What`s New for 2023?

» Special coverage on Russia-Ukraine war; global inflation; easing of "zero-Covid" policy in China and its `bumpy` reopening; supply chain disruptions, global trade tensions; and risk of recession.
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Looking Ahead to 2023

The global economy is at a critical crossroads with a number of interlocking challenges and crises running in parallel. The uncertainty around how Russia`s war on Ukraine will play out this year and the war`s role in creating global instability means that the trouble on the inflation front is not over yet. Food and fuel inflation will remain a persistent economic problem. Higher retail inflation will impact consumer confidence and spending. As governments combat inflation by raising interest rates, new job creation will slowdown and impact economic activity and growth. Lower capital expenditure is in the offing as companies go slow on investments, held back by inflation worries and weaker demand. With slower growth and high inflation, developed markets seem primed to enter into a recession. Fears of new COVID outbreaks and China’s already uncertain post-pandemic path poses a real risk of the world experiencing more acute supply chain pain and manufacturing disruptions this year. Volatile financial markets, growing trade tensions, stricter regulatory environment and pressure to mainstream climate change into economic decisions will compound the complexity of challenges faced. Year 2023 is expected to be tough year for most markets, investors and consumers. Nevertheless, there is always opportunity for businesses and their leaders who can chart a path forward with resilience and adaptability.

Global Farm Tractors Market to Reach $85.6 Billion by 2026

Tractors hold a pivotal role in farm mechanization and allow farmers to boost productivity and overall yields. Farm tractors pull implements through the field for various farming operations including tilling, planting, and harvesting crops. Tractors are also used for preparation of soil and are the most utilitarian of all farm machinery. Important features of tractor include power and accessories that can be attached to it. The most common attachments include front end loaders, tillers, plows, spreaders, trailers, and box blades. The continuously growing demand for quality and safe food products is creating a pressing need for adoption of advanced agriculture machinery, including tractors. The farm tractors market is also gaining from favorable credit facilities for farmers, allowing them to invest in high-end agricultural machinery to push up farm production. Another factor that is bolstering the market growth is shorter tractor replacement cycle, which has dropped from nearly 12 years to 8 years in the recent years, creating high demand for farm tractors. A prominent trend in the farm tractors market is increasing focus on technological innovation such as electric and autonomous tractors that have resulted in eco-friendly and more efficient versions of farm tractors. The introduction of alternative fuel tractors represents a noteworthy trend that is likely to augment the market growth in the coming years. Continuing evolution of tractors and fuel technologies has enabled tractors to use liquefied natural gas, compressed natural gas, vegetable oil, kerosene, propane and diesel as fuel sources.

Amid the COVID-19 crisis, the global market for Farm Tractors estimated at US$71.2 Billion in the year 2022, is projected to reach a revised size of US$85.6 Billion by 2026, growing at a CAGR of 5.1% over the analysis period. Tractors Upto 30 HP, one of the segments analyzed in the report, is projected to grow at a 5.6% CAGR to reach US$62 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in Tractors in the 31 HP to 100 HP segment is readjusted to a revised 4.7% CAGR for the next 7-year period. This segment currently accounts for a 16.8% share of the global Farm Tractors market.

The U.S. Market is Estimated at $19.1 Billion in 2022, While China is Forecast to Reach $17.3 Billion in 2026

The Farm Tractors market in the U.S. is estimated at US$19.1 Billion in the year 2022. The country currently accounts for a 27.09% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$17.3 Billion in the year 2026 trailing a CAGR of 7.9% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.8% and 4.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR. In the present scenario, India offers the best growth opportunities for manufacturers as good monsoons and crops, as well as government push towards increased mechanization through subsidies expected to result positive results in terms of both volumes and value. In addition, the trend towards higher powered tractors also increases average realizations per equipment, driving topline as well as the bottom-line. Similarly, China is witnessing a growing market for larger tractors and declining sales of small tractors, resulting in better average prices. In developed markets, the trend towards autonomous/driverless tractors, as well as the pent up replacement cycle after long years of stagnation is expected to drive the market.