Press release
Indonesia Agriculture Equipment Market Future Outlook, Market Top Companies, Market Analysis, Market Growth Rate, Market Trends and Forecast to 2029
In recent years, Indonesia's agricultural equipment market has emerged as a vital pillar in the country's efforts to modernize its farming sector. Indonesia's agriculture industry will account for more than 13.7% of GDP in 2024 and employ more than 29% of the labor force, making it vital to the country's economic stability. The Indonesian agriculture industry is developing as a result of greater usage of mechanical tools and smallholder farmers investing heavily in low-cost two-wheeler tractors and low-power equipment. Furthermore, with gaining popularity of IoT-enabled equipment the market is exposed to innovation and growth.
Recent Trends and Developments
• Increasing adoption of GPS-enabled and IoT-integrated machinery give rise to precision agriculture, transforming the traditional farming practices. As of 2024, approximately 30% of harvesters and tractors were equipped with precision technology. These technology helps farmers optimize their resources and also in increasing crop yield by nearly 20%.
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• The rapid shift from manual labour to mechanization among smallholdings farmers is driving the demand for mechanized tools. In 2024, there was 25% rise in the farmers adopting mechanized tools and hand tractors being the most demanded with approximately 300,000 units in use as of 2024.
• The need for sustainable equipment has fueled the development and adoption of environmentally friendly and energy-efficient technology. Furthermore, the government's goal of reducing greenhouse gas emissions by 29% by the end of 2024 has created new opportunities for solar-powered irrigation systems and battery-powered tractors.
Barrier of Fragmented Lands
One of the major challenges hindering the Indonesia agriculture equipment market is fragmented land holdings. According to the Ministry of Agriculture, approximately 75% of Indonesian farmers work on plots smaller than two hectares. These small plots are frequently unevenly shaped, limiting the use of large-scale machinery and reducing machine use by approximately 30% by 2024, according to the International Rice Research Institute (IRRI). Also reports states that these smallholding farmers prefer two-wheeled tractor due to their adaptability in small plots and affordability.
Navigating Competitive Landscape
The Indonesia agriculture equipment market is moderately fragmented, with mix of local manufacturers and global giants fighting for market dominance. The major players leading the market with their innovative offerings include Kubota Corporation, Yanmar Holdings Co., Ltd., and John Deere. Kubota has recently introduced GPS-enabled model capturing nearly 40% of the four-wheeled tractor segment as of 2024. Yanmar in early 2024 launched rice harvester which designed especially for the rice crop which is dominant crop of Indonesia leading to the company capturing over 35% of combine harvester sales in the year. The market will witness increased localization in the upcoming years with domestic players like PT Pindad and Traktor Nusantara capturing the market with government initiatives to promote local manufacturing.
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Indonesia Agriculture Equipment Market Future Outlook
The Indonesia agriculture equipment market is set to transform in the upcoming years, driven by mechanization. The adoption of precision agriculture is expected to be double by the year 2029, which currently accounts for nearly 30% of new equipment sales as of 2024. Furthermore, the government is also launching number of initiatives including Mechanization Acceleration Program are also fuelling the market. The future growth of the agriculture equipment market in Indonesia will be supported by police's aiming to reduce import and encourage local manufacturing. The competition in the market will also intensify in the upcoming years, fostering innovation which is essential for the Indonesia agriculture equipment market.
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Consultant at TraceData Research In their latest publication "Indonesia Agriculture Equipment Market Outlook to 2029: By type (Combines, Plows, Sprayers, Planters, Others), By power source (Mechanical, Electrical, Others), and By function (Plowing & Cultivating, Sowing & Planting, Plant Protection & Fertilizing, Harvesting & Threshing)" believe that the companies can lead the market by developing innovative machinery for smallholder farmers, expanding localised network, and focusing on sustainable precision agriculture.
Explore Our Other Agriculture Equipment Related Report by Trace Data: -
Thailand Used Agricultural Equipment Market- https://www.tracedataresearch.com/industry-report/thailand-used-agricultural-equipment-market
Japan Smart Agriculture Market - https://www.tracedataresearch.com/industry-report/japan-smart-agriculture-market
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TraceData Research is a full-stack market research company founded by research professionals with over 15 years of industry experience. The company is recognized for its proprietary methodologies, deep consumer understanding, high-quality research, and entrepreneurial mindset.
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