Southeast Asia Agricultural Tractors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Southeast Asia Agricultural Tractor Market is segmented by Type (Orchard Tractors, Row-crop Tractors, and Utility Tractors), Horsepower (Less than 12 HP, 12 HP to 99 HP, 100 HP to 175 HP, and Above 175 HP), and Geography (Thailand, Vietnam, Malaysia, Indonesia, Singapore, Philippines, Cambodia, Myanmar, and Rest of Southeast Asia). The report offers market size and forecasts for the Southeast Asia agricultural tractor market in terms of value (USD million) for all the above segments.

Market Snapshot

Study Period: 2017-2027
Base Year: 2021
CAGR: 4.9 %

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Market Overview

The Southeast Asia agricultural market is projected to register a CAGR of 4.9% over the forecast period (2022-2027).

COVID-19 had a detrimental impact on the market, resulting in lower tractor sales around the world. The most affected business could be the dealership network due to the disruption of the supply chain. Additionally, manufacturing units were not 100% active. Due to travel restrictions, production of goods got delayed as supply was interrupted, resulting in a sharp decrease in tractor sales in the region during the pandemic.​

The increasing unavailability of farm laborers, growing mechanization of agriculture, and demand for various tractors with different horsepower are boosting the sales of agriculture tractors in Southeast Asia. Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor. In developing countries of the region, the demand for lower HP tractors is high due to the low disposable income of farmers and high labor costs. Farmers prefer small and customized tractors for agricultural purposes due to small farmland sizes. Moreover, lesser fuel consumption by small tractors helps to empower small and marginal farmers. Increasing demands for power, precision, handling, and efficiency have shaped the development of modern tractors and continue to drive the development of these tractors during the forecast period.

Scope of the Report

The tractor used in agricultural operations has been considered. The market does not cover other agricultural machinery and attachments to the tractor. The tractor used for industrial and construction purposes is also excluded from the study. Increasing farm mechanization in these countries fortifies the demand and production of agricultural tractors. However, repair and maintenance expenses are also expanding, which acts as a restraint to the market.

The Southeast Asia agricultural tractor market is segmented by type (orchard tractors, row-crop tractors, and utility tractors), horsepower (less than 12 HP, 12 HP to 99 HP, 100 HP to 175 HP, and above 175 HP), and Geography (Thailand, Vietnam, Malaysia, Indonesia, Singapore, Philippines, Cambodia, Myanmar, and Rest of Southeast Asia). For each segment, the market sizing and forecast have been done on the basis of value in USD million.

Orchard Tractors
Row-crop Tractors
Utility Tractors
Horse Power
Less than 12 HP
12 HP to 99 HP
100 HP to 175 HP
Above 175 HP
Rest of Southeast Asia

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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 agricultural tractors market in Southeast Asia. On average, developing economies 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. Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor with a more cost-effective, easily available, and more efficient means of agricultural operation.

South East Asia Agricultural Tractors Market

Increasing Usage of Tractors in Vietnam

Vietnam has reportedly experienced rapid growth in agricultural mechanization lately, particularly in the use of tractors. The recent growth in mechanization has been similar to other developing countries. However, in the long term, the historical growth of agricultural mechanization has been unique due to the considerable changes in the political and economic systems in Vietnam. The country is facing challenges of labor shortage. Thus, there is a demand for tractors in the region. However, in 2017, the country exported a total of 3387 pieces of tractors in all quarters of 2017, which was 515 more than the 2016 export. More than 3,000 pieces of tractors are sold in the country, mainly in the power range of 80-100 HP, due to the increasing focus on growing sugar cane, natural rubber, cotton, coffee, rice, etc. The country exported tractors majorly to the Philippines worth US$ 3523040 in 2017, with a 23.95% share in value. It was followed by the Netherlands, United States of America, Australia, and Laos. The maximum quantity of tractors of 880 pieces was supplied to the Netherlands.

South East Asia Agricultural Tractors Market

Competitive Landscape

The Southeast Asia agricultural tractor market is consolidated, with the major players occupying the major share of the market in 2020. The Deere and Company, Kubota Corporation, CNH Industrial NV, Yanmanr Co. Ltd, and CLAAS KGaA mbH are the major players in the market. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market globally.

Recent Developments

In October 2020, John Deere India launched the John Deere GearPro tractor series that provides four ranges for multiple farming applications. Additionally, this series ensures delivering extra efficiency with higher backup torque for heavy-duty applications.

In March 2020, Kubota Corporation invested in an Indian tractor manufacturer, Escorts Limited (EL). Through this investment, Kubota intends to increase its presence in India. This capital tie will also help the two companies to develop their cooperative relationship further and leverage each other’s strengths to extend their reach in the Indian market.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 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 Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      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 Type

      1. 5.1.1 Orchard Tractors

      2. 5.1.2 Row-crop Tractors

      3. 5.1.3 Utility Tractors

    2. 5.2 Horse Power

      1. 5.2.1 Less than 12 HP

      2. 5.2.2 12 HP to 99 HP

      3. 5.2.3 100 HP to 175 HP

      4. 5.2.4 Above 175 HP

    3. 5.3 Geography

      1. 5.3.1 Thailand

      2. 5.3.2 Vietnam

      3. 5.3.3 Malaysia

      4. 5.3.4 Indonesia

      5. 5.3.5 Singapore

      6. 5.3.6 Philippines

      7. 5.3.7 Cambodia

      8. 5.3.8 Mynamar

      9. 5.3.9 Rest of Southeast Asia


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles


      2. 6.3.2 CLAAS KGaA mbH

      3. 6.3.3 Deere & Company

      4. 6.3.4 YANMAR CO. LTD

      5. 6.3.5 CNH Industrial

      6. 6.3.6 ISEKI CO. LTD

      7. 6.3.7 Mitsubishi Corporation



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Frequently Asked Questions

The Southeast Asia Agricultural Tractors Market market is studied from 2017 - 2027.

The Southeast Asia Agricultural Tractors Market is growing at a CAGR of 4.9% over the next 5 years.

KUBOTA Corporation, CLAAS KGaA mbH, Deere & Company, YANMAR CO., LTD., CNH Industrial are the major companies operating in Southeast Asia Agricultural Tractors Market.

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