Electric Tractors Market

Electric Tractors market Outlook till 2032

Compared to earlier years’ sustainability awareness is increasing and so is the production of alternatives to fossil fuels. The major reason behind alarming research in electric mobility is the need for fossil fuel substitution. This is the key driver of the market in hybrid electric vehicles. The incorporation of electric farm tractors in agrarian applications draws its motivation from the energy efficiency principle.

Moreover, these tractors take advantage of drives and decoupling loads from the engines that allow operating at high efficiency. Vehicle manufacturers are making great strides in electric drive technology, also governments across the globe have set a target for phasing out fossil fuel-based vehicles. This revolution is gaining traction in the agriculture sector too, various manufacturers have recently introduced electric tractors in order to support electrification.

The global market for electric tractors at present valued at USD 94.04 Million in 2022. The market is anticipated to grow with a CAGR of 13% in the forecast period 2022- 2032. This arcade is likely to cross a valuation of USD 319.23 Million by end of 2032.

Report Attributes	Details
Market size (2022 A)	USD 94.04 Million
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 319.23 Million
Global Market Growth rate (2022-2032 E)	CAGR of 13%
Key Companies Profiled	Deere & Company, AGCO GmbH, The Escorts Group, SOLECTRAC, Multi Tool Trac BV, MTZ Equipment Ltd.

What are the drivers of growth in electric tractors?

Agriculture and forestry are major sectors responsible for a significant amount of worldwide emissions as these fields depend on diesel-based engines. Electric vehicles in agriculture have a positive impact on sustainable food production by suppressing gas emissions. Owing to this possibility various national and multinational brands are focusing on the development of electric farm tractors and many of these have already launched products in farm machinery markets.

Electric farm tractors provide various advantages over their diesel counterparts such as they do not emit carbon dioxide, have fewer moving parts owing to which their repair and maintenance is easy, etc. The aforementioned factors are projected to boost the sale of these tractors and in turn, will propel the growth of the global market over the near future. Moreover, stringent regulations related to emissions, and renewable energy represent a reason to pursue e-drive solutions in the agricultural industry.

The availability of alternatives or fuel-based tractors in the market is expected to restrain the growth of the market over the forecast period. Furthermore, electric tractors possess various disadvantages such as low speed, limitation of battery technology and low energy storage capacity, etc.

Prominent manufacturers of electric farm tractors are planning to introduce electric-powered tractors owing to their lower maintenance and service costs. For instance, Deere & Company has recently introduced electric-powered tractors in order to assist farmers across the globe.

As producers shift their focus towards more cutting-edge technologies and form strategic collaborations with automotive OEMs, the electric vehicle battery market will have brighter prospects. Mounting environmental concerns such as global warming and rising pollution levels have prompted manufacturers to propose alternative energy sources to power vehicles. Apart from supporting government initiatives the lower maintenance cost and stringent emission regulations are helping the market to grow.

What are concerns associated with electric farm tractors that deter growth?

Even though zero emissions, lower operational cost, and high electric torque are perks offering growth in electric farm tractors, there are some hindrances affecting its adoption. Electric vehicle batteries are made up of combustible components like lithium, manganese, and polymers. When lithium is exposed to water, it becomes extremely reactive. As a result, there are worries about these batteries' performance and safety in extremely dry or moist settings, thus limiting future sales. There is still a large section of farmers preferring fossil fuel-based tractors owing to the easy availability of fossil fuels. This can hinder the penetration of these tractors. Lack of charging infrastructure is a major challenge in developing countries that may deter the adoption of such tractors. There is a lack of awareness about the impact of vehicle emissions among poor and developing economies which restricts growth in the electric farm tractors market share.

Segment wise Insights

Battery-operated electric farm tractors hold the major share of this market at present. This is due to the wider availability of electric vehicle batteries and manufacturers in the market. Battery-operated tractors are preferred for being easy to replace and access for a longer time. However, solar-based tractors are anticipated to gain a significant share in the forecast period. On the basis of application, organic farms are major areas where these tractors find application. After farms vineyards are major regions where tractors are demanded in farming activities.

Regional Outlook

Geographically, the global market is projected to be dominated by North America owing to the rising demand for compact tractors

Asia-Pacific, spearheaded by India, is expected to grow at a significant rate in the global market over the near future. Owing to the major agricultural landscape Asian countries are anticipated to drive growth in this sector. The technological upgradation and available government support in countries like India, China, and Indonesia are set to increase demand for electric tractors in the forecast years.

The Middle East & Africa and Latin America are expected to hold small shares in the global market, however, the sale of electric tractors is expected to grow at a significant pace over the studied period.

Segmentation

• By Power Source :

  • Battery Operated
  • Solar Powered

• By Application :

  • Organic Farms
  • Vineyards
  • Equestrian Centres

• By Region :

  • North America
  • Latin America
  • Europe
  • CIS & Russia
  • Japan
  • APEJ
  • MEA