Government support for China’s agricultural sector will continue to boost industry demand.
San Francisco, CA (PRWEB) July 21, 2013
Over the past five years, total revenue for the Farming Machinery Manufacturing industry in China has been growing at an annualized rate of 26.2% to an estimated $20.6 billion. This rapid growth was stimulated by increasing export volumes, strong domestic demand and government subsidies, says IBISWorld. Government support for purchasing mechanical farming machinery has led to growth in domestic demand. Value-added tax reforms also facilitated the industry's technology level and production expansion.
Many manufacturers operate on a small scale and are privately owned. The majority of these companies lack substantial capital technologies and employees, so they are only able to produce a single kind of products, or a small output. The top four firms – YTO Group, Shandong Foton Heavy Industries, Kubota Agricultural Machinery (Suzhou), and John Deere Harvester (Jiamusi) Machinery – account for about 29.1% of industry revenue in 2013. With price competition and falling profit margins, IBISWorld forecasts the industry will consolidate.
Revenue for the Farming Machinery Manufacturing industry is forecast to maintain steady growth. Domestic demand for high-tech, advanced automation in machinery will grow, as well as government support for the agricultural sector, says IBISWorld.
For more information, visit the Farming Machinery Manufacturing in China industry report page.
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IBISWorld Industry Report Key Topics
Firms in the Farming Machinery Manufacturing industry in China manufacture agricultural and farm-related mechanical machinery and equipment. The main products manufactured by this industry are machinery used for soil treatment, crop farming or fertilization, plant harvesting and gardening.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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