China Agricultural Machinery Market - Growth, Trends, and Forecast (2020 - 2025)

The China Agricultural Machinery Market is segmented by machinery type into Tractors, Equipment, Sprayers, Harvesting Machinery, and Haying and Forage Machinery.

Market Snapshot

Study Period:


Base Year:


Major Players:

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Market Overview

The China Agricultural Machinery Market is projected to grow at a CAGR of 5.8% during the forecast period (2019 - 2024). China is one of the largest manufacturers of farming equipment and the largest market for agricultural machinery, worldwide. Most of the agricultural machinery industries are mainly concentrated in Shandong, Henan, Jiangsu, Liaoning, and Zhejiang provinces and the bestselling types of  agriculture machinery’s in the country include large tractors and harvesting machinery products with high horsepower and high degrees of automation. Nearly 2,500 agricultural equipment manufacturers are concentrated only in the provinces of Shandong, Henan, Jiangsu, Liaoning, and Zhejiang. Although the agricultural machinery industry is evolving technically, lack of human capital, necessary infrastructure to develop sophisticated farming machines, which are able to compete with foreign products are some of the major factors restraining the growth of the market. Due to this, China relies heavily on foreign imports for high-tech farming machinery.

Scope of the Report

Agricultural machinery have been an exceptional way to reduce labor and time. Manual labor and conventional agricultural implements are marginally less productive than agricultural machinery. This advantage makes farmers to opt for agricultural machinery. The support and investment in agriculture by the Chinese government plays a crucial role in the agricultural mechanization. Factors, such as intense government support, better R&D programs, and proper access to finance have made a significant progress in the Chinese agricultural machinery market. In addition to the government support, technological advancements and capacity expansions by major players in the market is boosting the country’s agricultural mechanization rate.
By Engine Power
Less than 40 HP
40 to 60 HP
61 to 100 HP
101 to 150 HP
Greater than 150 HP
Rotovators & Cultivators
Seed & Fertilizer Drills
Fertilizer Spreaders
Land Levelers
Other Equipment
Field-Crop Sprayers
Orchard Sprayers
Harvesting Machinery
Combine Harvesters
Forage Harvesters
Other Harvesting Machinery
Haying & Forage Machinery
Mowers & Conditioners
Tedders & Rakes
Other Haying & Forage Machinery

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Key Market Trends

Increasing Cost of Farm Labor

The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics, thereby affecting the gChina agricultural machinery market. On average, developing economies such as China have larger percentages of the population dependent on agriculture. However, the percentages have decreased over time as a large number of people are migrating to the urban area every year. Due to decreasing agricultural labor, the prices of farm labor are rising. Hence, it is expected to increase the demand for agricultural machinery during the forecast period.

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Tractor - The Largest Segment

China’s agricultural machinery had been facing several challenges, like overcapacity and low profit-margins, after the provision of a year-long subsidy scheme for promoting mechanization in the farming, which led to the mass production of low-quality tractors. Farmers’ have become unfavorable toward purchasing equipment due to the decline in grain prices and lower return on equipment investment.The demand for agricultural tractors reduced during 2016 and 2017, owing to the high existing numbers of tractors and the changes in the subsidy regime for purchasing new tractors. Although the subsidies per machine have declined, the system is now more inclined toward large tractors, as the government seeks to enhance productivity and the yields. In northern China, high horsepower tractors are used in a large scale, as the farm sizes are generally large, unlike in southern China, where farm sizes are quite small. Large farm tractors are expensive, so many farmers outsource their cropping work to third-party contractors, who value the performance and profitability of their investment.

To understand geography trends, Download Sample Report.

Competitive Landscape

In the Chinese agricultural machinery market, companies are not only competing based on equipment quality and promotion, but are also focused on strategic moves, in order to hold larger market shares. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market studied. Mostly the agricultural equipment industry in the country is dominated by a large number of unspecialized manufacturers producing low technology machinery. The top five domestic manufacturers account for less than 25% of the market. Major Chinese agricultural equipment companies include First Tractor, the YTO Group, and Changzhou Dongfeng Agricultural Equipment.

Table Of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 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 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Tractors

      1. 5.1.1 By Engine Power

        1. Less than 40 HP

        2. 40 to 60 HP

        3. 61 to 100 HP

        4. 101 to 150 HP

        5. Greater than 150 HP

    2. 5.2 Equipment

      1. 5.2.1 Plows

      2. 5.2.2 Harrows

      3. 5.2.3 Rotovators & Cultivators

      4. 5.2.4 Seed & Fertilizer Drills

      5. 5.2.5 Fertilizer Spreaders

      6. 5.2.6 Land Levelers

      7. 5.2.7 Other Equipment

    3. 5.3 Sprayers

      1. 5.3.1 Field-Crop Sprayers

      2. 5.3.2 Orchard Sprayers

    4. 5.4 Harvesting Machinery

      1. 5.4.1 Combine Harvesters

      2. 5.4.2 Forage Harvesters

      3. 5.4.3 Other Harvesting Machinery

    5. 5.5 Haying & Forage Machinery

      1. 5.5.1 Mowers & Conditioners

      2. 5.5.2 Balers

      3. 5.5.3 Tedders & Rakes

      4. 5.5.4 Other Haying & Forage Machinery


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 YTO Group Corporation

      2. 6.3.2 Lovol Heavy Industry Co. Ltd

      3. 6.3.3 Zoomlion

      4. 6.3.4 Weichai Power Co. Ltd

      5. 6.3.5 CNH Industrial NV

      6. 6.3.6 CLAAS KGaA GmbH

      7. 6.3.7 Deere Corporation

      8. 6.3.8 AGCO Corporation

      9. 6.3.9 Iseki & Co. Ltd


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