Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 2.55 Billion |
Market Size (2030) | USD 3.28 Billion |
CAGR (2025 - 2030) | 5.20 % |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Southeast Asia Agricultural Tractors Market Analysis
The Southeast Asia Agricultural Tractors Market size is estimated at USD 2.55 billion in 2025, and is expected to reach USD 3.28 billion by 2030, at a CAGR of 5.20% during the forecast period (2025-2030).
In Southeast Asia, sales of agricultural tractors are surging, driven by a shortage of skilled farm laborers, the rising mechanization of agriculture, and a diverse demand for tractors with varying horsepower. As farmers pivot towards mechanization, they are increasingly replacing manual labor. Notably, Vietnam stands out as the leading user of agricultural tractors among Southeast Asian nations. The agriculture sector of Vietnam has witnessed a substantial decline in the use of animal and human power in the agriculture sector. About 53% of agricultural tractors in the country have a capacity of less than 12 HP, and 35% have 12 to 35 HP, while 12% have a capacity of more than 35 HP.
In the region's developing countries, farmers with limited disposable income and facing high labor costs are increasingly turning to lower horsepower (HP) tractors. Given the smaller sizes of their farmlands, these farmers favor compact and tailored tractors for their agricultural needs. Additionally, the fuel efficiency of these smaller tractors provides a significant advantage, bolstering the capabilities of small and marginal farmers.
Modern tractors have evolved, driven by rising demands for power, precision, handling, and efficiency. This evolution is set to fuel their growth through the forecast period. In developing nations, as farm mechanization rises, so does the demand and production of agricultural tractors. Yet, the escalating costs of repair and maintenance pose a challenge to the market's expansion.
Southeast Asia Agricultural Tractors Market Trends
Shortage of Skilled Farm Labor is Driving Agricultural Tractors Market
In Southeast Asia, the agricultural tractor market is influenced by the cost of farm labor, which is tied to the proportion of the nation's population engaged in agriculture. Typically, developing economies see a higher percentage of their populace reliant on agriculture. Yet, this dependency has waned, with a notable annual migration towards urban centers. For instance, in the Philippines, the share of people employed in the agriculture industry to the total employment has decreased from 24.8% in 2020 to 23.1% by 2022. There is now an increasing awareness among Filipino farmers of the advantages of utilizing mechanization technologies in the agricultural production system.
Farmers are turning to agricultural mechanization, finding it a more cost-effective and efficient alternative to manual labor. With a dwindling agricultural workforce, the rise of precision farming, and advancements in tractor technology, countries are witnessing a decline in labor costs. Additionally, government initiatives such as tax exemption for importing agricultural machinery in Indonesia actively promote the mechanization and modernization of agriculture. These efforts aim to encourage farmers to embrace new technologies and boost farm productivity, further propelling the market.
Thailand Dominated the Market
Thailand's economy heavily relies on its agricultural sector, solidifying the nation's status as a powerhouse in Southeast Asia. In response, the Thai government has rolled out a series of initiatives and policies, including the Thailand 20-Year Strategic Plan (2017-2036) and "Thailand 4.0 for Smart Farmers," aimed at modernizing and mechanizing the agricultural landscape. These efforts are designed to uplift farmers' welfare and make agriculture a more lucrative endeavor, consequently boosting the Thai agricultural machinery market.
Furthermore, as the population continues to grow rapidly, concerns over food security are mounting. In agriculture, the labor force has seen a swift decline, dropping from 12.7 million in 2021 to 12.3 million in 2022. This urgency is propelling a heightened demand for agricultural tractors, aimed at boosting production and per-hectare yields to satisfy the escalating food demand. In response to these dynamics, leading companies are unveiling new products, aiming to cement their foothold in the Thai market. For example, Mahindra is set to debut in the ASEAN region in 2024, commencing with Thailand by introducing the Mahindra Oja tractor designed for both wetland and dryland applications.
Southeast Asia Agricultural Tractors Industry Overview
The Southeast Asia agricultural tractor market is consolidated, with the major players occupying the major share of the market. The Deere and Company, Kubota Corporation, CNH Industrial NV, Yanmanr Co. Ltd, and ISEKI & CO Ltd are some significant players in the market. The players are often involved in adopting various strategies, such as partnerships and new product launches, to consolidate their position in the market.
Southeast Asia Agricultural Tractors Market Leaders
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KUBOTA Corporation
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Deere & Company
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YANMAR CO., LTD.
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CNH Industrial
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ISEKI & CO Ltd
- *Disclaimer: Major Players sorted in no particular order
Southeast Asia Agricultural Tractors Market News
- February 2024: John Deere launched a wide range of agriculture equipment for the Southeast Asia region at the Commodity Classic trade show, including Autonomy-ready high-horsepower 9RX series tractors, C-Series air carts, and sprayers with weed-sensing technology. The company is committed to providing farmers with innovative solutions to boost productivity, efficiency, and sustainability.
- January 2024: Kubota unveiled the New Actually Concept, fully electric and autonomous tractors, at CES 2024. This concept vehicle is designed for various agricultural tasks and features quick charging capabilities for extended operation. Kubota envisions this technology as part of the future of working alongside automation and data analysis.
Southeast Asia Agricultural Tractors Industry Segmentation
An agricultural tractor is a vehicle designed to deliver a high tractive effort at slow speeds to haul a trailer or machinery. The market does not cover other agricultural machinery and attachments to the tractor. The tractor used for industrial and construction purposes is also excluded from the study.
The Southeast Asia agricultural tractor market is segmented by type (orchard tractors, row-crop tractors, and utility tractors), horsepower (less than 12 HP, 12 HP to 99 HP, 100 HP to 175 HP, and Above 175 HP), and geography (Thailand, Vietnam, Malaysia, Indonesia, Singapore, Philippines, Cambodia, Myanmar, and Rest of Southeast Asia).
The market sizing has been done in value terms in USD for all the above-mentioned segments.
Type | Orchard Tractors |
Row-Crop Tractors | |
Utility Tractors | |
Horse Power | Less than 12 HP |
12 HP to 99 HP | |
100 HP to 175 HP | |
Above 175 HP | |
Geography | Thailand |
Vietnam | |
Malaysia | |
Indonesia | |
Singapore | |
Philippines | |
Cambodia | |
Myanmar | |
Rest of Southeast Asia |
Southeast Asia Agricultural Tractors Market Research FAQs
How big is the Southeast Asia Agricultural Tractors Market?
The Southeast Asia Agricultural Tractors Market size is expected to reach USD 2.55 billion in 2025 and grow at a CAGR of 5.20% to reach USD 3.28 billion by 2030.
What is the current Southeast Asia Agricultural Tractors Market size?
In 2025, the Southeast Asia Agricultural Tractors Market size is expected to reach USD 2.55 billion.
Who are the key players in Southeast Asia Agricultural Tractors Market?
KUBOTA Corporation, Deere & Company, YANMAR CO., LTD., CNH Industrial and ISEKI & CO Ltd are the major companies operating in the Southeast Asia Agricultural Tractors Market.
What years does this Southeast Asia Agricultural Tractors Market cover, and what was the market size in 2024?
In 2024, the Southeast Asia Agricultural Tractors Market size was estimated at USD 2.42 billion. The report covers the Southeast Asia Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Southeast Asia Agricultural Tractors Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Southeast Asia Agricultural Tractors Industry Report
Statistics for the 2025 Southeast Asia Agricultural Tractors market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Southeast Asia Agricultural Tractors analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.