There is a steady demand for new tractors in Australia, with the market expected to grow by almost six per cent per year.
One of the main driving forces for the purchase of new machinery, it is claimed, is falling farm returns – forcing farmers to seek every greater mechanical help.
Covering the years 2019-2024, the Australia Agriculture Tractors Market-Size, Trends, Competitive Analysis and Forecasts report says there is no easing of the need for technology.
It says Australian agriculture is facing two prominent problems – climate inconsistency and increased local competition in key export markets.
“As a result the Australian agriculture is adopting innovative techniques such as increased use of data, automation and communication technologies,” it said.
“All these factors emphasise on mechanization of farms and thus maintaining a steady demand for agriculture tractors.
“The Australia agriculture tractors market was worth USD 1.27 billion in 2018 and is expected to grow at a CAGR (compound annual growth rate) of 5.8 per cent during 2019 to 2023.”
Some of the key factors pushing the growth of agriculture tractor market are an increase in consumer demands for agriculture products and favourable government policies, technological advances and innovation, developing supply chain industry and emerging environmental concerns, it says.
“The unrelenting decline in the agriculture sector’s share of trade (that is, the ratio of prices received to prices paid) in the country has been an important source of pressure for adoption of mechanisation by Australian farmers.
“Growing concerns related to variations in seasonal conditions is another driving factor for use of tractors and reduce crop loss.”
Massey Ferguson, John Deere, Case IH, New Holland, Kubota, Claas, Deutz-Fahr, Fendt, Mahindra, and Iseki are the major agriculture tractor brands in Australia.
The report says the manufacturers are focused on developing tractors with high production efficiency, machining precision, automation and navigation system.
Another most adopted strategies of manufacturers is aggressive marketing campaigns and brand building to acquire and retain larger consumer base.