Thailand Tractor Market - Industry Analysis & Forecast 2022-2028

MARKET ANALYSIS  

The Thailand agriculture tractor market witnessed shipments of 53,316 units in 2021 and the shipments are expected to reach 68,781 units by 2028, growing at a CAGR of 3.71%.

The increasing adoption of precision farming is set to become the most valuable driver for tractor sales in present times. The need for increased food production and improved agriculture machinery has led to the innovation in tractors and implements. The correlated demand from food production companies and other related sectors provides employment opportunities, increasing income levels. With the share of agricultural exports growing relatively slowly, the Thai government is working on measures to double the quantity and revenues from the export of agricultural products by 2030. This will positively impact the industry demand.   

KEY DEVELOPMENTS IN THE MARKET  

• Government strategies to enhance the welfare of farmers by converting agriculture into a viable activity are paving the way for new tractor purchases, thus positively impacting the Thailand agricultural machinery market. 
• Increased food consumption and rapid population growth are driving the agricultural and forestry tractor market in Thailand. This increasing demand for food will have to be met by a tremendous increase in production and per hector yield. 
• Recent socio-demographic changes in Thailand are also driving demand in the Thailand tractors market. The number of people regularly working in agriculture is decreasing in Thailand. This increases the need for agricultural machinery in the country, thus positively impacting Thailand's Agricultural Tractor Market. 
• The increasing penetration and adoption of farm mechanization practices across Thailand’s sub-continent have driven the sale of new tractors. Tractors and agriculture implements are the major product categories of Thailand's organized agriculture tractor market.  

MARKET TRENDS & GROWTH ENABLERS  

GPS Technology in Tractors Gaining Prominence 

GPS technology on tractors and other equipment helps farmers with field mapping, soil sampling, and crop scouting. It also allows them to work during low visibility field conditions such as rain, dust, and fog and maximize efficiency. GPS and remote sensing have made farming more accurate and productive. Currently, tractors are state-of-the-art technology developed by farm equipment manufacturers to collect and use for analysis and real applications.  

Growing demand for Low Engine Power Tractors   

The utilization of animal and human power in Thailand's agriculture sector has decreased significantly. Many of these are powered by fossil fuel-powered vehicles like tractors and diesel engines. As a result, the old agricultural process has given way to a more mechanical one. As a result, the market is likely to be driven by the adoption of programs by governments in the region.  Lower engine power tractors take up less space and are more versatile because their engines have a capacity of less than 1,500cc. 

MARKET SHARE & SEGMENTS  

Thailand Agriculture Tractor Market, Segmentation by Horsepower, 2021 and 2028 

20 HP to 40 HP Segment generated Highest Sales 

The 20-40 HP tractors are popular among small farmers in the country, and the Southern part of the country has high numbers of small land, gardens, and good rainfall. This supports the growth of fruits, rubber, and palm oil. The expected surge in demand for fruits and palm oil will demand 20-40 HP tractors in Thailand. 

Small Farm Size Driving 2WD Segment  

Thailand has many small farmers with an average farm size of 3.6 ha/farm. For this reason, the farmers prefer to own small and cost-efficient machines. In Thailand, power puddles are attached with two-wheeled tractors for rice plantation. The central plus point of 2WD tractors is the ease of driving and maneuverability during light loads and plain fields.  This will drive the demand for 2WD tractors in the Thailand Tractors market.

COMPETITIVE LANDSCAPE  

• The key players in the Thailand tractors market are Kubota, John Deere, CNH Industrial, Escorts Limited, and Mahindra & Mahindra.  
• The industry under 50 HP belonged almost entirely to Kubota before 2004, and it is still commanding a very high market share of over 70%. 
• In 2018, one of the key players, CNH Industrial, with its agriculture brands Case IH and New Holland, introduced the concept of autonomous technology in agriculture tractors. The company has already incorporated auto-steering and telematics in their tractors and autonomous concept in tractors, which will remove the operator from the cab. 
• From a demand perspective, vendors dependent purely on a single product category or focused on one or two end-users are expected to face more challenges. The need of the hour is to diversify those risks.  

The Thailand tractors market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:  

Segmentation by Horsepower  

• Less Than 20 HP  
• 20-40 HP  
• 41-60 HP  
• 61-100 HP  
• Above 100 HP  

Segmentation by Drive Type  

• 2-Wheel-Drive   
• 4-Wheel-Drive