Agricultural Electric Vehicles (EVs) Market Size, Share and Trends Analysis, By Type (Tractors, Harvesters, Drones), By Power Source (Battery Electric Vehicles, Hybrid Electric Vehicles), By Drive Type, By Battery Capacity, By End-Use (Crop Production), and By Region, Forecast 2025-2032

Global Agricultural Electric Vehicles (EVs) Market Overview and Key Insights:

The global agricultural electric vehicles (EVs) market reached USD 2,547.4 million in 2024 and is expected to register a revenue CAGR of 14.1% during the forecast period. Increasing awareness of the need to reduce carbon emissions, rising demand for precision agriculture, growing awareness of sustainable agriculture, and rising adoption of electric drones in farming are expected to drive revenue growth of the market.

Market Drivers:

Growing awareness for sustainable agriculture is the major factor driving revenue growth of the global Agricultural Electric Vehicles (EVs) market. Farmers and agricultural stakeholders are increasingly adopting eco-friendly practices to reduce carbon footprints, conserve natural resources, and address the increasing demand for sustainable products. Electric Vehicles (EVs) have zero emissions and lower operational costs. These vehicles are offering an environmentally conscious alternative to traditional diesel-powered machinery. In addition, Government incentives, consumer pressure for green supply chains, and stricter environmental regulations further increase the adoption of Agricultural EVs in recent years.  

Moreover, partnerships between vehicle manufacturers and agricultural stakeholders are driving revenue growth of the market by developing customized electric solutions designed to address specific farming requirements. In April 2024, for instance, Revamp Moto, an Indian manufacturer of modular electric two-wheelers signed a Memorandum of Understanding (MoU) with NACOF Oorja, a leading Renewable Energy developer and operator. This collaboration seeks to deliver innovative, sustainable, and affordable electric vehicle solutions tailored to the rural and agricultural sectors. They are improving mobility for farmers and small-scale entrepreneurs.

Market Opportunity:

Advancements in battery storage, efficiency, and durability are creating significant opportunities for the global Agricultural Electric Vehicles (EVs) market. Improved battery storage allows longer operational hours. It makes EVs more viable for demanding agricultural tasks such as plowing, harvesting, and transporting goods. Furthermore, durable battery designs are capable of withstanding harsh agricultural conditions, such as extreme temperatures and rough terrains, are increasing the reliability of electric vehicles in rural settings.

In May 2023, Toyota Motor Corporation and Tokyo Electric Power Company Holdings, Inc. have collaborated to develop a stationary storage battery system with a 1 MW output and 3 MWh capacity. This system integrates TEPCO’s expertise in operating technology and safety standards for stationary storage batteries with Toyota’s advanced system technology for electrified vehicle batteries. The jointly developed solution allows for the connection of multiple EV storage batteries, enabling its use alongside existing power conditioning systems (PCS).

Recent Trends:

One recent trend in the Agricultural Electric Vehicles (EVs) market is the integration of advanced technologies such as IoT, AI, and GPS in electric tractors and drones. It provides precision farming and efficient resource management. Modular designs in EVs are gaining traction, allowing farmers to customize vehicles for diverse applications like tillage, spraying, and transportation. In September 2024, MKR Hartamas (MKR) unveiled Malaysia’s first electric tractor, the TerraGlide EV40. This represents a major advancement in revolutionizing the country’s agricultural sector. The company highlights that the fully electric TerraGlide EV40 operates with zero carbon emissions, supporting the national effort to address climate change and encourage sustainable agricultural practices.

Restraints & Challenges:

Limited charging infrastructure is a significant barrier to the revenue growth of the Agricultural Electric Vehicles (EVs) Market mainly in rural and remote farming areas. Farmers face challenges in adopting EVs without accessible charging stations. Moreover, the unavailability of fast-charging facilities leads to prolonged downtime. It makes electric vehicles less practical compared to traditional fuel-based machinery that offers quick refueling. These challenges make it harder to attract potential buyers and discourage manufacturers from introducing more options in underserved areas. As a result, the market’s growth slows down, delaying progress toward adopting sustainable agricultural practices. It is slowing market expansion and delaying the shift toward sustainable agriculture.

Type Segment Insights and Analysis:

Based on the type, the agricultural Electric Vehicles (EVs) market is segmented into tractors, harvesters, drones, utility vehicles, tillers, sprayers and others. Tractors segment is further sub-segmented into small/compact tractors, medium-sized tractors, and large tractors. Harvesters segment is further sub-segmented into combine harvesters, forage harvesters and others. Drones segment is further sub-segmented into crop monitoring drones, spraying drones and others.

Tractors segment contributed largest share in 2024 due to the increasing emphasis on sustainable and eco-friendly farming practices. The farmers are now switching to electric tractors from traditional diesel-powered tractors as there are growing concerns over greenhouse gas emissions and the environmental impact of traditional tractors. According to International Energy Agency (IEA), global CO2 emissions from fuel combustion rose by 1.3% in 2022. Fossil fuels still account for 81% of the total energy supply. This is raising significant concerns about air pollution. Additionally, government incentives and subsidies promoting clean energy solutions in agriculture further support the adoption of electric tractors. These vehicles offer reduced operational costs due to lower fuel and maintenance expenses.

The rising demand for electric tractors in recent years prompted manufacturers to launch advance products in the market. In October 2024, for instance, CNH Industrial America introduced the first fully electric tractor equipped with autonomous capabilities. This makes a major advancement in agricultural machinery. It provides autonomous functionality, operated through simple gesture controls, combined with the electric drivetrain’s low noise and zero emissions. This innovation enhances farmer productivity while significantly reducing their carbon footprint.

Power Source Segment Insights and Analysis:

Based on technology, the agricultural Electric Vehicles (EVs) market is segmented Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Solar Electric Vehicles (SEVs). Battery Electric Vehicles (BEVs) are further sub-segmented in lithium-ion, lead acid and others.

Battery Electric Vehicles (BEVs) segment contributed largest share in 2024 due to the increasing global emphasis on sustainable farming practices and stricter environmental regulations. BEVs offer zero-emission operations in respond to the environmental challenges and the ever-increasing regulatory pressures for reducing carbon footprints in agricultural operations. Battery-powered electric vehicles are a cost-effective choice for farmers. It offers significant savings on fuel and maintenance compared to traditional vehicles. With ongoing advancements in battery technology, these vehicles now deliver higher energy density and longer lifespans, making them more efficient and reliable for demanding agricultural work.

Solar Electric Vehicles (SEVs) segment is expected to register a fast revenue growth rate during the forecast period due to the rising need to reduce dependency on fossil fuels. SEVs offer an eco-friendly solution by providing renewable solar energy, significantly lowering operational costs for farmers over time. It is especially useful in rural and off-grid areas where traditional energy sources do not reach. It allows uninterrupted operation during critical agricultural activities.

In addition, technological advancements in photovoltaic panels and energy storage systems have improved the efficiency and reliability of SEVs, which is further boosting their adoption. In June 2024, Ancient Peaks Winery introduced two advanced electric tractors at its Margarita Vineyard in the Paso Robles AVA. Manufactured by Monarch, the MK-V model tractors are described as the world’s first driver-optional, data-driven, fully electric tractors. These tractors are powered by Margarita Vineyard’s solar power plants, which produce more electricity than the vineyard consumes. With a battery life of up to 10 hours, the MK-V tractors offer exceptional versatility. It is capable of handling tasks such as mowing, pre-pruning, spraying, hauling, and more.

Application Segment Insights and Analysis:

Based on the application, the Agricultural Electric Vehicles (EVs) market is segmented into crop production, livestock production, horticulture, forestry, transportation and others.

Crop production segment contributed largest share in 2024 due to its ability to enhance efficiency and sustainability in farming operations. EVs offer significant cost savings by reducing fuel and maintenance expenses compared to conventional vehicles. Additionally, the shift towards sustainable agricultural practices has heightened the appeal of EVs, which produce zero emissions. It helps to reduce the carbon footprint associated with crop production. Their compatibility with precision farming technologies, such as GPS and IoT-enabled systems allows for more accurate planting, fertilizing, and harvesting, which is creating high demand for EVs in crop production and boosting revenue growth of this segment.

Horticulture segment is expected to have the fastest CAGR throughout the forecasted period. Horticultural operations involve the cultivation of fruits, vegetables, and flowers. It requires precision and careful management of resources, and EVs are well-suited to meet these needs. Electric vehicles save costs on operations as they consume less fuel and require less maintenance. Unlike petrol or diesel-powered machinery, electric vehicles are designed to be silent and emit very low levels of waste, making them suitable for applications in sensitive environments like orchards and greenhouses.

Geographical Outlook:

Agricultural Electric Vehicles (EVs) market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamic. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different region and countries.

North America Agricultural Electric Vehicles (EVs) Market :

Market in North America accounted for largest revenue share in 2024 due to the increasing government incentives, growing focus on sustainability, and advancements in electric vehicle technology in countries, especially in U.S. and Canada. In December 2024, the U.S. Government established a new climate target to significantly reduce its greenhouse gas emissions. U.S. presented this goal to the United Nations, which aims for a 61% to 66% reduction in net emissions by 2035 compared to 2005 levels. The final goal is to reach net-zero emissions by the year 2050. This initiative is expected to increase the adoption of EVs for Agricultural operations in the country.  

The growing adoption of electric vehicles (EVs) in agricultural operations has encouraged manufacturers to expand their market share in this sector.  In November 2024, for instance, Nature’s Miracle Holding Inc., a leader in vertical farming technology and infrastructure, has announced that its wholly-owned subsidiary, Hydroman, Inc., will be rebranded as Hydroman Electric Corporation. As part of this transition, Hydroman Electric will shift its focus to marketing and distributing electric-powered agricultural and commercial vehicles across the United States.

Asia Pacific Agricultural Electric Vehicles (EVs) Market :

Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to rapid urbanization and increasing demand for sustainable farming practices in countries especially in China, Japan and India. Governments in these countries are introducing subsidies and incentives to promote the use of electric vehicles. It aligns with their commitment to reducing carbon emissions and achieving energy efficiency.  Furthermore, the presence of leading EV manufacturers and the establishment of local production facilities contribute to the revenue growth of the market in this region.

In November 2021, China based agricultural machinery manufacturer YTO Group Corporation (YTO) unveiled its latest innovation, the Dongfanghong LF2204 tractor. It is a cost-effective, high-horsepower autonomous tractor. This self-driving machine incorporates advanced technologies such as the Beidou Satellite Navigation System, intelligent vehicle systems, Internet of Vehicles (IoV), and unmanned tactical platforms. Key features include automatic path planning and navigation, reverse, braking, remote start and shutdown, engine speed control, farm tool management, and obstacle avoidance, offering seamless automation for enhanced farming efficiency.

Europe Agricultural Electric Vehicles (EVs) Market :

Market in Europe is expected to register a modest revenue growth rate during the forecast period due to the increasing environmental awareness and stringent government regulations aimed at reducing carbon emissions in agriculture. The European Climate Law formalizes the objective outlined in the European Green Deal to achieve climate neutrality across Europe’s economy and society by 2050. It also establishes an interim goal of cutting net greenhouse gas emissions by a minimum of 55% by 2030 compared to 1990 levels. The European Union’s Green Deal and subsidies for adopting sustainable technologies are incentivizing farmers to transition to electric-powered vehicles in agricultural operations.

Competition Analysis:

The Agricultural Electric Vehicles (EVs) market is characterized by a fragmented structure, with numerous players competing across various segments and regions. List of major players included in the Agricultural Electric Vehicles (EVs) market report are:

• John Deere
• Kubota Corporation
• AGCO Corporation
• Mahindra & Mahindra
• CNH Industrial
• CLAAS
• Solectrac
• Sonalika
• Monarch Tractor
• Alke
• AGRI-EVE
• Solis-Yanmar

Strategic Developments in Agricultural Electric Vehicles (EVs) Market:

• On 11 September 2024, Kubota Corporation, along with its U.S. subsidiary Kubota North America Corporation (KNA), has acquired Bloomfield Robotics, Inc., a U.S.-based startup specializing in image analysis and AI-driven solutions for specialty crop harvest timing and yield prediction. By making Bloomfield a subsidiary of KNA, Kubota gains access to Bloomfield’s SaaS expertise and data-driven insights. This acquisition accelerates Kubota’s development of advanced crop monitoring technologies for integration into agricultural machinery such as tractors and sprayers, enabling the company to deliver tailored solutions to the specialty crop market more efficiently.
• On 13 February 2024, John Deere has partnered with Spudnik to bring electric tractor technology to potato farming, aiming to enhance efficiency and sustainability in agriculture. Spudnik, known for its expertise in potato farming equipment, has successfully tested the technology on their potato separators. By utilizing electric motors to power the fans, they ensure steady airflow, which is essential for effectively separating roots and tubers from dirt clods and stones during the harvesting process.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Agricultural Electric Vehicles (EVs) Market Report:

The Agricultural Electric Vehicles (EVs) Market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Power Source Outlook (Revenue, USD Million; 2022-2032)
  • Battery Electric Vehicles (BEVs)
    • Lithium-Ion
    • Lead Acid
    • Others
  • Hybrid Electric Vehicles (HEVs)
  • Solar Electric Vehicles (SEVs)

• Type Outlook (Revenue, USD Million; 2022-2032)
  • Tractors
    • Small/Compact Tractors
    • Medium-Sized Tractors
    • Large Tractors
  • Harvesters
    • Combine Harvesters
    • Forage Harvesters
    • Others
  • Drones
    • Crop Monitoring Drones
    • Spraying Drones
    • Others
  • Utility Vehicles
  • Tillers
  • Sprayers
  • Others

• Drive Type (Revenue, USD Million; 2022-2032)
  • Two-Wheel Drive (2WD)
  • Four-Wheel Drive (4WD)

• Battery Capacity Outlook (Revenue, USD Million; 2022-2032)
  • Below 50 kWh
  • 50–100 kWh
  • Above 100 kWh

• Application Outlook (Revenue, USD Million; 2022-2032)
  • Crop Production
  • Livestock Production
  • Horticulture
  • Forestry
  • Transportation
  • Others

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) about the Agricultural Electric Vehicles (EVs) Market report