The agricultural machinery market in Thailand is expected to cross USD 1.9 Billion by 2025, owing to surge in demand among farmers and rising financial support. These conclusions are drawn in a report of market research agency Ken Research.
According to the report, the agricultural tractor market is expected to register a Compound Annual Growth Rate (CAGR) of 3.2% between 2019 and 2025. The two and four wheel tractor segments are expected to contribute 23% and 77% respectively by the end of 2025.
The combine harvester market is expected to register a CAGR of 6.6% between 2019 and 2025. Combine harvesters with power above 150 HP are expected to contribute more than 40%, followed by combined harvesters powered 75-105 Hp and 70Hp and below.
Impact of Covid-19
The country lockdown imposed in Thailand during the period April-May, lead to lesser farming activity in the country due to which companies observed a decline in demand of tractors, combine harvesters or rice transplanters in terms of domestic sales leading to an overall decline in the market. In addition to this, dealer outlets and retail stores were being shut further leading to decline in domestic agricultural machinery sales.
Investment in smart agricultural machinery
Companies have been focusing on production of smart agricultural machinery that uses advanced technologies such as ICT and robot technology, and farm business software that can centrally manage information obtained from these agricultural machines.
Rising demand of two wheel tractors
Rise in sales of mid-range tractors is expected to ensure stable growth in revenues of the Thai agricultural tractor market. Moreover, rising shift from traditional farming to farming through agricultural machinery leading to increasing demand of 2W tractors among small farmers, will further contribute the rising sales of tractors in Thailand.
Sale of rice transplanters in Thailand is expected to decline in the future, as farmers have been focusing more on purchasing a used rice transplanter or to rent a rice transplanter as it has seasonal usage and can be only use to plant rice.
According to the report by Ken Research, the online grocery delivery market will be valued at USD 1.9 Billion by end of 2025F. The market will witness growth owing to expected improvement in prices of staple crops, transition from traditional to smart farming, increasing government support and innovative strategies adopted by service providers.