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Japanese Agricultural Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Japan Farm Equipment Companies and the Market is Segmented by Type Into Tractors (Horsepower {below 20 HP, 21-30 HP, 31-50 HP, and Above 50 HP}, Type {utility Tractor, Row Crop Tractor, Compact Utility Tractor, and Other Types }), Ploughing and Cultivating Machinery (ploughs, Harrows, Cultivators and Tillers, and Other Ploughing and Cultivating Machinery), Planting Machinery (seed Drills, Planters, Spreaders, and Other Planting Machinery), Harvesting Machinery (mowers, Balers, and Other Harvesting Machinery), Haying Machinery, and Irrigation Machinery. The Report Offers the Market Size and Forecasts for Agricultural Machinery in Value (USD) for all the Above Segments.

Japan Agricultural Machinery Market Size

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Japan Agricultural Machinery Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 4.90 Billion
Market Size (2029) USD 6 Billion
CAGR (2024 - 2029) 5.60 %
Market Concentration Low

Major Players

Japan Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Japan Agricultural Machinery Market with other markets in Agriculture Industry

Seeds

Crop Protection

Fertilizers

Agricultural Commodities

Agriculture Services

Agricultural Machinery and Technology

Japan Agricultural Machinery Market Analysis

The Japan Agricultural Machinery Market size is estimated at USD 4.90 billion in 2024, and is expected to reach USD 6 billion by 2029, growing at a CAGR of 5.60% during the forecast period (2024-2029).

  • Japan's agriculture sector contributes a mere 1.4% to the nation's GDP, with only 12% of its land deemed suitable for farming. While terraces are utilized in limited areas, they yield high crop outputs per unit. The Japanese government staunchly protects and supports its agricultural industry by prioritizing small-scale farming over expansive or commercial operations. This approach not only bolsters the agricultural sector but also fuels the growth of the agriculture equipment market. Japan boasts the highest agricultural mechanization levels in the Asia-Pacific. As a nation with a robust industrial backbone, its agriculture equipment industry is equally advanced.
  • However, Japan grapples with challenges like an increasing expanse of abandoned farmland and a rapidly aging farming populace. This demographic shift complicates the search for future agricultural labor, underscoring the urgent need for mechanization. Japan's driverless combine harvesters are poised for increased adoption, given their superior efficiency over traditional human-operated counterparts. In a bid to innovate, Japan's Ministry of Agriculture, Forestry, and Fisheries is channeling efforts into technologies like autonomous machinery, aiming to cut rice production costs. 
  • Tractors stand out as a primary piece of machinery for most farmers. In Japan, the adoption of tractors is outpacing that of other agricultural machinery. According to The Japan Agricultural Machinery Manufacturers Association (JAMMA) in 2023, tractor production reached 214,041 units. Looking ahead, the trend points towards a rising popularity of driverless tractors, given their enhanced efficiency in farming. Key players like Kubota Corporation, Yanmar Agribusiness, and John Deere are intensifying their efforts to elevate self-driving tractor sales in Japan. A testament to this push, John Deere, a prominent American agricultural machinery manufacturer, unveiled its fully autonomous tractor at CES 2022. This advanced machine, tailored for large-scale production, integrates Deere's 8R tractor with a TruSet-enabled chisel plow, a GPS guidance system, and cutting-edge technologies.Therefore, the increasing technological advancments and the urge of the Japanese government toward autonomous farm machinery are projected to increase the demand for agricultural machinery in Japan during the forecast period. 

Japan Agricultural Machinery Market Trends

The Need to Increase Farm Productivity Triggers the Demand

Japan's agriculture sector contributes a mere 1.4% to its GDP, despite only 12% of its land being arable. While terraces occupy only a fraction of Japan's landscape, they yield remarkably high crop outputs. With a growing population, this trend raises concerns about potential food scarcity. Given the constraints of Japan's agricultural land, meeting the nation's food demands poses a significant challenge. For example, rice yield slipped from 74,967 Kg per hectare to 69,208 Kg per hectare in 2022, underscoring the pressing need to boost farm yield and productivity. Embracing mechanization, especially with cutting-edge precision agriculture technology, can optimize land use and enhance production.

Moreover, the use of versatile agricultural machinery, including rotavators, cultivators, power tillers, and combine harvesters, has led to a notable reduction in labor dependency. Data from Japanese Government Statistics reveals that employment in the agriculture sector stood at 57 thousand in 2021, marking a 3% decline from the previous year. This dwindling agricultural labor force underscores the growing reliance on machinery in the nation's farming practices. In addition, agricultural equipment designed to minimize wastage plays a pivotal role in achieving self-sufficiency. For instance, combine harvesters: they not only curtail grain wastage during harvesting but also bolster the nation's ability to meet its food demands. Thus, the heightened adoption of such machinery not only boosts productivity but also curtails crop wastage.

Japan Agricultural Machinery Market: Area Harvested, Rice, 2021 - 2022

Rise in the Number of Tractors

Farmers predominantly rely on tractors as a primary piece of farm machinery. In Japan, the adoption of tractors is outpacing that of other agricultural machinery. According to the Japan Agricultural Machinery Manufacturers Association, the total production value of agricultural machinery in 2023 reached USD 3,269.68 million, with tractors accounting for a significant 52% of this valuation. Moreover, in 2023, tractor production in the country reached 113,847 units.

While production and purchases of tractors have displayed strong potential during the study period, this was largely attributed to the several key factors that have driven the surge in tractor sales including labor shortages, rising labor costs, supportive government policies, accessible credit facilities, and an overarching goal to boost agricultural productivity. Furthermore, rice stands out as Japan's premier crop, consistently representing about 47% of the nation's annual agricultural output value. Given rice's status as the country's most mechanized crop, there's a pronounced reliance on agricultural equipment, particularly tractors, for primary cultivation tasks.

Moreover, as they enhance farming efficiency, driverless tractors are poised to become increasingly popular in the coming years. In a bid to cut down rice production costs, the Ministry of Agriculture, Forestry, and Fisheries in Japan is spearheading the development of technologies such as autonomous tractors. Consequently, with government backing bolstering the push for driverless tractors, sales of these tractors are set to rise during the forecast period.

Japan Agricultural Machinery Market: Production Value in USD Million, Tractor, 2020-2023

Japan Agricultural Equipment Industry Overview

The agriculture machinery market in Japan is fragmented, with significant players holding a small share. These companies follow strategies such as new product launches and extensive promotions to increase their sales. The Japanese agricultural machinery industry includes active domestic players, like Deere & Company, Mitsubishi Agricultural Machinery Co. Ltd, Yanmar Co. Ltd, Iseki Co. Ltd, and Kubota Corporation.

Japan Agricultural Machinery Market Leaders

  1. Deere & Company

  2. Kubota Corporation

  3. Mitsubishi Mahindra Agricultural Machinery Co. Ltd

  4. Yanmar Co. Ltd

  5. Iseki & Co. Ltd

*Disclaimer: Major Players sorted in no particular order

Japan Agricultural Machinery Market Concentration
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Japan Agricultural Machinery Market News

  • January 2024: Yanmar Agribusiness Co., Ltd. (Yanmar AG), a subsidiary of Yanmar Holdings, has unveiled its e-X1 concept. This compact electric agricultural machine is engineered to drive towards zero emissions in agriculture. This machine supports a range of attachments, including rotary tillers and grass cutters, at both the front and rear. This versatility allows it to perform tasks such as weeding, snow removal, and cultivation.
  • June 2023: Deer and Company launched the VR model of the 5M Tractor for use in agricultural shows and dealer customer centers throughout Japan.
  • October 2022: Kubota company opened the Global Institute of Technology in Osaka, Japan which aims to increase research and development for new product developments per the region's business landscape and needs.

Japan Agricultural Machinery Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Declining Agricultural Labor

      2. 4.2.2 Rising Technological Advancments

      3. 4.2.3 Growing Support From Government

    3. 4.3 Market Restraints

      1. 4.3.1 High Initial Capital Investment

      2. 4.3.2 Complex Operating Systems

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Tractors

        1. 5.1.1.1 Horse Power

          1. 5.1.1.1.1 Below 20HP

          2. 5.1.1.1.2 21 - 30 HP

          3. 5.1.1.1.3 31 - 50 HP

          4. 5.1.1.1.4 Above 50 HP

        2. 5.1.1.2 Type

          1. 5.1.1.2.1 Utility Tractor

          2. 5.1.1.2.2 Row Crop Tractor

          3. 5.1.1.2.3 Compact Utility Tractor

          4. 5.1.1.2.4 Other Types

      2. 5.1.2 Ploughing and Cultivating Machinery

        1. 5.1.2.1 Ploughs

        2. 5.1.2.2 Harrows

        3. 5.1.2.3 Cultivators and Tillers

        4. 5.1.2.4 Other Plowing and Cultivating Machinery

      3. 5.1.3 Planting Machinery

        1. 5.1.3.1 Seed Drills

        2. 5.1.3.2 Planters

        3. 5.1.3.3 Spreaders

        4. 5.1.3.4 Other Planting Machinery

      4. 5.1.4 Harvesting Machinery

        1. 5.1.4.1 Mowers

        2. 5.1.4.2 Balers

        3. 5.1.4.3 Other Harvesting Machinery

      5. 5.1.5 Haying Machinery

      6. 5.1.6 Irrigation Machinery

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Messey Ferguson (AGCO)

      2. 6.3.2 Deere and Company

      3. 6.3.3 CNH Industrial NV

      4. 6.3.4 Kukje Machinery Company Limited

      5. 6.3.5 Kubota Tractor Corp.

      6. 6.3.6 Mahindra & Mahindra Ltd

      7. 6.3.7 Yanmar Company Limited

      8. 6.3.8 Kubota Corporation

      9. 6.3.9 Netafim Limited

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Japan Agricultural Machinery Industry Segmentation

Agricultural equipment/machinery can be defined as machines that are used to perform agricultural operations such as harvesting, plowing, irrigation, planting, and other agricultural operations. The Japan Agricultural Machinery Market is segmented by type into tractors (Tractor by Horsepower {below 20 HP, 21-30 HP, 31-50 HP, and above 50 HP}), (Tractor by Type {utility tractor, row crop tractor, compact utility tractor, and other types}, ploughing and cultivating machinery (ploughs, harrows, cultivators and tillers, and other ploughing and cultivating machinery), planting machinery (seed drills, planters, spreaders, and other planting machinery), harvesting machinery (mowers, balers, and other harvesting machinery), haying machinery, and irrigation machinery. The report offers the market size and forecasts for agricultural machinery in value (USD) for all the above segments.

Product Type
Tractors
Horse Power
Below 20HP
21 - 30 HP
31 - 50 HP
Above 50 HP
Type
Utility Tractor
Row Crop Tractor
Compact Utility Tractor
Other Types
Ploughing and Cultivating Machinery
Ploughs
Harrows
Cultivators and Tillers
Other Plowing and Cultivating Machinery
Planting Machinery
Seed Drills
Planters
Spreaders
Other Planting Machinery
Harvesting Machinery
Mowers
Balers
Other Harvesting Machinery
Haying Machinery
Irrigation Machinery
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Japan Agricultural Machinery Market Research FAQs

The Japan Agricultural Machinery Market size is expected to reach USD 4.90 billion in 2024 and grow at a CAGR of 5.60% to reach USD 6 billion by 2029.

In 2024, the Japan Agricultural Machinery Market size is expected to reach USD 4.90 billion.

Deere & Company, Kubota Corporation, Mitsubishi Mahindra Agricultural Machinery Co. Ltd, Yanmar Co. Ltd and Iseki & Co. Ltd are the major companies operating in the Japan Agricultural Machinery Market.

In 2023, the Japan Agricultural Machinery Market size was estimated at USD 4.63 billion. The report covers the Japan Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Japan Farm Equipment Industry Report

Statistics for the 2024 Japan Farm Equipment market share, size and revenue growth rate, created by ÌÇÐÄvlog´«Ã½â„¢ Industry Reports. Japan Farm Equipment analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Japanese Agricultural Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)