Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 61.67 Billion |
| Market Size (2030) | USD 81.37 Billion |
| Growth Rate (2025 - 2030) | 5.70% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Asia-Pacific Agricultural Machinery Market Analysis by Mordor Intelligence
The Asia-Pacific agricultural machinery market size stood at USD 61.67 billion in 2025 and is forecast to reach USD 81.37 billion by 2030, advancing at a 5.7% CAGR. The mechanization imperative extends beyond developed markets, with Thailand's agricultural sector embracing precision farming as the only viable path forward amid workforce aging and climate variability challenges. Rapid mechanization continues as shrinking rural labor pools push growers toward tractors, harvesters, and smart implements. Government capital-subsidy programs and rising farm incomes sustain equipment purchases by smallholders, while climate-linked incentives accelerate drip irrigation and precision farming adoption. Original Equipment Manufacturers (OEMs) now bundle hardware with software and subscription services to smooth large up-front costs. Competitive intensity is rising as Korean and Chinese manufacturers expand abroad and incumbents race to embed autonomy and data analytics in product lines[1]Source: Asian Development Bank, “Sustaining Agricultural Production through Water-Saving Irrigation,” adb.org.
Key Report Takeaways
- By product type, tractors captured 57.8% of the Asia-Pacific agricultural machinery market share in 2024. Drip irrigation machinery is projected to expand at a 13.4% CAGR through 2030.
- By geography, China led with a 35.5% share of the Asia-Pacific agricultural machinery market size in 2024. India is advancing at an 8.5% CAGR through 2030.
Asia-Pacific Agricultural Machinery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Farm-Labor Scarcity Accelerating Mechanization | +1.8% | Global, with acute impact in Japan, Thailand, and Malaysia | Short term (≤ 2 years) |
| Precision-Farming Adoption and Smart Implements | +1.2% | China, Thailand, and Taiwan, with spillover to India | Medium term (2-4 years) |
| Climate-Linked Yield-Assurance Incentives | +0.9% | Asia-Pacific core, with emphasis on drought-prone regions | Long term (≥ 4 years) |
| Government Credit Lines Targeting Smallholders | +1.1% | India, China, and Philippines, with policy support in Thailand | Medium term (2-4 years) |
| OEM "Power-as-a-Service" Subscription Models | +0.4% | Developed Asia-Pacific markets, expanding to emerging economies | Long term (≥ 4 years) |
| Ag-Carbon Credit Monetization Potential | +0.3% | Philippines and Thailand, with regulatory frameworks emerging | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Farm-labor scarcity accelerating mechanization
Severe worker shortages lift demand for hands-free machinery. Japan’s agriculture ministry earmarked JPY 1 billion (USD 7.5 million) for automation grants, leading vegetable growers to deploy autonomous harvesters that slash labor inputs by 50%[2]Source: Ministry of Agriculture Japan, “Automation Support Grants for Farmers,” nationthailand.com. Malaysian palm estates now rely on self-driving trucks and drone sprayers to offset curtailed migrant inflows. Thai rice operations adopt high-speed transplanters, lifting daily planting capacity fivefold. Together, these responses accelerate equipment turnover across the Asia-Pacific agricultural machinery market.
Precision-farming adoption and smart implements
IoT platforms, variable-rate controllers, and UAVs are penetrating field operations. Kubota’s Thai farm-management application logged 100 pilot plots, boosting yields up to 30% by matching soil tests to fertilizer maps[3]Source: Kubota Corporation, “The Demonstration Farm KUBOTA FARM Proposes a New Future for Agriculture,” kubota.com. Taiwan’s 25-year precision-agriculture program now integrates GIS, multispectral drones, and cloud analytics to refine irrigation scheduling[4]Source: FFTC, “Precision Agriculture in Taiwan: Examples and Experiences,” ap.fftc.org.tw. Beijing’s USD 1.4 trillion digital-infrastructure pledge, alongside a USD 320 million World Bank loan for climate-smart practices, underwrites future smart-implement uptake. These initiatives widen the addressable base for data-driven devices within the Asia-Pacific agricultural machinery market.
Climate-linked yield-assurance incentives
Governments tie mechanization to resilience goals. Thailand’s Bio-Circular-Green roadmap positions efficient equipment as central to mitigating drought losses. Water-saving drip systems inspired by fig-leaf geometry cut usage 70-80% while sustaining yields, demonstrating clear ROI under a scarce-water scenario. Australia still anticipates its mechanization sector to grow despite a significant farm-profit dip in 2023 drought conditions. Such incentives intensify demand for high-efficiency machines across the Asia-Pacific agricultural machinery market.
Ag-carbon credit monetization potential
Low-emission equipment positions growers to earn carbon offsets. Early frameworks in Thailand and the Philippines recognize avoided methane and nitrous-oxide emissions from precision application and reduced-tillage gear, creating a financial pull for advanced machinery within the Asia-Pacific agricultural machinery market. The adoption of low-emission equipment and precision farming technologies, supported by carbon offset frameworks in countries like Thailand and the Philippines, is anticipated to further accelerate market expansion in the coming years.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High Up-Front Capital Costs | -1.3% | Global, with acute impact on smallholder segments | Short term (≤ 2 years) |
| Fragmented Land Holdings Limiting ROI | -0.8% | India, China, and Southeast Asia rural areas | Medium term (2-4 years) |
| Poor After-Sales Service Networks | -0.6% | Emerging Asia-Pacific markets, rural distribution gaps | Medium term (2-4 years) |
| Low Digital Literacy Among Farmers | -0.4% | Rural areas across developing Asia-Pacific economies | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Low digital literacy among farmers
Adoption of data-rich platforms lags where smartphone penetration and connectivity remain spotty. Training programs embedded in Thailand’s 4.0 initiative and China’s rural broadband rollout are narrowing the gap, yet consistent user-skill building is still required to unlock full value from precision equipment. The integration of precision farming technologies and sustainable practices positions the market for substantial growth, though infrastructure and training challenges need to be addressed for widespread adoption.
Fragmented land holdings limiting ROI
The small average farm size of less than 2 hectares in South and Southeast Asia limits the effective use of high-capacity agricultural equipment. This structural constraint slows the adoption of high-horsepower tractors and restricts overall mechanization levels. Governments promote multi-farm cooperatives and machinery sharing programs to consolidate farmland and improve investment returns. The fragmented nature of landholdings also impacts operational efficiency, making it difficult for farmers to achieve economies of scale. Additionally, the limited access to capital and financing options further compounds the challenges of mechanization adoption in these regions. To address these issues, agricultural policies increasingly focus on land consolidation initiatives and financial support mechanisms for farm equipment purchases.
Segment Analysis
By Product Type: Tractors remain the mechanization cornerstone
Tractors represented 57.8% of the Asia-Pacific agricultural machinery market share in 2024 as growers rely on them for land preparation, transport, and power take-off tasks. The tractor market is projected to widen steadily through 2030 as below-40 HP models dominate Indian sales and above-50 HP units gain traction in Australian broad-acre farms. Utility tractors stand out for versatility, whereas row-crop variants support GPS steering and variable-rate seeding for precision agriculture. Daedong’s plan to introduce Korea’s first level-4 autonomous tractor by end-2025 signals a competitive leap that could reshape buyer expectations. Complementary plowing and cultivating implements form the second-largest category, as rice systems demand efficient puddling and seedbed preparation.
Demand for harvesting machinery follows labor-cost escalation. Combine harvesters cut rice reaping time from seven to two days, a gain valued in Thailand, where daily wages jumped 15% in 2024. Drip irrigation equipment, while currently smaller in revenue, is the fastest-growing sub-segment at 13.4% CAGR, reflecting intensified water-management mandates and incentive schemes. The attached to micro-irrigation could triple as drought episodes spur adoption across China’s northern plains and India’s Deccan plateau. OEMs offering bundled pumps, fertigation controllers, and cloud analytics stand to capture emerging cross-sell opportunities.
Note: Segment shares of all individual segments available upon report purchase
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Geography Analysis
China accounted for 35.5% of the Asia-Pacific agricultural machinery market in 2024, yet tractor sales dropped sharply following tighter emission regulations. Expanded subsidies covering drones and smart terminals, plus a USD 1.4 trillion digital-agriculture stimulus package, underpin a recovery path that favors high-tech equipment. China is expected to resume mid-single-digit growth from 2026 onward as aging fleets are retired. India is the fastest-expanding geography at 8.5% CAGR, buoyed by rising rural incomes and Farm Machinery Banks offering shared access to seeders and harvesters.
Japan and Australia demonstrate established mechanization landscapes within the region. Tokyo's automation grant initiatives drive the adoption of robotic harvesters to address workforce aging challenges. Australia's agricultural machinery industry shows signs of recovery as farmers resume previously delayed equipment upgrades.
Thailand and other emerging Southeast Asian economies add significant depth to the Rest-of-Asia-Pacific segment. Thailand's machinery market continues to grow steadily, supported by Kubota's capacity expansion initiatives. Indonesia's increased tractor imports from TYM to service new rice-estate projects further demonstrate the broadening regional footprint of the Asia-Pacific agricultural machinery market.
Competitive Landscape
Competition in the Asia-Pacific agricultural machinery market is moderately concentrated. Kubota Corporation, Deere & Company, CNH Industrial N.V., Mahindra & Mahindra Ltd., and AGCO Corporation defend leadership with full-line portfolios and dealer networks, while TYM and Daedong accelerate regional penetration via cost-competitive autonomous offerings. Chinese manufacturers, led by Zoomlion, unveil hybrid tractors and digital-farm platforms targeting export growth to 60 countries.
Integrated service models distinguish market contenders. Kubota Corporation operates demonstration farms delivering agronomy training and telematics insights to boost customer ROI. CNH Industrial N.V. launched per-ton sugarcane harvesting subscriptions in Thailand, converting capital outlay into variable costs. Yanmar Co. Ltd.’s acquisition of CLAAS KGaA mbH India upgrades the combined capacity for South Asian demand. Suppliers investing in after-sales parts hubs and remote diagnostics secure higher equipment uptime, a decisive factor for repeat purchases within the Asia-Pacific agricultural machinery market.
Digital capability is the new battleground. Deere & Company’s Operations Center, Kubota Corporation’s KSAS, and AGCO Corporation’s Fuse cloud suites compete to anchor equipment sales with data services. Carbon-credit marketplaces and AI-driven crop models promise incremental revenue streams, luring ag-tech start-ups into strategic alliances with incumbent OEMs.
Asia-Pacific Agricultural Machinery Industry Leaders
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Deere & Company
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AGCO Corporation
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Mahindra & Mahindra Ltd.
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KUBOTA Corporation
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CNH Industrial N.V.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: TYM signed a KRW 35 billion (USD 26 million) tractor supply deal with an Indonesian distributor, with deliveries starting in early-2025.
- November 2024: Zoomlion Heavy Industry Science & Technology Co., Ltd. participated in the 2024 China International Agricultural Machinery Exhibition, held from October 26 to 28 in Changsha, China, where it launched its latest TF220 combine harvester.
Asia-Pacific Agricultural Machinery Market Report Scope
Agricultural machinery refers to a broad range of mechanical equipment and tools used in farming and agricultural activities to enhance productivity, efficiency, and precision. These machines assist in various stages of farming, including soil preparation, planting, irrigation, harvesting, and post-harvest processing. The Asia-Pacific Agricultural Machinery Market is segmented into Product Type (Tractors, Ploughing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying Machinery, Irrigation Machinery, and Other Product Types) and Geography (China, Japan, India, Australia, and Rest of Asia-Pacific). The report offers market estimation and forecasts in value (USD) for all the above segments.
By Product Type
| Tractors | Horsepower | Below 20 HP |
| 21 - 30 HP | ||
| 31 - 50 HP | ||
| Above 50 HP | ||
| Type | Utility Tractor | |
| Row-Crop Tractor | ||
| Compact Utility Tractor | ||
| Other Types | ||
| Plowing and Cultivating Machinery | Ploughs | |
| Harrows | ||
| Cultivators and Tillers | ||
| Other Ploughing and Cultivating Machinery | ||
| Planting Machinery | Seed Drills | |
| Planters | ||
| Spreaders | ||
| Other Planting Machinery | ||
| Harvesting Machinery | Combine Harvesters | |
| Forage Harvetsers | ||
| Other Harvesting Machinery | ||
| Haying and Forage Machinery | Mowers | |
| Balers | ||
| Other Haying and Forage Machinery | ||
| Irrigation Machinery | Sprinkler Irrigation | |
| Drip Irrigation | ||
| Other Irrigation Machinery | ||
| Other Types | ||
By Geography
| China |
| India |
| Japan |
| Australia |
| Rest of Asia-Pacific |
| By Product Type | Tractors | Horsepower | Below 20 HP |
| 21 - 30 HP | |||
| 31 - 50 HP | |||
| Above 50 HP | |||
| Type | Utility Tractor | ||
| Row-Crop Tractor | |||
| Compact Utility Tractor | |||
| Other Types | |||
| Plowing and Cultivating Machinery | Ploughs | ||
| Harrows | |||
| Cultivators and Tillers | |||
| Other Ploughing and Cultivating Machinery | |||
| Planting Machinery | Seed Drills | ||
| Planters | |||
| Spreaders | |||
| Other Planting Machinery | |||
| Harvesting Machinery | Combine Harvesters | ||
| Forage Harvetsers | |||
| Other Harvesting Machinery | |||
| Haying and Forage Machinery | Mowers | ||
| Balers | |||
| Other Haying and Forage Machinery | |||
| Irrigation Machinery | Sprinkler Irrigation | ||
| Drip Irrigation | |||
| Other Irrigation Machinery | |||
| Other Types | |||
| By Geography | China | ||
| India | |||
| Japan | |||
| Australia | |||
| Rest of Asia-Pacific | |||
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Key Questions Answered in the Report
What is the current value of the Asia-Pacific agricultural machinery market?
In 2025 the market size is valued at USD 61.67 billion and is projected to rise to USD 81.37 billion by 2030.
Which product category dominates regional machinery sales?
Tractors account for about 57.8% of industry revenue, reflecting their central role in field operations.
Which country shows the fastest growth in equipment demand?
India is expanding at a 8.5% CAGR, supported by subsidy programs and growing farm incomes.
What factor most limits farmer adoption of new machinery?
High up-front capital costs remain the chief barrier, particularly for smallholders.
How are manufacturers easing purchase hurdles?
OEMs increasingly offer subscription-based Power-as-a-Service packages that convert capital expenses into pay-per-use charges.
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