HP Tractor market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Market Segmentation by HP
- 0-20 HP
- 20-30 HP
- 30-40 HP
- 40-50 HP
- 50-60 HP
- 60+ HP
Market Segmentation by Wheel Drive
Market Segmentation by Zones