Market Size of Africa Agricultural Tractor Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.18 Billion |
| Market Size (2029) | USD 1.58 Billion |
| CAGR (2024 - 2029) | 6.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Agricultural Tractor Market Analysis
The Africa Agricultural Tractor Market size is estimated at USD 1.18 billion in 2024, and is expected to reach USD 1.58 billion by 2029, growing at a CAGR of 6.10% during the forecast period (2024-2029).
- Agriculture is critical to Africa's economic development, but it needs to function below its potential. Smallholder farmers make up more than 60% of the population in sub-Saharan Africa, and agriculture accounts for around 23% of the region's GDP. At the same time, the population is increasing on a large scale. As a result, there is an urgent need to raise crop yields in the coming decades to keep up with food demand in Africa. Therefore, mechanization in agriculture closes the yield gap by lowering harvest and post-harvest losses.
- As per the research survey conducted by the Agri Evolution Alliance, Africa holds great market potential for agricultural tractors. The increasing government support to develop the agricultural sector is expected to drive this sector.
- For instance, the Ghana government provides subsidized tractors to entrepreneurs who run 89 centers that rent out and service tractors. In major parts of Africa, tractor sales were affected due to uncertainty regarding crop yields and exchange rates. Additionally, issues with respect to land restitution and farmworkers' farm shares added to the farmers' uncertain conditions. Therefore, considering these factors, the market can witness growth in the coming years.
Africa Agricultural Tractor Industry Segmentation
Agricultural tractors are types of machinery used in farming or other agriculture operations. The report defines the market in terms of end users that only procure tractors for agricultural production applications. The end users include farmers and institutional buyers operating in agriculture and allied production. The corporations in the tractor industry operate in the B2B and B2C formats. However, bulk buyers procuring tractors for retail sales are not considered in this market to eliminate any 'double-count' error in market estimations.
The African agricultural tractor market is segmented by engine power (less than 35 HP, 35 to 50 HP, 51 to 75 HP, 76 to 100 HP, and above 100 HP), geography (South Africa, Kenya, and the Rest of Africa).
The report offers the market size and forecasts in terms of volume in units and value in USD million for all the above segments.
| Engine Power | |
| Less than 35 HP | |
| 35 to 50 HP | |
| 51 to 75 HP | |
| 76 to 100 HP | |
| Above 100 HP |
| Geography | |
| South Africa | |
| Kenya | |
| Egypt | |
| Rest of Africa |
Africa Agricultural Tractor Market Size Summary
The African agricultural tractor market is poised for significant growth, driven by the urgent need to enhance agricultural productivity across the continent. With a substantial portion of the population engaged in smallholder farming and agriculture contributing significantly to the region's GDP, the mechanization of agriculture through tractors is seen as a crucial strategy to bridge the yield gap. Despite challenges such as uncertain crop yields and economic factors, government initiatives and subsidies, like those in Ghana, are fostering a conducive environment for market expansion. The increasing trend of tractor sales, particularly in South Africa, underscores the growing adoption of mechanization, which is essential to meet the rising food demand driven by population growth and urbanization.
South Africa stands out as the largest market for agricultural tractors in Africa, benefiting from a shift towards domestic production and increased awareness of farm mechanization. The country's agricultural sector is experiencing a revival, supported by government subsidies and strategic investments from global players like Deere & Company and Mahindra & Mahindra. These companies are not only enhancing their presence in South Africa but also leveraging the country's potential as a manufacturing and export hub. The market is characterized by consolidation, with international companies holding significant market shares and competing through strategic initiatives to expand their influence. As the region moves towards achieving sustainable agricultural practices, the demand for tractors is expected to rise, aligning with the broader goals of the African Union and the Food and Agriculture Organization.
Africa Agricultural Tractor Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Engine Power
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2.1.1 Less than 35 HP
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2.1.2 35 to 50 HP
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2.1.3 51 to 75 HP
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2.1.4 76 to 100 HP
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2.1.5 Above 100 HP
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2.2 Geography
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2.2.1 South Africa
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2.2.2 Kenya
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2.2.3 Egypt
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2.2.4 Rest of Africa
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Africa Agricultural Tractor Market Size FAQs
How big is the Africa Agricultural Tractor Market?
The Africa Agricultural Tractor Market size is expected to reach USD 1.18 billion in 2024 and grow at a CAGR of 6.10% to reach USD 1.58 billion by 2029.
What is the current Africa Agricultural Tractor Market size?
In 2024, the Africa Agricultural Tractor Market size is expected to reach USD 1.18 billion.
