|Status : Published||Published On : Aug, 2021||Report Code : VRAT4034||Industry : Automotive & Transportation||Available Format :||Page : 145|
The global electric tractor market is anticipated to grow from USD 710 million in 2019 to USD 860 million in 2027, thus growing at a CAGR of 2.6% during the forecast period. Electric tractors have electronic batteries that can be recharged by plugging them into a socket. Electric tractors do not produce CO2 emissions or air pollution. Moreover, the electric tractor market is niche owing to the rising demands for smart agricultural products, government endorsement, and favorable policies. The rising number of farmers are forced to integrate mechanized farming on the same limited land to achieve better production, therefore companies are developing autonomous e-tractors.
The COVID-19 pandemic has negatively impacted the global electric tractor market due to strict lockdown, restrictions on global trade, and strict regulations by the government. This has affected the production and demand, created disruption in the supply chain, and had a financial impact on firms. However, the market is expected to provide remunerative opportunities for producers post COVID-19 crisis.
Insight by Component
Based on component, the global electric tractor market is segmented into sensor, GPS, vision system, and others. GPS enabled tractors are anticipated to be in demand owing to their ability to navigate well. This sub-division dominates the market and are forecasted to grow with the highest CAGR.
Insight by Tractor Type
Based on tractor type, the global electric tractor market is divided into light-duty, medium-duty, and heavy-duty. Among these segments, the light and medium-duty tractors dominate the market as electric powertrains are used in low power application tractors. The development in electric vehicle technologies will propel the advancement of high-power tractors during the projected period.
Insight by Battery Type
Based on battery type, the global electric tractor market is bifurcated into lead-acid and lithium-ion. Lithium-ion is anticipated to grow at the fastest rate owing to its various advantages on lead-acid batteries. The lithium-ion battery has high energy density, high efficiency, higher effective battery capacity, and have a longer life span as compared to lead-acid batteries.
Insight by Drivetrain Technology
Based on drivetrain technology, the global electric tractor market is segmented into hybrid electric vehicles (HEV), battery electric vehicles (BEVs), and plug-in electric vehicles (PHEVs). The hybrid electric vehicle holds the largest share in the market as these tractors can be charged by a water wheel, windmill, and solar panels. Moreover, a hybrid electric vehicle is gaining popularity owing to the establishment of the advanced infrastructure in this industry.
Insight by Application
Based on application, the global electric tractor market is categorized into agriculture, construction, and mining & transportation. Among these segments, the agriculture sector holds the largest market share in the global electric tractor market as it has several specific applications of electric tractors available in the industry. Some tractors even facilitate multiple applications or combo applications at the same time. The major application that electric tractors facilitate is tillage, harvesting, irrigation, seed sowing, spraying, and fertilizing.
Factors that drive the growth of the global electric tractor market are the rising demand for the no-emission vehicles in the agriculture sector, few moving parts due to which repair & maintenance cost is less and they can work for more time, more efficient than diesel tractors, cost-effectiveness resulting in a reduction of fossil fuel, eco-friendly as it does not make noise or air pollution. Moreover, electric tractors result in higher production on small lands and various initiatives are taken by the government to promote the growth of electric tractors. Thus, these factors will propel the sale of electric tractors and boost the growth of the global electric tractor market during the forecast period. The major benefits of using electric tractors in the farms will result in improved productivity, higher return on investment, reliability on autonomous tractors, and government support and favourable policies.
There is the low efficiency of electric tractors as compared to gasoline-driven, availability of alternatives or fuel-based electric tractors, the high initial cost of equipment, limitation of battery technology, low speed, and low energy storage capacity are the challenges faced by the electric tractor market. Moreover, it is difficult for new entrants to enter the market owing to the high investment capital required. Opportunities
The government of various countries is promoting the utilization of efficient vehicles such as hybrid electric vehicles. The incorporation of electricity in agricultural machines and tractors is creating opportunities for the growth of the electric tractor market.
The electric tractor market is niche and the industry has resulted in the development of electric tractors with better efficiencies, and introduction of telematics in electric tractors. Key players have been collaborating with international partners in order to extend their market reach on a global basis. This poses a threat to the new entrants in the industry.
North America dominates the electric tractor market owing to the adoption of the developed technology, increasing demand for compact tractors, and the presence of the major players in the industry. The Asia Pacific has proven to be the region with the highest growth rate in the electric tractor market owing to factors such as large farmlands, agriculture-dependent economies, and government regulations. Countries such as China and India are reigning on this altar. These countries have been forecasted to showcase huge demand for electric tractors during the forecast period.
The companies in this industry are being insisted to focus on the development of new autonomous driving techniques in order to make the driving safer and more dependable. Different countries are investing to develop autonomous electric tractors to cater to this demand. Technological advancements are anticipated in the coming years, and thus the market growth of the industry in the near future is forecasted very high.
The key players in the global electric tractor market are: AGCO Corporation, Deere and Company, CLAAS KGaA mbH, Kubota Corporation, Escorts Limited, Caterpillar Inc., Yanmar Co. Ltd., and J.C. Bamford Excavators Ltd. (JCB).
Source: VynZ Research
Source: VynZ Research