China Agricultural Tractors Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10.20 Billion |
| Market Size (2029) | USD 13.80 Billion |
| CAGR (2024 - 2029) | 5.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Agricultural Tractors Machinery Market Analysis
The China Agricultural Tractors Market size is estimated at USD 10.20 billion in 2024, and is expected to reach USD 13.80 billion by 2029, growing at a CAGR of 5.60% during the forecast period (2024-2029).
- China stands as the one of world's largest food producers and exporters, boasting the most extensive food reserve systems globally. In 2023, China exported vegetables valued at over USD 17 billion, marking a 9% rise from the prior year, as per ITC Trademap statistics. In parallel, the Chinese government is taking proactive measures to enhance its long-term food security, underscoring the importance of self-reliance in agricultural production through various initiatives. China has intensified its focus on food security in response to volatile global markets, climate change impacts on food sources, and geopolitical challenges. The Chinese government is tackling the challenges associated with the "three rural" (agriculture, rural areas, and farmers), focusing on food security. Policymakers in China, recognize food security as a "top national priority". This heightened emphasis on increasing crop production is poised to boost the nation's agricultural tract market.
- Farm mechanization is gaining traction in China, bolstered by a surge in government-backed initiatives. Under its 'Made in China 2025' initiative, China is targeting a self-sufficiency goal, aiming to produce 90% of its agricultural equipment domestically. Notably, high-end machines, such as agricultural tractors, command a significant one-third share entire agricultural machinery market. This focus on domestic production is propelling the growth of the agricultural tractor market in China.
- China is actively pursuing the development of hydrogen and fuel cell-powered autonomous tractors, signaling a transformative shift in the agricultural tractor market. To enhance the environmental sustainability of agricultural machinery, Chinese companies are making substantial investments in tractor innovation. A notable instance is a tractor co-developed by the Luoyang Research Institute for Intelligent Agricultural Equipment Co., Ltd. (CHIAIC) and Tsinghua University's Tianjin Research Institute for Advanced Equipment, part of the advanced manufacturing industry R&D base. Designed from inception for autonomous operations, this tractor utilizes China Mobile's 5G network, augmented by a GPS antenna, millimeter-wave radar, and advanced data technology for remote functionalities.
China Agricultural Tractors Machinery Market Trends
Heightened Emphasis on Agricultural Mechanization
- China's agricultural productivity has surged, resulting in heightened production, better conditions, and rising incomes. This swift advancement is largely attributed to the government's tactical modifications to the agricultural supply-side structure, especially via land and labor policies. Furthermore, the trend of increasing mechanization is underscored by the Total Power of Agricultural Machinery, which reached a record of 1,138.6 Million Kilowatts in 2023. Throughout China, the presence of small tractors underscores the government's push for mechanizing small-scale agriculture. Through the introduction of agricultural mechanization laws, the government ensures that farmers can promptly access the machinery they need.
- China offers substantial opportunities for the expansion of mechanization and the adoption of agricultural tractors. For example, in 2022, the overall mechanization level for crops stood at around 70%, underscoring the growth potential for both the agricultural machinery and tractor markets. Furthermore, there's a noticeable regional disparity in mechanization levels; south-eastern China is adopting these technologies more rapidly than the western regions. Presently, rice leads in mechanization rates, but there's a significant opportunity to boost mechanization in wheat, corn, cotton, and sugarcane, all of which are being prioritized to bolster production.
- Regional regulatory bodies, including the China Agricultural Industry Mechanization Association (CAIMA), actively promote farm mechanization. They educate cooperatives and individual farmers on the advantages of utilizing high-horsepower tractors for expansive farm areas. Consequently, as farmers in the region increasingly adopt mechanization, tractor sales surge, fueling market growth.
Row Crop Tractors Dominate the Market
- China stands as the world's second-largest maize producer, with the Food and Agriculture Organization noting a harvested area of 43.1 million hectares in 2022. Accounting for approx 23% of global production, China's maize output plays a crucial role in stabilizing the global maize supply. Consequently, the upkeep and mechanization of maize production in China are vital not only for regional and global food security but also for the international cereals trade. In addition to maize, China also cultivates significant row crops such as Soybeans, Potatoes, Onions, and Cotton.
- Between 2021 and 2025, during its 14th Five-Year development period, China is intensifying its focus on Rural Revitalization. The country's vision champions development that is innovative, coordinated, green, open, and shared. This initiative aims to uplift the livelihoods of its citizens in a holistic and sustainable manner, while also setting a benchmark for high-quality development. With China emphasizing rural revitalization and high-quality growth over these five years, these efforts are poised to substantially enhance the production of row crops, bolstering the row crop tractor segment in the nation.
- In August 2022, China's Ministry of Agriculture and Rural Affairs (MOA) allocated 10 billion yuan (USD 1.46 billion) in subsidies. This initiative aims to bolster the 2023 spring plowing efforts and energize farmers' activities. The subsidies directly benefit genuine grain producers including maize, encompassing individual and contracted farmers, household farmland, agricultural corporations, enterprises, and various stakeholders throughout the agricultural business chain. Such measures are poised to enhance sales of agricultural machinery, notably row tractors.
China Agricultural Tractors Machinery Industry Overview
The China Agricultural Tractors Market is consolidated, with few players cornering some of the market share. Deere & Company, CNH Industrial NV, AGCO Corporation, Kubota Corporation, and YTO Group Corporation are some of the major players operating in this market. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the country's market.
China Agricultural Tractors Machinery Market Leaders
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Deere & Company
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AGCO Corporation
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YTO Group Corporation
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CNH Industrial NV
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Kubota Corporation
*Disclaimer: Major Players sorted in no particular order
China Agricultural Tractors Machinery Market News
- June 2024: Ricardo, an engineering consultancy based in the United Kingdom, has entered into a strategic cooperation agreement with Wuzheng, a Chinese manufacturer of commercial vehicles. Their collaboration focuses on researching and developing powertrains tailored for electric tractors and other agricultural machinery. Through this partnership, the two companies aim to explore innovative technologies and enhance the efficiency of powertrains across Wuzheng's diverse range of agricultural machinery products.
- May 2024: A collaborative team, comprising members from various Chinese universities and experts from the electric vehicle manufacturer BYD, unveiled their project, which is a concept tractor boasting 19.7 horsepower. Initial tests, including power-intensive plowing, yielded promising results. The initiative was launched to address challenges such as air pollution from diesel tractors, low traction efficiency in fields, and other performance-related concerns.
- November 2023: Weichai Lovol Intelligent Agricultural Technology CO., LTD announced that its flagship P8000 series model is currently undergoing testing in China. This tractor boasts a powerful 340 hp engine and features a continuously variable transmission.
China Agricultural Tractors Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Higher Focus on Agricultural Mechanization
4.2.2 Increasing Government Initiatives
4.2.3 Revolutionizing Agricultural Machinery with Electric Power and Alternative Energy Solutions
4.3 Market Restraints
4.3.1 High Investments for Certain Machineries
4.3.2 Fragmentation of Agricultural Land
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Horsepower
5.1.1 Below 40 HP
5.1.2 40-100 HP
5.1.3 Above 100 HP
5.2 Tractor Type
5.2.1 Utility Tractors
5.2.2 Row Crop Tractors
5.2.3 Graden & Orchard Type Tractors
5.2.4 Other Tractor Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere & Company
6.3.2 CNH Industrial NV
6.3.3 AGCO Corporation
6.3.4 Kubota Corporation
6.3.5 Tractors and Farm Equipment Limited
6.3.6 YTO Group Corporation
6.3.7 Shandong Wuzheng Group Co. Ltd
6.3.8 Shandong Shifeng (Group) Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
China Agricultural Tractors Machinery Industry Segmentation
A tractor is a farm vehicle that is used to pull farm machinery and provide the energy needed for the machinery to work. For this report, tractors used in agricultural operations, especially four-wheeled tractors, have been considered. The report does not cover other agricultural machinery and attachments for tractors. Tractors used for industrial and construction purposes are also excluded from the study. The report covers China Agricultural Tractor Machinery Suppliers and is Segmented by Horsepower (Below 40 HP, 40-100 HP, and Above 100 HP), and Tractor Type (Utility Tractors, Row Crop Tractors, Garden & Orchard Type Tractors, and Other Tractor Types). The report offers market size and forecasts for all the above segments in terms of value (USD).
| Horsepower | |
| Below 40 HP | |
| 40-100 HP | |
| Above 100 HP |
| Tractor Type | |
| Utility Tractors | |
| Row Crop Tractors | |
| Graden & Orchard Type Tractors | |
| Other Tractor Types |
China Agricultural Tractors Machinery Market Research FAQs
How big is the China Agricultural Tractors Market?
The China Agricultural Tractors Market size is expected to reach USD 10.20 billion in 2024 and grow at a CAGR of 5.60% to reach USD 13.80 billion by 2029.
What is the current China Agricultural Tractors Market size?
In 2024, the China Agricultural Tractors Market size is expected to reach USD 10.20 billion.
Who are the key players in China Agricultural Tractors Market?
Deere & Company, AGCO Corporation, YTO Group Corporation, CNH Industrial NV and Kubota Corporation are the major companies operating in the China Agricultural Tractors Market.
What years does this China Agricultural Tractors Market cover, and what was the market size in 2023?
In 2023, the China Agricultural Tractors Market size was estimated at USD 9.63 billion. The report covers the China Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Agricultural Tractors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Agricultural Tractors Machinery Industry Report
Statistics for the 2024 China Agricultural Tractors Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Agricultural Tractors Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
