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Indonesia agriculture equipment market outlook to 2025: Ken Research
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Friday, 26 February, 2021, 16 : 00 PM [IST]
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Indonesia
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The report titled ‘Indonesia Agriculture Equipment Market Outlook to 2025 - By Tractors Market and Regional Demand of Agriculture Equipment (Java, Sulawesi, Sumatra, Kalimantan and Others' provides a comprehensive analysis on the performance of the agriculture equipment industry in Indonesia. The report covers various aspects including sales value, volume, trends and developments, issues and challenges faced by the industry, competition landscape, financing players and others. It also covers the country overview, regulatory framework, agricultural overview of Indonesia, land under cultivation, changes in the cropping patterns, farm holding structure and scale of mechanisation.
Indonesia agriculture equipment market report concludes with the projections for future of industry including forecasted sales value and volume; future projections by product type and regional demand by the year ending 2025, Covid-19 impact and analysts’ take on the future.
Indonesia Agriculture Equipment Market Overview and Size:
The revenues from the overall agriculture equipment market decreased at a single-digit CAGR of (-8.7 per cent) during the review period 2014-2020. Contribution of the tractor market to the overall market stood at more than 50 per cent in terms of revenue and more than 90 per cent 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.
Indonesia Agriculture Equipment Market Segmentation
Indonesia Tractors Market: Tractors Sales Volume and Revenue took a fall during 2014-2020 outlook periods at a negative CAGR of 6.8 per cent and 4.6 per cent respectively due to small landholding size, poor access to credit and financial institutions and deteriorating resource base which are collectively obstructing the growth of tractors. 4W Tractors have been segmented based on power out of which less than 40HP were the most preferred in Indonesia. On the other hand, 2W tractors have gaining traction due to a surge in the total number of farm households and agricultural cooperatives.
Indonesia Combine Harvesters Market: Combine harvester market value and volume showcased a constant growth pattern along with positive CAGR of 6.1 per cent each during 2014-2020 outlook period. Combine harvesters of 70 hp and below accounted for the highest total sales of combined harvesters. Various government reforms including the fertilizer subsidy policy and seed development policy were aimed at aiding the revival of displaced farmers.
Indonesia Rice Transplanters Market: Rice transplanter market value and volume showcased volatile growth pattern during 2014-2020 outlook period. Rice transplanters are not popular in the retail market as they are capital intensive and require heavy training for operations.
Indonesia Implements Market: Revenue from the implements segment increased at a CAGR of 4.7 per cent during 2014-2020. Demand for tractor implements is complimentary to the sale of 2W and 4W tractors since a majority of farmers procure implements along with tractors. Rotavator and ploughs are the most preferred and demanded tractor implement as they help in seedbed preparation and ploughing of land.
By Regional Demand (Jawa, Sulawesi, Kalimantan, Sumatra and Others): Java region dominated the tractors and rice transplanter product segment during 2020. However, the Sulawesi region took lead for combine harvesters in terms of sales volume during the year 2020.
Comparative Landscape of 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 per cent sales volume during 2020 in Indonesia. PT Yanmar also showcased dominance towards rice transplanter segment in 2020. These companies compete based on parameters such as price, products offered, number of tractor variants, distribution network, and after-sales service.
Indonesia Agriculture Equipment Market Future Outlook and Projections
Mechanisation rate for land preparation is higher in Indonesia and it is forecasted to get mechanised 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 and has prepared a budget worth $538 Mn for machinery development.
• By Product Segment - Combine harvesters are mainly demanded by a limited target audience and farmers and agricultural cooperatives and this trend is also expected to continue shortly. Manufacturers have invested in Research and Development to minimize post-harvest loss and reduction in grain damage during harvesting.
• By Regional Demand - Java region will continue to be the area with the highest demand and sales of hand tractors in the country. Demand for 4W tractors will continue to arise from Sumatra and Kalimantan regions in the future, due to the above-average farm holding size in these regions.
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