Thailand Tractor Market Research Report: Forecast (2025-2030)

Market Definition

Agricultural equipment designed to pull and push heavy loads and perform chores like plowing, tilling, and planting on farms is called a tractor. It helps to make farming activities easier for farmers and reduces the time taken for the task compared to manual labor.

Market Insights & Analysis: Thailand Tractor Market (2025-2030):

The Thailand Tractor Market size was valued at around 55,112 units in 2024 and is projected to reach 70,872 units by 2030.  Along with this, the market is estimated to grow at a CAGR of around 4.12% during the forecast period, i.e., 2025-30. The growth in tractor sales is driven primarily by the government’s goals to modernize agricultural practices and improve resource utilization to boost the overall farm productivity. Moreover, growth in farmers' income and efforts to boost the agricultural exports are also contributing immensely to the sales of tractors.

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Moreover, various investments and regulatory policies have been introduced by the Thai government to support and enhance the agricultural sector of the nation. For instance, in 2024, the Ministry of Agriculture & Farmers Welfare revealed its aim of making Thailand a global center of agriculture and launched a total of nine policies. The policies will also focus on increasing Thai farmers’ income by 2027.

The banking sector’s inclusion in this policy framework is marked as instrumental. So, the Bank for Agriculture and Agricultural Cooperatives (BAAC) has been engaged to work in collaboration with the government to offer lower loan rates, subsidies, and other incentives. These developments would encourage farmers to adopt advanced farming practices. The Thai government also promotes technology adoption through training and education programs, which include the use of the right type of tractors for the right field, resulting in improved productivity.

Additionally, regulations that focus on sustainable farming practices often require mechanized solutions, further driving the demand for tractors in the agricultural sector of the country. Innovative trends such as the increasing adoption of precision farming technologies, such as GPS technology, precision positioning technology, etc., in tractors are creating the demand for such tractors in Thailand.

The total demand for tractors in Thailand has been estimated at over 73,000 units in 2024. However, due to various structural challenges, improper execution of government policy frameworks, financing bottlenecks, etc., there exists a considerable gap between actual sales and the demand.

Thailand Tractor Market Driver:

Increasing Demand for Agricultural Products – The amplified need for food in Thailand is supported by the rising population, exponential growth in tourist arrivals, and evolving food consumption patterns. For instance, Thailand welcomed around 35.6 million tourists in 2024, an increase of around 25% over 2023. Eventually, new food trends in urban cities of the country, such as multi-cuisine dishes, organic products, plant-based healthy diets, etc., are also causing a rise in agricultural production. Additionally, Thailand exports different agricultural products such as rice, sugar, frozen shrimp, canned tuna, frozen fruits, and cassava, making the country the largest exporter of agricultural products in the ASEAN region.

According to the International Rice Research Institute, Thailand is ranked among the top 10 rice producers in 2025. Rice is cultivated on around 50% of the country’s agricultural area. In 2025, the country is ranked among the top two global rice exporters. The country exported around 2.46 million tons of rice in 2024.

As per the International Trade Administration (ITA), Thailand’s agricultural sector exports increased from USD47.33 billion in 2022 to USD49.70 billion in 2023, making Thailand a strong agricultural competitor. To meet the export demands, the requirement for agricultural production also increases, thereby encouraging the farmers to use the most efficient tractors to increase production. With growing domestic and export requirements, Thai farmers are scaling up their operations. Therefore, tractors are crucial for cultivating larger areas of land, improving productivity, and ensuring consistent yields. Thus, the surging farm production needs will continue to drive the market in the foreseeable future.

Thailand Tractor Market Opportunity:

Rising Demand for Electric Tractors to Open New Growth Avenues – The gradually rising demand for electric tractors to reduce GHG emissions is going to offer huge growth opportunities in the coming years. The government has introduced several targets to reduce the CO₂ emissions that have already caused a considerable depletion in the country’s environmental health. It plans to reduce emissions by 30%-40% by 2030 and reach net-zero emission levels by 2065. The agriculture sector of Thailand is the second most carbon-emitting sector.

In alignment with the government’s targets, the farmers are also gradually adopting electric or hybrid tractors to contribute to the reduction of carbon emissions. The electric vehicles are not dependent on fossil fuels, thus have a considerably lower carbon footprint than other vehicles. As the requirement for environmentally friendly machinery grows, the electric or hybrid tractor companies will gain immense opportunities to enter and expand within this market. For instance, in 2024, Yanmar S.P. Co. launched a new tractor, named the EF393T tractor, which is an electric agricultural machine designed to achieve zero emissions in farming. The tractor manufacturing companies are considering these electric and hybrid tractors as an opportunity, as they support the sustainable standards of the nation, thus increasing the futuristic demand for tractors in Thailand.

Thailand Tractor Market Challenge:

High Initial Investment & Maintenance Costs of Tractors – The high cost of tractors restricts the market growth in the nation. Tractors, especially with higher horsepower, are priced higher. For instance, a 21-horsepower tractor costs around USD 7,500 while a 72-horsepower tractor would cost more than USD 30,000. Moreover, frequent technological advancements in tractors, such as automation and digitization, result in a further rise in tractor costs as well as make it complex for the older farming population to operate. Apart from this, tractors require regular maintenance due to the rough terrain it operates in and their lengthy operational time. Maintenance requirements include annual engine oil replacement, fixing of any faulty parts, replacement of damaged tires, and others.

These initial investments, coupled with maintenance requirements, bring a huge financial burden on the small and medium-sized farmers. Thus, these costs make low or medium-level farmers, who hold a dominating share in the country, hesitant to adopt tractors, thereby restraining the market progress.

Thailand Tractor Market Trend:

Increasing Inclination Towards Technologically Advanced Tractors – In recent years, the agricultural sector has seen the adoption of technological progressions in machinery and equipment. Tractors, being an important part of the agricultural machinery, have also advanced with technology to meet the needs of the farmers in Thailand. Moreover, smart and digital farming accelerate the need for advanced technologies such as driver-support features like GPS guidance, auto steering, mobile app controllers, etc., precision farming systems, and automation.

The large-scale farmers in the country are highly inclined towards the adoption of technologically advanced tractors to enhance their crops’ productivity. Advanced sensors and digital tools provide them with real-time knowledge of the crop’s health, soil conditions. It also allows farmers to monitor their tractors’ performance, track any anomalies, and schedule timely maintenance.

Moreover, advanced tractors perform tasks much faster and more efficiently as compared to traditional ones. To offer such advanced technological capabilities, various companies are establishing and expanding their presence in the nation. For instance, in 2024, Mahindra and Mahindra, a significant name in the tractor industry, established its presence in Thailand.  The establishment will allow the company to offer all its technologically advanced tractors, including Novo 755 DI PP, which offers Digisense technology for smartphone connectivity for enhanced tractor controls. Hence, the growing trend of bringing new technologies in Thailand market will eventually boost the growth of the market in the foreseeable future.

Thailand Tractor Market (2025-30): Segmentation Analysis

The Thailand Tractor Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025-2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Tractor Type:

• 2-Wheel
• 4-Wheel
• Others (6-Wheel, 8-Wheel, etc.)

Of these, the 2-wheel tractors are dominating the Thailand Tractor Market, having a market share of approximately 40%. Cost-efficient and small machinery is preferred in the agriculture sector of Thailand due to the limited areas available to the farmers for agriculture. According to the Food and Agriculture Organization, the average farm size is 4 hectares per household in Thailand. Such constrained sizes of the farms are more inclined towards small-sized tractors for various operations such as tilling, plowing, leveling, transportation, and pumping of land. The compact size and ease of driving during light loads and plains are driving factors for 2-wheeled tractors, augmenting growth in the country.

Based on Horsepower Type:

• Less than 20 HP
• 20-40 HP
• 41-60 HP
• 61-100 HP
• Above 100 HP

The 20-40 HP segment is dominating the market with a market share of more than 60% and is expected to hold the position during the forecast period as well. The major presence of small and medium-sized farms, especially in the southern region of the nation, makes use of 20-40 HP tractors. These tractors help in cultivating vegetables, agri crops, rubber, and palm oil, that is generally cultivated by small-scale farmers in Thailand. Fuel consumption adds another advantage for driving the need for this segment, as 20-40 HP tractors are more fuel efficient. They are also powerful enough for water pumping, harvesting, and land preparation, especially in rice cultivation. Thus, 20- 40HP tractors are an economical choice for smallholder farmers who need to keep operation costs low, thereby surging demand for the segment and fostering growth in the forecast period.

Thailand Tractor Industry Recent Development:

• 2024: Siam Kubota announced the investment plan of USD41 million to be allocated for expanding production lines of agricultural machinery such as tractors, combine harvesters, etc.
• 2024: New Holland expanded its presence in Thailand by partnering with 7 new dealers of tractors in the country.

Gain a Competitive Edge with Our Thailand Tractor Market Report

1. Thailand Tractor Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Thailand Tractor Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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