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

The Asia-Pacific agricultural tractor market is experiencing growth driven by increased farm mechanization and supportive government initiatives in developing countries, which are essential for enhancing agricultural production and food security. This trend is evident in the rising adoption of tractors, with significant sales increases in countries like India and Bangladesh, where government subsidies are boosting demand for higher horsepower tractors. China leads the region in market size, having implemented policies to promote agricultural mechanization as a key component of rural economic development.

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Market Size of Asia-Pacific Agricultural Tractors Industry

Snapshot
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.50 %
Market Concentration High

Major Players

Asia-Pacific Agricultural Tractors Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Agricultural Tractor Machinery Market Analysis

The Asia-Pacific Agricultural Tractor Market is estimated to grow at a CAGR of less than 3.5%, during the forecast period (2020-2025). An increased preference towards farm mechanization in the developing countries to keep pace with the need for increased agricultural production and food security, and government initiatives launching adequate credit facilities, are driving the overall agricultural tractor machinery market in the region. As a result, tractor sales in India rose significantly from 492,819 units in 2016 to 711,478 units in 2018. According to the Department of Agricultural Extension (DAE), Bangladesh, around 95% of the land is tilled through pedestrian and wheeled tractors while the demand for higher rage HP tractors in the country has increased primarily due to subsidized sales of the machinery by the government. These developments are further expected to enhance the adoption rate of tractors on crop fields across the region. China was the largest market for agricultural tractors in Asia in 2019. Since the implementation of the 'Agricultural Mechanization Promotion Law' in 2004, the country has significantly emphasized on the promotion and role of agricultural mechanization in agriculture for rural economic development. Furthermore, China introduced 'Made in China 2025' scheme which aims at focusing on producing 90% of its own agricultural equipment with high-end machines, like agricultural tractors, holding almost one-third share of their segments by 2020.

APAC Agricultural Tractor Machinery Industry Segmentation

For the purpose of the study, tractors used for agricultural utility purposes have been considered under the scope of the report. On the quantitative front, the data will be provided based on the volume of units sold. The corporations in the agricultural tractor industry operate in B2B and B2C format. However, to eliminate any 'double-count' error in market estimations, bulk buyers procuring the agricultural machinery for retail sale are not considered in this market. Market size estimations for the forecast period were in real terms. The review period considered for the study is 2016-2019 and the forecast period is 2020-2025.

Horse Power
Below 25 HP
25 HP to 100 HP
Above 100 HP
Type
Orchard Tractors
Row Crop Tractors
Other Types
Geography
China
India
Japan
Australia
Rest of Asia-Pacific
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Asia-Pacific Agricultural Tractors Market Size Summary

The Asia-Pacific agricultural tractor market is experiencing growth driven by increased farm mechanization efforts in developing countries, aimed at enhancing agricultural production and ensuring food security. Government initiatives, such as credit facilities and subsidies, are further propelling the market. Countries like China and India are at the forefront of this growth, with China implementing policies like the 'Agricultural Mechanization Promotion Law' and the 'Made in China 2025' scheme to boost domestic production of high-end agricultural equipment. In India, the government is promoting 'Balanced Farm Mechanization' through subsidies and support for bulk purchases, which is expected to strengthen the tractor market. Bangladesh is also witnessing a shift towards automation, with a significant portion of land being tilled using tractors, supported by government-subsidized sales.

The market is characterized by a consolidated landscape with major players such as Mahindra & Mahindra Ltd, AGCO Corporation, Deere & Company, and others holding significant shares. These companies are actively engaging in strategies like partnerships, mergers, acquisitions, and product launches to expand their market presence. For instance, the collaboration between Escorts Ltd and Kubota Corporation has facilitated technology sharing and joint manufacturing of tractors in India. Additionally, innovative product offerings, such as Mahindra & Mahindra's ARJUN NOVO 605 DI-I, are being introduced to meet regional demands. These developments are expected to further augment tractor sales across the Asia-Pacific region during the forecast period.

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Asia-Pacific Agricultural Tractors 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 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Siubstitutes

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Horse Power

      1. 2.1.1 Below 25 HP

      2. 2.1.2 25 HP to 100 HP

      3. 2.1.3 Above 100 HP

    2. 2.2 Type

      1. 2.2.1 Orchard Tractors

      2. 2.2.2 Row Crop Tractors

      3. 2.2.3 Other Types

    3. 2.3 Geography

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 Australia

      5. 2.3.5 Rest of Asia-Pacific

Asia-Pacific Agricultural Tractors Market Size FAQs

The Asia-Pacific Agricultural Tractors Market is projected to register a CAGR of less than 3.5% during the forecast period (2024-2029)

AGCO Corporation, Mahindra & Mahindra Ltd, Deere & Company , CNH Industrial NV and CLAAS KGaA mbH are the major companies operating in the Asia-Pacific Agricultural Tractors Market.

Asia-Pacific Agricultural Tractors Report Snapshots

Asia-Pacific Agricultural Tractor Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)