Australia Tractors Market - Industry Outlook & Forecast 2025-2030

INDUSTRY OUTLOOK

The Australia tractors market witnessed sales of 10.25 thousand units in 2024 and is expected to reach 11.37 thousand units by 2030, growing at a CAGR of 1.74% during the forecast period. The market is expected to witness considerable year-over-year (YoY) growth due to the following factors:

1. Growing Farm Mechanization: The increasing penetration and adoption of farm mechanization practices throughout the country have been boosting the sale of new tractors. Favorable climate conditions coupled with government support for increasing Agri-exports and farm mechanization, will drive the demand for tractors in the region.
2. High Demand for Efficient and Advanced Tractors: Farmers are increasingly demanding efficient and advanced tractors that can help them reduce their operating costs and improve their productivity. Tractors with advanced features, such as GPS guidance, telematics, and precision agriculture capabilities, are in high demand.
3. Launch of Several Schemes in the Agricultural Sector: The government in the region launch various schemes to promote agricultural mechanization. These schemes typically provide subsidies or financial assistance to farmers for the purchase of agricultural machinery, including tractors.
4. The Emergence of Electric-Powered Tractors: Several OEMs in the Australia tractors market have planned to introduce Electric-powered tractors in the coming year. In 2024, John Deere announced to launch fully electric power tractor in the Australian market in 2026. Electric tractors have lower operating costs than diesel-powered tractors, as electricity is cheaper than diesel fuel.
5. Increase in Crop Production: Australia has seen a significant rise in agricultural production in 2024, with notable increases in wheat, canola, and beef cattle numbers, majorly driven by favorable weather conditions and improved farming practices, resulting in a higher gross value of agricultural production across the country. 

In addition to the above factors, the growth of the Australia tractors market is also being driven by the increasing demand for food products and the expansion of agricultural land. Farmers are increasingly adopting mechanization to meet the growing demand for food and to improve their profitability.

SEGMENTATION INSIGHTS

INSIGHTS BY HORSEPOWER

The Australia tractors market is categorized into these segments based on horsepower less than 60 HP, 60–100 HP, 101–200 HP, and above 200 HP. The less than 60 HP segment generated the highest sales in most of the regions. Tractors in this HP range can easily handle small and medium-sized fields and heavy-duty mowing tasks. The following market trends drive less than 60 HP range tractor sales:

1. Crop Adaptability: These HP range of tractors are favored by farmers due to their versatility across various crops, accommodating the diverse agriculture seen across the world.
2. Sustainability Focus: Sustainable farming practices are a priority, and small & medium-sized tractors, with their efficient power-to-efficiency ratio, align well with eco-friendly approaches.
3. Cost-Effective Solutions: A competitive agricultural landscape and a small HP range of tractors offer cost-effective alternatives to large models, attracting budget-conscious farmers while delivering substantial performance.

INSIGHTS BY DRIVE TYPE

The Australia tractors market is dominated by low-range HP 2WD tractors. Among the several tractor models available in the country, 2WD tractors are the most favored by farmers. The low relative cost of ownership, the sufficiency of features and haulage power, and convention make 2WD tractors more popular among farmers. Australia has a high number of medium-scale farmers with an average farm size of around 500 ha/farm. For this reason, farmers prefer to use their own large and powerful machines. In Australia, power paddles are attached to two-wheeled tractors for wheat plantations.

REGIONAL ANALYSIS

New South Wales region has the largest market share in the Australia tractors market accounting for nearly 29% in 2024. However, this region offers a variety of agricultural products such as wheat, barley, oats, and others. The region represents one of the major areas of agricultural production in Australia. The region is also leading in high penetration of compact tractors. New South Wales, Australia, varies significantly across the state, including coastal plains, fertile river valleys, and mountainous regions.

New South Wales, Queensland followed by Victoria have reportedly shown a higher demand for agricultural tractors than other regions of the country in 2024. The demand for tractors is expected to grow at a robust pace during the forecast period (2025-2030). Also, Queensland is a significant contributor to the agriculture industry, known for its high-quality agricultural produce. It is a leading producer of sugarcane, bananas, macadamias, sweet corn, avocados, beans, and capsicums.

The outlook for Western Australia in 2025 is positive, with expectations of good rainfall to support crop production. According to data from the Australian Bureau of Agriculture and Resource Economics, wheat production and the demand for beef and lamb are projected to increase in the first half of 2025. Also, the Australia tractors market is currently in the growth stage, and manufacturers are seeking capacity augmentation in the country. The Northern Territory region of the country has relatively low levels of farm mechanization, and vendors can explore these regions with a portfolio of small tractors that are suitable for the rolling hills and low mountains of the region.

COMPETITIVE LANDSCAPE

The Australia tractors market is highly concentrated, with the top players controlling most of the market. Domestic and global brands, on the other hand, are equally represented in the market. John Deere, AGCO & CNH Industrial dominated the Australia tractors market with a collective market share of 40%-45%. Since more than 40% of the share belongs to the top three key players, the threat of rivalry is high in the Australia tractors market. These players are thriving on innovation in the tractor market. Also, the industry has established players in various segments. Vendors have improved their aftersales services, making customers loyal to the existing brands.

Established global players are moving toward increasing the introduction of technology in their offerings to attract more customers. For instance, CNH Industrial, with its tractor brands Case IH, New Holland, and Steyr, has introduced autonomous technology in agriculture tractors. The company has already incorporated technologies, such as auto-steering and telematics, in its agriculture tractors. John Deere and AGCO worked to introduce the autonomous concept in their tractors. Furthermore, in terms of advanced tractor technology, John Deere has equipped many models with GPS, location tracking, image sensors, and telematics to assist in field navigation. The company has also equipped its 9RX model with features to autonomously adjust the harvesting equipment according to the state of crops.

Recent Developments in the Australia Tractors Market

1. In February 2024, John Deere launched 9RX series tractors in the Australian market. It is a high-horsepower tractor powered by a JD18 engine that is designed to meet the requirements of modern farming.
2. John Deere is also scheduled to launch autonomous, and battery-powered electric tractors in the Australia tractors market in 2026.
3. AGCO launched seven series Fendt 700 G& tractors in the Australian industry in 2024. It is a six-cylinder and AGCO power engine that produces 283 horsepower.
4. In 2024, CNH Industrial launched several new tractors under the New Holland brand in the Australian market including:
5. T4 Electric Power: It is an electric autonomous tractor with autonomous feature
6. T7 PLMi Long Wheelbase Auto command: It has a six-cylinder engine with a maximum power capacity is 280 horsepower and PLM Intelligence.
7. T9 SmartTrax: The tractor has PLM Intelligence that includes an advanced oscillating wheel and suspension. The tractor is expected to launch in 2025 in the Australia tractor market.
8. Kubota Australia launched two new models RTV-X1130 & SCL75-3 in the Australian industry in 2024.
9. Kioti Australia launched the HX1402 tractor with new LED lights & cabin suspension in 2024.

WHY SHOULD YOU BUY THIS REPORT?

This report is among the few in the market that offer outlook and opportunity analyses forecast in terms of the following:

1. Market Size & Forecast Volume (units) 2021–2030
2. Segmentation by Horsepower
3. Segmentation by Drive Type
4. Segmentation by Geography
5. Production and trade values
6. Major current and upcoming projects and investments
7. Competitive intelligence about the economic scenario, advantages, industry dynamics, and market shares
8. Innovative technologies
9. Company profiles of major and other prominent vendors
10. Market shares of major vendors