Agricultural Mechanization in South Asian Region – 2020

  Table of Content

1. Methodology

2. Executive Summary

3. India

3.1 Overview of agriculture economy

  • Allocation of GDP by sector
  • Major crop production
  • Land Utilization
  • Agriculture workforce

3.2 Agricultural mechanization

  • Overview
  • Market  development & growth
  • Key growth drivers and forecasts till 2020

3.3 Major manufacturers and key takeaway

4.  Pakistan

4.1 Overview of agriculture

  • Allocation of GDP by sector
  • Major crop production Land Utilization
  • Agriculture workforce

4.2 Agricultural mechanization

  • Overview
  • Market  development & growth
  • Key growth drivers and forecast till 2020.

4.3 Major manufacturer and key takeaways

5.  Sri Lanka

5.1 Overview of agriculture

  • Allocation of GDP by sector
  • Major crop production Land Utilization
  • Agriculture workforce

5.2 Agricultural mechanization

  • Overview
  • Market  development & growth
  • Key growth drivers and forecast till 2020.

5.3 Major manufacturer and Key takeaway

6    Bangladesh

6.1 Overview of agriculture

  • Allocation of GDP by sector
  • Major crop production Land Utilization
  • Agriculture workforce

6.2 Agricultural mechanization

  • Overview
  • Market  development & growth
  • Key growth drivers and forecast till 2020.

6.3 Major manufacturer and key takeaway

7 Key takeaway and Opportunities

8 Appendixes:

About GrowthPraxis, report background and methodology

GrowthPraxis is a consulting and research company with data driven approach. We have 5+ years of experience in supporting fortune 500 companies, multinational and Indian blue chips companies generate actionable insights, credible market intelligence and market strategy. 

Agricultural mechanization is one such field wherein we have consulted companies and also done extensive research. Further for this report besides relying on in-house existing data and facts, GrowthPraxis conducted an extensive research by conducting interviews with several industry experts, companies in different regions along with an extensive review of literature, statistics and reports published by relevant organizations concerned with the Agri-mechanization. The report will act as a guide for all manufacturers, suppliers, dealers in Agri-mechanization space in South Asian countries of India, Pakistan, Sri Lanka and Bangladesh. And also for foreign and multinational companies who are planning to enter or have entered South East Asian countries.

The genesis of this report is lack of any credible report and data points for complete agri -mechanization space in South Asian countries. Further, report lays more emphasis on non- tractor equipment space which makes this report very unique indeed. 

Executive Summary:

Agricultural Mechanization industry in South Asian countries of India, Pakistan, Sri Lanka and Bangladesh is expected to grow at a rapid pace owing to the government efforts to bridge the supply and demand gap of agriculture through R & D and technology efforts. Shrinking farm holdings also demands the need for mechanization so that the agricultural yield can be maximized with optimal efforts through mechanization.

Agricultural equipment sector in South Asian countries has been witnessing robust demand and stands to gain maximum due to the need to use technologically advanced equipment in the farms in the future. Current market size of agricultural equipment sector in south Asian countries is XXX thousand units by volume in 2015 and it is expected to grow to XXX thousand units by 2020 at a CAGR of XX%. India is the biggest market in this region. Its market size in 2015 was XXX thousand units and is expected to grow to XXX thousand units in 2020 at CAGR of XX%. India’s estimated market share of total agricultural machinery of all the countries in this region is XX% in 2020 as compared to XX % in 2015.

Key growth drivers for agricultural equipment industry in South Asian countries are

  • Increase in Investment for R & D
  • Rising farming income (High Support prices)
  • Govt thrust to enhance productivity and yield
  • Acute and increasing labour shortages
  • Improved availability of credit to the farmers.
  • Government subsidies on farming equipment
  • Rising customer awareness 

Key product segments in South Asian agricultural equipment industry are:

  • Tractor
  • Power tiller
  • Rice transplanters
  • Combine harvester
  • Balers
  • Weeders
  • Reapers/threshers
  • Lawn Mowers
  • Diesel engines 

Report snapshot: Excerpt from Indian market section

  • Agricultural economy

Agriculture remains the main economic sector for India. Its GDP in 2012 was 239.5 billion USD. In 2012, the contribution of agriculture and allied sectors to total GDP was 17.5 per cent, while the industry and service sectors contributed 28% and 54.5 % respectively. GDP contribution to economy since 2009 has been constantly between 17 – 18%. This makes agriculture a key growth driver in country overall economic growth.

Major food crops produced in Japan are sugarcane, rice, wheat, potato and vegetables.

south asian

 

 

 

 

 

 

 

Chart 1: Year on Year contribution of agriculture and its allied sector to Indian GDP

Chart 2: India is a country with land area of 364,500 sq.km, of which 192,893sq.km (53.12%) is arable land. The irrigated land .i.e. area equipped with irrigation facilities is 71,601sq.km (37.12%) of total arable land.

Agricultural mechanization in India has two major drivers:

1. Shortage of skilled labour

2. Government subsidies on agricultural equipments

Labour employment in agriculture has reduced from 56% (% of total employment) in 2005 to 51% in 2012. This is expected to only grow in future as more and more people move towards urban areas for better employment opportunities. This has resulted in shortage of labour in rural areas. This will drive mechanization of farms which makes India a very big market of agricultural machinery.

Various programmes and schemes have been launched by the central government which are being executed and monitored by different State government and Union Territory administrations. One such scheme is Macro – management scheme of agriculture which gives 25% subsidy on equipment like Tractors, Power tillers, Transplanters, Combine harvesters, Reapers, Agricultural pumps and others. 

Market development and growth in unit

According to GrowthPraxis, market size in 2015 of total agriculture equipment was XXX units. The agriculture equipment market is projected to grow with a Compounded Annual Growth Rate (CAGR) of XX%. Market size is estimated to rise up to XXX units in 2020

chart 2

 

 

 

 

 

 

 

 

 

 

 

Tractor

Tractor market size grew at CAGR of XX% between 2013 and 2015. Market size by volume in 2015 was XXX units as compared to XXX units in 2013. According to GrowthPraxis, tractor market is projected to grow at CAGR of XX% till 2020. Estimated market size by volume in 2020 is XXX units as compared to XXX units in 2015.

chart 3

 

 

 

 

 

 

 

 

 

 

Power tiller

Estimated power tiller market size in 2020 is XXX units as compared to XXX units in 2015. It is projected to decline at CAGR of XX% between 2015 and 2020.Power Tillers are generally purchased with additional attachments for farming purposes. 

Diesel Engine:

Diesel engine market size grew at CAGR of XX% between 2013 and 2015. Market size by volume in 2015 was XXX units as compared to XXX units in 2013. According to GrowthPraxis, tractor market is projected to grow at CAGR of XX% till 2020. Estimated market size by volume in 2020 is XXX units as compared to XXX units in 2015.

chart 4

 

 

 

 

 

 

 

 

 

 

Total export and import quantity was XXX units in 2015, of which imports consisted of XX%. Imports share increased from XX% in 2013 to XX% in 2015.

Rice Transplanters, Combine Harvesters and Balers

Market for rice transplanters declined at CAGR of XX% from XXX units in 2013 to XXX units in 2015.

Combine harvesters market declined at CAGR of XX% since 2013

Balers grew at a steady CAGR of XX% from XXX units in 2013 to XXX units in 2015.

Weeders, Reapers and Lawn Mowers

Market for weeders declined at CAGR of XX% from XXX units in 2013 to XXX units in 2015.

Reapers and threshers market grew steadily at CAGR of XX% since 2013

Lawn mowers grew rapidly at CAGR of XX% from XXX units in 2013 to XXX units in 2015. 

chart 7

 

 

 

 

 

 

 

Major manufacturers and key takeaways

This shall cover in brief details about manufacturing landscape, key manufacturers and their sales and also sharing inputs on their competitiveness

Finally, each country section shall be concluded with opportunities for global manufacturers which can be looked into from that country.

The report is priced at USD 1000. For any queries, please contact us at inquiry@growthpraxis.com

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