China Agricultural Equipment Industry Outlook to 2018 - Promoted by Favorable Government Policies
The industry research report titled, “China Agricultural Equipment Industry Outlook to 2018 – Promoted by Favorable Government Policies” provides comprehensive analysis of market size of farm equipments such as tractors (small and medium-large tractors), combine harvesters, rice transplanters and cotton processing machinery in China. The report provides market share analysis of major players in more than 25HP tractor market and low powered tractor industry along with the competitive landscape. The publication provides future outlook and prospects of farm equipments production and sales along with the cause and effect relationship of several macro-economic and industry factors.
China, a large farming nation, comes under the category of those countries to which agriculture serves as the foundation of the national economy. Out of the world’s 500 million small farms (covering less than 2 hectares), China claims roughly 39% share of the total. The country is constantly engaged in making itself self-sufficient in several commodities, majorly focusing upon food security. With the growing population, the need for food productivity is on a constant rise. The Chinese government has been paying great attention to the ever growing demand for food and rural development and realizes the importance of agricultural modernization for attaining the same.
The agricultural sector contributes nearly 10% to the overall GDP of China. The industrial structure of agriculture in China is gradually shifting from just grain production to overall development of agriculture and from traditional agricultural production to agricultural industrialization. Due to the continuously improving infrastructure of the country, compiled with government support favoring farm mechanization, the agricultural equipments market in China has broadened and developed tremendously since the past decade. In 2011, the country overtook the EU countries and the US to become the largest producer of farm equipments in the world.
According to the government of China, the agricultural sector of the nation is fundamental to the national economic and social development. In addition to affiliated factors such as plant breeding and improved agricultural practices with ecosystem approach, agricultural mechanization in China has played a key role in making China one of the strongest agricultural economies in the world. In order to cover the technological gap between the domestically manufactured and imported products, the government is also open to the establishment of joint ventures between Chinese and foreign enterprises. In return, the multinational companies enjoy access to the vast Chinese market. Phasing out the commune system and encouraging private investment in agricultural machinery has made the market even more attractive for such ventures. Thus, foreign companies can easily enter and expand their investments in China. Additionally, the government of China has implemented subsidies for purchasing agricultural equipments both at the central and state level. Favorable government policies have greatly motivated farmers to invest in machinery.
In 2013, the level of mechanization in agricultural practices in China reached 59%. Therefore, the country has yet to become fully automated, signifying the fact that the farm machinery industry has still not realized its full potential. The total production value of agricultural equipments in the country reached USD ~ million in 2013, at a CAGR of 14.8% during 2008-2013. Small tractors were the largest contributors to the production value of the industry. Even though the market for large-medium powered tractors is growing at a considerable pace, China lags behind in the production of the same and mainly satisfies its demand by way of imports.
Domestic companies operating in the agricultural equipments market in China have captured a larger share in the market. While YTO Group’s First Tractor Company Ltd. and Foton Lovol are the two largest domestic companies, foreign companies including John Deere and Case New Holland also have a considerable presence in the country.
The agricultural equipment industry is constantly striving towards increasing productivity, resource efficiency and quality upgradation. In order to ensure constant food supply to the country’s population and increasing farmers’ income, the industry is proactively exploring mechanization practices that increase yield and income. The demand for agricultural equipments in China is projected to increase further in the future, underpinned by increasing food productivity, industrialization of agriculture and the government’s role in promoting the usage of machinery for agricultural processes.
KEY TOPICS COVERED IN THE REPORT
China, a large farming nation, comes under the category of those countries to which agriculture serves as the foundation of the national economy. Out of the world’s 500 million small farms (covering less than 2 hectares), China claims roughly 39% share of the total. The country is constantly engaged in making itself self-sufficient in several commodities, majorly focusing upon food security. With the growing population, the need for food productivity is on a constant rise. The Chinese government has been paying great attention to the ever growing demand for food and rural development and realizes the importance of agricultural modernization for attaining the same.
The agricultural sector contributes nearly 10% to the overall GDP of China. The industrial structure of agriculture in China is gradually shifting from just grain production to overall development of agriculture and from traditional agricultural production to agricultural industrialization. Due to the continuously improving infrastructure of the country, compiled with government support favoring farm mechanization, the agricultural equipments market in China has broadened and developed tremendously since the past decade. In 2011, the country overtook the EU countries and the US to become the largest producer of farm equipments in the world.
According to the government of China, the agricultural sector of the nation is fundamental to the national economic and social development. In addition to affiliated factors such as plant breeding and improved agricultural practices with ecosystem approach, agricultural mechanization in China has played a key role in making China one of the strongest agricultural economies in the world. In order to cover the technological gap between the domestically manufactured and imported products, the government is also open to the establishment of joint ventures between Chinese and foreign enterprises. In return, the multinational companies enjoy access to the vast Chinese market. Phasing out the commune system and encouraging private investment in agricultural machinery has made the market even more attractive for such ventures. Thus, foreign companies can easily enter and expand their investments in China. Additionally, the government of China has implemented subsidies for purchasing agricultural equipments both at the central and state level. Favorable government policies have greatly motivated farmers to invest in machinery.
In 2013, the level of mechanization in agricultural practices in China reached 59%. Therefore, the country has yet to become fully automated, signifying the fact that the farm machinery industry has still not realized its full potential. The total production value of agricultural equipments in the country reached USD ~ million in 2013, at a CAGR of 14.8% during 2008-2013. Small tractors were the largest contributors to the production value of the industry. Even though the market for large-medium powered tractors is growing at a considerable pace, China lags behind in the production of the same and mainly satisfies its demand by way of imports.
Domestic companies operating in the agricultural equipments market in China have captured a larger share in the market. While YTO Group’s First Tractor Company Ltd. and Foton Lovol are the two largest domestic companies, foreign companies including John Deere and Case New Holland also have a considerable presence in the country.
The agricultural equipment industry is constantly striving towards increasing productivity, resource efficiency and quality upgradation. In order to ensure constant food supply to the country’s population and increasing farmers’ income, the industry is proactively exploring mechanization practices that increase yield and income. The demand for agricultural equipments in China is projected to increase further in the future, underpinned by increasing food productivity, industrialization of agriculture and the government’s role in promoting the usage of machinery for agricultural processes.
KEY TOPICS COVERED IN THE REPORT
- China agricultural equipment market size in terms of production value and revenue
- Market segmentation of agricultural equipment market in China
- Analysis of mechanization level of agricultural processes and major crops in China
- Export Import scenario of the agricultural equipment market in China
- Government regulations and support schemes
- China agricultural equipment industry trends, growth drivers and issues
- Market share of major companies operating in the industry
- Macro economic factors in the agricultural equipment market in China
1. ASIA PACIFIC AGRICULTURAL EQUIPMENT INDUSTRY INTRODUCTION
1.1. Value Chain of the Agricultural Industry and Equipments Used for Different Applications
1.2. Asia Pacific Agricultural Equipment Market Size by Value, 2008-2013
1.3. Asia Pacific Agricultural Equipment Market Segmentation by Geography, 2008-2013
1.4. Growth Drivers and Opportunities in Asia Pacific Agricultural Equipment Industry
Shortage of Labor
Land Use Consolidation
Rising Farmers’ Income
1.5. Issues and Challenges in Asia Pacific Agricultural Equipment Industry
Lack of Skilled Manpower
Tariff Difference on Machines and Spare Parts
1.6. Competitive Landscape of Major Companies in Asia Pacific Agricultural Equipment Industry
1.7. Asia Pacific Agricultural Equipment Industry Future Outlook and Projections, 2014-2018
1.7.1. By Revenue, 2014-2018
1.7.2. By Geography, 2014-2018
2. CHINA AGRICULTURAL EQUIPMENT INDUSTRY INTRODUCTION
2.1. China Agricultural Equipment Market Size by Production Value and Revenue, 2008-2013
2.2. China Agricultural Equipment Market Segmentation (Tractors, Combine Harvesters, Rice Transplanters, Cotton Processing Machinery), 2008-2013
2.2.1. By Production Volume, 2008-2013
2.2.2. Greater Than 25HP Tractor Sales in China, 2008-2013
2.3. Total Power of Agricultural Equipments in China, 2008-2013
2.4. Mechanization Level of Agriculture in China, 2008-2013
2.4.1. National Agricultural Mechanization, 2008-2013
2.4.2. Mechanization Level of Agricultural Processes, 2008-2013
2.5. Export and Import of Agricultural Equipments in China, 2008-2013
2.6. Government Regulations and Support Schemes for Agricultural Equipment Industry in China
2.6.1. Law on Promotion of Agricultural Mechanization in China
2.6.2. Government Subsidies for Purchase of Agricultural Equipment, 2008-2013
2.7. Trends and Developments in China Agricultural Equipment Industry
Technological Joint Ventures
The Expansion of Agricultural Machinery Cooperatives and Owners
Increasing Proportion of High Horse Power Tractors
2.8. Growth Drivers and Opportunities in China Agricultural Equipment Industry
Growth of Agricultural Activity
Favorable Government Policies
Improved Access to Agricultural Equipments
2.9. Issues and Challenges in China Agricultural Equipment Industry
Poor Utilization Rate
Unbalanced Development of the Agricultural Equipment Industry
Raw Material Price Volatility
2.10. SWOT Analysis of China Agricultural Equipment Industry
2.11. Market Share of Major Companies in China Agricultural Equipment Industry
2.11.1. Market Share of Major Companies in Greater Than 25HP Tractor Market in China, 2013
2.11.2. Market Share of Major Companies in Low Powered (>25 HP) Tractor Market in China, 2011
2.12. Competitive Landscape of Major Companies in China Agricultural Equipment Industry
2.13. China Agricultural Equipment Industry Future Outlook and Projections, 2014-2018
2.13.1. By Production Value and Revenue, 2014-2018
2.13.2. By Segments, 2014-2018
2.13.3. Cause and Effect Relationship Between Dependent And Independent Factors Prevailing in China Agricultural Equipment Industry
2.14. Macroeconomic Factors in China Agricultural Equipment Industry
2.14.1. Farmers’ Per Capita Income in China, 2008-2018
2.14.2. Agricultural Land in China, 2008-2018
2.14.3. Government Subsidies for Agricultural Equipments in China, 2008-2018
2.14.4. Inflation Rate in China, 2008-2018
2.14.5. Major Crop Production in China, 2008-2013
2.14.6. Agricultural Workforce in China, 2008-2018
3. APPENDIX
3.1. Market Definitions
3.2. Abbreviations
3.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Final Conclusion
3.4. Disclaimer
1.1. Value Chain of the Agricultural Industry and Equipments Used for Different Applications
1.2. Asia Pacific Agricultural Equipment Market Size by Value, 2008-2013
1.3. Asia Pacific Agricultural Equipment Market Segmentation by Geography, 2008-2013
1.4. Growth Drivers and Opportunities in Asia Pacific Agricultural Equipment Industry
Shortage of Labor
Land Use Consolidation
Rising Farmers’ Income
1.5. Issues and Challenges in Asia Pacific Agricultural Equipment Industry
Lack of Skilled Manpower
Tariff Difference on Machines and Spare Parts
1.6. Competitive Landscape of Major Companies in Asia Pacific Agricultural Equipment Industry
1.7. Asia Pacific Agricultural Equipment Industry Future Outlook and Projections, 2014-2018
1.7.1. By Revenue, 2014-2018
1.7.2. By Geography, 2014-2018
2. CHINA AGRICULTURAL EQUIPMENT INDUSTRY INTRODUCTION
2.1. China Agricultural Equipment Market Size by Production Value and Revenue, 2008-2013
2.2. China Agricultural Equipment Market Segmentation (Tractors, Combine Harvesters, Rice Transplanters, Cotton Processing Machinery), 2008-2013
2.2.1. By Production Volume, 2008-2013
2.2.2. Greater Than 25HP Tractor Sales in China, 2008-2013
2.3. Total Power of Agricultural Equipments in China, 2008-2013
2.4. Mechanization Level of Agriculture in China, 2008-2013
2.4.1. National Agricultural Mechanization, 2008-2013
2.4.2. Mechanization Level of Agricultural Processes, 2008-2013
2.5. Export and Import of Agricultural Equipments in China, 2008-2013
2.6. Government Regulations and Support Schemes for Agricultural Equipment Industry in China
2.6.1. Law on Promotion of Agricultural Mechanization in China
2.6.2. Government Subsidies for Purchase of Agricultural Equipment, 2008-2013
2.7. Trends and Developments in China Agricultural Equipment Industry
Technological Joint Ventures
The Expansion of Agricultural Machinery Cooperatives and Owners
Increasing Proportion of High Horse Power Tractors
2.8. Growth Drivers and Opportunities in China Agricultural Equipment Industry
Growth of Agricultural Activity
Favorable Government Policies
Improved Access to Agricultural Equipments
2.9. Issues and Challenges in China Agricultural Equipment Industry
Poor Utilization Rate
Unbalanced Development of the Agricultural Equipment Industry
Raw Material Price Volatility
2.10. SWOT Analysis of China Agricultural Equipment Industry
2.11. Market Share of Major Companies in China Agricultural Equipment Industry
2.11.1. Market Share of Major Companies in Greater Than 25HP Tractor Market in China, 2013
2.11.2. Market Share of Major Companies in Low Powered (>25 HP) Tractor Market in China, 2011
2.12. Competitive Landscape of Major Companies in China Agricultural Equipment Industry
2.13. China Agricultural Equipment Industry Future Outlook and Projections, 2014-2018
2.13.1. By Production Value and Revenue, 2014-2018
2.13.2. By Segments, 2014-2018
2.13.3. Cause and Effect Relationship Between Dependent And Independent Factors Prevailing in China Agricultural Equipment Industry
2.14. Macroeconomic Factors in China Agricultural Equipment Industry
2.14.1. Farmers’ Per Capita Income in China, 2008-2018
2.14.2. Agricultural Land in China, 2008-2018
2.14.3. Government Subsidies for Agricultural Equipments in China, 2008-2018
2.14.4. Inflation Rate in China, 2008-2018
2.14.5. Major Crop Production in China, 2008-2013
2.14.6. Agricultural Workforce in China, 2008-2018
3. APPENDIX
3.1. Market Definitions
3.2. Abbreviations
3.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Final Conclusion
3.4. Disclaimer
LIST OF FIGURES
Figure 1: Agricultural Industry Value Chain and Equipments Used
Figure 2: Asia Pacific Agricultural Equipment Market Size on the Basis of Sales Value in USD Million, 2008-2013
Figure 3: Asia Pacific Agricultural Equipment Market Segmentation on the Basis of Contribution to Revenue by Different Countries in Percentage (%), 2008-2013
Figure 4: Asia Pacific Agricultural Equipment Future Projection on the Basis of Revenue in USD Million, 2014-2018
Figure 5: Asia Pacific Agricultural Equipment Market Future Projection on the Basis of Revenue Contribution by Different Geographies in Percentage (%), 2014-2018
Figure 6: China Agricultural Equipment Market Size on the Basis of Production Value and Revenue in USD Million, 2008-2013
Figure 7: Greater Than 25HP Tractor Sales in China in Units, 2009-2013
Figure 8: Total Power of Agricultural Equipments in China in Million Kilowatts, 2008-2013
Figure 9: Level of Agricultural Mechanization in China in Percentage (%), 2008-2013
Figure 10: Level of Farm Mechanization by Ploughing, Planting and Harvesting in Percentage (%), 2008-2013
Figure 11: Export and Import of Agricultural Equipments in China in USD Million, 2008-2013
Figure 12: Government Subsidies for the Purchase of Agricultural Equipment in China in USD Million, 2008-2013
Figure 13: Proportion of Small and Medium-Large Tractors in the Overall Production of Tractors in China in Percentage (%), 2008-2013
Figure 14: Market Share of Major Companies in Greater Than 25 HP Tractor Market in China on the Basis of Sales Volume in Percentage (%), 2013
Figure 15: Greater Than 25 HP Tractor Sales of Major Companies in China in Units, 2013
Figure 16: Market Share of Major Companies in Low-Powered (>25 HP) Tractor Market in China on the Basis of Sales Volume in Percentage (%), 2011
Figure 17: China Agricultural Equipment Future Projection on the Basis of Production Value and Revenue in USD Million, 2014-2018
Figure 18: China Per Capita Farmers’ Income in USD, 2008-2018
Figure 19: China Agricultural Land in Million Hectares, 2008-2018
Figure 20: Government Subsidies for Agricultural Equipments in China in USD Million, 2008-2018
Figure 21: Inflation Rate in China in Percentage (%), 2008-2018
Figure 22: China Agricultural Workforce in Million, 2008-2018
Figure 1: Agricultural Industry Value Chain and Equipments Used
Figure 2: Asia Pacific Agricultural Equipment Market Size on the Basis of Sales Value in USD Million, 2008-2013
Figure 3: Asia Pacific Agricultural Equipment Market Segmentation on the Basis of Contribution to Revenue by Different Countries in Percentage (%), 2008-2013
Figure 4: Asia Pacific Agricultural Equipment Future Projection on the Basis of Revenue in USD Million, 2014-2018
Figure 5: Asia Pacific Agricultural Equipment Market Future Projection on the Basis of Revenue Contribution by Different Geographies in Percentage (%), 2014-2018
Figure 6: China Agricultural Equipment Market Size on the Basis of Production Value and Revenue in USD Million, 2008-2013
Figure 7: Greater Than 25HP Tractor Sales in China in Units, 2009-2013
Figure 8: Total Power of Agricultural Equipments in China in Million Kilowatts, 2008-2013
Figure 9: Level of Agricultural Mechanization in China in Percentage (%), 2008-2013
Figure 10: Level of Farm Mechanization by Ploughing, Planting and Harvesting in Percentage (%), 2008-2013
Figure 11: Export and Import of Agricultural Equipments in China in USD Million, 2008-2013
Figure 12: Government Subsidies for the Purchase of Agricultural Equipment in China in USD Million, 2008-2013
Figure 13: Proportion of Small and Medium-Large Tractors in the Overall Production of Tractors in China in Percentage (%), 2008-2013
Figure 14: Market Share of Major Companies in Greater Than 25 HP Tractor Market in China on the Basis of Sales Volume in Percentage (%), 2013
Figure 15: Greater Than 25 HP Tractor Sales of Major Companies in China in Units, 2013
Figure 16: Market Share of Major Companies in Low-Powered (>25 HP) Tractor Market in China on the Basis of Sales Volume in Percentage (%), 2011
Figure 17: China Agricultural Equipment Future Projection on the Basis of Production Value and Revenue in USD Million, 2014-2018
Figure 18: China Per Capita Farmers’ Income in USD, 2008-2018
Figure 19: China Agricultural Land in Million Hectares, 2008-2018
Figure 20: Government Subsidies for Agricultural Equipments in China in USD Million, 2008-2018
Figure 21: Inflation Rate in China in Percentage (%), 2008-2018
Figure 22: China Agricultural Workforce in Million, 2008-2018
LIST OF TABLES
Table 1: Asia Pacific Agricultural Equipment Market Segmentation on the Basis of Revenue of Different Geographies in USD Million, 2008-2013
Table 2: Competitive Landscape of Major International Players in Asia Pacific Agricultural Equipment Industry
Table 3: Asia Pacific Agricultural Equipment Market Future Projection on the Basis of Revenue by Different Geographies in USD Million, 2014-2018
Table 4: China Agricultural Equipments Market Segmentation on the Basis of Production of Types of Equipments in Units, 2008-2013
Table 5: Mechanization Level of Major Crops in China in Percentage (%), 2012
Table 6: China Agricultural Equipment Industry SWOT Analysis
Table 7: Competitive Landscape of Major Domestic Companies in China Agricultural Equipment Industry
Table 8: China Agricultural Equipments Market Future Projections on the Basis of Production of Types of Equipments in Units, 2014-2018
Table 9: Cause and Effect Relationship Analysis between Industry Factors and Expected Agricultural Equipment Market Prospects
Table 10: Major Crops Production in China in 10,000 Tons, 2008-2013
Table 11: Correlation Matrix of the China Agricultural Equipment Industry
Table 12: Regression Coefficients Output
Table 1: Asia Pacific Agricultural Equipment Market Segmentation on the Basis of Revenue of Different Geographies in USD Million, 2008-2013
Table 2: Competitive Landscape of Major International Players in Asia Pacific Agricultural Equipment Industry
Table 3: Asia Pacific Agricultural Equipment Market Future Projection on the Basis of Revenue by Different Geographies in USD Million, 2014-2018
Table 4: China Agricultural Equipments Market Segmentation on the Basis of Production of Types of Equipments in Units, 2008-2013
Table 5: Mechanization Level of Major Crops in China in Percentage (%), 2012
Table 6: China Agricultural Equipment Industry SWOT Analysis
Table 7: Competitive Landscape of Major Domestic Companies in China Agricultural Equipment Industry
Table 8: China Agricultural Equipments Market Future Projections on the Basis of Production of Types of Equipments in Units, 2014-2018
Table 9: Cause and Effect Relationship Analysis between Industry Factors and Expected Agricultural Equipment Market Prospects
Table 10: Major Crops Production in China in 10,000 Tons, 2008-2013
Table 11: Correlation Matrix of the China Agricultural Equipment Industry
Table 12: Regression Coefficients Output
