KResearch views that Thailand’s agricultural machinery market will continue to see expansion, with market value of THB 84.6-87.9 billion, or growth of 1.6-5.6 percent (YoY), mainly supported by ample demand. However, this growth may occur at a slower pace, due to easing pent-up demand and slower demand from homebound workers – the number of whom is expected to be lower than 2021, owing to a revival in economic activity. The expansion of the agricultural machinery market will likely be consistent with the overall agricultural product prices that remain relatively high amid weather conditions that are favorable to crop yields. With regard to supply, Thai operators may face challenges from relatively cheap Chinese agricultural products, and high production costs including oil and steel prices. Thus, the market will tend to see cautious growth.
Going forward, Thai agricultural machinery operators – including manufacturers and distributors – should adjust themselves by focusing on the research and development of agricultural machinery that meets market demand and is suited to varied agricultural terrain. Emphasis should also be placed on the prevailing trend of increased use of high-tech farming under smart farming system for enhanced productivity. This may include the use of automation/AI/IoTs/sensors on farms – the majority of which are small-scale and primarily owned by smallholder farmers. For this reason, the prices of agricultural machinery should be kept at affordable levels and conducive to economies of scale, for example automated/driverless tractors for use in small-medium sized rice fields, or harvesting robots for small orchards. Furthermore, Thai farmers should also seek business partners with knowledge of such technology and develop the skills of their workers to support the maintenance of agricultural machinery, which has become increasingly modern and complex.
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