Market Trends of Asia-Pacific Haying and Forage Machinery Industry
This section covers the major market trends shaping the APAC Haying & Forage Machinery Market according to our research experts:
Increasing Farm Mechanization Rate
Agricultural mechanization has been playing a significant role in enhancing agricultural production and improvement of farmer's livelihood in Asia in last decades, both agricultural mechanization and its policies have been evolving and they are not entirely independent issues.
The haying, forage and harvesting machinery market is driven by increasing rates of mechanization in the APAC countries especially Japan and China. The shrinking land, water resources and labor force has increased the need for farm mechanization in developing countries. The farm mechanization in developing countries like Chinaaccounted for about 70% in 2019.
The tractor is one of the basic farm machinery, which most farmers use. The tractor sales in Japan were recorded as 32,816 units in 2018. Most tractors sold are mid-sized tractors with 21 - 30 HP capacity. The number of tractors utilized has been increasing significantly since 2016 the highest being recorded during the year 2019. Lack of labor, increased labor cost, favorable government policies, credit facilities, and the need to increase agricultural productivity are some of the major factors causing the rise in tractor sales.
China Dominates the Market
With the rising demand for animal feed in the country, the area under forage crop cultivation is also increasing. The Chinese government is continuing to encourage more silage production and is planning to increase the area under forage crop cultivation. It is estimated that by the end of 2020, the forage areas in China will reach 6.3 million hectares, of which most will be corn silage. Hence, these factors are anticipated to drive the Haying and Forage Machinery market in these countries, during the forecast period.
The harvesting machinery market in the country has a strong presence of foreign brands such as John Deere, Case New Holland, and CLAAS. However, the market also includes domestic players such as Lovol Gushen, Shandong Juming, Brave Machinery, Zhongnong Boyuan, and Hebei Yinghu.
In 2018, the mechanical harvesting level of wheat and rice was more than 90%. Therefore, it can be implicated that the grain harvesting industry is at the maturity stage in the country. However, the mechanical harvesting level of corn is at 70%, where the industry still has scope to grow further. According to the report of the agricultural machinery purchase subsidy system, in 2018, there were at least 88 companies engaged in the manufacturing of self-propelled corn harvesters. This implicates the presence of numerous players in the market, which intensifies the competition.
