South Africa Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.86 Billion |
| Market Size (2029) | USD 1.15 Billion |
| CAGR (2024 - 2029) | 5.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Agricultural Machinery Market Analysis
The South Africa Agricultural Machinery Market size is estimated at USD 0.86 billion in 2024, and is expected to reach USD 1.15 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).
South Africa has a diverse agricultural sector consisting of well-developed commercial farming systems alongside small-scale subsistence farming. The country has made significant strides in advancing its agricultural practices, particularly in mechanization and technology adoption. The South African agricultural equipment market has been growing steadily, driven by the increasing need to boost productivity and meet the demands of a rapidly evolving agricultural landscape.
However, the country's potential for crop production remains unexploited with the lack of technological advancements and immense mechanization. According to the United Nations, mechanization levels on farms across Africa are currently deficient, with the number of tractors at 43 per sq km in South Africa, compared with 128 per sq km in India and 116 per sq km in Brazil.
In addition, the increasing focus on sustainable agricultural mechanization, rapid urbanization, the adoption of innovative technology, the growth of medium-scaled farms, and increased export and eventual high production of commercial crops in the country are expected to drive the growth of the market studied during the forecast period. Advanced technologies like artificial intelligence, robotics, Google Earth, and a growing number of government initiatives have driven the demand for agricultural machinery in South Africa.
South Africa Agricultural Machinery Market Trends
The Tractor Segment is Expected to Dominate the Market
The tractor segment holds the highest share in the South African agricultural equipment market, primarily due to its essential role in enhancing productivity and efficiency in modern farming practices. The rising adoption of advanced tractors with innovative technologies, such as GPS, precision farming tools, and automated systems, has further fueled this segment's growth.
However, tractor sales in South Africa witnessed a decline of 5% in 2023, totaling 5,412 units, according to statistics from the South African Agricultural Machinery Association (SAAMA). This decline is mainly due to a significant drop in major grain and oilseed harvests, as reported by the Crop Estimates Committee in late February. The committee indicated a decline in production, with the total maize harvest estimated to have decreased by 13%, while soybeans decreased by 23% between 2022 and 2023. Additionally, the decline in tractor sales returns to normal after a period of high market activity. For instance, tractor sales surged to 1,268 units in October 2022, representing a 48% increase from the 856 units sold in October 2021. This significant rise in sales during the previous year was driven by heightened demand for agricultural machinery, which settled back to more typical levels in 2023.
The South African tractor market is recovering from a slowdown caused by severe droughts. Major global players like Deere & Company and Mahindra & Mahindra plan to make South Africa a hub for manufacturing and exports, recognizing the high potential of the farm equipment market. The South African Crop Estimate Committee (SACEC) reports that farmers intend to increase plantings of summer grains and oilseeds in the next season, which is expected to boost the tractor market during the forecast period.
Increased Grain Production is Expected to Drive the Growth in the Market
South Africa is the largest grain producer in Sub-Saharan Africa, with maize being the primary crop, followed by wheat, soybeans, and sunflower seeds. According to the FAO, the total grain production in South Africa reached 19.6 million metric tons in 2023, with maize accounting for approximately 17.0 million metric tons. This robust production has necessitated increased mechanization and investment in advanced agricultural equipment.
The industry comprises several key stakeholders, including input suppliers, farmers, silo owners, traders, millers, bakers, research organizations, and financiers. The animal feed industry is an important client and player in the grain supply chain. Around 6.0 million tons of grain and 1.6 million tons of oil cake are used by the animal feed manufacturing industry in South Africa annually. This growth in the grain industry eventually raised the production and area of grains and the need for increased efficiency in farming, which increased the demand for mechanization in the country to maximize output production and ensure cost-efficient and rapid production, driving the market.
South Africa Agricultural Machinery Industry Overview
The market is consolidated owing to a few prominent players, accounting for more than half the market's share. The key players in the market include Deere and Company, AGCO Corporation, CNH Industrial NV, Mahindra & Mahindra South Africa Pty Ltd, and Kubota Corporation. The primary strategy adopted by the key players is to invest in R&D to encourage innovation and maintain a solid market base.
South Africa Agricultural Machinery Market Leaders
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John Deere
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Mahindra & Mahindra South Africa Pty Ltd
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Kubota Corporation
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Agco Corporation
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CNH Industial (New Holland Agriculture)
*Disclaimer: Major Players sorted in no particular order
South Africa Agricultural Machinery Market News
- August 2023: Mahindra Tractors launched the Mahindra OJA tractor range at the Futurescape event in Cape Town, South Africa. The company introduced seven lightweight tractor models equipped with standard 4WD. These tractors, ranging from 20HP to 40HP (14.91kW to 29.82kW), offer platform versatility to effectively manage various agricultural tasks.
- July 2023: John Deere acquired Smart Apply Inc., a precision spraying equipment company that developed the Smart Apply Intelligent Spray Control System (an upgrade kit that can improve the precision and performance of virtually any air-blast sprayer used in orchard, vineyard, and tree nursery spraying applications). Smart Apply is primarily sold through John Deere dealers in South Africa.
- November 2022: Kubota set up a supply chain to sell Africa low-cost tractors produced in India that take advantage of India's low material and labor costs, wherein, instead of exporting from Japan, Kubota will have an Indian subsidiary ship compact models to the small-scale farms that dominate Africa's agricultural sector, including South Africa.
- June 2022: Argo Tractors South Africa (Argo SA), an agricultural vehicle supplier, expanded its office in Kempton Park, South Africa, which possesses a semi-knocked down (SKD) assembly area between 12 and 16 bays that can produce 2,000 units a year.
- June 2022: John Deere launched the X9 Series Combine, which provides ultra-efficient crop feeding with up to 25% less grain loss and has high-capacity feeding, which accounted for the most significant grain-handling combine harvester in South Africa.
South Africa 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
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Tractors
- 5.1.1.1 Engine Power
- 5.1.1.1.1 Less than 40 HP
- 5.1.1.1.2 40 HP to 99 HP
- 5.1.1.1.3 Greater than 100 HP
- 5.1.1.2 Type
- 5.1.1.2.1 Compact Utility Tractors
- 5.1.1.2.2 Utility Tractors
- 5.1.1.2.3 Row Crop Tractors
- 5.1.2 Plowing and Cultivating Machinery
- 5.1.2.1 Plows
- 5.1.2.2 Harrows
- 5.1.2.3 Cultivators and Tillers
- 5.1.2.4 Other Plowing and Cultivating Machinery
- 5.1.3 Planting Machinery
- 5.1.3.1 Seed Drills
- 5.1.3.2 Planters
- 5.1.3.3 Spreaders
- 5.1.3.4 Other Planting Machinery
- 5.1.4 Harvesting Machinery
- 5.1.4.1 Combine
- 5.1.4.2 Forage
- 5.1.4.3 Other Harvesting Machinery
- 5.1.5 Haying and Forage Machinery
- 5.1.5.1 Mowers and Conditioners
- 5.1.5.2 Balers
- 5.1.5.3 Other Haying and Forage Machinery
- 5.1.6 Irrigation Machinery
- 5.1.6.1 Sprinkler Irrigation
- 5.1.6.2 Drip Irrigation
- 5.1.6.3 Other Irrigation 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 John Deere (Pty) Ltd
- 6.3.2 CNH Industrial NV
- 6.3.3 AGCO Corporation
- 6.3.4 Mahindra & Mahindra South Africa Pty Ltd
- 6.3.5 Kubota Corporation
- 6.3.6 JC Bamford Excavators Limited
- 6.3.7 Lindsay Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySouth Africa Agricultural Machinery Industry Segmentation
Agriculture machinery and equipment are the farm equipment, machines, and farmer tools that increase agricultural crop productivity and food output. It accomplishes regular agriculture tasks that help boost food crop production and alleviate poverty.
The South African agricultural machinery market is segmented by type (tractors (engine power (less than 40 HP, 40 HP-99 HP, and greater than 100 HP) and type (compact utility tractors, utility tractors, and row crop tractors)), plowing and cultivating machinery (plows, harrows, cultivators and tillers, and other plowing and cultivating machinery), harvesting machinery (combine, forage, and other harvesting machinery), haying and forage machinery (mowers and conditioners, balers, and other haying and forage machinery), and irrigation machinery (sprinkler, drip, and other irrigation machinery)). The report offers market size and forecasts for the market in value (USD) for all the above segments.
| Type | Tractors | Engine Power | Less than 40 HP |
| 40 HP to 99 HP | |||
| Greater than 100 HP | |||
| Type | Tractors | Type | Compact Utility Tractors |
| Utility Tractors | |||
| Row Crop Tractors | |||
| Type | Plowing and Cultivating Machinery | Plows | |
| Harrows | |||
| Cultivators and Tillers | |||
| Other Plowing and Cultivating Machinery | |||
| Type | Planting Machinery | Seed Drills | |
| Planters | |||
| Spreaders | |||
| Other Planting Machinery | |||
| Type | Harvesting Machinery | Combine | |
| Forage | |||
| Other Harvesting Machinery | |||
| Type | Haying and Forage Machinery | Mowers and Conditioners | |
| Balers | |||
| Other Haying and Forage Machinery | |||
| Type | Irrigation Machinery | Sprinkler Irrigation | |
| Drip Irrigation | |||
| Other Irrigation Machinery |
South Africa Agricultural Machinery Market Research FAQs
How big is the South Africa Agricultural Machinery Market?
The South Africa Agricultural Machinery Market size is expected to reach USD 0.86 billion in 2024 and grow at a CAGR of 5.90% to reach USD 1.15 billion by 2029.
What is the current South Africa Agricultural Machinery Market size?
In 2024, the South Africa Agricultural Machinery Market size is expected to reach USD 0.86 billion.
Who are the key players in South Africa Agricultural Machinery Market?
John Deere, Mahindra & Mahindra South Africa Pty Ltd, Kubota Corporation, Agco Corporation and CNH Industial (New Holland Agriculture) are the major companies operating in the South Africa Agricultural Machinery Market.
What years does this South Africa Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the South Africa Agricultural Machinery Market size was estimated at USD 0.81 billion. The report covers the South Africa Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Agricultural Machinery Industry Report
Statistics for the 2024 South Africa Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Agricultural Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
