Asia-Pacific Agricultural Tractors Market Size

APAC Agricultural Tractor Machinery Market Analysis

The Asia-Pacific Agricultural Tractor Market is estimated to grow at a CAGR of less than 3.5%, during the forecast period (2020-2025). An increased preference towards farm mechanization in the developing countries to keep pace with the need for increased agricultural production and food security, and government initiatives launching adequate credit facilities, are driving the overall agricultural tractor machinery market in the region. As a result, tractor sales in India rose significantly from 492,819 units in 2016 to 711,478 units in 2018. According to the Department of Agricultural Extension (DAE), Bangladesh, around 95% of the land is tilled through pedestrian and wheeled tractors while the demand for higher rage HP tractors in the country has increased primarily due to subsidized sales of the machinery by the government. These developments are further expected to enhance the adoption rate of tractors on crop fields across the region. China was the largest market for agricultural tractors in Asia in 2019. Since the implementation of the 'Agricultural Mechanization Promotion Law' in 2004, the country has significantly emphasized on the promotion and role of agricultural mechanization in agriculture for rural economic development. Furthermore, China introduced 'Made in China 2025' scheme which aims at focusing on producing 90% of its own agricultural equipment with high-end machines, like agricultural tractors, holding almost one-third share of their segments by 2020.