China Agricultural Machinery Market Size (2024 - 2029)

The Chinese agricultural machinery market is experiencing growth, with its market size being influenced by several factors. Despite a significant downturn during the COVID-19 pandemic due to supply chain disruptions and reduced manufacturing activity, the market is poised for recovery and expansion. China stands as a leading global player in agricultural machinery manufacturing, with a concentration of industries in specific provinces. The demand is driven by the need for advanced machinery, such as large tractors and harvesting equipment, which are becoming increasingly automated. Long-term growth in the market size is expected as a result of technological advancements, rising labor costs, and supportive government policies aimed at farm mechanization.

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Market Size of China Agricultural Machinery Industry

China Agricultural Machinery Market Summary
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

China Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

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
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China Agricultural Machinery Market Size Summary

The Chinese agricultural machinery market is a significant player on the global stage, being the largest market for agricultural machinery worldwide. The industry is predominantly located in provinces such as Shandong, Henan, Jiangsu, Liaoning, and Zhejiang, where a substantial number of manufacturers are concentrated. The market is characterized by a strong demand for large tractors and high-powered harvesting machinery, which are favored for their automation and efficiency. Despite the technological advancements in the sector, challenges such as decreasing agricultural labor and rising labor costs are driving the need for mechanization. Government initiatives aimed at farm mechanization and subsidies for purchasing heavy machinery are further propelling market growth. The 'Made in China 2025' scheme is also playing a crucial role in enhancing domestic production capabilities, particularly for high-end agricultural equipment.

The market landscape is fragmented, with numerous companies vying for market share through strategic initiatives like new product launches, partnerships, and acquisitions. Leading manufacturers such as First Tractor, YTO Group, and Changzhou Dongfeng Agricultural Equipment are key players in this competitive environment. The introduction of advanced models, such as AGCO's Massey Ferguson series and New Holland's WORKMASTER Utility Tractors, highlights the ongoing innovation within the industry. These developments, coupled with supportive government policies, are expected to sustain the growth trajectory of the Chinese agricultural machinery market in the coming years.

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China Agricultural Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Decreasing Employment in Agriculture is Impacting the Market

      2. 1.2.2 Rising Technological Advancements in Agricultural Machinery

      3. 1.2.3 Government Initiatives for Farm Mechanization are Boosting the Market

    3. 1.3 Market Restraints

      1. 1.3.1 High Initial Investment is Hindering the Adoption of Machinery by Farmers

      2. 1.3.2 Challenges of Land Fragmentation and Insufficient Machinery Training

    4. 1.4 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 Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Tractors

      1. 2.1.1 Engine Power

        1. 2.1.1.1 25 HP-100 HP

        2. 2.1.1.2 Above 100 HP

    2. 2.2 Equipment

      1. 2.2.1 Plows

      2. 2.2.2 Harrows

      3. 2.2.3 Rotovators and Cultivators

      4. 2.2.4 Seed and Fertilizer Drills

      5. 2.2.5 Fertilizer Spreaders

      6. 2.2.6 Other Equipment

    3. 2.3 Sprayers

      1. 2.3.1 Field-crop Sprayers

      2. 2.3.2 Orchard Sprayers

    4. 2.4 Harvesting Machinery

      1. 2.4.1 Combine Harvesters

      2. 2.4.2 Forage Harvesters

      3. 2.4.3 Other Harvesting Machinery

    5. 2.5 Haying and Forage Machinery

      1. 2.5.1 Mowers and Conditioners

      2. 2.5.2 Balers

      3. 2.5.3 Other Haying and Forage Machinery

China Agricultural Machinery Market Size FAQs

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.

In 2024, the China Agricultural Machinery Market size is expected to reach USD 24.12 billion.

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