Turkey Tractor Market Analysis and Forecast Report 2022-2028: Agricultural Productivity and Export Growth – ResearchAndMarkets.com


DUBLIN–(BUSINESS WIRE)–The “Turkey Tractor Market – Industry Analysis and Forecast 2022-2028” report has been added to from ResearchAndMarkets.com offer.

The 50-75HP segment accounted for the largest share due to its compact size and flexible operational capabilities. Turkey is the 18th largest economy in the world, with gross domestic product (GDP) and Turkey’s agricultural economy is the 7th largest economy in the world.

Turkey is also one of the largest countries in the Middle East in terms of agricultural area. Arable land covers 35.5% of the territory, while forest covers 15%. In 2019, there were approximately 23.7 million hectares of cultivable land. Irrigation covers 18.4% of arable land. Plant products account for 76% of overall agricultural production, followed by livestock and forestry, with forestry and fishing contributing the least. Most plant products consist of fruits and field crops, with wheat being the most common.

The Turkish economy recorded excellent growth in 2021, and the growth rate is expected to continue in 2023, supported by the rising employment rate and a monetary policy stance that will continue to support domestic demand. Therefore, 2022 should see a healthy 2% increase in real GDP growth.

The Turkish agricultural tractor market witnessed a massive growth of 83.5% in 2020 compared to 2019. The increase in agricultural production and tractor sales is due to favorable monsoon rains in 2020 and 2021, which helped the country to recover from the COVID-19 pandemic.

The 50-75 HP segment generated the highest sales.

In 2021, the Turkish 50 to 75 HP agricultural tractor market recorded strong growth. The main factor for the constant growth of the line of medium-power tractors is the increase in the turnover of farmers and breeders. Sales of tractors over 150 HP in the country are expected to remain stable over the forecast period as agricultural sales are expected to remain the same in the coming years.

Turkey Tractor Market and Segmentation by Region Type (Volume in Units).

In terms of region, the Central Anatolia and Black Sea regions of Turkey are said to have shown higher demand for agricultural tractors than the Eastern and Marmara region of the country. On the other hand, the Aegean and Mediterranean region of the country has a higher level of mechanization than any other country. Hence, the strong demand for agricultural tractors is expected to come from the Central Anatolia region of the country during the forecast period.

The main crops in the region are cereals and rice; Central Anatolia region is one of the main regions with high penetration of medium and medium size tractors (76-100) HP.

50-75 HP range tractors accounted for the largest share in the Black Sea region in 2021 due to their compact size and flexible operational capabilities. The demand for 50 to 75 HP is expected to increase significantly with a CAGR of 6.45% during the forecast period.

2WD tractors dominated the Turkish tractor industry

Ease of driving and flexibility during light loads and flat terrain are important factors driving the demand for two-wheel drive tractors. Older farmers mainly use 2WD types as they are wary of using new machinery and are more comfortable with traditional 2WD types than 4WD.

Most retail brands, including New Holland, Tumosan and Massey Ferguson, are Turkish farmers’ preferred choices in the 2WD segment. Turkey has many medium-sized farmers, with an average farm size of 6 ha/farm. For this reason, farmers prefer to own mid-range HP and economical tractors, which has a positive impact on the 2WD segment.

OPPORTUNITIES AND CHALLENGES OF THE TURKEY TRACTOR MARKET

High local production capacities in Turkey

Turkey has a large domestic tractor manufacturing base. A few major market players dominate the manufacturing of tractors. Eight manufacturing plants supply the majority of tractors for domestic and international markets. The production of tractors for export accounts for a considerable share of the tractors produced in Turkey. Nearly 9,000 tractors are exported from Turkey every year, accounting for almost 35% of total tractor production.

Increase the potential of electric tractors

Recently, electric vehicles have become more popular for various applications. Electric tractors are widely used in industry for various indoor and outdoor applications. The increasing trend towards automation and growing environmental concerns will accelerate growth. Farmers in developed countries are looking for electric tractors to reduce fuel cost and replace them with standard tractors.

In 2021, the American tractor manufacturer Solectrac announced the launch of its new 70 HP and 60 kWh electric tractor. They have been specially designed for intensive agricultural and viticultural operations. The tractor can run for up to eight hours on a single charge with a 60 kWh battery.

Lower commodity prices

Turkey experienced a decline in prices of agricultural products such as rice, wheat, corn and hazelnuts in 2014. Average rice prices increased slightly in 2020 compared to previous years. Falling agricultural commodity prices coupled with declining or stagnating growth rate could make farmers less willing to invest in new machinery, especially tractors.

COMPETITIVE LANDSCAPE

  • The Turkish agricultural tractors market has established players in various segments including open fields and vineyards. The threat posed by new vendors to existing vendors in the country is relatively low.

  • New Holland and Tumosan dominated the Turkish tractor market with a collective market share of over 52%. The threat of rivalry is high in the Turkish tractor market since more than 50% of the claims belong to the top three key players. These players thrive on innovation in the tractor market. They are increasingly investing in the development of advanced agricultural tractor technologies for precision farming and machine automation.

RECENT DEVELOPMENTS

  • In February 2022, Massey Ferguson launched the MF 6S Series tractors. This machine delivers up to 180 HP with advanced technology.

  • In February 2022, AGCO and AgRevolution showcased new solutions from Fendt, Massey Ferguson and Hesston by Massey Ferguson at the National Farm Machinery in Louisville, Kentucky.

  • In July 2020, Massey Ferguson launched the MF 8S Series tractors. This series of tractors is distinguished by a guard-u install engine and a neo-retro design. These tractors are designed to advance smart farming technologies.

MARKET DYNAMICS

Opportunities and market trends

  • High local production capacities in Turkey

  • Technological advances in tractors

  • Increased use of unconventional fuel in tractors

  • Increase the potential of electric tractors

Market Growth Drivers

  • Financial support to farmers through loans and grants

  • Reduce labor to boost agricultural mechanization

  • Growth in agricultural productivity and exports

  • Socio-demographic changes in Turkey

Market constraints

  • Farmers ignore the latest innovations in agricultural equipment

  • Growing demand for used and rental tractors

  • Lower commodity prices

VENDOR LANDSCAPE

Major manufacturers in the Turkish agricultural tractor market are New Holland, Tumosan, Erkunt, Deutz Fahr and Massey Ferguson. In terms of units sold, New Holland and Tumosan are the market leaders, which accounted for more than 50% of the overall tractor market share in Turkey in 2021. The report covers company ranking in product offerings by ranges HP.

Main suppliers

  • AGCO

  • CNH Industrial

  • John Deere

  • TAFE

  • Kubota

Other Important Suppliers

  • MSDS

  • Action Construction Equipment Ltd (ACE)

  • Iseki

  • Deutz-Fahr

  • Mahindra and Mahindra

  • Yanmar

  • Escorts

This report is among the few on the market to offer an analysis of prospects and opportunities in terms of:

  • Market Size and Forecast Volume (Units) 2019-2028

  • Segmentation by power

  • Segmentation by driving wheels

  • Segmentation by regions (federated states)

  • Production and trade values

  • Main current and future projects and investments

  • Get competitive insights on economic scenario, advantages in Turkey, market dynamics and market share

  • Latest and innovative technologies

  • Import and export analysis

  • Market Impact Analysis of COVID-19

  • Company profile of major suppliers and other important suppliers

  • Market share of major vendors

For more information on this report, visit https://www.researchandmarkets.com/r/809jkl.

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