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Indonesia Agriculture Equipment Market Size and Research 2022, CAGR Status, Growth Analysis by Countries, Development Factors, Business Updates and Strategies till 2025: Ken Research

10-12-2022 09:47 AM CET | Advertising, Media Consulting, Marketing Research

Press release from: Ken Research Pvt .Ltd

Indonesia Agriculture Equipment Market Size and Research 2022,

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.

Indonesia Tractors Market:

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.

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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
https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/thailand-agricultural-machinery-market-outlook/344772-104.html

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/us-tractor-and-combine-harvesters-market-outlook/278585-104.html

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/philippines-agricultural-equipment-market-outlook/248571-104.html

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Ken Research is a research based management consulting company. We provide strategic consultancy to aid clients on critical business perspective: strategy, marketing, organization, operations and technology transformation, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies. We provide business intelligence and operational advisory across 300+ verticals underscoring disruptive technologies, emerging business models with precedent analysis and success case studies. Some of top consulting companies and Market leaders seek our intelligence to identify new revenue streams, customer/ vendor paradigm and pain points and due diligence on competition.

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