Summary

China Agriculture Equipment Market Size

The China agriculture equipment market is expected to increase impressively, reaching US$41.18 billion by 2033 from US$24.13 billion in 2024. The industry is expected to witness growth at a compound annual growth rate (CAGR) of 6.12% during 2025-2033. Key drivers are related to technological advancements, increases in demand for mechanized farming, and government initiatives focusing on agricultural modernization that enhance productivity and efficiency.


China Agriculture Equipment Industry Overview

Agriculture equipment refers to machines and tools that assist in various farming activities, including soil preparation, planting, harvesting, irrigation, and post-harvest processing. These tools range from basic implements like plows and harrows to advanced machinery such as tractors, combine harvesters, seed drills, and irrigation systems.

Agricultural equipment has become a crucial component in the modernization of China's farming sector, which supports a significant portion of the population. The application of mechanization should aid productivity for satisfying more pressing hunger for food. Tractors find application in operations like the tilling of land. The combine harvester on its part helps to harvest crop in a much easier, faster, and efficient manner. Advanced irrigation systems greatly determine whether water is utilized in optimal way, especially in arid regions. The Chinese government has been encouraging agricultural mechanization through different subsidies and policies that encourage the use of modern machinery. In addition, smart farming technologies, including GPS-enabled equipment and drones monitoring crop growth, are increasing efficiencies while reducing the labor aspect. This change is defining agriculture in China, and these advances are setting the basis for future growth and success within the sector.


Factors for Growth in the China Agriculture Equipment Market

Technological Innovations of Farming Equipment

Integration of such technologies like GPS, IoT, and AI into agricultural equipment is transforming Chinese farming. Smart tractors, crop monitoring drones, and automated irrigation systems all increase the resource utilization efficiency while improving productivity. The technological innovation will help bridge the labor shortage gap in China by accurately completing the farming process. Not to forget, the shift to electric and environment-friendly machinery helps China in fulfilling its sustainability vision, hence it becomes attractive for the farmer as well. Dec 2023, XAG Co Ltd, the Chinese leader in agricultural drone manufacturing, rolled out a series of smart agricultural products and applications during its annual tech conference aimed at enhancing unmanned agricultural production.


Government Support and Subsidies

The Chinese government actively promotes agricultural modernization by means of subsidies, tax benefits, and supportive policies. Incentives through financial aids encourage farmers to adopt mechanized equipment, thereby making production more efficient and reducing labor. Rural development and food security programs are other areas where high-end tilling technology will be needed so that both small and larger farmers are able to have access to improved farming methods. The State Council recently promulgated a circular explaining that during the 14th Five-Year Plan period from 2021 to 2025, China will make headway with agricultural and rural modernization. By 2025, grain and another staple agricultural products supply will be guaranteed. The quality, efficiency, and competitiveness of the agriculture industry will be enhanced and new progress will be made in rural infrastructure construction. The better rural ecology environment and higher income of rural residents will help consolidate and expand anti-poverty achievements by 2025.


Rising Food Demand and Rural Mechanization

China's increasing population and changing dietary habits raise the need to produce food. Mechanized farming enhances output and uses space effectively. Rural mechanization is initiated to modernize the farm industries in underdeveloped countries, reducing gaps in production and supplying more domestic demand for food while providing stimulus to their economic growth. China's population has peaked and is expected to stay above 1.39bn until 2035. China has a very large and also fast-growing population, which led to high demand for food products. This makes the country one of the dominant players in the global food markets and the increasing income levels further boosted demand for diversified and of higher quality food products like meat and dairy, causing pressure on its domestic food production and usually results in heavy food imports to meet citizens' needs.


Challenges in the China Agriculture Equipment Market

High Initial Investment Costs

Agriculture equipment often requires high initial investments, which can deter small and medium-sized farmers in China. Tractors, combine harvesters, and other modern machinery require large sums of money, making affordability a significant challenge. Although the government provides subsidies, many farmers are reluctant to invest due to uncertain returns and limited access to credit. This financial constraint slows the adoption of modern equipment, especially in rural and underdeveloped regions.


Fragmented Land Holdings

China's agriculture sector is characterized by small, fragmented pieces of land, meaning large mechanization is hardly feasible because small plots don't typically justify the cost of high capacity machinery, meaning efficiency can't be enhanced. Finally, consolidated farmland poses a problem for standard, mechanized solutions, and as a result, equipment lies idle or underutilized. So, this structure prevents proper adoption of advanced technology and makes the agricultural sector modernization slow.


China Five-Year Smart Farming Plan

China has unveiled a comprehensive five-year action plan to accelerate digital transformation of its entire agriculture sector. The move is seen as part of the strategy the country is adopting to uplift its domestic food production profile. The smart agriculture 2024-2028 action plan will focus on establishing by 2028 a digital technology framework for planting and having by 2028 established a national agricultural and rural big data platform, the Ministry of Agriculture said in its statement.

The urgency to integrate big data, GPS navigation systems, and artificial intelligence into farming has increased with China, the world's largest grain producer, enhancing its investments in agricultural machinery and seed technology to bolster food security. The digital transformation initiative cuts across crop farming, animal husbandry, and fisheries, with the goal of reducing costs, increasing production, and improving efficiency in the agriculture sector.


China Agricultural Tractor market

The China agricultural tractor market is experiencing robust growth, fueled by the country's focus on modernizing farming practices. Tractors, essential for plowing, planting, and harvesting, enhance productivity and reduce labor dependency. Demand spans small to high-powered tractors, catering to diverse farm sizes. Government subsidies and policies promoting mechanization drive adoption, especially in rural areas. Additionally, high-tech features, like the presence of GPS in tractors and eco-friendly design support efficiency and sustainability. This development in the market complements China's strategies toward the betterment of food security and agricultural growth.


China Agricultural Harvesting Market

China's agricultural harvesting market is fast-growing, especially in relation to increased mechanization and increasing demand for more efficient solutions for crop harvesting. Important equipment in productivity boosts and reduction of labor cost are combine harvesters and forage harvesters. Government incentives and subsidies promote farmers to use high-tech harvesting equipment, especially in large-scale farming areas. Technological innovations, such as GPS systems and automation, increase efficiency and accuracy. The industry's expansion is in line with China's vision of agricultural modernization and food security.


Agriculture Tractors > 100 hp Tractor Market

China's agriculture tractor market for tractors over 100 horsepower (hp) is growing rapidly, driven by increasing demand for high-capacity machinery to support large-scale farming operations. These powerful tractors enhance efficiency in plowing, sowing, and harvesting, especially in vast agricultural regions. Government subsidies and technological advancements, such as GPS-enabled features, further encourage adoption. As China focuses on rural mechanization and productivity, the market for >100 hp tractors is likely to grow significantly in the upcoming years. Large tractors, as well as highly mechanized, high horsepower machines for harvesting, are mostly used agricultural machinery in China. It has more than 2,500 agricultural equipment manufacturers present in Shandong, Henan, Jiangsu, Liaoning, and Zhejiang. Notwithstanding technological progress in the agricultural machinery industry, the market is likely to be influenced by the decline in human resources, rise in labor cost, and government schemes for mechanizing farms. For example, as per the figures given by the National Bureau of Statistics of the country, the production of large and medium-sized tractors in China is estimated to be 5,253,595 in the year 2022 which represents a slight recovery.


Forage Harvesters Industry

The forage harvester industry is one of the most important segments in China agricultural machinery, engaged in harvesting forage crops such as grass, alfalfa, and corn for silage. These machines efficiently cut, chop, and process crops to ensure high-quality feed for livestock. The industry has been expanding globally due to increasing demand for dairy and meat products. Technological innovations, such as precision farming tools and self-propelled harvesters, increase productivity and reduce labor requirements. Government subsidies and sustainable farming practices further propel growth in this essential agricultural sector.


China Seed Drills Equipment Market

The China seed drills equipment market is expanding as farmers increasingly adopt modern machinery to enhance sowing efficiency and crop yields. Seed drills enable precise seed placement and depth, improving germination rates and reducing seed wastage. This technology is particularly valuable in China's push for sustainable and mechanized farming. Government incentives and policies to promote modernization in agriculture are contributing to the growth of the market. Moreover, features like multi-crop compatibility and GPS integration are also making seed drills more versatile and attractive, meeting the requirements of various farming systems in the country.


China Tractor Mounted Market

The China trailed equipment market is growing at a steady pace due to the increased adoption of mechanized farming. Trailed equipment, including plows, harrows, seeders, and sprayers, increase the efficiency of agriculture as they connect to tractors to streamline activities. These tools are efficient for small and medium farms as they provide flexibility and ease of use. The subsidies on agricultural modernization and increased crop productivity demand will increase the market. The innovation on durability and multi-functional design makes trailed equipment a core element of China's changing landscape in farming.


Equipment – Market have been covered from 7 viewpoints:
1. Tractor
2. Harvesting
3. Planting Equipment
4. Hay & Forage Equipment
5. Irrigation & Crop Processing Equipment
6. Spraying Equipment
7. Others


Horsepower – China Agricultural Tractors Market
1. Agriculture Tractors < 40 hp
2. Agriculture Tractors 41-100 hp
3. Agriculture Tractors > 100 hp


Harvesting – Market have been covered from 3 viewpoints:
1. Combine Harvesters
2. Forage Harvesters
3. Others


Planting Equipment – Market have been covered from 4 viewpoints:
1. Seed Drills
2. Air Seeders
3. Planters
4. Others


Spraying Equipment – Market have been covered from 5 viewpoints:
1. Tractor-mounted
2. Self-propelled
3. Trailed
4. Handheld
5. Aerial


All companies have been covered from 3 viewpoints:
• Overviews
• Recent Development
• Revenues


Company Analysis:
1. John Deere
2. AGCO
3. CLAAS KGaA
4. First Tractor Company Limited
5. Kubota Corporation
6. CNH Industrial N.V.
7. Valmont Industries Inc

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Table of Contents

1. Introduction


2. Research Methodology


3. Executive Summary


4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges


5. China Agricultural Equipment Market


6. Share Analysis
6.1 By Equipment
6.2 By Tractor
6.3 By Harvesting
6.4 By Planting Equipment
6.5 By Spraying Equipment


7. Types
7.1 Tractor
7.2 Harvesting
7.3 Planting Equipment
7.4 Hay & Forage Equipment
7.5 Irrigation & Crop Processing Equipment
7.6 Spraying Equipment
7.7 Others


8. Horsepower
8.1 Agriculture Tractors < 40 hp
8.2 Agriculture Tractors 41-100 hp
8.3 Agriculture Tractors > 100 hp


9. Harvesting Equipment Market
9.1 Combine Harvesters
9.2 Forage Harvesters
9.3 Others


10. Planting Equipment Market
10.1 Seed Drills
10.2 Air Seeders
10.3 Planters
10.4 Others


11. Spraying Equipment Market
11.1 Tractor-mounted
11.2 Self-propelled
11.3 Trailed
11.4 Handheld
11.5 Aerial


12. Porter’s Five Forces
12.1 Bargaining Power of Buyer
12.2 Bargaining Power of Supplier
12.3 Threat of New Entrants
12.4 Rivalry among Existing Competitors
12.5 Threat of Substitute Products


13. SWOT Analysis
13.1 Strengths
13.2 Weaknesses
13.3 Opportunities
13.4 Threats


14. Company Analysis
14.1 John Deere

14.1.1 Overviews
14.1.2 Recent Development
14.1.3 Revenues

14.2 AGCO

14.2.1 Overviews
14.2.2 Recent Development
14.2.3 Revenues

14.3 CLAAS KGaA

14.3.1 Overviews
14.3.2 Recent Development
14.3.3 Revenues

14.4 First Tractor Company Limited

14.4.1 Overviews
14.4.2 Recent Development
14.4.3 Revenues

14.5 Kubota Corporation

14.5.1 Overviews
14.5.2 Recent Development
14.5.3 Revenues

14.6 CNH Industrial N.V.

14.6.1 Overviews
14.6.2 Recent Development
14.6.3 Revenues

14.7 Valmont Industries, Inc.

14.7.1 Overviews
14.7.2 Recent Development
14.7.3 Revenues