The Japanese agriculture market is expected to grow at a CAGR rate of 2.2% during the forecast period. The agriculture sector contributes only 1.4% to the country’s GDP and as low as 12% of the land is suited for agriculture in the country. Being a highly industrialized country, Japan’s agriculture equipment industry is also quite developed. However, to fully utilize the limited arable land, the Japan agriculture equipment market is expected to witness a surge during the forecast period. In order to sustain its population, compiled with a low level of arable land, Japan strives towards utilizing its agricultural land to its fullest.
Key Market Trends
Need to Increase the Farm Productivity Triggers the Demand
Total agricultural land in Japan is 12 % of the total land. It is challenging to meet the food demands of the Japanese population with limited agricultural land. This causes the urgency to increase farm productivity which can be achieved by farm mechanization. The machines with the latest technology such as precision agriculture machinery utilize most of the land effectively and aid in increasing production. Machines such as combine harvesters reduce the grain wastage during harvesting and support in meeting the food demand from the growing population.
Rise in the Number of Tractors
The tractor is one of the basic farm machinery, which most of the farmers use. The tractor sales were recorded as 32816 in 2018. The majority of tractors sold are mid-sized tractors with 21 - 30 HP capacity. The number of tractors utilized has been increasing significantly since 2014. Lack of labor, increased labor cost, favorable government policies, credit facilities and need to increase agricultural productivity are some of the major factors that are causing the rise in tractor sales.
The agriculture machinery market in Japan is fragmented with major 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 and equipment industry is dominated by domestic players like Mitsubishi Agricultural Machinery Co. Ltd, Yanmar Co. Ltd., Iseki Co. Ltd., and Kubota Corporation.
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