CAMBODIA AGRICULTURAL MACHINERY MARKET

The Cambodia Agricultural Machinery Market growth rate is expected to grow steadily in the years ahead owing to the development of the country’s agricultural industry, lack of available labor in agriculture, along with government efforts to support the adoption of agricultural machinery.

Major Cambodia Agricultural Machinery Market Drivers and Emerging Trends

The agriculture sector contributed around 22 percent to the nation’s GDP and as part of its policy, the government advocates for investments in this industry alongside improvements in water control systems. The Cambodian Rice Federation aims to export one million tons of milled rice by 2025 which is an increase from around 630 thousand tons exported in the previous three years. As the agriculture sector expands, it will boost the Cambodia agricultural machinery market growth. 

The other factor supporting the expansion of Cambodia agricultural machinery market size is the government initiatives that support the machinery integration. The Ministry of Agriculture is collaborating with private companies to implement agricultural machinery in middle-class farming areas which aims to address the anticipated shortage in the workforce. The government is focused on modernizing the industry to make it more competitive while striving to increase farmers’ incomes and elevate the life quality for its people.

The ministry is promoting machinery use on large and small-scale farms as part of its strategy to increase productivity. This approach addresses the growing issue of labor shortages and the rising expenses associated with manual labor that are affecting the expansion of agricultural machinery in the area. The use of farm machinery leads to better quality crops and is projected to contribute to higher market production in the years ahead.

Cambodia agricultural machinery market growth is primarily driven by the shortage of labor in the farming sector. As industrialization and urbanization drive rural workers to urban centers, there is a growing scarcity of labor available for essential agricultural operations which includes harvesting and sowing. The International Labour Organization’s data shows that in 2020 around 31.5 percent of individuals worked in the agriculture sector which is a slight increase from the previous year because of a shortage of skilled operators for agricultural machinery. In response, both government and private sector are running village programs in rural areas, but the overall growth is still minimal.

The ministry is advancing efforts to modernize the sector particularly concentrating on managing and mitigating potential labor-related problems. The share of the workforce in agriculture is declining and anticipated to decrease further which will accelerate the agricultural machinery market expansion in the near future. The agricultural labor force will decrease in size but the remaining workforce will develop greater skills in operating advanced technologies including drones to carry out the labor-intensive farming aspects. 

With the agricultural sector evolving, new technologies and methods will increasingly replace traditional labor. This ongoing modernization is projected to boost market growth over the forecast period. As farm labor becomes less available and technology advances, farmers are increasingly adopting machinery to optimize their operations by saving time and improving productivity.

Based on the product type, the tractor segment leads the market with a steady increase in the number of units sold. Tractors serve as a key piece of farm machinery for farmers of all sizes which streamlines numerous agricultural operations and simplifies many field tasks. The growing demand for row and horticultural crops has driven up tractor use while the surge in its sales signifies the ongoing evolution towards farm mechanization. Due to their role in powering various agricultural tools through attachments, the demand for tractors has been consistently increasing.

Several notable companies in the market are Kubota Corporation, Deere & Company, Escorts Limited, among others.

Segments covered in the Report:

The Cambodia Agricultural Machinery Market has been segmented on the basis of Type. Based on the Type the market is segmented into Tractors, Plowing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying and Forage Machinery and Others.

Market Segmentation

Cambodia Agricultural Machinery Market by Type

• • Tractors
  • Plowing and Cultivating Machinery
  • Planting Machinery
  • Harvesting Machinery
  • Haying and Forage Machinery
  • Others