South Asia Agriculture Equipment Market

South Asia Market Study on Agriculture Equipment: Various Subsidies Provided by Governments to Complement Market Expansion

About the Report

The South Asia agriculture equipment market is projected to expand at an impressive CAGR of around 9% over the forecast period of 2021-2031. Demand for tractors and lawn mowers is expected to rise faster than other equipment types over the coming years.

Agricultural equipment helps in improving harvest quality within reduced period of time, and provides ease of operation in various activities such as irrigation, harvesting, planting, soil cultivation, and others. Shift of manual agriculture to mechanization has reduced lead times for agricultural produce/gardening and landscaping, which is expected to result in a positive outlook for the agricultural equipment market in South Asia. Furthermore, government investment schemes, rising awareness among farmers, and growing population demanding increased agricultural produce are factors lending impetus to market growth.

In its new study, market research and consulting firm Persistence Market Research offers insights about key factors driving demand for agriculture equipment across South Asia. The report tracks global sales of agriculture equipment utilized in the field of conventional farming, horticulture, gardening, and commercial landscaping activities.

This regional market analysis encompasses the developing agrarian countries of South Asia, demand and supply scenario, and sales dynamics, along with analyzing the impact COVID-19 has had on market growth in the region.

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Companies

  • Lemken
  • Mitsubishi Mahindra Agricultural Machinery
  • Tractors and Farm Equipment Ltd.
  • Yanmar Holdings
  • Vermeer Corporation
  • SDF Group
  • AGCO Corporation
  • Bucher Industries AG
  • Honda India Power Products Ltd
  • CLAAS kGaAmbH
  • CNH Industrial N.V.
  • ISEKI & Co., Ltd
  • Deere & Company
  • Robert Bosch Power Tools GmbH
  • Makita Corporation
  • Andreas Stihl AG & Co.
  • Mahindra & Mahindra Ltd.

Historical Trends Vs Future Market Outlook

Decades ago, farming was considered as a tedious process that incorporated labor work where the time period of output was recorded in seasonal phases. Over the years, farm machinery and farming have evolved greatly along with agricultural revolution and inventions, which changed the whole scenario with less manual labor and more technology-based machinery.

The first mechanized type of agricultural equipment was in form of steam-based equipment, along with gasoline-powered and later diesel engines. The scope of equipment has transcended from plowing to tilling and procedures related to cultivation and harvesting.

Farm production has increased due to the invention of technology-based farm products that come with smart connectivity and provision of adding any custom attachments and accessories on the principal equipment.

Agricultural equipment manufacturers are devising low-or-zero noise-based equipment with fuel-efficient engines. The future outlook for agriculture equipment will witness a paradigm shift toward electric-powered vehicles/ equipment constituting power batteries in place of fuel-based combustion engines.

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According to Persistence Market Research’s analysis, agriculture equipment sales in South Asia will increase at around 9% CAGR from 2021 to 2031.

Though manufacturing, capital equipment, and logistic industries have severely weathered the brunt of the recessionary effect from the coronavirus pandemic, growth outlook with regards to agriculture equipment has been perceived to be of a moderate nature where disruptions in the supply chain and delays were witnessed in the initial phases of curbs.

For e.g., in first quarter of 2020, dealership networks witnessed a considerable slump in the sales of tractors.

However, with agricultural produce being an essential commodity, market growth is expected to progress in an unabated fashion with the procurement of new equipment. Also, in South Asia, the degree of COVID-19 impact has been relatively lower than other geographical regions, and optimal degree of operations in the agricultural sector allowed by regional governments is also said to support market growth.

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What is the Commercial Potential of Agriculture Equipment in South Asia?

Technology-based agriculture equipment is the future of farming ,which is paving the way for market growth. Owing to rising fusion of innovative technologies in agriculture equipment, the market is expected to witness significant growth during the forecast period.

Rising population is increasing the demand for food, thereby increasing pressure on farmers to innovate time and cost-efficient methods of farming. Agriculture equipment helps farmers make farming more profitable and stress-free by enhancing crop quality and reducing labor cost.

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What are the Supporting Policies Related to Growth of Agriculture Equipment in This Regional Market?

Governments in many countries provide substantial support to farmers to allow them to purchase agricultural equipment that promotes productivity. Governments are providing crop loans, credit schemes, and interest rate subsidies to encourage the use of agricultural equipment.

Governments support many institutes that conduct training courses regarding operation, maintenance, and repair of agriculture equipment and machinery. Some government are providing subsidies up to 70 percent to farmers for buying agricultural equipment for farming, enabling them to cultivate crops more efficiently.

south-asia-agriculture-equipment-market

Country-wise Insights

How Large is the Opportunity in India for Agriculture Equipment Manufacturers?

The market in India is the largest in South Asia, and is expected to be valued at around US$ 24 Bn by 2031-end, expanding at a CAGR of over 8%. India is expected to be one of the prominent consumers and producers of agriculture equipment in South Asia.

Tractors and water pumps are mostly preferred in the country, accounting for a collective share of more than 60% of the total market. The country has a strong opportunity for any kind of agricultural product due to a major part of the economy being based on agriculture.

Which Product Type is Driving Demand in Bangladesh?

The market for agriculture equipment in Bangladesh is expected to be valued at around US$ 465 Mn by 2031-end, expanding at a CAGR of around 6%. Bangladesh is anticipated to show relatively sluggish growth as compared to other regions due to it being pretty backward in terms of use of technology. Tractors are the preferable product, mainly due to the availability of 70% of land in the country that is dedicated to growing crops.

Why are Sales of Tractors Driving Growth of the Thailand Market?

Rise in the sales of mid-range tractors is expected to ensure stable growth in revenue in the Thailand market for agricultural equipment. Moreover, shift from traditional farming to farming with agricultural machinery is leading to increased demand for tractors among small farmers, which will further contribute the sales of agricultural equipment in the country.

Will Government Initiatives Boost Sales of Agricultural Equipment Sri Lanka?

The market for agriculture equipment in Sri Lanka is expected to be valued at around US$ 755 Mn by 2031-end, expanding at a CAGR close to 7% over the next ten years. The Agricultural Ministry of Sri Lanka and JICS (behalf of the Govt. of Japan) distribute agricultural equipment to farmers for promoting agriculture and horticulture in the country.

This program has been initiated since 1971 with the objective of increasing local food production by low-income earning farmers.

Category-wise Insights

Why are Tractors Projected to Exhibit the Lucrative Growth?

Tractors hold more than 90% share of the overall market, and their demand is expected to rise at over 9% CAGR through 2931. Farmers prefer small and customized tractors for agricultural purposes due to a lot of small farmlands in South Asia.

Additionally, lesser fuel consumption by small tractors helps empower small and marginal farmers. Tractors with less than 35 HO occupy less space and can be used with greater flexibility. Ease of customization makes them more amenable to experimentation, and consequentially, manufacturers are willing to try integrate new components and technologies in them.

How is the Agricultural Segment Leading Growth of the Market for Agriculture Equipment in South Asia?

The agriculture segment holds close to 50% share of the overall market, as far as application is concerned. Rising population is increasing the demand for food, which is boosting the need for more cultivation of crops. Thus, to cater to this demand for food, farmers are switching to the use of automated and semi-automated agricultural equipment on fields.

Surge in population is pressurizing the agriculture sector to cultivate more grains and vegetables, thereby boding well for agriculture equipment manufactures in the region.

Competitive Landscape

The South Asia market is experiencing significant growth due to increased demand for agricultural equipment. Leading manufacturers are working on the development of agricultural equipment that requires minimal maintenance and can provide versatile operations at lower prices.

Companies are concentrating on expanding their sales & service networks in both, domestic and overseas markets. Moreover, leading players are focusing on increasing their long-term supply partnership with customers and regional distributors, which also facilitates and makes way for expanding their channel reach.

Market participants are focusing on providing products tailored to customer requirements with improved reliability and durability to gain a competitive advantage over their competitors.

Some of the leading companies operating in the market are:

  • Tractors and Farm Equipment Ltd.
  • Yanmar Holdings
  • Mitsubishi Mahindra Agricultural Machinery.
  • Lemken
  • Vermeer Corporation
  • SDF Group
  • AGCO Corporation
  • Bucher Industries AG
  • Honda India Power Products Ltd
  • CLAAS kGaA mbH
  • CNH Industrial N.V.
  • ISEKI & Co. Ltd
  • Deere & Company
  • Robert Bosch Power Tools GmbH
  • Makita Corporation
  • Husqvarna AB
  • Andreas Stihl AG & Co.
  • Mahindra & Mahindra Ltd.
  • Kubota Corporation

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for value and Units for Volume

Key Countries Covered

  • India
  • Bangladesh
  • Sri Lanka
  • Nepal
  • ASEAN

Key Segments Covered

  • Product
  • Application
  • Region

Key Companies Profiled

  • Tractors and Farm Equipment Ltd.
  • Yanmar Holdings
  • Mitsubishi Mahindra Agricultural Machinery.
  • Lemken
  • Vermeer Corporation
  • SDF Group
  • AGCO Corporation
  • Bucher Industries AG
  • Honda India Power Products Ltd
  • CLAAS kGaA mbH
  • CNH Industrial N.V.
  • ISEKI & Co., Ltd
  • Deere & Company
  • Robert Bosch Power Tools GmbH
  • Makita Corporation
  • Husqvarna AB
  • Andreas Stihl AG & Co.
  • Mahindra & Mahindra Ltd.
  • Kubota Corporation

Report Coverage

  • Market Forecasts
  • Brand Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Market Segmentation by Category

Product

  • Tractors
  • Tillers
  • Water Pumps
  • Chain Saws
  • Brush Cutters
  • Blowers
  • Ride-on Mowers
  • Lawn Mowers

Application

  • Agriculture Equipment for Agriculture
  • Agriculture Equipment for Horticulture
  • Agriculture Equipment for Forests
  • Agriculture Equipment for Lawns

Country

  • India
  • Nepal
  • Sri Lanka
  • Bangladesh
  • ASEAN
    • Indonesia
    • Thailand
    • Malaysia
    • Vietnam
    • Philippines

Key Questions Answered in Report

  • Which is the most lucrative market for agriculture equipment?

    India is the most lucrative market for agriculture equipment in South Asia.

  • Which product dominates the market?

    The tractor segment is considered to dominate the South Asia market for agriculture equipment.

  • Which are some of the leading companies providing agriculture equipment?

    Some of the leading companies manufacturing agriculture equipment are Mahindra & Mahindra Ltd, Tractors and Farm Equipment Limited, Sonalika Group, KSB SE & Co. KGaA, and Andreas Stihl AG & Co.

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  • What research methodology is followed by Persistence Market Research?

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  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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