Global Tractor Sales Decline: Will They Recover Soon?
The global tractor market has recorded three consecutive years of decline. After peaking at 2.5 million units in 2021, sales dropped to 2.03 million in 2024. Major markets including the U.S., China, India, and Europe are posting sharp losses. Is a rebound finally within reach-or is the downturn set to deepen?
The global tractor market has seen three straight years of contraction, dropping from a historic high of 2.5 million units in 2021 to just 2.03 million in 2024. In dollar terms, total sales reached U$S52 billion, representing a year-over-year decrease of 10%.
The downturn is largely driven by two economic factors: rising input costs-including elevated interest rates limiting access to credit-and declining global farm profitability, which has reduced capital investment in machinery.
Key Markets in the Red
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United States: 216,000 units sold, down 14% from 2023
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China: 320,000 units, down 12%
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India, the global leader in unit volume, sold 999,400 tractors, a 1.2% decline
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Turkey: 63,000 units sold, down 18%
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Europe: 144,400 tractors registered, a drop of 8%
Five of Europe's six largest markets also posted losses:
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France: 33,600 units (-4.9%)
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Germany: 27,600 units (-4.4%)
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Italy: 15,400 units (-12.2%)
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United Kingdom: 11,700 units (-11.7%)
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Poland: 8,500 units (-16.9%)
Only Spain recorded growth, with 8,700 units sold-a 13.4% increase-though this came after a particularly poor 2023 due to severe drought.
What to Expect in 2025
Preliminary data from the first half of 2025 shows that the market has yet to show clear signs of recovery across most regions.
India stands out, reporting 539,500 units sold and an 11.5% year-over-year growth, putting it on track to surpass one million units again this year.
Brazil is also seeing a strong rebound after a disappointing 2023.
Industry analysts expect that a global turnaround could begin in the second half of 2025, although a full recovery is not likely until 2026 or even 2027, when demand is projected to regain momentum.
Major manufacturers anticipate a bottoming-out phase by late 2025, with North American demand expected to rise from 2026 onward.
A Sector with Long-Term Potential
Despite the current slowdown, long-term demand for agricultural technology remains strong. Global food production will need to increase by 50% by 2050 to meet population growth and climate challenges.
To meet these goals, the industry must balance yield and sustainability by adopting precision agriculture tools, electrification, and automation technologies that will define the future of farming.
