Global and China Agricultural Machinery Industry Report, 2020-2026

Affected by insufficient demand for traditional products, adjustment of purchase subsidy policies, and lower prices of grain crops, China’s agricultural machinery sales remain a downward trend.

In 2019, the total revenue of agricultural machinery enterprises (each with annual revenue over RMB20 million) nationwide was RMB 246.467 billion, a decrease of 4.43% over the previous year, and the industry’s profits were RMB 10.339 billion, down 0.25% from a year ago. In 2019, China produced 40,000 large tractors on a par with that in 2018 238,000 medium-sized tractors were produced with a year-on-year increase of 17.2% the output of small tractors jumped 3.7% year-on-year to 340,000 units the harvester output was estimated at 255,000 units, a fall of 11.2% on an annualized basis.

China is superior in exporting agricultural machinery amid less dependence on imported products on account of ever better technologies about China-made agricultural machinery. In 2019, China imported 10,945 agricultural machines and fell 9.1% from the previous year. At the same time, China’s agricultural machinery exports in 2019 plummeted by 17.2% year-on-year due to the depressed industry, the upgrading of National Emission Standards IV, and the Sino-US trade war.

By the end of 2018, the total power of China’s agricultural machinery had reached 1.0037 billion kW, up 1.6% on a like-for-like basis. The comprehensive mechanization rate of crops for the whole year edged up 1.87 points YoY to 69.1% wherein, the overall mechanization rate of wheat fetched the highest 95.89%, and the comprehensive mechanization rate of rice, corn and soybean was above 80% apiece. Under favorable policies, the comprehensive mechanization rate of crops in China is rising year by year, expectedly reaching 77% by 2026.

At present, China’s plant protection UAV penetration rate is far below the world average. It is clearly put forward in the State Council’s Guidelines on Accelerating the Transformation and Upgrade of Agricultural Mechanization and Agricultural Machinery & Equipment Industry issued in 2018 to ‘actively develop agricultural aviation, regulate and popularize plant protection UAVs’. So far, Hubei, Jiangxi, Shandong, Hunan, Anhui, Guangdong and other provinces and cities have rolled out subsidies for plant protection UAVs each of which is granted more than RMB 10,000.

Opportunities come with challenges in the agricultural machinery of China. The growing number of collective users such as cooperatives, farms, and agricultural reclamations year by year and the policies for subsoiling, deep plowing, land circulation and agricultural machinery purchase subsidies are conducive to the burgeoning demand for large, high-end and intelligent machines like high-power tractors. With stricter environmental requirements, off-road machinery emission standards will be inevitable upgraded and the technical threshold for industry accession will be raised ever.

Highlights in the report:

• Status quo of global agricultural machinery market, development of agricultural machinery in major countries and key enterprises, etc.
• China’s agricultural machinery market environment and policy climate (including planning, subsidies and emission standards for agricultural machinery)
• China’s agricultural machinery industry (overview, main products, major enterprises, agricultural mechanization , future trends)
• Chinese tractors, harvesters, rice transplanters, cotton pickers, grain dryers, plant protection UAVs (sales volume, ownership, market characteristics, key enterprises, and development trends)
• Development of agricultural machinery industry in China’s 17 major agricultural machinery producing provinces (including Heilongjiang, Shandong, Henan, etc.)
• 8 global and 18 Chinese agricultural machinery enterprises (operation, R&D, development strategy, etc.)

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