The Cambodia Agriculture market is anticipated to register a CAGR of 3.1% during the forecast period. The policies of the Ministry of Agriculture is promoting the use of machinery in large- and small-scale farms in order to increase the productivity of the crop. This step was taken to address a growing labor shortage within the region and increasing costs of manual labor which are impacting the growth of agricultural machinery in the region. Small landholdings farmers and high cost of the machinery are the prime constraints of the market.
Key Market Trends
Decline in Agriculture Labor Drives the market
The shortage of agriculture labor is one of the prime driving factor of agriculture machinery market in Cambodia. Urbanization and Industrialisation have caused the movement of rural agriculture employees to urban areas causing inadequate labor availability especially during key agriculture operations such as sowing and harvesting. According to the International Labour Organization, the number of people employed in the agriculture sector has been drastically reduced. Only thirty percent of the total employees were employed in the agriculture sector in 2019 which was 31% in 2016. Such a significant reduction in the number of employees in the agriculture sector has led to farm mechanization.
Tractors Dominate the Market
The tractor is one of the basic and necessary farm equipment used by the small, marginal and large landholding farmers. Tractors are used for multiple field operations and made many agriculture operations easy. Therefore, tractors segment is the most dominated segment among all the agricultural machinery in Cambodia. A continuous rise in the number of tractor units sold has been observed in Cambodia.
The market is highly competitive owing to the presence of few prominent players, accounting for more than half of the market. The key players in the market include Deere and Company, Escorts Limited, AGCO Corporation, CNH Industrial N.V., Kuhn and Kubota Corporation. The main strategy adopted by the key players has been to invest in R&D to encourage innovation and maintain a strong market base. The advent of advanced technologies like Artificial Intelligence, Robotics, Google Earth, and growing number of government initiatives have driven the demand for agricultural machinery to rise.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support