South Asia Agriculture Equipment Market

Agriculture Equipment Market Snapshot

[235 Pages] Persistence Market Research projects that the Agriculture Equipment Market will generate revenue of US$ 13,713.7 Mn in 2023. Key market players in South Asia will hold a significant market share, accelerating demand for Agriculture Equipment Market. The South Asia Agriculture Equipment Market is expected to reach US$ 31,582.7 Mn by 2033, growing at 8.7% CAGR.

Agriculture sector is experiencing remarkable growth around the world as a result of growing demand of agricultural food. Some countries in South Asia, including India, Nepal, Sri Lanka, and others, have experienced significant growth in this industry. Employing agricultural machinery makes a variety of tasks easier to complete within optimum time in agricultural operations. These include planting, irrigation,soil cultivation, harvesting,and other relative applications in agriculture, Horticulture, Forest & other sectors.

Mechanization of agriculture has been preferred in order to decrease production time for agricultural produce, gardening, and landscaping, which is anticipated to have a favourable impact on the market for agricultural equipment. The agricultural demand in South Asia is growing rapidly as a result of the growing population in the region. This agricultural equipment aids in the improvement of quality and efficiency in the agriculture sector, as well as meeting the demand of the South Asia Agriculture Equipment Market.

The agricultural equipment market is anticipated to rise over the forecast period due to a number of factors, including government investment programs, farmer awareness, and a growing population seeking more agricultural produce.

Consumption Analysis of Agriculture Equipment Market from 2017 to 2022 Vs Market Outlook for 2023 to 2033

The agriculture equipment market has seen high demand in the past, but due to a lower number of innovations and technological advancements by agriculture equipment manufacturers, the market's growth was estimated to have a historical CAGR of around 3.9% from 2017 to 2022. While the growth outlook for agricultural equipment has been interpreted to be of a moderate nature, where delays and disruptions in the supply chain were recognized in the initial phases of the pandemic.

COVID-19 hampered the market for agricultural equipment manufacturing facilities even though the demand for food products was higher. For instance, the dealership network in 2020 saw a significant decline in the sales of tractors during the first quarter. Governments are supporting the lockdown, and labour unions are demanding a complete ban on industrial unit operations employing a manual workforce. However, because agricultural production is a necessary good, there will be a decent amount of capital equipment and consumables used in the South Asia region.

The analysis indicates that the growth in equipment purchases will continue during the projection period and will drive the demand for agricultural equipment. Furthermore, because the degree of COVID-19 impact in South Asia was significantly lower than in other geographic regions and GDP output gradually recovered, the ideal amount of agricultural activities permitted by regional governments is said to encourage market expansion. According to Persistence Market Research, the South Asian agricultural equipment market will grow at an 8.7% CAGR from 2017 to 2033.

What are the drivers for Agriculture Equipment Market?

Heavy Demand for Food Products within a Short Timeframe.

Agriculture Equipment Market demand is experiencing growth in the South Asia market due to factors like population growth, growing demand for food products, and heavy traffic in the distribution channels for agricultural and food products. Population growth in the region is anticipated to reach at least 30% by 2050. As a result, the proportion of agricultural products will rise in step with the rate of population expansion in South Asian nations.

Additionally, a high productivity rate for lawnmowers is projected as gardening and landscaping projects develop in semi-urban and metropolitan cities. The market for agricultural equipment is also significantly fueled by the concern of manufacturers about how the equipment can be automated for higher productivity. These machines provide advantages over the time required for agricultural processes. These agriculture equipment are installed over different types of tractors, tillers, etc.

What are the restraints for the Agriculture Equipment Market growth?

Heavy Initial Procurement Cost and High Expenditure on Maintenance to boost the Market

The initial cost of purchasing and installing this equipment is substantial. Additionally, using this type of mechanization results in high operational costs, which reduces the profitability of farming operations. The major countries of South Asia are developing nations that place a high priority on agricultural profitability. The farmer should understand the process of machinery to perform and monitor these operations since the use of several machines in an operation enhances its complexity and sophisticated style of operation.

Farming equipment's lifespan may be impacted by the equipment's unavailability and delays in repairs and maintenance. These problems can prolong downtime and obstruct effective farming for good production. The use of heavy machinery on farms increases with the use of agricultural equipment, which compresses the soil and occasionally has an impact on the crops or food. Some heavy-duty machinery's come up with high maintenance and repair expenses, which can limit the market, and disturb the financial ecosystem of farming operations.

What is the Agriculture Equipment's Competitive Potential?

Increased Productivity with Advanced Farming Techniques and Equipment.

The future of agriculture will be powered by technology, and this is opening up new opportunities around the world. The market is anticipated to experience significant expansion over the course of the projected period as a result of the increasing adoption of cutting-edge technology in the South Asia agricultural equipment market. Food consumption is rising due to a growing regional as well as a global population, which puts more pressure on farmers to develop innovative, time- and money-saving farming techniques. As a result, by raising crop quality and decreasing labour expenses, agricultural technology helps farmers increase farming productivity and reduce stress and as a result, the market for agricultural equipment is expected to grow.

What are the Key Opportunities for Agriculture Equipment Manufacturers?

Since farmers are continuously under pressure to provide agricultural products that will satisfy the demands of a growing population, efficiency and productivity should come first in order to promote commercial success.Farmers who want to produce more often with fewer resources are gradually shifting to smart agriculture. The issue of the rising demand for food globally could be effectively addressed by this agricultural method. The supply-consumption gap for agricultural products can be closed by using this strategy, which also helps farmers enhance production and operational efficiency.

In all countries, the contribution of agriculture to GDP is substantial. Furthermore, approximately half of the people in the region work as farmers as well as labour. Due to its high cost, agricultural equipment might be leased sometimes. Examples of equipment that can be rented include tractors, processing equipment, and storage facilities. Leasing gives farmers the ability to modify the equipment for their unique needs and receive expert, individualized advice and technical assistance.

Country-wise Analysis

How large are the opportunities in India as an agriculture-oriented country?

India is estimated to expand at the highest rate throughout the projection period and be one of the major consumers and manufacturers of agricultural equipment. With a combined market share of more than 60%, tractors and water pumps are the most popular products in the country. Furthermore, as agriculture accounts for a large portion of the nation's economy, there are abundant opportunities for every type of agricultural product.

Which Equipment Type is gaining growth in the Thailand Market?

The Thailand Agricultural Equipment Market is anticipated to experience steady revenue growth as mid-range tractor sales increase. Additionally, the growing use of agricultural technology in place of traditional farming is driving up small farmers' demand for tractors and driving up agricultural equipment sales in Thailand.

Which Product Types are Driving Demand in Bangladesh?

Bangladesh is expected to grow more gradually than other countries due to the nation's significantly lower level of technological adoption. People in the nation have demonstrated a significant desire for food supplies. Due to the availability of 70% of the land that is set aside for growing crops, tractors are the likely preferred product kind following that.

Category-wise Insights

Which Product Type Exhibits the Lucrative Growth in the South Asian Market?

Tractors are anticipated to account for a sizeable portion of the South Asian market during the forecasted timeframe. Players in the market have a strong tendency to focus on the same category, which has helped the regional market gain substantial traction. Due to the tiny size of their farms, farmers prefer using small, customizable tractors. Small tractors' reduced fuel usage also supports the empowerment of small and marginal farmers. Less powerful tractors take up less room and offer more versatility in operation. Since they are simpler to customize, manufacturers are more likely to experiment with new parts and technologies in this market before moving on to more powerful ones.

Which Application Segment is the Most Attractive?

Growing food demand is driving up the requirement for additional crop cultivation as a result of the growing population in South Asia as well as all around the world. Farmers are transitioning to using automated and semi-automated agricultural equipment on fields in the countries of the South Asia region as a result, which greatly aids in the expansion of the agriculture equipment industry. Food consumption rises as a result of the population boom, pushing the agriculture industry to cultivate more grains and vegetables, which is taking into account the agriculture industry's predominant use of agricultural equipment relative to other industries.

Competitive Landscape

The market in South Asia is expanding significantly as a result of the rising demand for agricultural machinery. Leading manufacturers are developing agricultural machinery with low maintenance requirements that can do a variety of tasks at lower costs. The competition amongst the top market players is still intense in this region. Manufacturers of agricultural equipment are focusing on growing their sales and service networks in both domestic and foreign markets.

The market's top companies are also concentrating on strengthening their long-term supply relationships with clients and their local distributor networks, which paves the way for and facilitates the expansion of their channel reach.

Agriculture Equipment Market Industry Report Scope

Key Segments Covered in Agriculture Equipment Market Industry Research

By Product Type

• Tractor
• Tillers
• Water Pump
• Chain Saw
• Brush Cutter
• Blower
• Ride On Mower
• Lawn Mower

By Application

• Agriculture
• Horticulture
• Forest
• Lawn

By Country

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

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