The Global Tractors Market is estimated to be valued at USD 89.20 Bn in 2025 and is projected to reach USD 132.36 Bn by 2032, exhibiting a steady 5.8% CAGR from 2025 to 2032. Growth is mainly driven by increasing farm mechanization, adoption of multi-utility compact tractors, advancements in IoT/GPS sensor automation, and demand for fuel-efficient sustainable tractor powertrains.

Market Key Takeaways

• Below 40 HP tractors is leading with 43.7% market share in 2025 – ideal for small farms.
• 2WD drive type dominates with a 59.1% market share – affordability and flexibility increasing adoption.
• Agriculture applications secure 65.8% share in 2025.
• Asia Pacific leads with a 37.05% global market share in 2025.
• Latin America is fastest growing region 2025–2032 holding 7.2% share in 2025.

Multi-Utility Tractors – Expanding Everyday Farm OPS

Farmers prefer tractors that handle tilling, lifting, transport, and grain cart routine OPS. New attachments, upgraded engines, and smart sensors are simplifying heavy farm work with increased efficiency, resulting in strong adoption interest in 2025.

Sensor-Driven Automation – Transforming Tractor Field Efficiency

IoT, GPS, and digital sensors enable real-time field performance monitoring, improved fuel control, predictive maintenance, OPS error reduction and prolonged machine life. These capabilities are shaping modern smart tractor farming by 2025 and beyond.

Rising Farm Cost – Slowing New Tractor Purchases

High fuel and input costs are extending tractor purchase cycles. Farmers delay upgrades and maintain older machines for longer. OEMs counter this by offering flexible finance and support programs to maintain buyer confidence and stabilize market share.

Top Market Competitors

Global competitors influencing the 2025 tractor boom include leading OEMs:

• Deere & Company
• CNH Industrial N.V.
• Kubota Corporation
• AGCO Corporation
• Mahindra & Mahindra Ltd.
• CLAAS KGaA mbH
• SDF Group
• Yanmar Co., Ltd.
• Escorts Limited
• TAFE Tractors

Industry Highlights

• Jan 2025 → John Deere announced fully autonomous tractor and dump-truck fleet upgrades at CES 2025.
• March 2025 → AGCO launched OutRun autonomous retrofit kits for select Fendt and John Deere units.
• FY’25 → Mahindra recorded highest-ever annual tractor sales of 407,094 units.

About Coherent Market Insights

Coherent Market Insights leads market data, audience measurements, analytics and global trend forecasting for nearly a decade. The company empowers 450+ consultants across 26+ industries in 32+ countries supporting syndicated intelligence and custom market research.

SOURCE: Coherent Market Insights Pvt. Ltd.