The "U.S. Tractor Market Research Report 2025-2030" report has been added to ResearchAndMarkets.com's offering.

The U.S. Tractor Market was sized at 217,200 Units in 2024, and is projected to reach 245,059 Units by 2030, rising at a CAGR of 2.03%.

The U.S. tractor market is competitive and dominated by both global and strong domestic manufacturers. Companies like John Deere, CNH Industrial, AGCO & Kubota hold a significant share of the U.S. tractor market. The industry features a mix of well-established global brands and regional players. As international companies continue to strengthen their presence, smaller regional manufacturers may face challenges competing with these larger, well-resourced companies. In early 2024, AGCO strengthened its U.S. presence by launching Fendt electric tractors and expanding its Fuse Smart Farming platform, which uses precision technology to boost farm efficiency.

In 2023, Kubota released the L4802DTN narrow tractor in the U.S. tractor market. This 48-horsepower model is built for specialty farming like vineyards and orchards. With a width of just 39.4 inches, it easily moves through tight rows, making it ideal for tasks like spraying, mowing, and towing. It shows Kubota's focus on compact, purpose-built machines for specific farming needs.

In February 2025, John Deere partnered with Drive TLV, giving it access to a wide network of startups. This helps the company improve in areas like autonomy, sensors, electrification, and connectivity, allowing it to offer more efficient and high-tech solutions to farmers. Furthermore, Deere & Company and CNH Industrial lead the U.S. tractor market, together holding over 45% of the market share. Both companies focus on innovation and are heavily investing in advanced technologies for precision farming and automation.

GEOGRAPHICAL ANALYSIS

In regions such as the West, Southwest, Midwest, including Northeast and Southeast in the U.S., which are heavily reliant on agriculture (e.g., Corn, soybeans, wheat, cotton, fruits, dairy, etc.), large landholdings drive the demand for tractors. These regions use tractors to improve productivity and reduce labor costs, making mechanization a key to enhancing farm efficiency. In 2024, the western region accounted for a significant the U.S. tractor market share. The Western U.S. is an important farming region, especially known for growing fruits and specialty crops like almonds, grapes, and wine. These crops rely heavily on irrigation because of the area's low rainfall. While wheat and rice are also grown, their production is smaller compared to other regions due to limited water resources.

The Southwest tractor market is expected to witness a CAGR of over 2% between 2025-2030. The region supports the growth of several important crops. Cotton is one of the leading crops, especially in Texas, Arizona, and New Mexico. The region is also famous for its chili peppers, particularly the Hatch green chiles from New Mexico. Furthermore, the Midwest region market accounted for a 27% share of the US tractor market in 2024. The Midwest U.S. is an important farming area, known for growing main crops like corn and soybeans. These crops grow well because of the region's good soil and enough rainfall. Wheat is also grown, especially in Kansas.

Northeast U.S. is a key agricultural hub, famous for its prominent dairy industry, especially in states such as New York and Vermont, which are recognized for their premium milk and cheese production and drive significant market growth. Furthermore, the Southeast tractor market accounted for 19 thousand units in 2024. In Southeast U.S. states include Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee. The Southeast U.S. is a significant agricultural region, known for producing a variety of crops due to its warm climate and fertile soil. Main crops grown in the Southeast include cotton, peanuts, tobacco, and soybeans.

US TRACTOR MARKET TRENDS & DRIVERS

Electric and Alternative Fuel Tractors

The need for cleaner alternatives to diesel-powered tractors has led to the development of tractors that run on CNG, hybrid fuels, and electricity. These alternative fuel tractors offer a more environmentally friendly option, lower operating costs, and improved productivity. The rising demand for sustainable farming is boosting interest in electric and alternative fuel tractors in the U.S. tractor market. Several tractor manufacturers are planning to launch new electric models to meet this growing need.

New Holland is developing an electric T4 tractor with autonomous features for the U.S. market. John Deere is also working on an electric tractor prototype. Currently, the Case IH Farmall 75C electric tractor is available in the U.S. It was first showcased at the Farm Progress Show in Decatur, Illinois.

Autonomous & Semi-Autonomous Tractors

There is a rising demand for rapid innovation and the use of AI and robotics in agricultural equipment, driven by farmers' increasing focus on improving crop yields. Technology is expected to transform farming in the coming years. Automated systems can handle time-consuming and labor-intensive tasks more efficiently, boosting productivity. GPS receivers in autonomous agricultural equipment accurately determine positions up to two centimeters. This kind of accuracy is difficult to achieve with manual driving.

John Deere is one of the leading tractor manufacturers in the U.S. tractor market. The company launched the 8R and 9R series autonomous tractors in the US market in 2024. These tractors are equipped with features like GPS guidance, machine learning & farm data analytics that improve farming efficiency.

Government Policy and Credit Support System

In the U.S., both federal and state governments offer various financial support programs to help farmers boost productivity, adopt modern technologies, and promote sustainable practices. These programs include direct subsidies, low-interest loans, grants, and crop insurance, all aimed at supporting farm income and encouraging investment in advanced equipment like tractors.

In 2008, initiatives such as the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP) encouraged farmers to adopt sustainable farming practices and invest in modern equipment to increase efficiency and reduce environmental impact. Also, the U.S. government policies ensure that farmers have access to affordable credit and financial aid to invest in modern, efficient farming equipment.

Increased Farm Mechanization

Mechanization in the U.S. varies by region, based on farm income. The Southwest is the richest and most advanced farming area in the country. In this region, mechanization has moved from power-heavy tasks like land preparation, water pumping, and threshing to more precise tasks like harvesting, seeding, and weeding.

Tractor makers are adding more technology, like data analytics, GPS, telematics, remote sensing, and mobile tools to make farming smarter and more accurate. These features help with mapping fields, auto-steering, and controlling tractor movement to reduce waste of fuel, fertilizer, and seeds. Moreover, the shortage of farm labor is a growing issue in key agricultural regions of the U.S., especially near major cities where many workers leave farming for higher-paying jobs. To cope with this challenge, farmers are increasingly turning to machinery like tractors to make up for labor gaps and maintain productivity. As a result, mechanization has become crucial for keeping farm operations efficient despite limited labor availability and has supported the U.S. tractor market growth.

INDUSTRY RESTRAINTS

Fluctuations in Agricultural Commodity Prices

In the U.S., agricultural commodity prices are strongly affected by weather and climate. Events such as droughts, floods, and hurricanes can greatly reduce crop yields, leading to lower supply and higher prices. In January 2025, the price of corn in the U.S. was around $214 per metric ton, down from the previous year. This drop is mainly due to higher domestic production and lower export demand, affected by global markets and trade policies. The lower prices have reduced farmers' profit margins, raising concerns about the long-term sustainability of corn farming. Moreover, fluctuating prices have wide-ranging impacts. Farmers face income uncertainty, which may influence their planting decisions and investment in future crops. Consumers can experience rising or falling food prices depending on commodity costs.

Climate Variability on Agriculture

The agriculture industry depends heavily on weather for farming. Weather plays a big role in crop yields, and farmers rely on it for key activities like seeding, planting, and sowing. In the U.S., farming is facing more problems because of climate change, like droughts, floods, and higher temperatures. Crops such as corn, wheat, and soybeans are at risk due to less rain and extreme weather. Moreover, the economic impact could be serious. If global temperatures rise by 2C, U.S. crop yields may drop, putting food security and farm profits at risk. This could lower farmers' income and reduce their ability to buy tractors and other farm equipment.

KEY QUESTIONS ANSWERED

• What are the significant trends in the U.S. tractor market?
• Who are the key players in the U.S. tractor market?
• What is the growth rate of the U.S. tractor market?
• Which region dominates the U.S. tractor market share?
• How big is the U.S. tractor market?

Key Attributes:

Key Company Profiles

• AGCO Corporation
• CNH Industrial N.V.
• Deere & Company
• Kubota Corporation

Other Prominent Company Profiles

• YANMAR HOLDINGS CO., LTD
• JCB
• Antonio Carraro
• Action Construction Equipment Ltd.
• CLAAS KGaA
• Deutz-Fahr
• ISEKI & CO., LTD
• KIOTI
• Daedong-USA, Inc
• TAFE
• Jiangsu Yueda Intelligent Agricultural Equipment Co., Ltd.
• SOLIS
• LOVOL
• Sonalika

SEGMENTATION & FORECAST

Segmentation by Horsepower

• Less Than 50 HP
• 50-100 HP
• Above 100 HP

Segmentation by Drive Type

• 2-Wheel-Drive
• 4-Wheel-Drive

Segmentation by Geography

• The U.S.
  • Northeast
  • Midwest
  • Southwest
  • West
  • Southeast

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