Asia Pacific Farm Equipment Market Trends, Share, Size and Forecast Report

Market Overview

Asia Pacific Farm Equipment Market in 2023 was USD 117.52 billion and is expected to chart steady growth over the forecast period with a CAGR of 5.08% over 2029.

The growth of the market is being driven by rising disposable incomes and government supportive policies. Governments in the region are not just providing subsidies but also putting into place positive regulations to promote the use of new farming methods and equipment. These programs seek to address agricultural industry issues such as shortages of labor and the need for sustainable practices. By encouraging the use of sophisticated farm equipment, governments are opening the door to a more productive and sustainable agribusiness sector.

The governments in the region are involved in this growth through subsidies as well as implementing supportive policies in responding to issues such as labor shortages and environmental sustainability. For instance, India’s government expended USD 1.51 billion in 2023 in the PM Kisan Scheme for rewarding farmers with innovative methods. On the same line, the Chinese Ministry of Agriculture has also actively encouraged mechanization, for which 85% mechanization level was attained by 2022 for cultivating crops, promoting enormous demand for heavy-duty farm machinery.

Key Market Players

• AGCO (China) Investment Co., Ltd.
• John Deere Asia (Singapore) Pte Ltd
• CNH Industrial (India) Pvt. Ltd
• Kubota Korea Co., Ltd.
• Mahindra & Mahindra Limited
• JCB India Limited
• Iseki & Co., Ltd.
• China National Machinery Industry Corporation
• International Tractors Limited
• Yanmar Holdings Co., Ltd.

China and India, as two of the world’s most populous nations, are expected to demonstrate the fastest growth of markets in the region. Their high agricultural sectors, as well as the efforts of the government to mechanize farming practices, are increasing the need for farm equipment. Farmers in the two countries are continually realizing the benefit of technology-based farming and are aided by foun

Governments in the region are encouraging the use of advanced technologies to drive productivity and sustainability.

Likewise, in India, the government has encouraged farm mechanization to grow productivity and alleviate dependence on labor. The Department of Agriculture & Farmers Welfare has rolled out different schemes to offer financial support for the adoption of modern farm equipment.

Apart from government incentives, top makers are also launching new products that match the requirements of Asia Pacific farmers. Mahindra & Mahindra, for instance, launched the Oja range of next-generation tractors in August 2023 as part of efforts to improve productivity and meet the changing needs of modern farming.

These product development and technological advancements are allowing farmers to maximize operations, avoid wastage of resources, and obtain greater yields. Due to this, the Asia Pacific farm equipment market is on the verge of long-term growth, making agriculture a more sustainable and efficient industry.

Segmental Insights
Application Insights
The land development & seed bed preparation segment will witness strong growth throughout the forecast period.

Country Insights
China became the leading figure in the Asia Pacific Farm Equipment Market in 2023, with the largest market share by value.

The increase in the levels of income and living standards among the Chinese population has led to significant shifts in food consumption. As people search for many varieties of superior food products, the demand for effective and advanced methods of farming has boosted, thus driving the growth of the farm equipment market.

Recent Developments
In July 2024, TAFE Motors and DEUTZ AG have entered into a strategic collaboration to manufacture DEUTZ engines in India. The partnership reinforces DEUTZ’s presence in the Indian market and provides TAFE Motors with access to sophisticated engine technologies, driving mutual development and innovation.
New Holland Agriculture, part of CNH Industrial, launched two of its newest tractor models, the Blue Series Simba 30 and 5620 Power King – TREM – IV, in the Andhra Pradesh and Telangana markets in March 2023. The launch was at the KISAN Agri show in Hyderabad. A member of the brand’s Blue Series series, the SIMBA is a sub-30HP rated compact tractor meant for specialist operations like spraying, rotavation, cultivating, and ridging in orchards, vineyards, and inter-culture regions. Powering the Blue Series SIMBA 30 is a three-cylinder 29HP Mitsubishi Engine, with better power and efficiency being its standouts. It has the added benefit of high power in a Narrow Track (NT) configuration, making it very versatile in its class.