Global Electric Farm Tractor Market Report 2023: Sector is Expected to Reach $234 Million by 2028 at a CAGR of 14.06%

DUBLIN, June 16, 2023 /PRNewswire/ -- The "Electric Farm Tractor Market - A Global and Regional Analysis: Focus on Product, Application, Adoption Framework, Startup, Patent, Value Chain, and Country-Wise Analysis - Analysis and Forecast, 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The electric farm tractor market was valued at $98.7 million in 2022 and is expected to reach $234.0 million by 2028, growing at a CAGR of 14.06% between 2023 and 2028.

The electric farm tractor market is driven by several factors, including the surging demand for sustainable agriculture practices from the agriculture industry, electrification and automation of agriculture machinery, and energy storage systems.

In recent years, electric farm tractor has registered an exponential surge in interest among farmers, manufacturers, and researchers from the agriculture industry, with sales of electric vehicles (EVs) reaching record heights.

The electric farm tractor market is an emerging sector within the agricultural industry that focuses on the development and adoption of electric-powered tractors for various farming operations.

Electric farm tractors are designed to replace conventional diesel or gasoline-powered tractors, offering numerous advantages such as reduced carbon emissions, lower operating costs, and quieter operation. Electric tractors utilize electric motors and batteries to power their operations, eliminating the need for fossil fuels.

These tractors can be charged through various methods, including grid electricity, renewable energy sources such as solar or wind power, or even portable generators. The use of electric power in farming machinery aligns with the global trend toward sustainability and reducing greenhouse gas emissions. Key benefits of electric farm tractors include environmental sustainability, operational efficiency, reduced operating costs, noise reduction, government incentives, and others.

Recent Developments in the Global Electric Farm Tractor Market

• In April 2023, Ideanomics's subsidiary named, Solectrac, added new products to its product category of e25 electric tractors. The new product has the feature of the hydrostatic transmission, a mid-PTO, and independent PTO operation and is named e25H. It will be available for sale by the 2nd quarter of 2023.
• In December 2022, Monarch Tractor launched the electric tractor founder series named MK-V. It is the first commercially developed electric and driver-optional smart tractor. It combines technologies such as electrification, automation, and data analysis.

Demand - Drivers and Limitations

Market Demand Drivers:

Rising Awareness toward Sustainable Practices in Agriculture

Agriculture is a vast energy-intensive sector; it converts energy into food. Sustainable agriculture refers to farming practices that focus on producing food while minimizing the negative impact on the environment and preserving natural resources for future generations. In recent years, there has been a significant rise in awareness toward sustainable agriculture practices, with governments and farmers alike taking steps to reduce their environmental footprint.

Governments around the world have recognized the need for sustainable agriculture practices and have taken various initiatives to promote them. For instance, the European Union has set a goal to reduce greenhouse gas emissions from agriculture by at least 20% by 2020. The United States Department of Agriculture has also launched the Natural Resources Conservation Service, which provides farmers with technical and financial assistance to implement conservation practices on their farms.

Increased Farm Mechanization and Technology Adoption

Increased farm mechanization and technology adoption in agriculture has the potential to improve the efficiency, productivity, and sustainability of agricultural production. Farm mechanization and the adoption of smart farming technologies in agriculture lead to increased efficiency in various farming operations, such as planting, harvesting, and processing. This can reduce labor requirements and improve the speed and accuracy of these tasks.

Favoring Policies toward Electric Vehicle Adoption

Various electric vehicle (EV) incentives have been introduced in key markets over the past decade, helping to stimulate a strong expansion of electric vehicle models. For electric vehicles to reach their full potential to combat climate change, the 2020s must be the decade of mass adoption of light electric vehicles.

Increased Demand for Electrification from Agriculture Industry

Not only cars can be powered electrically, but also commercial vehicles such as tractors, buses, trucks, vans, or vehicles used in agriculture and the construction industry. The E models are more environmentally friendly, quieter, and more efficient than those with combustion engines.

Heavy commercial vehicles such as trucks, tractors, vans, and others are responsible for nearly 25% of CO2 emissions across the globe. Most of these vehicles are still powered by fossil fuels, i.e., diesel. In addition, commercial vehicles need a lot of fuel - and thus consume significantly more diesel than a car. But fossil fuels such as oil are finite. They also cause enormous air pollution.

Market Challenges:

Inadequate Charging and Network Infrastructure and Battery Recycling Challenges

Two basic infrastructural requirements for an advanced farming ecosystem are access to electricity, the internet, and communication. Although many nations have been able to electrify both urban and rural setups, most of the developing and underdeveloped nations have not been doing so.

Apart from this, many countries do not have internet access for the population, let alone the rural population. Rural areas typically have lower population density compared to urban areas, which means that there are fewer potential EV owners and less demand for charging infrastructure. As a result, building and operating charging stations in rural areas can be less financially viable.

High Initial Cost of Equipment

Electric farm tractors have a higher initial cost compared to traditional diesel tractors. This is because electric tractors use advanced technology such as electric motors, high-capacity batteries, and advanced power electronics. There are several factors attributed to the high initial cost of an electric tractor which includes battery technology, power electronics, limited production volume, charging infrastructure, and research & development cost.

Development of Alternative Engine Models

Alternative vehicles, such as hydrogen fuel cell vehicles and biofuel-powered vehicles, are emerging as potential challengers to electric vehicles. For example, hydrogen fuel cell tractors are a type of electric tractor that use hydrogen fuel cells to generate electricity instead of traditional batteries.

The basic principle behind hydrogen fuel cell technology is to convert hydrogen gas and oxygen into water, generating electricity in the process. The electricity is then used to power an electric motor that drives the tractor. There are key factors that promote the development of alternative engine models.

Limited Market Penetration Owing to Dominance of Conventional Tractors

The conventional tractor industry is dominated by a few key players, including John Deere, AGCO, CNH Industrial, and Kubota. These companies have established themselves as leaders in the market through decades of innovation, production, and marketing. One reason for their dominance is their ability to offer a wide range of products and services to customers. These companies have a strong network of dealers and service providers, allowing them to offer customers a full range of products and services, including financing, maintenance, and repair.

Market Opportunities:

Integration of New/Advanced Technologies with Electric Farm Tractor

The integration of new technologies in electric farm tractors is an emerging opportunity in the agricultural industry. Tractors have come a long way from their early mechanical versions to now being highly sophisticated machines equipped with a range of advanced technologies. These advancements in technology have not only improved the efficiency of tractors but have also made them more user-friendly and environmentally friendly.

Opportunities in Developing Nations

Developing countries are facing several challenges in the agriculture sector, including the need for increased productivity, reduced environmental impact, and improved economic sustainability. The adoption of electric farm tractors in these countries can offer several opportunities to address these challenges.

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.

Key Companies Profiled

• Solectrac (Ideanomics, Inc)
• Monarch Tractor
• Cellestial eMobility Private Limited
• Kubota Corporation
• Sonalika Group
• Rigitrac Traktorenbau AG
• Erisha Agritech
• Ztractor
• AutoNxt Automation
• Autonomous Tractor Corporation
• CLAAS KGaA mbH
• EOX Tractors (Formerly H2Trac)
• EVE Srl
• Amos Power
• SABI AGRI

Key Topics Covered:

1 Markets
1.1 Industry Outlook
1.2 Business Dynamics
1.2.1 Business Drivers
1.2.1.1 Rise in Awareness toward Sustainable Practices in Agriculture
1.2.1.2 Increased Farm Mechanization and Technology Adoption
1.2.1.3 Favoring Policies toward Electric Vehicle Adoption
1.2.1.4 Increased Demand for Electrification in Agriculture Industry
1.2.2 Business Challenges
1.2.2.1 Inadequate Charging, Network Infrastructure, and Battery Recycling Challenges
1.2.2.2 High Initial Cost of Equipment
1.2.2.3 Development of Alternative Engine Models
1.2.2.4 Limited Market Penetration Owing to Dominance of Conventional Tractors
1.2.3 Business Strategies
1.2.3.1 Product Development and Innovation
1.2.3.2 Market Development
1.2.4 Corporate Strategies
1.2.4.1 Mergers and Acquisitions
1.2.4.2 Partnerships, Joint Ventures, Collaborations, and Alliances
1.2.5 Business Opportunities
1.2.5.1 Integration of New/Advanced Technologies with Electric Farm Tractor
1.2.5.2 Opportunities in Developing Nations
1.3 Case Studies
1.3.1 Monarch Tractor Wente Vineyards Energy Case Study
1.3.2 Solectrac Inc Mushroom Farm Case Study
1.4 Start-Up Landscape
1.4.1 Key Start-Ups in the Ecosystem
1.5 Impact of Russia-Ukraine Crisis on Global Electric Farm Tractor Market
1.6 Cost Analysis - Comparision of Conventional and Electric Tractor
1.7 Architectural/Technical Comparison of Key Products in the Market
1.8 Role of Agrivoltaics in Global Electric Farm Tractor Market
1.9 Key Battery Technologies
1.9.1 Lithium-Ion Battery
1.9.2 Nickel, Mercury-Based Batteries, and Others

2 Application
2.1 Global Electric Farm Tractor Market (by Application)
2.1.1 Light-Duty Tractor
2.1.2 Medium-Duty Tractor
2.1.3 Heavy-Duty Tractor
2.2 Demand Analysis of Global Electric Farm Tractor Market (by Application)
2.2.1 Demand Analysis of Global Electric Farm Tractor Market (by Application), $Million, 2022-2028
2.2.2 Demand Analysis of Global Electric Farm Tractor Market (by Application), Units, 2022-2028

3 Products
3.1 Global Electric Farm Tractor Market (by Product)
3.2 Global Electric Farm Tractor Market (by Mode of Operation)
3.2.1 Autonomous
3.2.2 Manual
3.3 Demand Analysis of Global Electric Farm Tractor Market (by Mode of Operation)
3.3.1 Demand Analysis of Global Electric Farm Tractor Market (by Mode of Operation), $Million, 2022-2028
3.3.2 Demand Analysis of Global Electric Farm Tractor Market (by Mode of Operation), Units, 2022-2028
3.4 Global Electric Farm Tractor Market (by Drivetrain Technology)
3.4.1 Battery Electric
3.4.2 Hybrid Electric
3.5 Demand Analysis of Global Electric Farm Tractor Market (by Drivetrain Technology)
3.5.1 Demand Analysis of Global Electric Farm Tractor Market (by Drivetrain Technology), $Million, 2022-2028
3.5.2 Demand Analysis of Global Electric Farm Tractor Market (by Drivetrain Technology), Units, 2022-2028
3.6 Patent Analysis
3.6.1 Patent Analysis (by Organization)
3.6.2 Patent Analysis (by Patent Office)
3.7 Supply Chain Analysis

4 Region

5 Markets - Competitive Benchmarking and Company Profiles
5.1 Competitive Benchmarking
5.1.1 Electric Farm Tractor Companies
5.2 Company Profiles

For more information about this report visit https://www.researchandmarkets.com/r/a1126t

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