Asia-Pacific Agricultural Machinery Market Size (2024 - 2029)

The agricultural equipment market in the Asia-Pacific region is experiencing growth driven by factors such as a shrinking labor force, increased farmer awareness of advanced practices, and technological advancements in machinery. The demand for both new and pre-owned equipment is rising, supported by population growth and the need for higher agricultural output, particularly in countries like India and China. Despite Japan's high level of mechanization, China and India lead in arable land and automation needs, with Australia also being a significant market due to supportive government schemes. However, challenges such as a lack of skilled professionals and high machinery costs pose constraints on the market's expansion.

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Market Size of Asia-Pacific Agricultural Machinery Industry

APAC Agricultural Machinery Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 6.10 %
Market Concentration High

Major Players

APAC Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Agricultural Machinery Market Analysis

The agriculture machinery market is expected to grow at a rate of 6.1% during the forecast period.

  • The shrinking labor force and increased awareness among farmers regarding advanced agricultural practices are the prime reasons for the demand for agricultural machinery. Furthermore, the rise in technological advancements in agriculture equipment, and an increase in demand for pre-owned agriculture equipment, is likely to accelerate the revenue share. Additionally, population growth and high demand for agricultural products, primarily from countries, like India and China, are also aiding the growth of the market.
  • China and India dominate the regional markets for agricultural equipment due to their enormous areas of arable land and low levels of automation, despite Japan having the greatest level of mechanization among the Asian nations. Australia is also a major market for agricultural equipment in the Asia-Pacific region. According to the Tractor and Machinery Association of Australia (TMA), the backing of the Instant Asset Write-off scheme increased sales of small tractors in Australia. In 2020-21, the tractor under 40 horsepower (30 kilowatts) increased by 72% for the month and completed the year 36% ahead. The growing emphasis on farm mechanization and governments' push for mechanization may enhance sales and lead to innovations, such as driverless machinery, which may drive the market throughout the forecast period. On the other hand, the lack of skilled professionals and the high cost of machinery are the key constraints of the market.

APAC Agricultural Machinery Industry Segmentation

Agricultural machinery is used in farming or other agriculture. The agricultural machinery market is estimated to grow remarkably during the forecast period. All types of agricultural machinery used in fields, including harvesting machinery, haying and forage machinery, and irrigation machinery, have been considered in the research scope.

The Asia-Pacific agricultural machinery market is segmented by Product Type into Tractors, Ploughing and Cultivating Machinery, Planting Machinery, Irrigation Machinery, Harvesting Machinery, Haying Machinery, and Other Product Types. By Geography, the market is also segmented into China, Japan, India, Australia, and Rest of Asia-Pacific. The report offers market estimation and forecasts in values in USD million for all the above segments.

Product Type
Tractors
By Horse Power
Below 20 HP
21 - 30 HP
31 - 50 HP
Above 50 HP
By Type
Utility Tractor
Row Crop Tractor
Compact Utility Tractor
Other Types
Plowing and Cultivating Machinery
Ploughs
Harrows
Cultivators and Tillers
Other Plowing and Cultivating Machinery
Planting Machinery
Seed Drills
Planters
Spreaders
Other Planting Machinery
Harvesting Machinery
Combine Harvesters
Forage Harvesters
Other Harvesting Machinery
Haying Machinery
Mower
Baler
Other Haying Machinery
Irrigation Machinery
Sprinkler Irrigation
Drip Irrigation
Other Irrigation Machinery
Other Product Types
Geography
China
India
Japan
Australia
Rest of Asia-Pacific
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Asia-Pacific Agricultural Machinery Market Size Summary

The agricultural equipment market in the Asia-Pacific region is poised for significant growth, driven by factors such as a shrinking labor force and increased awareness of advanced agricultural practices. The demand for agricultural machinery is further bolstered by technological advancements and a rising interest in pre-owned equipment. Population growth and the high demand for agricultural products, particularly in countries like India and China, are also contributing to the market's expansion. China and India are key players in this market due to their vast arable land and low levels of automation, while Australia also represents a significant market. The emphasis on farm mechanization, supported by government initiatives, is expected to enhance sales and foster innovations like driverless machinery. However, challenges such as a shortage of skilled professionals and the high cost of machinery remain pertinent.

The cost of farm labor, which is directly linked to production costs, is a significant factor driving the agricultural machinery market in the Asia-Pacific region. Increasing labor wages and a decline in farm labor availability, due to urban migration, are prompting farmers to adopt mechanization. India and China dominate the market, accounting for a substantial share of farm machinery, with tractors being the most significant segment. Government incentives, subsidies, and financing schemes in these countries are encouraging mechanization. The Chinese government's initiatives, including substantial subsidies and the Made in China 2025 plan, aim to enhance farm mechanization and local production of high-end agricultural equipment. The market is highly consolidated, with major players like Deere & Company, AGCO Corp., and Mahindra & Mahindra Ltd. leading through strategies such as new product launches and partnerships.

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Asia-Pacific Agricultural Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Product Type

      1. 2.1.1 Tractors

        1. 2.1.1.1 By Horse Power

          1. 2.1.1.1.1 Below 20 HP

          2. 2.1.1.1.2 21 - 30 HP

          3. 2.1.1.1.3 31 - 50 HP

          4. 2.1.1.1.4 Above 50 HP

        2. 2.1.1.2 By Type

          1. 2.1.1.2.1 Utility Tractor

          2. 2.1.1.2.2 Row Crop Tractor

          3. 2.1.1.2.3 Compact Utility Tractor

          4. 2.1.1.2.4 Other Types

      2. 2.1.2 Plowing and Cultivating Machinery

        1. 2.1.2.1 Ploughs

        2. 2.1.2.2 Harrows

        3. 2.1.2.3 Cultivators and Tillers

        4. 2.1.2.4 Other Plowing and Cultivating Machinery

      3. 2.1.3 Planting Machinery

        1. 2.1.3.1 Seed Drills

        2. 2.1.3.2 Planters

        3. 2.1.3.3 Spreaders

        4. 2.1.3.4 Other Planting Machinery

      4. 2.1.4 Harvesting Machinery

        1. 2.1.4.1 Combine Harvesters

        2. 2.1.4.2 Forage Harvesters

        3. 2.1.4.3 Other Harvesting Machinery

      5. 2.1.5 Haying Machinery

        1. 2.1.5.1 Mower

        2. 2.1.5.2 Baler

        3. 2.1.5.3 Other Haying Machinery

      6. 2.1.6 Irrigation Machinery

        1. 2.1.6.1 Sprinkler Irrigation

        2. 2.1.6.2 Drip Irrigation

        3. 2.1.6.3 Other Irrigation Machinery

      7. 2.1.7 Other Product Types

    2. 2.2 Geography

      1. 2.2.1 China

      2. 2.2.2 India

      3. 2.2.3 Japan

      4. 2.2.4 Australia

      5. 2.2.5 Rest of Asia-Pacific

Asia-Pacific Agricultural Machinery Market Size FAQs

The Asia-Pacific Agricultural Machinery Market is projected to register a CAGR of 6.10% during the forecast period (2024-2029)

Deere & Company, AGCO Corporation, International tractors limited, Mahindra & Mahindra Ltd. and KUBOTA Corporation are the major companies operating in the Asia-Pacific Agricultural Machinery Market.

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