The report titled “Philippines
Agricultural Equipment Market Outlook to 2023- By Product Type (Tractors,
Combine Harvesters, Planters, Seeders and Tillage Equipments), By Tractor
Segment (Upto 60 Hp, between 61-130 Hp and above 130 Hp), By Production (Imported
and Domestically Manufactured) and By Region (Luzon, Visayas and Mindanao)”
provides a comprehensive analysis on the Agricultural Equipment Market in
Philippines. The report covers various aspects including overview and market
size, market segmentation, trends and development, issues and challenges,
snapshots on (Equipments Financing and Rentals, Aftermarket services and Diesel
Engines), competitive landscape, market share of major players (Kubota, Yanmar,
Massey Ferguson, CNH, John Deere, McCormick and Landini) in agricultural
equipment market. The report concludes with market projection and analyst
recommendations highlighting the major opportunities and cautions.
Market
Overview and Size
Genesis: Agricultural Equipment Market started to boom
with the introduction of rice combine harvesters by Kubota in 2010. During the
initial years, farmers were hesitant in adopting these equipments as they had
no knowledge about usage of these equipments and also feared losing their job.
However, growing support from the government and private investors, helped in
enhancing farm mechanization in the country.
Major
Stakeholders: Agricultural
Equipment Market in Philippines is import driven. Domestic demand for
equipments is principally met through imports which are primarily imported from
countries such as Thailand, Japan, China, US, Korea and India. The major
stakeholders in the market are international OEMs, domestic distributors and
handful domestic OEMs who import machine parts and combine it to complete the
assembling of the machine.
Market
Size: Philippines Agricultural Equipment
Market size (based on volume and value) increased in 2018 registering a
positive single digit CAGR during 2013-2018.The market growth was fuelled by
increasing government subsidies for farm mechanization, training programs
organized by DA, increasing adoption of smart farm methods, increased awareness
towards farm machine mechanization and growing use of drone technology.
However, the market growth is hampered due to high initial cost of investment;
technology disabled operators and seasonal changes in the country.
Philippines
Agriculture Equipment Market Segmentation
By
Product Type (Tractors, Combine Harvesters, Planters, Seeders and Transplanters
and Tillage Equipments): Tractors
recorded for the highest sales in 2018 owing to its wide usage in farming
applications including seed bed preparation, sowing and planting, weed removal,
plant protection, harvesting and post harvesting. This is followed by combine
harvesters that are multi-functional machine used for various purposes such as
harvesting, threshing and winnowing into a single process and is mainly
dominant in rice and corn farming. On the other hand, Tillage Equipments along
with Planters, Seeders and Transplanters including ploughs, harrows and
rotovator occupy the least market share.
By
Tractor Segment (Upto 60 Hp, Between 61-130 Hp and Above 130 Hp): Tractors upto 60 Hp contributed a major share
in terms of sales volume in 2018 as they support the basic farming activities
such as mowing and manure handling along with less cost of investment and
compact farm size that has helped the segment in gaining the maximum market
share. The demand for tractors between 61-130 Hp occupies the second largest
market share as they are utility tractors primarily used for corn cultivation.
Tractors above 130 Hp occupy the least market share due to the high price of
the machine.
By
Imports and Domestically Manufactured:
Philippines Agricultural Equipment Market is dominated largely by imports. Imported
machines occupying a significant market share in 2018 with all major imports
majorly carried out from Thailand, China and Japan during the period. Lack of
expertise in manufacturing of complex machines and acceptability/trust for
domestically manufactured equipments has increased the dependency on imported
machines leaving domestically manufactured equipments with a least market
share.
By
Region (Luzon, Visayas and Mindanao):
Luzon has been the hotspot for the sales of agriculture equipment and occupies
a major market share based on units sold in 2018. This can be directly
associated with Luzon being the heart of agriculture in the country that has
led to increasing demand for agricultural equipments in the area. This is
followed by Mindanao, registering second largest demand for agricultural
equipments owing to huge volume of sugarcane produced in the region. Mindanao
occupies the least market share as the area is under constant terror threat
that hampers the development of the region and ultimately reduces the demand
for farm equipment in the region.
Competitive
Landscape
Agricultural Equipment Market in
Philippines is highly concentrated. Kubota is the market leader with the
highest market share on the basis of sales of equipment in 2018. This was
followed by Yanmar, Massey Ferguson, CNH (Case IH & New Holland), John
Deere, McCormick, Landini and Others. These players compete in the agricultural
equipment market on the basis of price of equipment, brand image, after sales
services, distribution and dealership network, quality of product and marketing
and promotion of the products.
Philippines
Agricultural Equipment Market Future Outlook
Philippines Agricultural Equipment
Market is expected to experience an upward trend in terms of sales volume as well
as sales value owing to increasing demand for food due to steady growing
population, increasing prices of agricultural equipments with emerging players
in the market, increasing number of financing options and penetration of
driverless tractors in Philippines. Various government supporting policies such
as the Rural Development Project and Inclusive Partnerships for Agricultural
Competitiveness Project are expected to facilitate growth of agricultural
sector and hence increasing the demand for agricultural equipment.
Key
Segments Covered
By
Product Type
Tractors
Combine Harvesters
Planters, Seeders and Transplanters
Tillage Equipment (Ploughs, Harrows
and Rotovators)
By
Tractor Segment
Upto 60 Hp
Between 61-130 Hp
Above 130 Hp
By
Production
Imported
Domestically Manufactured
By
Region
Luzon
Visayas
Mindanao
Key
Target Audience
Agricultural Equipment Companies
New Market Entrants- Domestic OEMs
New Market Entrants- Foreign OEMs
Agricultural Equipment Financing
Companies
Government Bodies
Investors & Venture Capital Firms
Agricultural Equipment Manufacturers
Agricultural Equipment Distributors
Agricultural Equipment Associations
Time
Period Captured in the Report:
Historical
Period: 2013-2018
Forecast
Period: 2019-2023E
Major
Companies Covered:
Kubota
Yanmar
Massey Ferguson
CNH (Case IH & New Holland)
John Deere
McCormick
Landini
Key
Topics Covered in the Report
Executive Summary
Research Methodology
Philippines Agriculture Equipment
Market Overview
Philippines Agriculture Equipment
Market Size, 2013-2018
Philippines Agriculture Equipment
Market Segmentation, 2018
Growth Drivers in Philippines
Agriculture Equipment Market
Issues and Challenges in Philippines
Agriculture Equipment Market
Regulatory Framework
Snapshots on Equipment Financing and
Rentals, After Market Services and Diesel Engines
Competitive Landscape
Company Profiles of Major Players
Philippines Agriculture Equipment
Future Outlook and Projections, 2018-2023E
Philippines Agriculture Equipment
Future Segmentation, 2018 - 2023E
Analyst Recommendations
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