Agricultural Mechanization in South East Asian Region – 2020

Table of content

1.0 Methodology

2.0 Executive Summary

3.0 Japan

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.  South Korea

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.  Indonesia

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    Malaysia

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 Indonesia

7.1 Overview of agriculture

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

7.2 Agricultural mechanization

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

7.3 Major manufacturers and key takeaway

8 Philippines

8.1 Overview of agriculture

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

8.2 Agricultural mechanization

  • Overview
  • Market  development & growth of top 10 equipment
  • Key growth drivers and forecast till 2020

8.3 Major manufacturers and key takeaway

9 Vietnam

9.1 Overview of agriculture

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

9.2 Agricultural mechanization

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

9.3 Major manufacturers and key takeaway

10 Key takeaway and Opportunities

11 Appendixes

About GrowthPraxis report background and methodology:

GrowthPraxis is a consulting and research company with data driven approach. We have 6+ years experience in supporting fortune 500 companies, multinational and Indian blue chips companies generate actionable insights, credible market intelligence and support them in Internationalization. We have captured very detailed market and industry inputs in 100+ countries.

Agri mechanization is one such field wherein GrowthPraxis has consulted companies and also done extensive research across globe. 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, in Agri mechanization space across globe who want to capture market opportunities in highly attractive and growing markets of South East Asia.

Executive Summary 

Agricultural Mechanization industry in South East Asian countries 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. Countries like Japan and South Korea are already highly mechanized. Thailand is moderately mechanized, however immense growth opportunities exists in Indonesia, Malaysia,Vietnam and Philippines. Each country has its own characteristics and patterns in agriculture production, labour workforce, crop yields etc..

In 2015, market size of agricultural equipment sector of these two countries was XX thousand units and is expected to grow to XXX thousand units in 2020 at CAGR of XX%. Key growth drivers for agricultural equipment industry in Japan and South Korea are

  • Internationalization
  • Ageing rural population
  • Technical progress: Investment in R&D

Agricultural equipment sector in other emerging South East Asian countries of Indonesia, Thailand, Philippines, Vietnam and Malaysia have been witnessing robust demand and stands to gain maximum due to the need to use technologically advanced equipment in the farms in the future. In 2015, market size of agricultural equipment sector in these emerging South East Asian countries were XXX thousand units and it is expected to grow to XXX thousand units by 2020 at CAGR of XX%. Key growth drivers for agricultural equipment industry in these emerging South East Asian countries are

  • 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 covered in this reports are

  • Tractors
  • Power tillers
  • Rice transplanters
  • Combine harvester
  • Balers
  • Weeders
  • Reapers/threshers
  • Lawn Mowers
  • Diesel engines

Report snapshot: Excerpt from Japanese market section

- Agricultural economy

The economy of Japan is the third highest in the world. Its GDP in 2012 was 4,712 billion USD. GDP contribution of agriculture and allied sectors to total GDP was 1.16 per cent, while the industry and service sectors contributed 27% and 72% respectively. But in terms of absolute value, agricultural GDP was 54.4 US$ billion which makes it a large market relative to other South East Asian countries

Major food crops produced in Japan are rice paddy, sugar beet, Potato, cabbages, Sugarcane

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Chart1: Year on Year contribution of agriculture and its allied sector to Japanese GDP

Chart2: Japan has a total land area of 364,500sq.km in 2012. Total arable land consists of 42,537 sq.km which is 11.6% of total land area. Japan has advanced irrigation facilities with 15,736 sq.km of irrigated land (34.51% of total agricultural land)

Agricultural mechanization in Japan has three major drivers: 

1.Internationalization of trade

2. Ageing rural population

3. Technical progress

Japan has a very strong domestic infrastructure for production of agricultural machinery. Its own local market is already saturated with highest level of mechanization. But the international demand especially from emerging economies is driving Japan to enhance its agricultural equipment industry.

Japan’s rural population is aging very rapidly which needs to be replenished with younger population. But employment in agricultural sector is decreasing over the years as people tend to move towards urban areas for better prospects. This is driving the need for mechanization in agriculture sector.

As a result of long term research and development, more advanced and automated technologies are driving the further mechanization of its agricultural sector. Advanced soil fertilizers, crop growth, yield measuring devices and variable rate fertilizer applicator along with Global positioning systems (GPS) and Geographic information systems are increasing the productivity reducing the need for labour. 

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.

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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.

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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 2015 and 2013. 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.

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

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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 was almost stagnant market at CAGR of XX% since 2010

Balers grew at a steady CAGR of XX% from XXX units in 2013 to XXX units in 20

Weeders, Reapers and Lawn Mowers

Market for weeders grew at CAGR of XX% from XXX units in 2013 to XXX units in 2015. Weeders market grew at a very rapid rate relative to other machines.

Reapers and threshers were almost stagnant market at CAGR of XX% since 2013

Lawn mowers grew at a steady CAGR of XX% from XXX units in 2013 to XXX units in 2015

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 further queries, please contact us at inquiry@growthpraxis.com

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