South East Asia Agriculture Equipment Market by Type (Tractors, Harvesting Equipment, Irrigation Equipment), Mode of Operation (Manual, Automatic), Power Source (Electric Equipment) Application, (Sowing, Planting, Harvesting, Irrigation) - Forecast to 2030

The South East Asia Agriculture Equipment Market is projected to reach $2.50 billion by 2030, at a CAGR of 4.1% during the forecast period of 2024 to 2030. The growth of this market is driven by the growing demand for mechanization of agricultural operations, rising farm labor insufficiency, and rising government initiatives to support farmers. However, the high costs of advanced agriculture equipment and the financial instability of farmers restrain the growth of this market.

Furthermore, increasing adoption of precision farming techniques and technological advancements are expected to create market growth opportunities. However, challenges for market players include the low awareness of advanced agriculture technologies and limited purchases of equipment, primarily driven by high reliance on rental services due to small land holdings and the high costs of advanced agricultural equipment. Additionally, digitalization in agriculture is a prominent trend in the South East Asia agriculture equipment market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players over the past 3-4 years. The key players profiled in the South East Asia agriculture equipment market research report are AGCO Corporation (U.S.), Agromaster (Turkey), AMAZONEN-WERKE H. DREYER SE & Co. KG (Germany), APV - Technische Produkte GmbH (Austria), CLAAS KGaA mbH (Germany), CNH Industrial N.V. (U.K.), Deere & Company (U.S.), ISEKI & CO., LTD. (Japan), KUBOTA Corporation (Japan), KUHN SAS (France), Mahindra & Mahindra Ltd. (India), SDF S.p.A. (Italy), and Valmont Industries, Inc. (U.S.).

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Growing Demand for Mechanization of Agricultural Operations to Spur the Growth of the Agriculture Equipment Market in South East Asia

The demand for mechanization in agricultural operations has been steadily increasing in recent years, primarily driven by the rising population and the consequent need to meet the growing demand for food. The population in South East Asia is expected to reach around 789.7 million by 2050 (Source: PopulationPyramid.net). Farmers are facing increasing pressure to produce more food to meet the demands of a growing population, and mechanization has emerged as a crucial solution to increase productivity and efficiency in agricultural practices. Studies suggest that mechanization can potentially lead to a 10–15% increase in food production and productivity and cropping intensity by 5–20%.

Agricultural equipment has revolutionized farming and has made farming much less labor-intensive than it was in the past. Farmers can perform tasks faster, more efficiently, and with reduced physical effort using advanced agricultural equipment.

The acute labor shortage is a significant driver behind the increasing demand for farm mechanization. In recent years, the availability and affordability of agricultural labor have become major challenges due to the rapid growth of industrialization and urbanization. This scenario has made it increasingly difficult for farmers to find and hire agricultural workers to carry out essential farm tasks such as planting, harvesting, and tilling.

Mechanization helps to improve the quality of crops by lowering the cost of production. For example, precision farming technologies help farmers optimize the use of fertilizers, pesticides, and water, leading to healthier crops and higher yields. In addition, mechanization enables farmers to cover larger areas of land in a shorter time, leading to increased productivity, reduced labor costs, and improved profitability.

Overall, the need for mechanization in agriculture operations is likely to continue to increase as farmers look for ways to improve productivity, reduce labor costs, and cope with the challenges posed by a changing climate and growing demand for food. These factors are driving the growth of the South East Asia agriculture equipment market.

Key Findings in the South East Asia Agriculture Equipment Market Study:

In 2024, the Tractors Segment is Expected to Dominate the South East Asia Agriculture Equipment Market

Based on type, the South East Asia agriculture equipment market is segmented into tractors, harvesting equipment, soil preparation & cultivation equipment, irrigation equipment, spraying equipment, and other agriculture equipment. In 2024, the tractors segment is expected to account for the largest share of the South East Asia agriculture equipment market. The large market share of this segment is attributed to several factors, including the growing awareness of the benefits of mechanization in agriculture, the increasing scarcity of farm labor, the availability of government subsidies and financing options for tractor purchases, technological advancements in tractors, and the increasing efforts by manufacturers to launch new product launches.

However, the irrigation equipment segment is projected to register the highest CAGR during the forecast period of 2024–2030. This growth can be attributed to the extensive agricultural land in cultivation, the growing need for advanced irrigation systems to ensure a stable and dependable water supply for increased crop productivity, the rising awareness among farmers regarding the advantages of efficient irrigation techniques, the need for conserving water resources, and the increasing adoption of automation in irrigation systems.

In 2024, the Semi-automatic Segment is Expected to Dominate the South East Asia Agriculture Equipment Market

Based on mode of operation, the South East Asia agriculture equipment market is segmented into semi-automatic, manual, and automatic. In 2024, the semi-automatic segment is expected to account for the largest share of the South East Asia agriculture equipment market. The significant market share of this segment is primarily attributed to the extensive availability of semi-automatic equipment in South East Asia. Semi-automatic agriculture equipment is a more cost-effective option compared to automatic agriculture equipment, which makes it highly accessible, particularly to small- and medium-sized farmers in the South East Asia region.

However, the automatic segment is projected to register the highest CAGR during the forecast period of 2024–2030 due to factors such as the low availability of skilled agriculture workers in the region, growing technological advancements in farm equipment, increasing adoption of precision agriculture machinery, and growing usage of robotics and artificial intelligence technologies in the agriculture sector.

In 2024, the Non-electric Equipment Segment is Expected to Dominate the South East Asia Agriculture Equipment Market

Based on power source, the South East Asia agriculture equipment market is segmented into non-electric and electric-powered agriculture equipment. In 2024, the non-electric equipment segment is expected to account for the larger share of the South East Asia agriculture equipment market. This significant market share is primarily attributed to several factors, including the high demand for low-cost and low-maintenance equipment due to the presence of a large number of smallholder farmers in South East Asia. Moreover, non-electric equipment is more easily manageable and benefits from the easy availability of spare parts, unlike electric parts required for electric-powered agriculture equipment. Additionally, non-electric equipment requires lower upfront costs and power requirements, making it more affordable and accessible to a broader range of South East Asian farmers with limited financial resources.

In 2024, the Land Development and Seedbed Preparation Segment is Expected to Dominate the South East Asia Agriculture Equipment Market

Based on application, the agriculture equipment market is mainly segmented into land development and seedbed preparation, harvesting & threshing, irrigation, sowing & planting, crop protection, and other applications. In 2024, the land development and seedbed preparation segment is expected to account for the largest share of the South East Asia agriculture equipment market. The large market share of this segment is attributed to factors such as the increasing adoption of advanced cultivation techniques to reduce labor costs, the availability of technologically advanced equipment, and the advantages offered by advanced agricultural equipment during land development and seedbed preparation, such as high productivity and efficiency.

Indonesia to Dominate the South East Asia Agriculture Equipment Market in 2024

The South East Asia agriculture equipment market is segmented into Indonesia, Thailand, the Philippines, Vietnam, Malaysia, and the Rest of South East Asia. In 2024, Indonesia is expected to account for the largest share of the South East Asia agriculture equipment market. Indonesia’s significant market share is attributed to several factors, including the extensive agricultural land under cultivation, government initiatives aimed at assisting farmers in the acquisition of agriculture equipment, and the growing presence of agriculture equipment manufacturers in the country.

Moreover, the market in Indonesia is projected to register the highest CAGR during the forecast period due to the increasing pace of digitalization in the country, which supports the adoption of automation and precision technologies in agriculture.

Scope of the Report:

South East Asia Agriculture Equipment Market Assessment, by Type

• Tractors
  • 30-50 HP
  • Less than 30 HP
  • 51–100 HP
  • More than 100 HP
• Harvesting Equipment
  • Combine Harvesters
  • Forage Harvesters
  • Other Harvesters
• Soil Preparation & Cultivation Equipment
• Irrigation Equipment
  • Irrigation Equipment Market, by Type
    • Drip Irrigation
    • Sprinkler Irrigation
    • Other Irrigation Equipment
  • Irrigation Equipment Market, by Component
    • Tubing
    • Sprinklers
    • Emitter/Drippers
    • Irrigation Valves
    • Filters
    • Irrigation Controllers
    • Other Components
• Spraying Equipment
• Other Agriculture Equipment

South East Asia Agriculture Equipment Market Assessment, by Mode of Operation

• Semi-automatic
• Manual
• Automatic

South East Asia Agriculture Equipment Market Assessment, by Power Source

• Non-electric powered Agriculture Equipment
• Electric-powered Agriculture Equipment

South East Asia Agriculture Equipment Market Assessment, by Application

• Land Development & Seedbed Preparation
• Harvesting & Threshing
• Irrigation
• Crop Protection
• Sowing & Planting
• Other Applications

South East Asia Agriculture Equipment Market Assessment, by Geography

• Indonesia
• Thailand
• Philippines
• Vietnam
• Malaysia
• Rest of South East Asia

Key Questions Answered in the Report