Asia-Pacific Agricultural Machinery Market - Growth, Trends, and Forecasts (2023 - 2028)

The Asia-Pacific Agricultural Machinery Market is Segmented by Product Type into Tractors, Ploughing and Cultivating Machinery, Planting Machinery, Irrigation Machinery, Harvesting Machinery, Haying Machinery, and Other Product Types. By Geography, the market is also segmented into China, Japan, India, Australia, and Rest of Asia-Pacific. The report offers the market estimation and forecasts in values in USD million for all the above segments.

APAC Agricultural Machinery Industry Overview

APAC Agricultural Machinery Market Summary
Study Period: 2018 - 2028
CAGR: 6.1 %

Major Players

APAC Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order


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APAC Agricultural Machinery Market Analysis

The agriculture machinery market is expected to grow at a rate of 6.1% during the forecast period.

  • The shrinking labor force and increased awareness among farmers regarding advanced agricultural practices are the prime reasons for the demand for agricultural machinery. Furthermore, the rise in technological advancements in agriculture equipment, and an increase in demand for pre-owned agriculture equipment, is likely to accelerate the revenue share. Additionally, population growth and high demand for agricultural products, primarily from countries, like India and China, are also aiding the growth of the market.
  • China and India dominate the regional markets for agricultural equipment due to their enormous areas of arable land and low levels of automation, despite Japan having the greatest level of mechanization among the Asian nations. Australia is also a major market for agricultural equipment in the Asia-Pacific region. According to the Tractor and Machinery Association of Australia (TMA), the backing of the Instant Asset Write-off scheme increased sales of small tractors in Australia. In 2020-21, the tractor under 40 horsepower (30 kilowatts) increased by 72% for the month and completed the year 36% ahead. The growing emphasis on farm mechanization and governments' push for mechanization may enhance sales and lead to innovations, such as driverless machinery, which may drive the market throughout the forecast period. On the other hand, the lack of skilled professionals and the high cost of machinery are the key constraints of the market.

APAC Agricultural Machinery Industry Segments

Agricultural machinery is used in farming or other agriculture. The agricultural machinery market is estimated to grow remarkably during the forecast period. All types of agricultural machinery used in fields, including harvesting machinery, haying and forage machinery, and irrigation machinery, have been considered in the research scope.

The Asia-Pacific agricultural machinery market is segmented by Product Type into Tractors, Ploughing and Cultivating Machinery, Planting Machinery, Irrigation Machinery, Harvesting Machinery, Haying Machinery, and Other Product Types. By Geography, the market is also segmented into China, Japan, India, Australia, and Rest of Asia-Pacific. The report offers market estimation and forecasts in values in USD million for all the above segments.

Product Type
By Horse Power
Below 20 HP
21 - 30 HP
31 - 50 HP
Above 50 HP
By Type
Utility Tractor
Row Crop Tractor
Compact Utility Tractor
Other Types
Plowing and Cultivating Machinery
Cultivators and Tillers
Other Plowing and Cultivating Machinery
Planting Machinery
Seed Drills
Other Planting Machinery
Harvesting Machinery
Combine Harvesters
Forage Harvesters
Other Harvesting Machinery
Haying Machinery
Other Haying Machinery
Irrigation Machinery
Sprinkler Irrigation
Drip Irrigation
Other Irrigation Machinery
Other Product Types
Rest of Asia-Pacific

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APAC Agricultural Machinery Market Trends

This section covers the major market trends shaping the APAC Agricultural Machinery Market according to our research experts:

Lack of Farm Labor and Increase in Farm Wages

The cost of farm labor is directly proportional to the cost of production. Hence, increasing labor wages and lack of farm labor are driving the agriculture machinery market in the Asia-Pacific region. For instance, the average rise in the daily farm wages noticed in India is USD 0.2 in the last few years. This trend is anticipated to continue further as farm labor is decreasing because of the migration of rural people to urban regions.

Moreover, a higher proportion of the population depends on agriculture on average in developing nations like China. Since many individuals move to urban regions every year, the percentage has dropped with time. For example, every year 0.5 to 1% decline is noticed in farm labor availability in China. Additionally, the Statistics from the Chinese government show that the percentage of people employed in agriculture fell from 36.7% in 2010 to 23.6% in 2020. The cost of farm labor is becoming more expensive as a result of the decline in agricultural labor. Similar to how inadequate rural reforms result in a reduction in rural labor, farmers are increasingly mechanizing their numerous farm operations. This is one of the major driving factors of agricultural machinery.

APAC Agricultural Machinery Market: Employment in Agriculture, China, in millions, 2018-2020

India and China Dominates the Market

India and China account for 60% of farm machinery share in the Asia-Pacific region. The demand for farm mechanization in India and China has continuously increased significantly. The prime market drivers are the lack of labor, the need to increase farm productivity, contract farming, and government incentives. A high labor wage is also a key factor in the market. Tractors occupy the major part of the market share among all the farm machinery in this region. Agriculture equipment sales dominated the Indian market in 2020, accounting for 810,000 units sold. China was the second largest market, accounting for 610,000 sales.

Along with this, the Indian government provides incentives in the form of subsidies, cheap import levies on agricultural machinery, and simple financing schemes, which push the farmers to make their farms mechanized. Farm mechanization has become more common among farmers due to labor scarcity. There is a labor shortage in rural areas due to widespread migration from rural to urban areas and several rural employment programs. For instance, the National Rural Employment Guarantee Agency (NREGA) caused a cascade effect that resulted in farm mechanization in several locations due to a lack of labor.

Moreover, the support from the Chinese government is increasing farm mechanization for various crops, such as rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane. The Chinese Ministry of Finance awarded more than CNY 20 billion in central government subsidies to acquire agricultural machinery in 2020. The country intends to achieve 75% full mechanization of agriculture, plowing, planting, and harvesting by 2025. Additionally, China has launched the Made in China 2025 initiative, which seeks to produce 90% of the country's agricultural equipment with high-end machineries, such as agricultural tractors, which accounted for one-third of the market sector in 2020. This, in turn, stimulates locally built tractors and propels the agricultural tractor market in the country.

APAC Agricultural Machinery Market : Tractor sales, in thousand units, India, 2018-2021

APAC Agricultural Machinery Market Competitor Analysis

The market is highly consolidated with the presence of a few prominent players, accounting for more than half of the market. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market studied. Deere & Company, AGCO Corp., International Tractors Limited (Sonalika), Kubota Tractor Corp., and Mahindra & Mahindra Ltd are some of the leading players in this region.

APAC Agricultural Machinery Market Top Players

  1. Deere & Company

  2. AGCO Corporation

  3. International tractors limited

  4. Mahindra & Mahindra Ltd.

  5. KUBOTA Corporation

*Disclaimer: Major Players sorted in no particular order

APAC Agricultural Machinery Market Concentration

APAC Agricultural Machinery Market Recent Developments

November 2022: VST Tillers Tractors Ltd and ZETOR TRACTORS announced the launch of two new tractors at the CII Agro Tech India 2022 exhibition. They claim that these two new tractors of 45 hp and 50 hp are developed at the India and Czech Republic plants by VST & Zetor.

September 2022: New Holland Agriculture, a brand of CNH Industrial, announced the launch of Blue Series SIMBA and its entry in the sub 30HP compact tractor segment in India at the 7th EIMA Agrimach Expo 2022 in Bengaluru. Introduced as a part of the brand’s Blue Series range, the company claimed that the tractor is designed for specialty applications, such as spraying, rotavating, and inter-row cultivation in vineyards, orchards, sugarcane, cotton fields, etc.

APAC Agricultural Machinery Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Product Type

      1. 5.1.1 Tractors

        1. By Horse Power

          1. Below 20 HP

          2. 21 - 30 HP

          3. 31 - 50 HP

          4. Above 50 HP

        2. By Type

          1. Utility Tractor

          2. Row Crop Tractor

          3. Compact Utility Tractor

          4. Other Types

      2. 5.1.2 Plowing and Cultivating Machinery

        1. Ploughs

        2. Harrows

        3. Cultivators and Tillers

        4. Other Plowing and Cultivating Machinery

      3. 5.1.3 Planting Machinery

        1. Seed Drills

        2. Planters

        3. Spreaders

        4. Other Planting Machinery

      4. 5.1.4 Harvesting Machinery

        1. Combine Harvesters

        2. Forage Harvesters

        3. Other Harvesting Machinery

      5. 5.1.5 Haying Machinery

        1. Mower

        2. Baler

        3. Other Haying Machinery

      6. 5.1.6 Irrigation Machinery

        1. Sprinkler Irrigation

        2. Drip Irrigation

        3. Other Irrigation Machinery

      7. 5.1.7 Other Product Types

    2. 5.2 Geography

      1. 5.2.1 China

      2. 5.2.2 India

      3. 5.2.3 Japan

      4. 5.2.4 Australia

      5. 5.2.5 Rest of Asia-Pacific


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Deere and Company

      2. 6.3.2 AGCO Corp.

      3. 6.3.3 CNH Industrial NV

      4. 6.3.4 Kubota Corporation

      5. 6.3.5 Mahindra & Mahindra Ltd

      6. 6.3.6 Yanmar Company Limited

      7. 6.3.7 International tractors limited

      8. 6.3.8 Iseki & Co. Ltd

      9. 6.3.9 Escorts Limited

      10. 6.3.10 AMAZONEN-Werke H. Dreyer GmbH & Company KG

      11. 6.3.11 YANMAR Co. Ltd

      12. 6.3.12 Netafim Limited


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APAC Agricultural Machinery Market Research FAQs

The Asia-Pacific Agricultural Machinery Market is studied from 2018 - 2028.

The Asia-Pacific Agricultural Machinery Market is growing at a CAGR of 6.1% over the next 5 years.

Deere & Company, AGCO Corporation, International tractors limited, Mahindra & Mahindra Ltd., KUBOTA Corporation are the major companies operating in Asia-Pacific Agricultural Machinery Market.

Asia-Pacific Agricultural Machinery Industry Reports

In-depth industry statistics and market share insights of the Asia-Pacific Agricultural Machinery sector for 2020, 2021, and 2022. The Asia-Pacific Agricultural Machinery research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Asia-Pacific Agricultural Machinery report PDF.

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