China Agricultural Machinery Market Size (2024 - 2029)

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 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.