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 |
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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's agricultural sector is one of the world's most diverse, consisting of corporate and private intensive and extensive crop farming systems, including vegetable, fruit, nuts, and grain production. The well-developed commercial farming in South Africa is the backbone of the country's agricultural economy.
However, the country's potential for crop production remains unexploited with the lack of technological advancements and immense mechanization. According to 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 would drive growth in 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
This section covers the major market trends shaping the South Africa Agricultural Machinery Market according to our research experts:
Growing Grain Industry
The grain industry, which includes barley, maize, oats, sorghum, and wheat, is one of the largest agricultural industries in South Africa, contributing more than 30% to the total gross value of agricultural production. The industry comprises several key stakeholders, including input suppliers, farmers, silo owners, traders, millers, bakers, research organizations, financiers, etc. 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. In addition, corn is the largest locally produced field crop. South Africa is the leading corn producer in the Southern African Development Community, with an average production of around 15 million tons per annum over the past five years. The 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.
Rise in Tractor Sales
Tractors is one of the most important segments of the South African agricultural machinery market. As basic agriculture machinery, tractors occupy a significant part of agriculture machinery in terms of units sold.
Further, a continuous increase in tractor sales has been noticed over the last few years. For instance, according to sales statistics from the South African Agricultural Machinery Association (SAAMA), tractor sales in October 2022 were 1,268 units. This was almost a 48% increase from the 856 units sold in October 2021, while the sales of combined harvesters accounted for only 34 units in June 2021. Moreover, the year-to-date sales of tractors in October 2022 accounted for 7,747, an increase of 19.8% from 2021. Additionally, tractor sales were fuelled by increasing government subsidies for farm mechanization, accommodative financing, growth in the agricultural industry, and increased awareness of farm machine mechanization. The Agricultural Policy 2021 in South Africa is anticipated to raise the adoption of automation and, eventually, the segment's growth.
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
John Deere
Mahindra & Mahindra South Africa Pty Ltd
Kubota Corporation
Agco Corporation
CNH Industial (New Holland Agriculture)
*Disclaimer: Major Players sorted in no particular order
South Africa Agricultural Machinery Market News
- In 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.
- In June 2022, agricultural vehicle supplier Argo Tractors South Africa (Argo SA) 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.
- In June 2022, John Deere launched X9 Series Combine, which provides ultra-efficient crop feeding with up to 25% less grain loss and has high-capacity feeding, accounting 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
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
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 Ploughing and Cultivating Machinery
5.1.2.1 Ploughs
5.1.2.2 Harrows
5.1.2.3 Cultivators and Tillers
5.1.2.4 Other Ploughing 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 Harvesters- Threshers
5.1.4.2 Forage Harvesters
5.1.4.3 Other Harvesting Machinery
5.1.5 Haying and Forage Machinery
5.1.5.1 Mower- 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
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
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South 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 market is segmented by tractors into engine power (less than 40HP, 40HP-99HP, greater than 100HP), type (compact utility tractors, utility tractors, 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 million) for all the above segments.
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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.
