Fact.MR analyses demand for electric tractors market
The global market for electric tractors at present valued at $94.04 million in 2022.
The market is anticipated to grow with a CAGR of 13% in the forecast period 2022- 2032. This arcade is likely to cross a valuation of $319.23 million by end of 2032.
Compared to earlier years’ sustainability awareness is increasing and so is the production of alternatives to fossil fuels. The major reason behind alarming research in electric mobility is the need for fossil fuel substitution. This is the key driver of the market in hybrid electric vehicles. The incorporation of electric farm tractors in agrarian applications draws its motivation from the energy efficiency principle.
Electric farm tractors provide various advantages over their diesel counterparts such as they do not emit carbon dioxide, have fewer moving parts owing to which their repair and maintenance is easy.
The aforementioned factors are projected to boost the sale of these tractors and in turn, will propel the growth of the global market over the near future. Moreover, stringent regulations related to emissions, and renewable energy represent a reason to pursue e-drive solutions in the agricultural industry.
The availability of alternatives or fuel-based tractors in the market is expected to restrain the growth of the market over the forecast period. Furthermore, electric tractors possess various disadvantages such as low speed, limitation of battery technology and low energy storage capacity.
Concerns are detering growth
Even though zero emissions, lower operational cost, and high electric torque are perks offering growth in electric farm tractors, there are some hindrances affecting its adoption. Electric vehicle batteries are made up of combustible components like lithium, manganese, and polymers. When lithium is exposed to water, it becomes extremely reactive.
As a result, there are worries about these batteries' performance and safety in extremely dry or moist settings, thus limiting future sales. There is still a large section of farmers preferring fossil fuel-based tractors owing to the easy availability of fossil fuels. This can hinder the penetration of these tractors.
Lack of charging infrastructure is a major challenge in developing countries that may deter the adoption of such tractors. There is a lack of awareness about the impact of vehicle emissions among poor and developing economies which restricts growth in the electric farm tractors market share.
Geographically, the global market is projected to be dominated by North America owing to the rising demand for compact tractors
Asia-Pacific, spearheaded by India, is expected to grow at a significant rate in the global market over the near future. Owing to the major agricultural landscape Asian countries are anticipated to drive growth in this sector. The technological upgradation and available government support in countries like India, China, and Indonesia are set to increase demand for electric tractors in the forecast years.
The Middle East & Africa and Latin America are expected to hold small shares in the global market, however, the sale of electric tractors is expected to grow at a significant pace over the studied period.