Southeast Asia Tractor Market Research Report 2025-2030, with Key Company Profiles for AGCO, CNH Industrial, Deere & Company and KUBOTA - ResearchAndMarkets.com

The "Southeast Asia Tractor Market Research Report 2025-2030" report has been added to ResearchAndMarkets.com's offering.

The Southeast Asian Tractor Market was sized at 101,356 units in 2024, and is projected to reach 119,536 units by 2030, rising at a CAGR of 2.79%.

Southeast Asia's tractors market is consolidated and shaped by a mix of global agricultural machinery manufacturers and regional players that cater to the unique farming conditions of each country. Major international companies such as John Deere, Kubota, and CNH Industrial (which owns New Holland and Case IH) dominate the Southeast Asia tractors market due to their strong brand reputation, wide product portfolios, and extensive dealer networks. These companies leverage their expertise in advanced tractor technologies, fuel-efficient engines, and precision farming solutions to gain a competitive edge.

John Deere, CNH Industrial, and Kubota dominated the Southeast Asia tractors market with a collective market share of over 50%. The agricultural tractor market in Southeast Asia has the presence of established players in various segments. Vendors are improving their after-sales services, which is making customers loyal to existing brands.

SOUTHEAST ASIA TRACTORS MARKET TRENDS & DRIVERS

Electric and Alternative Fuel Tractors

The need to have a greener alternative to traditional diesel-powered tractors has given rise to the manufacturing of tractors based on alternative fuels like CNG, Hybrid fuel, and electricity. The use of these tractors will ensure a greener environment, less operational costs, and increased productivity.

For instance, in September 2024, Mahinder launched a CBG (Compressed Bio-Gas) powered Yuvo Tech+ tractor, promoting sustainable farming with reduced pollutants and carbon emissions. The tractor delivers diesel-equivalent performance while using biogas, reducing fossil fuel dependence. The company continues its commitment to eco-friendly innovations, having introduced CNG, LPG, and dual-fuel tractor technologies.

Increased Farm Mechanization

Farm mechanization in the Southeast Asia region has been growing rapidly in recent years, driven by the need to increase agricultural productivity, reduce labor dependency, and enhance food security. Countries such as Thailand, Vietnam, Malaysia, and others are experiencing a shift towards modernized farming practices due to rising population demands and economic growth. The major driver of increased mechanization is labor shortages in rural areas.

Migration to urban centers has led to a decline in the agricultural workforce, prompting farmers to adopt mechanized solutions to compensate for the lack of human labor. For instance, In November 2024, Malaysia is investing USD 2.69 million in modernizing its onion supply chain to reduce import reliance and boost self-sufficiency to 30% by 2030. The plan includes infrastructure upgrades, technical training, and precision farming to enhance productivity. By 2030, 1,347 hectares will be developed, producing over 14,000 tonnes of onions. This investment will drive demand for tractors and mechanized farming equipment.

INDUSTRY RESTRAINTS

Fluctuations in Raw Material Pricing

The Southeast Asia tractors market is highly sensitive to fluctuations in raw material prices, as these directly impact manufacturing costs, profit margins, and final consumer prices. Steel and aluminum are the primary raw materials used in tractor manufacturing, accounting for a substantial portion of production costs. Southeast Asia heavily depends on imports from China, India, and Japan for these materials, making local manufacturers vulnerable to international market fluctuations.

For instance, Steel demand in Southeast Asia is projected to grow by 3.7% y/y in 2024, reaching 76.5 million tons, despite global economic challenges. The region faces supply chain risks, currency volatility, and overcapacity amid the global decarbonization push. Increased steel prices may raise manufacturing costs for tractors and agricultural machinery, potentially leading to higher market prices.

GEOGRAPHICAL ANALYSIS

Thailand, one of the largest agricultural economies in the region, is witnessing a surge in tractor demand due to extensive rice and sugarcane cultivation and holds the largest share of the Southeast Asia tractors market.

Malaysia follows as the second-largest market in the region, benefiting from a highly industrialized agricultural sector, particularly in palm oil and rubber plantations, which require advanced farming equipment for land preparation and harvesting. Government support, such as financial aid and incentives for farmers to adopt modern machinery, further accelerates tractor sales in the country.

Vietnam's tractor market is expanding as farmers shift from traditional methods to modern mechanized farming, encouraged by government subsidies and policies aimed at improving agricultural productivity. Myanmar has a growing but relatively underdeveloped level of mechanization. The government's focus on improving agricultural efficiency, along with the increasing adoption of second-hand and small to mid-sized tractors, is contributing to industry expansion.

Major global and regional players are actively expanding their presence through joint ventures, dealer network expansion, and localized manufacturing to cater to the diverse needs of Southeast Asian farmers. With continuous advancements in technology and supportive government policies, the Southeast Asia tractors market is poised for significant growth in the coming years.

SOUTHEAST ASIA TRACTORS VENDOR ANALYSIS

Southeast Asia Tractors Market Developments & News

• In February 2025, AGCO and SDF partnered to produce up to 85-horsepower Massey Ferguson tractors, enhancing the brand's global low-mid horsepower segment. The agreement aims to boost market share, ensure high-quality production, and better serve farmers worldwide.
• In 2024, Kubota Philippines launched L3228 and L4028 tractors, built for durability, innovation, and ease of use. Key features include LED headlights, an improved suspension seat, an air cleaner with an indicator, and more. Through this, the company gains a competitive advantage and increases its share in the Southeast Asia tractors market.
• In 2023, CNH acquired Augmenta Holding SAS ("Augmenta"), a machine vision company that automates and optimizes farming operations using real-time, multi-spectral sensors and agronomic insights. The company gains a competitive edge in the market.

Key Company Profiles

• AGCO Corporation
• CNH Industrial N.V.
• Deere & Company
• KUBOTA Corporation

Other Prominent Company Profiles

• YANMAR HOLDINGS CO., LTD.
• Changzhou Dongfeng Agricultural Machinery Group Co., Ltd.
• Antonio Carraro
• Action Construction Equipment Ltd.
• BCS S.p.A.
• Branson Tractors
• CLAAS KGaA mbH
• Deutz-Fahr
• ISEKI & CO., LTD
• KIOTI
• Weichai Lovol Intelligent Agricultural Technology CO., LTD
• LS Tractor USA, LLC
• Mahindra & Mahindra
• McCormick
• VST Tillers Tractors Ltd.
• Vietnam Engine and Agricultural Machinery Corporation
• Jiangsu Yueda Intelligent Agricultural Equipment Co., Ltd
• Ragnar
• YTO Co., Ltd.
• PREET GROUP
• Ford Tractor Phils. Inc
• Sonalika
• CV Karya Hidup Sentosa
• TAFE

Key Attributes:

Key Topics Covered:

1. Scope & Coverage

• Market Size & Forecast Periods
• Market Size (2021-2030)
• Market Segments
• Market Segmentation by Horsepower
• Market Segmentation by Drive Type

2. Opportunity Pockets

3. Introduction

• Value Chain Analysis
• Contribution of Agriculture Sector to GDP
• Key Technological Development in the Tractor Market

4. Market Opportunities & Trends

• Electric and Alternative Fuel Tractors
• Autonomous & Semi-Autonomous Tractors
• Technological Advancements in the Tractor Market

5. Market Growth Enablers

• Government Policy and Credit Support System
• Increased Agricultural Productivity & Exports
• Increased Farm Mechanization
• Shortage of Agricultural Labor

6. Market Restraints

• High Manufacturing Cost
• Fluctuations in Raw Material Pricing
• Competition from Second-Hand & Rental Markets

7. Market Landscape

• Agriculture Equipment Challenges
• Five Forces Analysis

8. Horsepower (Market Size & Forecast: 2021-2030)

• Below 50 Hp
• 50 Hp to 100
• Above 100 Hp

9. Drive Type (Market Size & Forecast: 2021-2030)

• 2 Wheel Drive
• 4 Wheel Drive

10. Geography (Market Size & Forecast: 2021-2030)

• Southeast Asia
  • Thailand
  • Malaysia
  • Myanmar
  • Vietnam

11. Competitive Landscape

12. Competitive Overview

• Key Developments

13. Key Company Profiles

14. Other Prominent Company Profiles

15. Report Summary

• Key Takeaways
• Strategic Recommendations

For more information about this report visit https://www.researchandmarkets.com/r/4djqpz

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507797462/en/