How is Agriculture Equipments Market
Positioned in Philippines?
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.
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. Philippines Agricultural Equipment Market size
(based on volume) increased from ~ units in 2013 to ~ units in 2018 registering
a positive CAGR of ~% in terms of volume during 2013-2018. On the other hand,
the revenue increased from USD ~ million in 2013 to USD ~ million in 2018
recording a CAGR of ~% during the period 2013-2018. The market growth is
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.
Philippines Agriculture Equipment Market
Segmentation
By Product Type: Tractors recorded the highest sales
amounting to ~ units sold 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. The high cost of machine
makes it difficult for farmers who are financially weak to afford tractor that
has led to emergence of equipment leasing business in the country which in turn
has led to easy affordability of the most basic farm equipment. This was
followed by tillage equipments including ploughs, harrows and rotovators registered
for ~ units sold in 2018. Third highest contribution was made by the sales of
combine harvesters holding ~% share in the equipment market. Planters, seeders
and transplanters occupied the least market share as equipments such as
tractors and tillage equipments can be put to varied use and hence can carry
out the same work with higher efficiency and reduced time.
By Region: Luzon has been the hotspot for the sales of
agriculture equipment accounting to ~ 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 Visayas, registering ~ units sold owing to huge volume of sugarcane
produced in the region. Mindanao occupied the least market share with ~ units
sold. The region is under constant terror threat that hampers the development
of the region and ultimately reduces the demand for farm equipment in the
region.
By Place of
Production: Philippines Agricultural Equipment Market is dominated largely by
imports accounting to ~% market share in 2018. All major imports were majorly
carried out from Thailand, China and Japan during the review period (2013-18).
How Competition Scenario Works In Philippines
Agriculture Equipment Market?
Agricultural
Equipment Market for Tractors is highly concentrated and extensively dominated
by 5 international manufacturers occupying a share of over ~% in terms of sales
volume in 2018, with Kubota contributing to ~% tractors sold in the country.
The market for combine harvesters is also highly concentrated with 3 leading
players occupying ~% market, with Kubota contributing to ~% combine harvesters
sold in the same year.
Majorly all
international OEMs have extensive domestic distribution networks wherein they
import their machinery to serve commercial as well as small scale farmers.
Dominance of international manufacturers is a consequence of the trust and
brand value attached with the products of these players thus making it difficult
for domestic OEMs to establish company name in short run. Domestic OEMs also
lack in technical expertise and initial investment required for manufacturing
the machines, keeping their share very low in the market. Leading international
manufacturers as per the revenue earned in 2018 include Kubota, Yanmar, Massey
Ferguson, CNH (Case IH & New Holland) and John Deere. The international manufacturers conduct
operations in South Africa through their authorized distribution and dealership
network. Major competing parameters for the entities include price of
equipment, brand image, after sales services, distribution and dealership
network, quality of product and marketing and Promotion of the products,
product portfolio, years of establishment and digitalization brought in the
equipments.
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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Ankur Gupta, Head Marketing &
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