Cambodia Agriculture Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Cambodia Agriculture Market Analysis
The Cambodia agricultural machinery market is projected to register a CAGR of 4.1% during the forecast period.
- The Ministry of Agriculture, Forestry and Fisheries (MAFF) has been working with the private sector and development partners to integrate the use of agricultural machinery into middle-class farming communities to respond to the current and future decline in the agricultural workforce. The government aims to make Cambodia a high middle-income country by 2030 and a high-income country by 2050. At the same time, it has an ambition to modernise Cambodia's agricultural sector to be more competitive, environmentally resilient, and sustainable in order to increase the income of farmers' families, expand prosperity and improve the wellbeing of the Cambodian people.
- The policies of the Ministry of Agriculture is promoting the use of machinery in large- and small-scale farms in order to increase the productivity of the crop. This step was taken to address a growing labor shortage within the region and increasing costs of manual labor which are impacting the growth of agricultural machinery in the region. Farm mechanization helps to produce higher quality agricultural harvests and even boosts the production of the market in the coming years.
- Over the medium term, the agricultural machinery market in Cambodia is expected to witness steady growth. The key factors include the increasing focus of farmers on sustainable agricultural mechanization, rising public-private partnerships in Cambodia, and improvement in financial access to services, which are driving the market growth during the forecast period.
Cambodia Agriculture Market Trends
This section covers the major market trends shaping the Cambodia Agricultural Machinery Market according to our research experts:
Decline in Agriculture Labor Drives the market
The shortage of agricultural labor is one of the prime driving factors of the agriculture machinery market in Cambodia. Urbanization and Industrialisation have caused the movement of rural agriculture employees to urban areas causing inadequate labor availability, especially during key agriculture operations such as sowing and harvesting. According to the International Labour Organization, the number of people employed in the agriculture sector is 31.5% in 2020 which has slightly increased compared to the previous year due to a lack of skilled persons for operating the agri farm operations machinery therefore, the government and private organizations are supporting the farmer by organizing the village programs and awareness camps in the rural areas. However, the growth tends to be minimal.
The agriculture ministry is pushing to modernize the agricultural sector with a focus on managing and preventing potential labor-related issues as the share of the labor force employed in agriculture dips to 35 percent and is expected to decline further down which will boost the market to growth in coming years. The workforce in agriculture will not be as large, but the workforce that remains will become more skilled at doing things like controlling drones and using other modern technology to perform the labor-intensive tasks involved with agriculture. The modern agricultural sector will be growing day by day, and its technology and methods will replace much of the labour force. This will anticipated to grow the market during the forecast period.
Thus, a significant reduction in the number of employees in the agriculture sector is giving way to rise in wage rates, thereby allowing the farmers to adopt farm mechanization. With the availability of advanced technology, coupled with the declining availability of farm labor, the farmers are shifting towards the use of machineries in agriculture, as they aid in saving time, resources, decrease the costs, and enhance the productivity.
Tractors Dominate the Market
The tractor is one of the basic and necessary farm machinery used by small, marginal, and large landholding farmers. Tractors are used for multiple field operations and made many agriculture operations easy. Due to the significant increase in row crops and horticultural crops, there is an increasing usage of tractors. The growth observed in the sales of tractors is an important indicator of the advent of farm mechanization. Tractors tend to act as a source of power whereby various agricultural machines can just be attached to them. This co-dependency makes the purchase of tractors, which is increasing over the years.
In 2022, RMA Cambodia has inaugurated a new sales branch in the Steung Sen district of Kampong Thom province to expand the market and improve the quality of service to customers. RMA Cambodia is currently supplying tractors of John Deere brand in Cambodia from 36 hp to 370 hp. The most up-to-date product is the AutoTrac cabin tractor with 55hp to 75hp, which enables hands-free steering of the tractor by using GPS coordinates to control the tractor. The U.S. government has been working with Cambodian farmers and entrepreneurs to improve farming across all climates, increase crop yields and create new markets.
According to General Department of Agriculture, Cambodia currently has 32,094 tractors and 6,796 rice harvesting machines that have been actively working on the preparation of fields, plantations and rice harvests, and machinery for horticulture and aiming to further increase the productivity of the sector by focusing on a shift to mechanisation to replace human labour.
Therefore, the tractors segment is the most dominant segment among all the agricultural machinery in Cambodia. A continuous rise in the number of tractor units sold has been observed in Cambodia.
Cambodia Agriculture Industry Overview
The cambodia agricultural machinery market is a consolidated market owing to the presence of few prominent players, accounting for more than half of the market. The key players in the market include Deere and Company, Escorts Limited, Kubota Corporation, Mahindra and Mahindra Ltd, and Yanmar Holdings Co., Ltd. The main strategy adopted by the key players has been to invest in R&D to encourage innovation and maintain a strong market base. The advent of advanced technologies like Artificial Intelligence, Robotics, Google Earth, and growing number of government initiatives have driven the demand for agricultural machinery to rise.
Cambodia Agriculture Market Leaders
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Deere & Company
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Kubota Corporation
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Escorts Limited
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Mahindra & Mahindra Ltd
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Yanmar Holdings Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Cambodia Agriculture Market News
- November 2022: John Deere has introduced tractors designed for work in narrow orchards and vineyards with the addition of the new 5EN and 5ML Series and it is ideal for fruit handling and hauling, spraying, mowing, and any application that takes place within the narrow confines of an orchard or vineyard.
- October 2022: The newly appointed Minister of Agriculture, Forestry, and Fisheries plans to focus on measures to promote research and development in the agricultural sector and to adopt practical approaches and new technologies which are beneficial for Cambodian agriculture so that farmers and those working in the industry can use them for effective production.
Cambodia Agriculture Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions & Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitutes
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Tractors
- 5.1.1.1 Below 40 HP
- 5.1.1.2 40-100 HP
- 5.1.1.3 Above 100 HP
- 5.1.2 Rice Combine Harvesters
- 5.1.3 Power Tillers
- 5.1.3.1 Below 10 HP
- 5.1.3.2 10-15 HP
- 5.1.4 Diesel Engine Units
- 5.1.4.1 Below 10 HP
- 5.1.4.2 10-15 HP
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Tractors and Farm Equipment Limited (TAFE)
- 6.3.2 Claas KGaA mbH
- 6.3.3 Kuhn
- 6.3.4 Mahindra & Mahindra Ltd
- 6.3.5 Kubota Corporation
- 6.3.6 Deere & Company
- 6.3.7 Escorts Limited
- 6.3.8 AGCO Corporation
- 6.3.9 Yanmar Co. Ltd
- 6.3.10 Zhengzhou Amisy Machinery Co. Ltd
- 6.3.11 Iseki & Co. Ltd
- 6.3.12 New Holland Agriculture
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityCambodia Agriculture Industry Segmentation
Agricultural machinery means all machines and tools that are used in the production, harvesting, and care of farm products, and includes trailers that are used to transport agricultural produce. For the purpose of this report, the tractor and other machinery used in agricultural operations have been considered. The tractor used for industrial and construction purposes is excluded from the study. The Cambodia Agricultural Machinery Market is Segmented by Product Type (Tractors, Rice Combine Harvesters, Power Tillers, and Diesel Engine Units). The report offers the market size and forecasts in terms of sales in units and value in USD million for all the above segments.
| Product Type | Tractors | Below 40 HP |
| 40-100 HP | ||
| Above 100 HP | ||
| Product Type | Rice Combine Harvesters | |
| Power Tillers | Below 10 HP | |
| 10-15 HP | ||
| Diesel Engine Units | Below 10 HP | |
| 10-15 HP |
Cambodia Agriculture Market Research FAQs
What is the current Cambodia Agricultural Machinery Market size?
The Cambodia Agricultural Machinery Market is projected to register a CAGR of 4.10% during the forecast period (2024-2029)
Who are the key players in Cambodia Agricultural Machinery Market?
Deere & Company, Kubota Corporation, Escorts Limited, Mahindra & Mahindra Ltd and Yanmar Holdings Co., Ltd. are the major companies operating in the Cambodia Agricultural Machinery Market.
What years does this Cambodia Agricultural Machinery Market cover?
The report covers the Cambodia Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cambodia Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cambodia Agriculture Industry Report
Statistics for the 2024 Cambodia Agriculture market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cambodia Agriculture analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
