Electric Tractor Market Size, Share Global Analysis Report, 2022 – 2030

Industry Insights

[233+ Pages Report] According to the report published by Facts and Factors, the global electric tractor market size was worth around USD 120 million in 2021 and is predicted to grow to around USD 300 million by 2030 with a compound annual growth rate (CAGR) of roughly 13.1% between 2022 and 2030. The report analyzes the global electric tractor market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the electric tractor market.

Market Overview

Tractors are engineering vehicles that are designed specifically to carry out tasks that require high torque or tractive effort while maintaining a slow speed. The main purpose of tractors requires them to haul a piece of pieces of machinery like trailers to agricultural, construction, or mining sites. In a more generic sense, the word tractor is used to describe a vehicle used on farms for agricultural purposes. Electric motors are like conventional tractors but the only difference is that the former is powered by electric vehicle batteries or electric power cables. They offer several advantages over conventional tractors and are gaining slow but steady momentum in the commercial world. Currently, there are a limited number of players operating in the market however, the addition of more players in the foreseeable future is likely to help the global market generate high revenue.

Key Insights

• As per the analysis shared by our research analyst, the global electric tractor market is estimated to grow annually at a CAGR of around 13.1% over the forecast period (2022-2030)
• In terms of revenue, the global electric tractor market size was valued at around USD 120 million in 2021 and is projected to reach USD 300 million, by 2030.
• The market is projected to grow at a significant rate due to the several advantages offered by electric tractors
• Based on drivetrain technology segmentation, a hybrid electric tractor was predicted to show maximum market share in the year 2021
• Based on battery type segmentation, lithium-ion battery was the leading type in 2021
• On the basis of region, Europe was the leading revenue generator in 2021

Growth Drivers

• Advantages of using an electric tractor to propel market demand

The global electric tractor market is projected to grow owing to the advantages of using electric-engine-powered tractors over conventional fuel-run tractors. These vehicles require less maintenance as compared to diesel motors which are filled with more than 100 moving parts. They also offer cost-saving benefits since fuel prices are constantly increasing resulting in an overall increase in the total expense associated with the use of diesel-powered tractors.

Furthermore, the growing emphasis worldwide on reducing the use of fossil fuels which are a leading cause of greenhouse gas emissions could help create more demand for electric tractors. Governments across the globe are ramping up their efforts to support the regional agricultural economy to meet the growing demand of the population. This could act as a beneficial factor in favor of the global market since with external assistance, farmers and other people belonging to the agricultural sector are expected to gain higher confidence.

Restraints

• Limited number of players to restrict market expansion

Currently, there are only a certain number of players that are operating in the global market which could restrict the electric tractor industry expansion. The concept of electric tractors is new to the world and there is a significant lack of awareness among the end consumers which reinforces the global market growth restrictions. However, since the market holds tremendous potential, more players are expected to enter the segment while it is relatively new and create a strong presence in the coming years since the demand for commercial electric vehicles is already increasing and soon it is expected to take over the rest of the vehicle segments as well.

Opportunities

• Growing investments toward research and development to provide growth opportunities

The global electric tractor market can expect more growth opportunities owing to the increasing focus of multiple players for the development of electric tractors owing to the higher growth potential in the segment and its relatively new ideology. When businesses are among the top few players that enter new and upcoming segments, they are likely to make the most profit during the time the competition is less. This could influence already existing automotive companies to try and expand their businesses in the electric tractor segment as well.

Challenges

• High cost to challenge market growth

Electric tractors are high in cost and this is mainly related to the lesser options in the commercial market owing to the limited number of players. There is a significant gap between the growing interest in electric tractors and the actual availability of the product for utilization purposes. Unless more electric tractor brands become available to the end consumers, the initial cost of purchasing these vehicles is expected to remain high which means that it will only be affordable to a certain segment of society thus restricting the consumer database.

Segmentation Analysis

The global electric tractor market is segmented by drivetrain technology, battery type, and region

Based on drivetrain technology, the global market is divided into hybrid electric tractors, battery electric tractors, and plug-in hybrid electric tractor

• In 2021, the electric tractor industry was dominated by the hybrid electric tractor segment due to the high preference amongst the end-consumer group
• The hybrid tractors are powered by at least one electric motor and a diesel motor
• It can efficiently switch between the two different types of motor to achieve fuel efficiency while ensuring optimum performance along with reduced harmful emission
• As per estimates derived from scientific studies, the electric tractor can improve fuel efficiency by 19.21% when compared to conventional tractors

Based on battery type, the global market is divided into lithium-ion batteries and lead-acid battery

• The electric tractor industry witnessed the highest growth in the lithium-ion battery segment and the same trend can be expected during the forecast period
• Lithium-ion batteries offer various advantages over any other batteries
• For instance, they can charge faster. They are 100% efficient in terms of charge or discharge. In addition, factors like longer life and eco-friendliness can help the segment generate higher revenues

Recent Developments:

• In December 2021, India’s Ministry of Road Transport and Highways announced that they will soon be launching electric tractors in the coming years following India’s vision toward sustainable growth. The ministry refused to name the company that would be launching the electric tractor but aims at reducing the overall cost associated with agriculture or farming
• In July 2022, Murugappa Group, India, announced its plan to enter the electric vehicle segment with the initiation of a new project called TI Electric under the company’s brand name. The new entity will aim at the production of electric tractors, three-wheelers, and other vehicular formats as well. TII currently stands at a valuation of INR 5,600 crore

Report Scope

Regional Analysis

• Europe to lead with the highest growth

The global electric tractor market is projected to witness the highest growth in Europe owing to the already existing consumer database in these regions. Most of the preferred electric tractors are manufactured by Fendt, a German company along with some other critical players that are constantly investing in further development in the segment. The electric vehicle segment in Europe is one of the fastest growing segments and this could act as a benefit for the global market expansion as well. Growth in Asia-Pacific is anticipated to be led by the growth initiatives of the regional governments to boost the agricultural economy in the country by integrating technological settings.

Furthermore, the growing number of players in countries like India, Japan, and China along with the installation of new production and manufacturing sites could help the region grow at a high CAGR. For instance, in August 2022, AutoNxt, an Electric Tractor venture in India, announced that it has received funding of INR 6.4 crore from HNI in angel investment. The company plans to use the funds for extensive research along with testing and tooling for electric tractors. It has already launched 3 variants of electric-powered tractors in the country.

Competitive Analysis

• Solectrac Inc. 
• Deere & Company 
• Kubota Corporation 
• Alke 
• Yanmar Holdings Co. Ltd. 
• AGCO Corporation 
• CLAAS KGaA mbH 
• Mahindra and Mahindra 
• Dongfend 
• SOLECTRAC 
• Caterpillar Inc. 
• J.C. Bamford Excavators Ltd. (JCB) 
• EcoFactor 
• Sonalika 
• Motivo Engineering 
• Escorts Limited 
• AutoNxt Automation Pvt. Ltd. 
• Fendt 
• Cummins Inc. 
• Ztractor

The global electric tractor market is segmented as follows:

By Drivetrain Technology Segment Analysis

• Hybrid Electric Tractor
• Battery Electric Tractor
• Plug-In Hybrid Electric Tractor

By Battery Type Segment Analysis

• Lithium-Ion Battery
• Lead-Acid Battery

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America