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The electric tractor market is, for lack-of-a-better term, electric.
A report released recently by MarketsandMarkets projected a surge in the global electric tractor market for the second half of this decade, jumping from $700 million this year to a whopping $3.4 billion by 2030.
With growing concerns about climate change and carbon emissions, many farmers and ranchers are turning to electric tractors as a cleaner and more eco-friendly alternative to traditional diesel-powered tractors. The average age of the American tractor is 25 years old, and Uncle Sugar is also helping the push to upgrade with up to $7,500 in tax credits, various grant and rebate programs and several low-or-no-interest loan financing incentives.
The seismic push has also been buoyed by technological advancements in battery technology and electric drivetrains. Modern electric tractors offer comparable power and torque ratios to their diesel counterparts, along with lower operating costs and reduced maintenance requirements.
Advancements in battery technology, coupled with ongoing research and development efforts, will figuratively and literally propel the market even further. This cycle of continuous innovation is expected to drive widespread adoption across nearly all segments, from industrial-scale farms to specialty crop producers, worldwide.
The report also points to increasing demand for electric tractors in emerging markets, where agricultural mechanization is on the rise thanks to increased production from Kubota Corporation (Japan), Solectrac (U.S.), AGCO Corporation (U.S.) and CNH Industries NV (Netherlands). These factors are all conspiring to help developing countries shift toward modern farming practices, with availability filling the need for higher productivity and efficiency in agricultural operations.
This remarkable growth trajectory underscores the increasing popularity of electric-powered equipment. With sustainability, technological innovation and market demand driving the demand, seems like farmers and ranchers are going to be putting their money where their mouths are in the coming years in their own effort to meaningfully impact climate change.