Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 22 Billion |
| Market Size (2030) | USD 31 Billion |
| Growth Rate (2025 - 2030) | 7.10% 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. |
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China Agricultural Machinery Market Analysis by Mordor Intelligence
The China agricultural machinery market size is USD 22.0 billion in 2025 and is moving ahead at a 7.1% CAGR toward USD 31.0 billion in 2030. This growth is fueled by a strong policy drive to increase mechanization across crop production, accelerating the shift from manual labor to machine-based farming.[1]International Trade Administration, “China Agricultural Machinery Market,” trade.gov Government incentives for smart and high-powered tractors, along with strategic investment in digital infrastructure, are encouraging equipment upgrades. A shrinking rural workforce further amplifies demand for automation. Manufacturers benefit from favorable resource allocation, which helps stabilize supply chains and expand domestic production. Meanwhile, the rising adoption of IoT systems and autonomous technologies is unlocking new service-based revenue streams. However, fragmented landholdings, fluctuating input costs, and uneven access to credit continue to challenge profitability and limit uniform adoption across regions.
Key Report Takeaways
- By machinery type, tractors led with 56% of the China agricultural machinery market share in 2024, while sprayers are on track to post an 8.8% CAGR through 2030.
China Agricultural Machinery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Shrinking Rural Labor Pool Accelerating Mechanization | +2.1% | National, with higher impact in eastern and central provinces | Medium term (2-4 years) |
| Generous Subsidies for High-horsepower and Smart Tractors | +1.8% | National, concentrated in major grain-producing areas | Short term (≤ 2 years) |
| Rapid Technology Upgrades | +1.5% | Eastern regions leading, expanding to central and western areas | Long term (≥ 4 years) |
| Food-security Push Raising Grain-output Targets | +1.2% | National, emphasis on major grain-producing provinces | Medium term (2-4 years) |
| AI-driven Predictive-maintenance Service Bundles | +0.9% | Eastern and central regions initially, gradual national rollout | Long term (≥ 4 years) |
| Adoption of Electric Power-trains | +0.7% | Pilot regions expanding to national coverage | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Shrinking Rural Labor Pool Accelerating Mechanization
China's agricultural sector is undergoing mechanization due to rural-urban migration and a declining agricultural workforce. China's urbanization rate reached 66.16% in 2023, an increase of 0.94% from the previous year, driven by youth migration from rural areas.[3]National Bureau of Statistics of China, “Statistical Communiqué of the People's Republic of China on the 2023 National Economic and Social Development,” stats.gov.cn This demographic shift has increased demand for automated equipment, including combine harvesters and precision planters. Government-supported service cooperatives enable smallholder farmers to access shared machinery. The mechanization trend is most prominent in coastal grain-producing regions, which experience higher urbanization rates and seasonal labor costs.
Generous Subsidies for High-horsepower and Smart Tractors
Government programs offer enhanced subsidies for high-horsepower, precision-ready tractors to encourage technology adoption. These initiatives support farmers in upgrading from older, low-horsepower equipment to modern systems. Trade-in programs reduce purchase costs, particularly benefiting regions with significant off-farm employment. The policy support has also strengthened domestic manufacturers' market position.
Rapid Technology Upgrades
China's smart agriculture initiatives are accelerating the implementation of digital tools and autonomous machinery. Modern agricultural equipment incorporates satellite navigation, drones, and AI-powered monitoring systems.[2]Zhang X., “Guidance on Smart Agriculture,” gov.cn Testing of neural-network yield prediction and 5G-enabled tractors demonstrates improvements in operational efficiency. Equipment manufacturers are expanding into integrated data services, implementing cloud-based dashboards and smart sensors. This technological advancement enables farmers to implement data-driven crop management strategies.
Food-security Push Raising Grain-output Targets
National food security policies are increasing the demand for large-scale agricultural machinery. Targets for high grain output drive investments in combines, seeders, and precision sprayers. Major crop-producing provinces are implementing mechanization programs, supported by long-term research initiatives and direct subsidies. Specialized zones focus on seed technology innovation, contributing to production stability and efficiency improvements in key agricultural regions.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High Upfront Cost and Uneven Credit Access | -1.4% | National, more severe in western and remote regions | Short term (≤ 2 years) |
| Fragmented Farm Plots Lowering Operational Efficiency | -0.8% | National, particularly affecting central and southern regions | Medium term (2–4 years) |
| Volatile Raw-material and Battery Prices | -1.1% | National, with higher sensitivity in industrial belts | Short to medium term (1–3 years) |
| Farmer Data-privacy and Cyber-security Concerns | -0.6% | Emerging in digitally active zones, especially northern and urban regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Upfront Cost and Uneven Credit Access
Advanced agricultural machinery costs present significant challenges for small-scale farmers. Limited financial resources and inconsistent rural credit access restrict equipment purchases. While insurance programs improve risk assessment, agricultural loan availability varies by region. Machinery outsourcing services provide an alternative but have limited reach in remote and mountainous areas. The lack of comprehensive financial solutions continues to impede operational upgrades.
Fragmented Farm Plots Lowering Operational Efficiency
The prevalence of small, dispersed agricultural plots in China reduces the efficiency of high-powered machinery operations. Despite expanding land-transfer programs, farmers often resist land consolidation efforts. This fragmentation affects the economic feasibility of large equipment investments and slows mechanization progress. Current land arrangement practices limit the optimal utilization of advanced machinery across many agricultural zones.
Segment Analysis
By Machinery Type: Dominance of Tractors Underpins the Smart-farming Pivot
Tractors account for 56% of the China agricultural machinery market share in 2024. Large-frame units are increasing in popularity due to farm consolidation, while two-wheel-drive models remain predominant in existing fleets. Government incentives support the transition to four-wheel-drive CVT platforms that accommodate multi-function implements. The tractor segment shows steady growth potential through technology integration, though smaller manufacturers struggle to meet software requirements, making them potential acquisition targets.
Sprayers demonstrate the highest revenue growth at an 8.8% CAGR through 2030, driven by environmental regulations and variable-rate technology adoption. Domestic manufacturers are combining ground sprayers with unified control systems using BeiDou navigation to minimize chemical waste. Harvesting equipment volumes continue to increase, particularly in wheat-producing regions, despite pricing pressures in lower-horsepower segments. Guidance systems, telematics, and predictive maintenance capabilities are becoming standard features across machinery types.
Note: Segment shares of all individual segments available upon report purchase
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Geography Analysis
Eastern provinces such as Jiangsu, Zhejiang, Shandong, and Fujian demonstrate higher agricultural mechanization rates due to higher incomes, flat terrain, and established service ecosystems. These coastal producers benefit from efficient logistics and spare-parts networks, ensuring optimal fleet availability during peak seasons. Central provinces, including Henan, Anhui, and Hubei, function as transitional zones, where mechanization advances through service cooperatives and equipment-sharing models.
Western regions, including Sichuan, Yunnan, Gansu, and Xinjiang, show lower mechanization rates due to challenging topography and fragmented land holdings. While government initiatives fund farmland improvement projects for terracing and plot consolidation, adoption remains limited. Restricted access to agricultural credit further limits machinery purchases. The mechanization progress in eastern provinces influences neighboring regions, though geographic disparities continue.
Regional variations also influence pest-control approaches. Provinces with centralized monitoring systems implement UAV sprayers more effectively, improving chemical application precision and crop yields. Southern provinces, including Guangxi and Guangdong, prefer aerial sprayers for paddy fields, while northern regions such as Inner Mongolia and Hebei utilize ground sprayers with gasoline engines due to climate conditions. These regional requirements influence manufacturers' equipment development strategies.
Competitive Landscape
The China agricultural machinery market share comprises established state enterprises, international companies, and emerging domestic manufacturers. Sinomach-China National Machinery Industry Corporation (YTO Group Corporation) maintains market presence through integrated manufacturing capabilities and government relationships, supporting national mechanization initiatives. Zoomlion Heavy Industry Science and Technology Co., Ltd. focuses on technological advancement, investing international revenues in AI systems and maintenance platforms.
International manufacturers Kubota Corporation and Deere & Company expand local assembly and service operations despite policies favoring domestic digital systems. CNH Industrial N.V. emphasizes precision agriculture technology, incorporating data capabilities into equipment. AGCO Corporation and CLAAS KGaA mbH concentrate on specialized segments, including advanced harvesters and planting equipment, offering solutions for specific agricultural applications.
Domestic manufacturers Jiangsu Changfa Group and Weichai Group (Shandong Heavy Industry Group Co., Ltd.) expand through industry partnerships and research collaboration, particularly in BeiDou integration and electric tractor systems. The industry competition increasingly focuses on technological capabilities, with manufacturers developing cloud systems, analytics services, and securing patents. Success depends on technological innovation, connectivity, and market adaptability.
China Agricultural Machinery Industry Leaders
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Sinomach-China National Machinery Industry Corporation (YTO Group Corporation)
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Zoomlion Heavy Industry Science and Technology Co., Ltd.
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Kubota Corporation
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Deere & Company
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Weichai Group (Shandong Heavy Industry Group Co., Ltd.)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- October 2024: ComNav Technology launched its agricultural machinery solutions at the 2024 China International Agricultural Machinery Exhibition. The company displayed autosteering systems that increase field efficiency and reduce labor requirements. These systems support large-scale precision farming operations, aligning with China's increased investment in automated agricultural equipment.
- May 2024: LiuGong, a China-based machinery manufacturer, introduced the S935TA sugarcane harvester. This machine features a precision harvesting system that optimizes cutting height and angle, designed to harvest mature cane while reducing crop loss.
- May 2024: Ricardo plc and Wuzheng Group (China) partnered for a multi-year strategic agreement to develop electric agricultural machinery, including smart and hybrid tractors. This collaboration aligns with China's focus on sustainable and technological advancements in agricultural equipment, responding to workforce constraints and environmental requirements.
China Agricultural Machinery Market Report Scope
Agricultural machinery is the equipment used for farming. These machines help farmers increase efficiency, productivity, and yield. This includes tools for plowing, irrigation, planting, harvesting, and other agricultural operations.
The Chinese agricultural machine market is segmented by tractors (engine power [25 HP to 100 HP and above 100 HP]), equipment (plows, harrows, rotavators and cultivators, seed and fertilizer drills, fertilizer spreaders, and other equipment), sprayers (field-crop sprayers and orchard sprayers), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), and haying and forage machinery (mowers and conditioners, balers, and other haying and forage machinery). The report offers the market size and forecasts in terms of value (USD) for all the above segments.
By Machinery Type
| Tractors | 25-100 HP |
| Above 100 HP | |
| Equipment | Plows |
| Harrows | |
| Rotovators and Cultivators | |
| Seed and Fertilizer Drills | |
| Fertilizer Spreaders | |
| Other Equipment | |
| Sprayers | Field-crop Sprayers |
| Orchard Sprayers | |
| Other Sprayers | |
| Harvesting Machinery | Combine Harvesters |
| Forage Harvesters | |
| Other Harvesting Machinery | |
| Haying and Forage Machinery | Mowers and Conditioners |
| Balers | |
| Other Haying and Forage Machinery | |
| Other Agricultural Machinery |
| By Machinery Type | Tractors | 25-100 HP |
| Above 100 HP | ||
| Equipment | Plows | |
| Harrows | ||
| Rotovators and Cultivators | ||
| Seed and Fertilizer Drills | ||
| Fertilizer Spreaders | ||
| Other Equipment | ||
| Sprayers | Field-crop Sprayers | |
| Orchard Sprayers | ||
| Other Sprayers | ||
| Harvesting Machinery | Combine Harvesters | |
| Forage Harvesters | ||
| Other Harvesting Machinery | ||
| Haying and Forage Machinery | Mowers and Conditioners | |
| Balers | ||
| Other Haying and Forage Machinery | ||
| Other Agricultural Machinery | ||
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Key Questions Answered in the Report
What is the current value of the China agricultural machinery market?
It stands at USD 22.0 billion in 2025 with a 7.1% CAGR heading toward USD 31.0 billion in 2030.
Which machinery type contributes the most revenue?
Tractors deliver 56% of market revenue, supported by high-horsepower upgrades and smart features.
How does government policy influence equipment demand?
Subsidies, trade-in programs, and the Smart Agriculture Action Plan lower acquisition costs and accelerate adoption of IoT-enabled machines.
What restraints limit growth?
High upfront costs combined with uneven rural credit access and fragmented land parcels reduce machinery utilization and delay purchases.
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