Autonomous Tractors Market Size, Forecast and Trends [Latest] (2024)

Autonomous Tractors Market Size, Trends and Growth Analysis, 2028

The global autonomous tractors market size was valued at $2.4 billion in 2023, and is projected to reach $7.1 billion by 2028, registering a CAGR of 24.0% from 2023 to 2028. There are a number of important elements that are transforming modern agriculture that can be linked to the global growth of the autonomous tractor market. These factors include increasing demand for sustainable and efficient farming practices.

Modern agriculture is facing the challenge of producing higher yields to feed a growing global population while minimizing the environmental impact. Autonomous tractors play a pivotal role in achieving these goals by enabling precision agriculture. These tractors are equipped with advanced sensors, GPS technology, and AI algorithms that allow them to perform tasks with a high level of precision. Since these tractors directly address the need for sustainable and efficient farming practices, therefore the market is anticipated to have significant growth in the upcoming years.

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Autonomous Tractors Market Dynamics

Drivers : Maturing IoT and navigation technologies are driving down cost of automation.

Low-cost IoT devices connected with farm management software are helping farmers to analyze data on weather, temperature, moisture, and even accounting. They further provide insights to help optimize yield, improve planning, and make smarter decisions to maximize productivity. For example, CropX (US) is a company that provides soil sensors for farms that can provide alerts when soil conditions are not optimal. A farmer can receive a notification in real-time in case of lower moisture levels in a certain part of the field and change the delivery of water in the irrigation system, accordingly.

The use of GPS real-time kinematics (RTK) navigation in agriculture has become a standard for auto-steering systems in tractors and combined harvesters. For many applications, the standalone GPS signal can deliver sufficient accuracy without the need for extra radio beacons. The Wheelman Pro auto-steering system from AgJunction (US) that uses GPS costs USD 3,995, making it affordable for many farmers.

For high-precision tasks, multimodal systems based on a combination of GPS, INS, LiDAR, and vision systems are used to provide greater accuracy. EcoRobotix (Switzerland), among other companies, have been automating the seeding and weeding processes by combining both GPS and a vision system. In essence, the integration of IoT and navigation technologies into autonomous tractors is streamlining operations, improving efficiency, and reducing costs in the agricultural sector. This, in turn, is driving autonomous tractors market growth by making them more financially viable and appealing to farmers seeking to modernize their practices while minimizing costs.

Restraint: Lack of technical knowledge among farmers

Since these advanced machines like autonomous tractor integrate complex technologies such as GPS navigation, sensors, machine learning algorithms, and remote monitoring systems, farmers need to have a solid understanding of these components to operate, troubleshoot, and maintain the equipment effectively. Without adequate technical know-how, farmers might struggle to fully harness the capabilities of autonomous tractors, leading to underutilization, increased downtime, and potential errors. Bridging the gap between technological advancements and the knowledge level of farmers will be crucial in unlocking the true potential of autonomous tractors and realizing the promised benefits for the agricultural sector.

Opportunity: Integration of smartphones with agricultural hardware and software applications for autonomous tractors

Most smartphone apps are inexpensive and provide crucial information related to farming, such as weather and climate conditions. These apps effectively help farmers to make smart decisions. Smartphones can be integrated with several hardware devices such as sensors, high-resolution cameras, and GPS receivers for various activities such as sample collection, aerial imaging, and record-keeping (experts recommended). Some farming apps can load field information, and smartphones also help small-scale farmers connect with customers and agents. Farmers can access smartphone apps to get precise information on climate, weather, water, seed grains, and fertilizers, which helps them plan, plant, and harvest. Due to its convenient usage and affordability, the demand for the same will surge in the global autonomous tractors market.

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Challenges in the Autonomous Tractors Market: High cost and complexity of fully autonomous tractors

Autonomous tractors involve substantial upfront costs due to the integration of advanced technologies like GPS, sensors, and AI. These costs can be a deterrent for farmers, especially small-scale operators with limited financial resources, hindering widespread adoption. Additionally, they rely on strong and reliable connectivity for data transmission and control. In areas with poor network coverage, maintaining a consistent connection can be challenging. This can affect the real-time monitoring and coordination of the tractors. The integration of autonomous tractors with existing farm management systems and machinery can be complex, leading to compatibility issues and potential infrastructure upgrades.

Moreover, the advanced technology in tractors demands specialized maintenance and repairs, potentially resulting in higher costs and downtime due to limited availability of skilled technicians. The collection and transmission of extensive data by these tractors also raises concerns about data privacy and security, necessitating robust safeguards against unauthorized access and cyber threats. Additionally, the limited adaptability of some autonomous tractors to specific tasks or crops poses challenges for farmers with diverse operations. Balancing the potential benefits of efficiency, reduced labor costs, and improved yields against the upfront investment and ongoing expenses contributes to uncertainty regarding return on investment. Overcoming farmers' apprehensions, building trust, and enhancing the technology's reliability require collaborative efforts from stakeholders, including innovation, cost reduction, standardized interfaces, and improved training programs to drive wider adoption and foster market growth.

Autonomous Tractors Market Ecosystem

Autonomous tractors fall into the agricultural technology industry. They are a specialized segment within the broader agricultural machinery and equipment sector. The agricultural technology industry encompasses various technological innovations and advancements aimed at improving agricultural practices, efficiency, and sustainability. Prominent companies in this market include AGCO Corporation (US), CNH Industrial N.V. (UK), Mahindra & Mahindra Ltd. (India), Deere & Company (US), Kubota Corporation (Japan), Yanmar Holdings Co., Ltd. (Japan), Autonomous Tractors Corporation (US), SDF Group (Italy), Iseki & CO., LTD. (Japan), TYM Corporation (South Korea), J C Bamford Excavators Ltd. (UK), Tractors and Farm Equipment (India), Sonalika (India), Daedong (South Korea), CLAAS KGaA mBH (Germany) and Argo Tractors (Italy).

Within the crop type segment, fruits and vegetables is projected to have the highest market share during the forecast period.

The fruits & vegetables segment includes orange, vineyards, and others. With the increase in the global population, the demand for fruits & vegetables is also increasing at a rapid pace. The implementation of autonomous tractors in fruit and vegetable farming also leads to sustainable practices. These vehicles can be programmed to follow specific patterns, avoiding unnecessary damage to crops and minimizing soil compaction. This eco-friendly approach aligns with the increasing focus on sustainable agriculture, which appeals to consumers and regulatory bodies. Therefore, such factors contribute to the growth of the autonomous tractors market and fruit and vegetables category being the largest segment in application segment, it is expected to boost the market growth further.

Within the farm application segment, tillage is predicted to have the largest market value during the forecast period.

Tillage traditionally required significant manual labor and skilled operators to navigate the tractor and implements accurately. With autonomous tractors, farmers can reduce their dependency on skilled labor, especially during peak seasons, leading to cost savings and increased operational flexibility. Additionally, many autonomous tractors are equipped with sensors that can collect valuable data during the tillage process, such as soil moisture levels, compaction, and other soil characteristics. This data can be analyzed to make informed decisions about soil health and future tillage practices, leading to more sustainable farming practices. Agricultural industries worldwide are emphasizing the adoption of advanced technologies to improve farm productivity and address the challenges posed by labor shortages and the need for sustainable practices. These factors further contribute to the growth of autonomous tractors market, particularly in tillage applications.

Within the power output segment, 101 HP and above is anticipated to have the leading market share during the forecast period.

North America and Europe have a larger average farm size as compared to other regions, which drives the demand for high engine power tractors. Tractors rendering above 100 HP are required in these regions to complete farming activities on time. Europe and North America have a high urban population which is dependent on the small farming population in the region. Additionally, the farming population is reducing in terms of migrating to urban areas for better employment opportunities.

As per the World Bank data, the European urban population was 75.7% in 2023 as compared to 57.4% in 1960. This shows the increasing trend of rapid urbanization worldwide. To overcome the above challenges, farmers with large farm holdings opt for autonomous tractors with high power output. The use of these high-powered tractors allows farmers to efficiently handle larger fields, heavy machinery, and more demanding tasks such as tilling, planting, and harvesting. The autonomous tractors market is growing due to the increasing adoption of modern farming techniques, precision agriculture, and the need for higher productivity to meet the demands of a growing population.

Within the component segment, camera/vision segment is projected to have biggest market value during the forecast period.

Camera/vision technologies enable real-time monitoring of the surroundings, enabling the tractor to navigate through complex terrains, detect obstacles, and make intelligent decisions. With increased accuracy in tasks such as planting, spraying, and harvesting, autonomous tractors improve productivity and reduce operational costs for farmers. As the market recognizes the transformative impact of Camera/Vision systems on agricultural practices, the adoption of autonomous tractors is expected to surge, fueling overall market growth.

North America is expected to have the largest market share in the autonomous tractors market during the forecast period.

The rapid expansion of the autonomous market in North America can be attributed to a confluence of factors that have created a fertile ground for technological advancement and adoption. The region boasts a robust ecosystem of innovation, with a dense network of tech companies, research institutions, and venture capital firms that actively support and invest in autonomous technologies.

Moreover, favorable regulatory environments and government initiatives aimed at promoting research and development have encouraged the growth of the autonomous tractors market. The agricultural landscape in North America, characterized by large-scale farming operations, also presents a compelling case for autonomous solutions. These factors, coupled with the pressing need for increased efficiency, sustainability, and precision in agriculture, have accelerated the adoption of autonomous technologies in various sectors, positioning North America at the forefront of the global autonomous market expansion.

Key Market Players in the Autonomous Tractors Market

The key players in this include AGCO Corporation (US), CNH Industrial N.V. (UK), Mahindra & Mahindra Ltd. (India), Deere & Company (US), Kubota Corporation (Japan), Yanmar Holdings Co., Ltd. (Japan), Autonomous Tractors Corporation (US), SDF Group (Italy), Iseki & CO., LTD. (Japan), TYM Corporation (South Korea), J C Bamford Excavators Ltd. (UK), Tractors and Farm Equipment (India), Sonalika (India), Daedong (South Korea), CLAAS KGaA mBH (Germany) and Argo Tractors (Italy). Companies are focusing on expanding their production facilities by entering into partnerships and agreements as well as by launching new products to grow their businesses and their market share. New product launches because of extensive research & development (R&D) initiatives, geographical expansion to tap the potential of emerging economies are the key strategies adopted by companies in the market.

Autonomous Tractors Market Report Scope

Report Metric	Details
Market revenue in 2023	USD 2.4 billion
Revenue prediction in 2028	USD 7.1 billion
Growth rate	CAGR of 24.0%
Market size available for years	2019–2028
Base year considered	2022
Forecast period	2023–2028
Forecast units	Value (USD) and Units
Autonomous Tractors Market Segmentation	Crop Type, Farm Application, Power Output, Component, and Region.
Regions covered	North America, Europe, Asia Pacific, and RoW
Companies covered	AGCO Corporation (US) CNH Industrial N.V. (UK) Mahindra & Mahindra Ltd. (India) Deere & Company (US) Kubota Corporation (Japan) Yanmar Holdings Co., Ltd. (Japan) Autonomous Tractors Corporation (US) SDF Group (Italy) Iseki & CO., LTD. (Japan) TYM Corporation (South Korea) And more
Market growth driver	Maturing IoT and navigation technologies to drive the market growth
Largest growing region	North America

Autonomous Tractors Market Segmentation

This research report categorizes the market based on crop type, farm application, power output, component, and region.

Segment	Subsegment
Based on farm application	Tillage (Primary & Secondary Tillage) Seed Sowing Harvesting Others
Based on the crop type	Cereals & Grains Oilseeds & Pulses Fruits & Vegetables
Based on the power output	Up to 30 HP 30 Hp to 100 HP Above 100 HP
Based on the component	Lidar Radar GPS systems Camera Vision Systems Ultra sonic sensors Hand-Held Devices
Based on the region	North America Europe Asia Pacific RoW (Brazil, Russia & Others)

Recent Developments in the Autonomous Tractors Market

In February 2023, Kubota Corporation launched LX20 Series, with the LX3520 and LX4020 serving as the first two models. It is also expanding its popular L02 Series by introducing the L2502 and L4802. With this launch Kubota is expanding its LX series and L02 series with these new tractor launches.
In June 2022, the farm equipment division of Mahindra introduced six new tractor types. They are included in the tractor platform known as Yuvo Tech+, which was established last year. The m-ZIP 3-cylinder and ELS 4-cylinder engines power these tractors. This launch has helped Mahindra to cater to the needs of Indian farmers and helping the company to enhance their tractors availability list.
In May 2022, JCB has introduced its new Fastrac 4000 and 8000 Series tractors with an entirely new electronics architecture that offers operators an unrivalled range of options for operating their equipment while delivering improved levels of performance and convenience. With this launch JCB aimed at expanding its market in the tractors segment.
In July 2021, AGCO signed a deal with Deutz to supply engines for its Fendt tractors. The partnership includes a supply agreement for updated 6.1 litre and 4.1 litre engines to be used in selected Fendt tractors. The partnership also includes development cooperation on future technologies. In addition, Agco and Deutz will explore closer cooperation on engines or engine installation components below 150 hp.

Frequently Asked Questions (FAQ):

Which are the major companies in the autonomous tractors market?

What are the drivers and opportunities for the autonomous tractors market?

Improved efficiency and productivity through improved crop yields, growing trend of mechanization in the agricultural industry, and maturing IoT and navigation technologies are driving down cost of automation are some of the major drivers. The upcoming opportunities include the untapped market potential and scope for automation in agriculture.

Which region is expected to hold the highest market share in autonomous tractors market?

The market in North America will dominate the market with the largest share in 2023, showcasing strong demand for autonomous tractors in the region.

Which are the key technology trends prevailing in the autonomous tractor market?

The autonomous tractor industry is experiencing technological innovations as companies engaged in the autonomous tractor market are offering faster and more accurate technologies such as artificial intelligence (AI). The autonomy of tractors, which revolutionizes modern agriculture, is made possible by AI technology. Tractors can detect their environment and recognize objects by analyzing data from sensors like LiDAR, radar, and cameras. This allows them to make wise navigational and task-related judgements. For instance, an autonomous tractor using AI algorithms may detect obstacles in the field, such as rocks or trees, and modify its path to prevent collisions. Tractors may also adjust and improve their performance over time thanks to machine learning capabilities.

What is the total CAGR expected to be recorded for the autonomous tractor market during 2023-2028?

The autonomous tractors market is expected to record a CAGR of 24.0% from 2023-2028.

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TABLE OF CONTENTS

1 INTRODUCTION (Page No. - 33)

1.1 STUDY OBJECTIVES

1.2 MARKET DEFINITION

1.3 STUDY SCOPE

FIGURE 1 MARKET SEGMENTATION

1.3.1 REGIONS COVERED

1.3.2 INCLUSIONS & EXCLUSIONS

1.4 YEARS CONSIDERED

1.5 CURRENCY CONSIDERED

TABLE 1 USD EXCHANGE RATES, 2018–2022

1.6 UNIT CONSIDERED

1.7 STAKEHOLDERS

1.8 SUMMARY OF CHANGES

1.9 IMPACT OF RECESSION

2 RESEARCH METHODOLOGY (Page No. - 39)

2.1 RESEARCH DATA

FIGURE 2 RESEARCH DESIGN

2.1.1 SECONDARY DATA

2.1.1.1 Key data from secondary sources

2.1.2 PRIMARY DATA

2.1.2.1 Key insights from industry experts

2.1.2.2 Breakdown of primary profiles

FIGURE 3 BREAKDOWN OF PRIMARY INTERVIEWS: BY COMPANY TYPE, DESIGNATION, AND REGION

2.2 MARKET SIZE ESTIMATION

2.2.1 MARKET SIZE ESTIMATION: BOTTOM-UP APPROACH

FIGURE 4 AUTONOMOUS TRACTORS MARKET SIZE ESTIMATION: BOTTOM-UP APPROACH

FIGURE 5 AUTONOMOUS TRACTORS MARKET SIZE ESTIMATION (DEMAND SIDE)

2.2.2 MARKET SIZE ESTIMATION: TOP-DOWN APPROACH

FIGURE 6 AUTONOMOUS TRACTORS MARKET SIZE ESTIMATION: TOP-DOWN APPROACH

FIGURE 7 AUTONOMOUS TRACTORS MARKET SIZE ESTIMATION, BY TYPE (SUPPLY SIDE)

2.3 FORECAST ASSUMPTIONS

2.4 DATA TRIANGULATION

FIGURE 8 DATA TRIANGULATION

2.5 RESEARCH ASSUMPTIONS

TABLE 2 RESEARCH ASSUMPTIONS

2.6 LIMITATIONS AND RISK ASSESSMENT

TABLE 3 LIMITATIONS AND RISK ASSESSMENT

2.7 RECESSION MACROINDICATORS

FIGURE 9 RECESSION INDICATORS

FIGURE 10 GLOBAL INFLATION RATE, 2011–2021

FIGURE 11 GLOBAL GDP, 2011–2021 (USD TRILLION)

FIGURE 12 RECESSION INDICATORS AND THEIR IMPACT ON AUTONOMOUS TRACTORS MARKET

FIGURE 13 GLOBAL AUTONOMOUS TRACTORS MARKET: EARLIER FORECAST VS. RECESSION FORECAST

3 EXECUTIVE SUMMARY (Page No. - 52)

TABLE 4 AUTONOMOUS TRACTORS MARKET SNAPSHOT, 2023 VS. 2028

FIGURE 14 AUTONOMOUS TRACTORS MARKET SIZE, BY CROP TYPE, 2023 VS. 2028 (USD MILLION)

FIGURE 15 AUTONOMOUS TRACTORS MARKET SIZE, BY FARM APPLICATION, 2023 VS. 2028 (USD MILLION)

FIGURE 16 AUTONOMOUS TRACTORS MARKET, BY POWER OUTPUT, 2023 VS. 2028 (UNITS)

FIGURE 17 AUTONOMOUS TRACTORS MARKET, BY COMPONENT, 2023 VS. 2028 (’000 UNITS)

FIGURE 18 AUTONOMOUS TRACTORS MARKET SHARE (VOLUME), BY REGION, 2022

4 PREMIUM INSIGHTS (Page No. - 57)

4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN AUTONOMOUS TRACTORS MARKET

FIGURE 19 GROWING TREND OF MECHANIZATION IN AGRICULTURE INDUSTRY TO DRIVE DEMAND FOR AUTONOMOUS TRACTORS DURING FORECAST PERIOD

4.2 EUROPE: AUTONOMOUS TRACTORS MARKET, BY FARM APPLICATION AND COUNTRY

FIGURE 20 GERMANY TO ACCOUNT FOR LARGEST MARKET SHARE IN 2022

4.3 AUTONOMOUS TRACTORS MARKET, BY COMPONENT AND REGION, 2022 (BY VOLUME)

FIGURE 21 NORTH AMERICA TO DOMINATE COMPONENT MARKET DURING FORECAST PERIOD

4.4 AUTONOMOUS TRACTORS MARKET, BY CROP TYPE AND REGION

FIGURE 22 FRUITS & VEGETABLES CROP TYPE TO DOMINATE MARKET IN 2023

4.5 AUTONOMOUS TRACTORS MARKET: MAJOR REGIONAL SUBMARKETS (BY VOLUME)

FIGURE 23 US AND CHINA TO DOMINATE MARKET IN 2022

5 MARKET OVERVIEW (Page No. - 60)

5.1 INTRODUCTION

FIGURE 24 PER CAPITA ARABLE LAND, 1965–2020 (HA)

5.2 MARKET DYNAMICS

FIGURE 25 DRIVERS, RESTRAINTS, OPPORTUNITIES, AND CHALLENGES: AUTONOMOUS TRACTORS MARKET

5.2.1 DRIVERS

5.2.1.1 Rising demand for enhanced efficiency and productivity through improved crop yields

FIGURE 26 AVERAGE FARM SIZE, 2014–2021 (ACRES)

5.2.1.2 Advent of mechanization in agricultural sector

5.2.1.3 Need of IoT and navigation technologies to drive down automation

5.2.2 RESTRAINTS

5.2.2.1 Lack of technical knowledge among farmers

5.2.3 OPPORTUNITIES

5.2.3.1 Rising use of smartphones as agricultural tool

5.2.3.2 Untapped market potential and scope for automation in agriculture

5.2.4 CHALLENGES

5.2.4.1 Lack of data management in agriculture

5.2.4.2 High cost and complexity of fully autonomous tractors

6 INDUSTRY TRENDS (Page No. - 66)

6.1 INTRODUCTION

6.2 VALUE CHAIN ANALYSIS

6.2.1 RESEARCH AND DEVELOPMENT

6.2.2 PROCUREMENT

6.2.3 MANUFACTURING/PRODUCTION

6.2.4 DISTRIBUTION

6.2.5 MARKETING AND SALES