China Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 24.12 Billion |
| Market Size (2029) | USD 32.28 Billion |
| CAGR (2024 - 2029) | 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Agricultural Machinery Market Analysis
The China Agricultural Machinery Market size is estimated at USD 24.12 billion in 2024, and is expected to reach USD 32.28 billion by 2029, growing at a CAGR of 6% during the forecast period (2024-2029).
China is one of the top producers of farming equipment worldwide, and it is also the largest market for agricultural machinery globally. Most of the agricultural machinery manufacturing is focused in provinces like Shandong, Henan, Jiangsu, Liaoning, and Zhejiang. In China, the most popular types of agriculture machinery are large tractors and harvesting equipment that are highly automated and have high horsepower. Shandong, Henan, Jiangsu, Liaoning, and Zhejiang provinces have around 2,500 agricultural equipment manufacturers. Despite advancements in technology in the agricultural machinery sector, factors like a decrease in human resources, rising agricultural labor costs, and government initiatives for farm mechanization are expected to drive the market. For instance, according to data from the National Bureau of Statistics of China, China produced 5,253,595 large and medium-sized tractors in 2022, reflecting a slight rebound. The large and medium-sized tractors gradually replaced small tractors.
Moreover, in 2023, the Ministry of Finance of China issued USD 1.4 billion as the central government's subsidies for purchasing agricultural materials for grain farmers. China plans to make the comprehensive mechanization rate of crop plowing, planting, and harvesting reach 75% by 2025. In the context of the continuous improvement of the agricultural mechanization level, China's agricultural autonomous driving industry is still in the early stage of development, with enormous potential. Additionally, the Chinese government is enhancing farm mechanization in the country for various crops, including rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane. For instance, according to the Ministry of Agriculture and Rural Affairs, in 2024, the country deployed over 250,000 combine harvesters with a large feeding capacity of 9-10 kg/second have been applied in a single day to harvest over 20 hectares of land efficiently. This move has been taken since China's advanced agricultural machinery played a crucial role in harvesting over 650 million tons of grains for the 9th consecutive time in 2023. The change in the subsidy regime for farm machinery for major crops, like wheat, may boost the sale of combined harvesters in China during the forecast period.
China Agricultural Machinery Market Trends
Decreasing Employment Opportunities in Agriculture is Expected to Boost the Market
Farm labor costs are influenced by the proportion of a country's population engaged in agriculture, rooted in basic demand-supply economics. This dynamic is currently impacting the Chinese agricultural machine market. Developing nations, including China, have a significant portion of their population reliant on agriculture. This dependency has waned over the years due to a steady migration toward urban centers. The aging of farmers is a major limitation for labor-intensive farming, and the rapid migration of youth to cities to work in manufacturing industries and service sectors is fueling the country's adoption of agricultural machinery. For instance, as reported by the State Council Information Office, China's urbanization rate hit 66.16% in 2023, based on its permanent urban population.
World Bank statistics highlight this trend: China's agricultural employment dropped from 24.7% in 2019 to 22.5% in 2022. As agricultural labor diminishes, its costs are on the rise. Concurrently, inadequate rural reforms are shrinking the rural labor force, pushing farmers toward greater mechanization of their operations. Given the tightening labor availability, it is poised to be a primary catalyst for the growth of the Chinese agricultural machine market in the coming years, suggesting a surge in demand for such machinery during the forecast period.
The Tractor Segment is Expected to Dominate the Market
According to the CEIC data, in 2022, China reported a total of 5,253,595 units of large and medium (LM) tractors. This marks an increase from the 4,980,682 units recorded in 2021. Large and medium-sized tractors gradually replaced small tractors. In northern China, high horsepower tractors are used on a large scale, as farm sizes are generally large, unlike in southern China, where farm sizes are pretty small. Large farm tractors are expensive, so many farmers outsource their cropping work to third-party contractors who value the performance and profitability of their investment.
The Chinese government has a farm machinery subsidy policy launched by the Ministry of Agriculture and Rural Affairs and the Ministry of Finance to provide financial assistance for purchasing heavy agricultural machinery, including agricultural tractors, to boost domestic production of farm machinery. Farmers utilized this subsidy to acquire 195,700 tractors, 484,300 farmland preparation machines, 87,200 seeders, 47,300 paddy transplanters, and 33,900 combine harvesters in 2020. China also introduced the 'Made in China 2025' scheme, which aims to produce 90% of the country's agricultural equipment with high-end machines, such as agricultural tractors, holding a one-third share of the market segment in 2020. This, in turn, boosts indigenously produced tractors and propels the country's agricultural tractor market. Thus, with the introduction of advanced models by market players, clubbed with supportive government initiatives, the domestic market for agricultural tractors in China is anticipated to grow during the forecast period.
China Agricultural Machinery Industry Overview
In the Chinese agricultural machine market, companies are competing based on equipment quality and promotion and are also focused on strategic moves to gain higher market shares. New product launches, partnerships, and acquisitions are the major strategies being adopted by leading companies in the market studied. The Chinese agricultural machine market is fragmented in nature. The top five domestic manufacturers account for less than 25% of the market. Major Chinese agricultural equipment companies include First Tractor, the YTO Group, and Changzhou Dongfeng Agricultural Equipment.
China Agricultural Machinery Market Leaders
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YTO Group Corporation
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AGCO Corporation
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Weichai Power Co. Ltd
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CNH Industrial NV
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Changfa Agricultural Equipment Co.,Ltd
*Disclaimer: Major Players sorted in no particular order
China Agricultural Machinery Market News
- October 2023: Weichai unveiled its CVT series of intelligent tractors (220-380 horsepower) designed for advanced agricultural applications. These tractors are tailored for diverse operations, including large-scale plowing, planting, watering, and straw treatment.
- June 2022: Weichai Power Co. Ltd increased its stake in Weichai Lovol Heavy Industry Co. Ltd, an agricultural equipment manufacturer, by acquiring an additional 22.69% from Shandong Heavy Industry Group Co. Ltd. This move brought Weichai Power's total stake to 62%.
China Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Decreasing Employment in Agriculture is Impacting the Market
- 4.2.2 Rising Technological Advancements in Agricultural Machinery
- 4.2.3 Government Initiatives for Farm Mechanization are Boosting the Market
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4.3 Market Restraints
- 4.3.1 High Initial Investment is Hindering the Adoption of Machinery by Farmers
- 4.3.2 Challenges of Land Fragmentation and Insufficient Machinery Training
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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 Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Tractors
- 5.1.1 Engine Power
- 5.1.1.1 25 HP-100 HP
- 5.1.1.2 Above 100 HP
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5.2 Equipment
- 5.2.1 Plows
- 5.2.2 Harrows
- 5.2.3 Rotovators and Cultivators
- 5.2.4 Seed and Fertilizer Drills
- 5.2.5 Fertilizer Spreaders
- 5.2.6 Other Equipment
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5.3 Sprayers
- 5.3.1 Field-crop Sprayers
- 5.3.2 Orchard Sprayers
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5.4 Harvesting Machinery
- 5.4.1 Combine Harvesters
- 5.4.2 Forage Harvesters
- 5.4.3 Other Harvesting Machinery
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5.5 Haying and Forage Machinery
- 5.5.1 Mowers and Conditioners
- 5.5.2 Balers
- 5.5.3 Other Haying and Forage Machinery
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 YTO Group Corporation
- 6.3.2 Changfa Agricultural Equipment Co. Ltd
- 6.3.3 Zoomlion
- 6.3.4 Weichai Power Co. Ltd
- 6.3.5 CNH Industrial NV
- 6.3.6 CLAAS KGaA GmbH
- 6.3.7 Deere Corporation
- 6.3.8 AGCO Corporation
- 6.3.9 Iseki & Co. Ltd
- 6.3.10 Kubota Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityChina Agricultural Machinery Industry Segmentation
Agricultural machinery is the equipment used for farming. These machines help farmers increase efficiency, productivity, and yield. This includes tools for plowing, irrigation, planting, harvesting, and other agricultural operations.
The Chinese agricultural machine market is segmented by tractors (engine power [25 HP to 100 HP and above 100 HP]), equipment (plows, harrows, rotavators and cultivators, seed and fertilizer drills, fertilizer spreaders, and other equipment), sprayers (field-crop sprayers and orchard sprayers), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), and haying and forage machinery (mowers and conditioners, balers, and other haying and forage machinery). The report offers the market size and forecasts in terms of value (USD) for all the above segments.
| Tractors | Engine Power | 25 HP-100 HP |
| Above 100 HP | ||
| Equipment | Plows | |
| Harrows | ||
| Rotovators and Cultivators | ||
| Seed and Fertilizer Drills | ||
| Fertilizer Spreaders | ||
| Other Equipment | ||
| Sprayers | Field-crop Sprayers | |
| Orchard Sprayers | ||
| Harvesting Machinery | Combine Harvesters | |
| Forage Harvesters | ||
| Other Harvesting Machinery | ||
| Haying and Forage Machinery | Mowers and Conditioners | |
| Balers | ||
| Other Haying and Forage Machinery |
China Agricultural Machinery Market Research FAQs
How big is the China Agricultural Machinery Market?
The China Agricultural Machinery Market size is expected to reach USD 24.12 billion in 2024 and grow at a CAGR of 6% to reach USD 32.28 billion by 2029.
What is the current China Agricultural Machinery Market size?
In 2024, the China Agricultural Machinery Market size is expected to reach USD 24.12 billion.
Who are the key players in China Agricultural Machinery Market?
YTO Group Corporation, AGCO Corporation, Weichai Power Co. Ltd, CNH Industrial NV and Changfa Agricultural Equipment Co.,Ltd are the major companies operating in the China Agricultural Machinery Market.
What years does this China Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the China Agricultural Machinery Market size was estimated at USD 22.67 billion. The report covers the China Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Agricultural Machinery in China Industry Report
Statistics for the 2024 Agricultural Machinery in China market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Agricultural Machinery in China analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
