Indonesia Agriculture Equipment Market Analysis:
The revenue from overall
agriculture equipment market decreased at a single-digit CAGR of (~ %) during
the review period 2014-2020. Contribution of tractor market to the overall
market stood at more than 50.0% in terms of revenue and more than 90% in terms
of sales volume during 2020. Combine Harvesters have been the second-largest
category to the overall revenues of the agriculture equipment market largely
owing to their benefit to speed up harvesting time.
By Product Type (Tractors,
Combine Harvesters, Rice Transplanters and Implements): Tractors segment was
observed to dominate within Indonesia agriculture equipment market during
2014-2020 period both in terms of sales value and volume. Demand for lower HP tractors
is high in Indonesia due to the low disposable income of farmers and high labor
cost. Farmers prefer small & customized tractors for agricultural purposes
due to small farmland sizes.
2W tractors are used
throughout the country but majority of the demand comes from Java, Sulawesi and
South Sumatra. CV. Karya Hidup Sentosa produces hand tractors under the brand
QUICK and PT Kubota Indonesia are some of the major brands selling 2W & 4W
tractors in Indonesia respectively. Improvement in irrigation &
transportation systems in Kalimantan & Sumatra has generated higher
concentration of farm machinery in these areas.
Indonesia
Combine Harvesters Market:
The benefit of Combine
Harvesters to speed up Harvesting Time has driven the demand for this
particular agriculture equipment segment. Various government reforms, including
the fertilizer subsidy policy and seed development policy were aimed at aiding
the revival of displaced farmers. These reforms helped the steady growth in the
demand for agricultural machinery even during periods of crisis.
By
Regional Demand of Combine Harvesters:
Sulawesi region generated
demand for above 70HP combine harvesters owing to higher land holding farm
size. Within Java, East and central Java has countered majority of the sales.
The Java region is characterized by fragmented land holdings but has the highest
land under rice cultivation.
Indonesia
Rice Transplanters Market:
Rice transplanters are not
popular in retail market as they are capital intensive and require heavy
training for operations. Also, decline in rice production during 2019 coupled
with reduction in govt. subsidies towards rice transplanters and higher
substitute sale of CHs also led to market decline.
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By
Regional Demand of Agriculture Tractors:
In Indonesia, majority of
the sales for rice transplanters is done by government of Indonesia especially for
4 rows rice transplanters. Manufacturers have realized that small farm holdings
by a majority of farmers have resulted in the demand for small machinery, due
to which they only sell 4 row rice transplanters in Indonesia. Higher income
from farm operations (Rice farming) in Kalimantan & Sulawesi had resulted
in these regions to support sales. Java has managed to report highest sales for
rice transplanters in Indonesia, with West, East & central Java to contribute
majority of the sales
Indonesia
Implements Market:
Implements market in terms
of revenue showcased positive growth along with a positive CAGR of ~% during
the review period 2014-2020. Demand for tractor implements is complimentary to
the sale of 2W & 4W tractors since majority of farmers procure implements
along with tractors. Java and Sumatra have the highest sales for 2 wheel
tractors, which have implied majority of the total sales in Indonesia for
tractor implements. They have above average farm holding size leading to the
need for higher levels of mechanization
By
Product Type:
Rotavator & ploughs are
the most preferred and demanded tractor implement as they help in seedbed preparation
and ploughing of land. Tractor implements including harrows, tractor powered
sprayers and land levelers are mainly demanded in Kalimantan and Sumatra
Comparative
Landscape in Indonesia Agriculture Equipment Market:
Competition within the
Indonesia agriculture equipment market was observed to be moderately fragmented
with the dominance of International brands such as Yanmar, Kubota and other
local manufacturers. Quick dominated the 2W tractor segment and Kubota took
lead in terms of sales volume for 4W tractor segment during 2020. For combine
harvesters segment, Yanmar and Kubota collectively dominated with over 70% sales
volume during 2020 in Indonesia. PT Yanmar also showcased dominance towards
rice transplanter segment in 2020. These companies compete on the basis of
parameters such as price, products offered, number of tractor variants,
distribution network, and after sales service.
Indonesia
Agriculture Equipment Market Future Outlook and Projections:
Mechanization rate for land
preparation is higher in Indonesia and it is forecasted to get mechanized
further as the farmers are likely to increase the usage of disc plough on the
farms. Also, the Indonesian government plans to boost national production of
local agricultural machinery & has prepared a budget worth $538 Mn for
machinery development.
Key
Factors Considered in the Report:
·
Comprehensive analysis of Indonesia
Agriculture Equipment Market
·
Agriculture
Machinery Distributors in Indonesia
·
Major Agriculture Equipment Manufacturers and
their plans and strategies.
·
Identified major trends and developments in
the market and assessed the future growth of the market.
·
Additional Focus on Second Hand Market,
Rental Market and Financing for Agriculture Equipment
·
COVID-19 Impact on Indonesia Agriculture
Equipment Market
·
Analyst Recommendations
Related Reports
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