Japan Agricultural Machinery Market Size

Japan Agricultural Machinery Market Analysis

The Japanese agriculture machinery market is projected to register a CAGR of 2.2% during the forecast period.

• The agriculture sector contributes only 1.4% to the country's GDP, and as little as 12% of the land is suitable for agriculture. Terraces are utilized for farming in small areas, resulting in Japan's agricultural output having one of the world's highest crop yields per unit area. But the country's agricultural self-sufficiency rate is close to half of its total requirement, with the remaining amount being satisfied by imports. To attain self-sufficiency, there is a need to increase productivity. However, Japan's agricultural industry is heavily protected and supported, and the government prefers small-scale farming versus large-scale agriculture, which supports the growth of the agriculture equipment market.
• Furthermore, Japan is recognized as the Asia-Pacific country with the highest level of agricultural mechanization. As a highly industrialized country, Japan's agriculture equipment industry is also entirely developed. However, to fully utilize the limited arable land and increase production, the Japanese agriculture equipment market is expected to surge during the forecast period.
• To sustain its population, compiled with a low level of arable land, Japan strives toward utilizing its agricultural land to its fullest. With its limited resources, farm machinery helps the nation's farmers increase production. Moreover, in recent years, Japan also faced challenges related to the growing area of abandoned farmland. In addition, Japan's farming population is aging quickly, making it difficult for the nation to find replacements to carry out agricultural procedures in the future. Therefore, mechanization of agriculture became essential for Japan to replace farm labor.