Demand will benefit from favorable government policies, improved access to equipment
through agricultural machinery co-operatives, and healthy growth in agricultural activity.
Demand to register doubledigit
growth through 2015
Demand for agricultural equipment in
China reached ¥135 billion in 2010,
accounting for 18 percent of the world
market. Demand is projected to grow
10.8 percent annually to ¥225 billion in
2015. Growth will be supported by favorable
government policies, improved
access to equipment through agricultural
machinery co-operatives, and healthy
expansion of agricultural activity.
Planting, fertilizing equipment
to post fastest gains
Tractors are the most significant type of
agricultural equipment in China, accounting
for 30 percent of total demand in
2010. Large, high powered tractors have
greatly benefited from the Chinese
government’s subsidy policies and will
continue to see strong growth over the
forecast period. However, small tractors,
because they are more affordable and
practical for the average farming household,
will continue to account for an increasing
share of demand.
The high
price of harvesting machinery units has
largely been responsible for it having the
lowest penetration rate of all agricultural
equipment, though the segment will
register above average growth through
2015, driven by increases in farmers’
incomes. Planting and fertilizing equipment
will register the most rapid gains
as Chinese farmers continue to adopt a
wider range of farming equipment.
Shipments of agricultural equipment are
projected to rise 12.2 percent annually to
¥258 billion in 2015. China’s trade surplus
will expand to ¥33 billion, primarily
due to improvements in the quality and
technology of domestic products, as well
as low tariffs on exports.
Northeast region to exhibit
most rapid demand growth
While all six regions in China will post
strong demand growth through 2015, the
terrain, climate, and economic condition
of each region will play a significant role
in relative growth. The core agricultural
regions of the Central-North, Central-
East and Central South, which together
accounted for 74 percent of agricultural
equipment demand in 2010, will continue
to benefit from higher income levels and
better developed infrastructure. Although
it is one of the smaller regional markets
for agricultural equipment, the Northeast
will continue to exhibit the fastest growth
in demand through 2015. Part of the
reason is that the Northeast -- while
representing just over eight percent of
China’s total land area -- has nearly 20
percent of sown land. More importantly,
the Northeast has one-third of national
plain areas. Because many areas of the
Northeast are flat, farms have sizable
expanses of level land, making the application
of large agricultural equipment
practical.
Study Scope
This study analyzes the 134.6 billion yuan agricultural equipment market in China. It presents historical demand data for the years 2000, 2005 and 2010, and forecasts for 2015 and 2020 by product (e.g., farm tractors, harvesting machinery, plowing and cultivating machinery, planting and fertilizing machinery) and region (e.g., Central-North, Northeast, Central-East).
The study also considers market environment factors, details industry structure, evaluates company market shares and profiles 34 market participants, including China National Machinery Industry, Foton Lovol International Heavy Industries, and Deere & Company.
