Market Forecast By Power Output (Less Than 30 HP, 30-50 HP, 51-100 HP, More Than 100 HP), By Drive Type (2 Wheel Drive, 4 Wheel Drive), By Application (Agriculture) And Competitive Landscape
|Product Code: ETC432095||Publication Date: Nov 2022||Product Type: Market Research Report|
|Publisher: 6Wresearch||No. of Pages: 75||No. of Figures: 35||No. of Tables: 20|
Saudi Arabia tractor market is projected to grow during the forecast period. This growth is attributed to increasing demand for agricultural equipment in the country, as well as improving economic conditions and rising wages. In addition, government initiatives such as the Vision 2030 program are expected to drive growth in the sector over the forecast period. The Saudi Arabia Tractor Market plays a vital role in the agricultural industry. As the Kingdom's economy continues to grow, so does the importance of this market.
According to 6Wresearch, the Saudi Arabia Tractor Market size is expected to grow during 2022-2028. Saudi Arabia is one of the world's leading oil producers and its economy is heavily dependent on oil revenue. However, the country is looking to diversify its economy and reduce its reliance on oil exports. This has led to an increase in demand for tractors in the country, which in turn will drive growth in the Saudi tractor market.
In Saudi Arabia, the agricultural sector is one of the most important economic activities. The country has a total area of 922,000 square kilometres and a population of around 27 million people. According to the World Bank, in 2013, the agricultural output was worth SR 2.1 trillion. The main crops are wheat, barley, cotton, corn, soybeans, and fruits.
To meet the needs of its rapidly growing population and to increase production efficiency and food security, Saudi Arabia has embarked on a number of large-scale projects over the past few years. These projects include the construction of new irrigation networks and dams; development of new crop varieties; and establishment of new livestock breeding centers.
The largest concentration of tractors is in rural areas, as farmers prefer them for tilling fields and moving crops around. However, there has been a shift towards using tractors for construction purposes, as the kingdom plans to build several new airports and highways. This reflects the trend towards mechanization across all sectors of the economy, including agriculture.
The primary drivers for the Saudi Arabia Tractor Market growth are increasing demand from the agricultural sector; rising awareness about tractor capabilities among small farmers; improvements in rural infrastructure across Saudi Arabia; enhanced product offerings by key players; and aggressive marketing strategies by key players.
The Saudi Arabia Tractor Market revenue faces a number of challenges. These include a limited workforce, high cost of inputs, and the low productivity of agricultural land.
According to the World Bank, the workforce in Saudi Arabia is only 54% of the total population, which is below the world average of around 60%. This limits potential growth in the agricultural sector. High input costs also limit productivity as farmers struggle to make a profit from their crops. The low productivity of agricultural land also hinders growth in this sector. Only around one-fifth of Saudi Arabia's land is classified as arable, which is below the world average of around 25%. This means that there is not enough room for expansion in this area.
The major factors that are impacting the Saudi Arabia Tractor Market share are:
The agricultural sector is one of the major end users of tractors in Saudi Arabia. This sector includes crops such as wheat, barley, rapeseed, and cotton, as well as livestock such as cows, sheep, goats, and horses. The increased demand for tractors from this sector will drive growth in the Saudi tractor market.
Saudi tractor market includes increasing demand for agricultural inputs, mechanization of agriculture, and growth in the livestock sector. The increasing demand for mechanized farming systems is also contributing to growth in this segment of the market. Other factors that are influencing growth in this market include government initiatives aimed at enhancing agricultural productivity, increased investment into infrastructure development, and a rise in rural electrification rates.
COVID-19 has had a significant impact on the Middle East tractor market. Apart from causing widespread disruption, this virus has also resulted in fatalities due to its adverse effects on the respiratory system and heart. As a result, major players in the Saudi Arabia tractor market have increased their focus on safety and hygiene measures, thereby boosting their sales volumes significantly. In addition, manufacturers are expanding into new markets owing to high demand for tractors there.
Saudi Arabia is a major agricultural producer and has been using tractors for decades. However, there are now several alternatives to the current situation. For example, self-propelled combines have replaced tractors in many areas. Another option is solar powered tractors that can be used in off-road conditions.
The Saudi Arabia tractor market is unique in that it is one of the few markets in the world where agricultural tractors are predominantly used for farming. This is in contrast to markets such as Europe and North America, where agricultural tractors are predominately used for construction or heavy industry.
There are a number of small-scale tractor manufacturers active in the Saudi Arabia market, but their share is limited.
There are several reasons why investors should keep an eye on the Saudi Arabia tractor market. First, there is a growing demand for agricultural tractors in Saudi Arabia due to rising food prices and increased population growth. Second, foreign manufacturers are starting to invest more into the Saudi Arabia tractor market due to its high growth potential and restricted competition. Third, technological advances are slowly making their way into the Saudi Arabia tractor market, which could lead to increased sales in future years.
The report offers a comprehensive study of the subsequent market segments: