Used Tractors Market

Used Tractors Market Size

The global used tractors market was valued at USD 33.7 billion in 2024 and is projected to grow at a CAGR of 5.1% between 2025 and 2034. The growing need for agro-mechanization is fostering the growth of the market and efficiency and economic means of farming. Mechanization facilitates work efficiency by increasing productivity, saving time, and decreasing manual efforts during planting, harvesting, and even ploughing processes.

For example, the Indian Ministry of Agriculture & Farmers Welfare made a report regarding the “Mechanization of Indian Agriculture.” They estimated that the current level of mechanization would be in the range of 40-47%. This number is significantly lower than various other industrialized countries where the number goes beyond 90%. This shows the potential the market has and would subsequently accelerate the used tractor market in India.

Used tractors are a lower rung towards mechanized farming, especially for small-scale and medium-scale farmers in underdeveloped and developing countries such as those in Africa and Asia Pacific, because new equipment comes with excessive costs that one may not be able to afford. Moreover, government schemes encouraging mechanization and giving subsidies for used tools in these markets are also helping the growth of the market.

In addition, the growth of the used tractors market is greatly influenced by the global population and food requirements. As the population increases, the growth of food productivity in order to avert starvation becomes more and more of an important aspect. To micro-partners, particularly in economically boosted areas, increasing the areas of cultivation and productivity is proving to be a challenge, hence the need for mechanization.

Second-hand tractors are a good form of low-cost mechanization for many small and medium-scale farmers who need reliable but non-expensive equipment for production but cannot buy new machines as they cannot afford them. Also, because of the availability and affordable price of used tractors, farmers are able to shift to advanced farming techniques rather than relying on traditional methods of farming.

Used Tractors Market Trends

• The surge in demand for rental and leasing models in used tractors is remarkable. The tractors are available for rent at reasonable prices to farmers, which leads to an increased dependence on rental and leasing models. This leasing model allows farmers, who do not wish to invest a significant amount of money in direct purchase, to use second-hand tractors for limited time frames, for example, during certain farming seasons or projects.
  
• However, leasing also provides variety, as farmers have the option to acquire newer models or more advanced options. Such models also enhance the economic worth of these tractors for the dealers, as they augment the lifecycle use of the tractors. The boom in online platforms and regional leasing businesses helps in this process by offering simple solutions and better market reach, as well as helping the countries in the process of mechanization.
  
• In November 2024, Volkswagen Group Africa initiated an interesting program in Rwanda, GenFarm Project, which would allow local farmers to rent electric tractors that come with swappable batteries. It aims to modernize rural African agriculture and facilitate electric tractor rentals to promote sustainable farming practices.
  
• These electric tractors are available for farmers to rent together with trained operators, and they become easier to access and try out. The essence of this rental system is to relieve the burden on these farmers so that they are not required to make such big investments.
  
• The price changes in the market for used tractors result in a serious problem due to the degree of uncertainty they bring to buyers and sellers alike. They are caused by seasonal demand, general economic developments, as well as supply tides.
  
• For instance, increased sales during peak farming seasons usually increase prices, while excess inventory during the off-season often brings prices down to lower levels. This unpredictability stunts growth in the market by making it hard for some buyers to engage, while it complicates dealers’ inventory management processes. What is more, such fluctuations have a negative effect on the farmers financial plans, especially those in developing economies who have less disposable income to spend.
  

Used Tractors Market Analysis

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Based on horsepower, the market is segmented into below 30 HP, 31-100 HP, 101-200 HP, and above 200 HP. In 2024, the 31-100 HP segment accounted for over 40% of the market share and is expected to exceed USD 22 billion by 2034.

• This segment holds a substantial share of the worldwide used tractors market as they serve middle and moderate-scale farming needs, such as in applied and mechanized farming. Operating as versatile equipment for numerous agricultural activities like plowing, planting, and hauling, farmers that engage in mixed farming are more likely to buy these tractors.
  
• They cost less and consume less fuel, so they appeal to buyers with tight budgets, especially in underdeveloped countries. The horsepower range being discussed is suitable for operations found in smaller farms and orchards for horticultural farm activities where heavy tractors are not needed.
  
• Also, their increased use of different attachments and implements broadens the functionality and circumstances for the use of the tractors, thereby increasing demand for them.

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Based on the application, the market is divided into agriculture, construction, and forestry. The agriculture segment held around 74% of the market share in 2024.

• Tractors are a fundamental tool in farming, streamlining tasks such as tilling, sowing, and harvesting. By replacing labor-intensive processes, they boost efficiency and reduce operational costs.
  
• For small and medium farmers, especially in the Asia Pacific and Africa, where new farming equipment can be pricey, used tractors offer a financially lighter alternative. With proper maintenance, these robust tractors boast an extensive lifespan.
  
• Moreover, as sustainable farming techniques gain traction and the supply of certified pre-owned tractors from dealers and online vendors rises, their agricultural usage has surged, particularly in regions with vast farmlands and limited budgets for new equipment.

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In 2024, the North America region accounted for a market share of over 30% and is expected to exceed USD 15 billion by 2034. U.S. leads the market in the North America region and is expected to exceed USD 9 billion by 2034.

• For the North American region, the used tractors market is highly dependent on the mechanization of the agriculture industry within the U.S. from vast landscapes. It has been noted that small- to medium-scale farmers have quite a high demand for used tractors when compared to new models as they are on a budget.
  
• The use of certified pre-owned vehicles has given more growth within dealer networks and online platforms, which in the end helps to boost market reach. The extensive farming practices in the Midwest and Southern regions also play a major role in the growth of the agricultural market.
  
• The Western Europe market for used tractors is propelled by the growth of agriculture-focused industries and the increasing desire for affordable farm equipment. Germany, France, Italy, and the UK have agro-based economies and therefore dominate the market.
  
• According to extensive tractor usage trends, tractors that are used because they are cheap, funds offered by the government for mechanization purposes, and a wide array of dealerships and auctions that are so prevalent all boost the demand for used tractors. The market for used tractors is also driven by improvements in repair services and the rise of more online platforms for the sale of used tractors. Efforts toward environmental protection are also important for increasing demand in the region.
  
• The Asia Pacific region remains one of the largest shares in the used tractors market as a result of a large agricultural industry in India, China, and Indonesia. The considerable growth in the market is due to a robust demand for inexpensive and efficient machinery that most small-scale and medium-scale farmers seek.
  
• Some of the issues that enhance the accessibility to used tractors include increased rural mechanization, growing acceptance of sustainable farming methods, as well as the widespread availability of dealer networks and the internet.
  
• Furthermore, agricultural expansion policies that have been adopted by the governments, coupled with the growing practice of refurbishment and resale of tractors, have helped drive the growth of this market. The combination of the varied regions and climatic conditions and the large expanses of land available for agriculture continue to create the need for affordable agricultural equipment.
  
• The MEA used tractors market is propelled by agricultural tenders along with limited easy financing towards new machinery since smallholder farming dominates the region. Markets such as South Africa and Nigeria depend on cheap used tractors for agricultural mechanization. In addition, the promotion of farm mechanization programs by local authorities increasingly expands the area of the marketplace.
  
• In Latin America, however, Brazil and Argentina dominate the market of used tractors, due to their large agricultural industries. The market for cheap used tractors continues to be quite strong for crop growing or livestock farming. This region also exports good quality tractors that have been refurbished and directed towards well-established auction systems.
  

Used Tractors Market Share

John Deere, Mahindra & Mahindra, and CNH Industrial collectively held a substantial market share of over 12% in the used tractors industry in 2024.

• John Deere employs reasonable use of their international dealer network to enhance penetration of the second-hand agricultural tractors market via the provision of certified pre-owned tractors. Part of the business strategy includes a considerable emphasis on after-sales support, together with reasonable accessibility for farmers through financing and leasing options.
  
• At the same time, by providing the use of internet-based services, the Deere boosts its coverage, offering support for customers who want to view stock and inventories online. The firm has also partnered with local vendors to meet the local market needs and win the local market’s confidence.
  
• To reach small to medium-scale farmers who carved out an economic sector in agriculture, Mahindra & Mahindra pursuits combine both ideas and seek to capitalize on its already well-established brand and goodwill by refurbishing tractors sold under certified programs.
  
• It has successfully developed its used tractor business by creating outlets for used tractors and linking with local field dealers. With the merger of additional online platforms and financial mechanisms, Mahindra enhances customer reach and consolidates its used tractors operations leadership in the low end of the market.
  
• Through CNH Industrial’s brands New Holland and Case IH, the company elaborates on high-quality refurbishment of used tractors and sanitation processes. The company provides solutions in financing for various market requirements as well.
  
• To meet the interests of the company and clients, CNH Industrial established specialized centers for trading used equipment for construction and agricultural machines as well as a virtual marketplace. Their business model also incorporates creating new dealership systems and a strong commitment to after-sales service and customer satisfaction and loyalty in the long term.
  

Used Tractors Market Companies

Major players operating in the used tractors industry are:

• Argo Tractors
• Claas Group
• CNH Industrial
• Eicher
• John Deere
• Kioti Tractor
• Kubota Corporation
• Mahindra & Mahindra
• Massey Ferguson
• Yanmar Co., Ltd.
  

A shift in focus towards sustainability and the efficient use of resources has created additional interest in the market for used tractors since circular economy practices are embedded in repurposing and reusing machinery. There is a marked growth in both manufacturers and dealers advertising the advantages of pre-owned equipment, especially in regions where funds are limited.

Furthermore, the increased penetration of digital platforms for trading used tractors has transformed the competitive landscape, giving room for independent and smaller sellers to compete in the same space as the major players. In this highly competitive market, businesses that emphasize facilitating open transactions, maintaining product integrity, and offering strong customer support stand a good chance of succeeding.

Used Tractors Industry News

• In January 2024, Good Works Tractors began spearheading the market alongside all used tractors and especially with high-end tractors as they valued their customers. Good Works Tractors is based in Michigan and has changed how used tractor sales are done by presenting a well-defined inventory management system, reasonable prices and selling with a sense of ethics.
  
• In April 2024 Kotak Mahindra bank began experiencing a shift in the sorts of loans customers were seeking with the majority seeking loans to buy used tractors. As the farmers' market begins to expand so does the need for farmers to obtain tractor loans that are reasonably priced combined with the ability to hire services. Kotak has loans for new and old tractors.
  

The used tractors market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (Units) from 2021 to 2034, for the following segments:

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Market, By Type

• Farm tractor
  • Sub-compact utility tractor
  • Compact utility tractor
  • Specialty tractor 
• Construction tractor
• Garden tractor

Market, By Horsepower

• Below 30 HP
• 31-100 HP
• 101-200 HP
• Above 200 HP

Market, By Fuel

• Diesel
• Petrol
• Others (e.g., CNG, LPG)

Market, By Application

• Agriculture
• Construction
• Forestry

Market, By Sales Channel

• Dealerships
• Auctions
• Private sales
• Online platforms

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa