Japan Agricultural Machinery Market

Japan Agricultural Machinery Market Insights Forecasts to 2035

• The Japan Agricultural Machinery Market Size Was Estimated at USD 2.65 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 4.89% from 2025 to 2035
• The Japan Agricultural Machinery Market Size is Expected to Reach USD 4.48 Billion by 2035

According to a research report published by Decision Advisors & Consulting, The Japan Agricultural Machinery Market size is anticipated to reach USD 4.48 Billion by 2035, Growing at a CAGR of 4.89% from 2025 to 2035. The market growth is driven by increasing labor shortages in agriculture, rising adoption of mechanized farming practices, and continuous technological advancements in agricultural equipment to improve productivity and operational efficiency.

Market Overview

The Japan agricultural machinery refers to mechanical equipment is an integral part of modern agriculture. The majority of equipment and tools used in growing crops; soil preparation (tilling) through the use of machines, planting, harvesting, irrigation and crop management (which involves monitoring yield and crop conditions). Drawing on the importance that farming has placed on mechanization, there are many benefits to mechanizing agriculture. There is a long-standing tradition within Japan as a country where agriculture has been mechanized to a great degree and it continues to be one of the most advanced markets in the world in terms of agricultural machinery. There are many advantages to Japan's position within the agricultural machinery market including: Many of the above advantages and opportunities in the agricultural machinery market are attributed to the Japanese Government's assistance in modernizing the agricultural sector; improving productivity, promoting food security, enabling smaller farmers to use new technologies and tools, as well as providing opportunities for young farmers, or farmers looking to gain more sophistication and skills/ knowledge through the purchase of agricultural tools and equipment.

The Ministry of Agriculture, Forestry & Fisheries (MAFF) has various initiatives including Smart Agriculture programme, subsidies for mechanization and digital farming technologies. The purpose of these initiatives is to increase the productivity of farms, recruit young farmers, and promote sustainable agricultural practices to assist in developing the Japanese agricultural machinery industry.

Report Coverage

This research report categorizes the market for the Japan agricultural machinery market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan agricultural machinery market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan agricultural machinery market.

Driving Factors

The Japan agricultural machinery market is driven by increasing use of automated and precision farming technologies results in greater productivity while simultaneously reducing production costs. Government support is also being provided through subsidies for Smart Agriculture initiatives as well as through new developments and advancements in technology related to automation. These factors have created a rapid growth opportunity in the farming sector to meet the increasing demand for efficient food production in Japan.

Restraining Factors

The Japan agricultural machinery market is restrained by high upfront investment requirements of high-tech or automated machinery, small farmers experience personal financial limitations that prevent them from utilizing large-scale or sophisticated agricultural technology. Additionally, small farms tend to have multiple parcels of land spread out over several miles, and therefore have relatively high maintenance costs associated with multiple pieces of farm equipment.

Market Segmentation

The Japan agricultural machinery market share is categorized by product type, automation level, and drive type.

• The tractors segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan agricultural machinery market is segmented by product type into tractors, ploughing and cultivating machinery, and more. Among these, the tractors segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment is driven by tractors are widely used in various areas of agriculture including plowing, tilling, sowing and hauling of produce. With the growing need for small-scale, highly efficient tractors to serve the requirements of Japanese farmers, an increase in usage is anticipated for this type of tractor in the future.

• The manual/conventional segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan agricultural machinery market is segmented by  automation level  manual/conventional and more.  Among these, the manual/conventional segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment is driven by lower costs, ease of operation, and widespread adoption among small and medium-sized farms. However, gradual transition toward semi-automated and automated solutions is expected over the forecast period.

• The diesel drive segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan agricultural machinery market is segmented by drive type into diesel and more. Among these, the diesel segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment is driven by powerful, efficient, long-lasting engine that is extremely suited to agricultural applications, especially when it comes to heavy equipment such as tillers and tractors. The biggest advantages it has over other engines are higher fuel efficiency, superior torque outputs, and, because of its continued widespread use in the commercial and heavy-duty vehicle markets, the increased demand from the agricultural, construction, and logistics industries.

Competitive Analysis

The report offers the appropriate analysis of the key organizations/companies involved within the Japan agricultural machinery market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.  

List of Key Companies

• Kubota Corporation
• Yanmar Holdings Co., Ltd.
• Iseki & Co., Ltd.
• Mitsubishi Mahindra Agricultural Machinery Co., Ltd.
• John Deere Japan
• AGCO Corporation
• Class Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities
• Consulting and Research Firms
• Venture Capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 2024, Yanmar Holdings Co., Ltd. introduced advanced electric and hybrid powertrain solutions for compact agricultural machinery, supporting Japan’s carbon-neutral goals and expanding its portfolio of environmentally friendly equipment.

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Decision Advisors has segmented the Japan Agricultural Machinery Market based on the following segments:

Japan Agricultural Machinery Market, By Product Type

• Tractors
• Ploughing and Cultivating Machinery
• More

Japan Agricultural Machinery Market, By Automation Level

• Manual/Conventional
• More

Japan Agricultural Machinery Market, By Drive Type

• Diesel
• More

Frequently Asked Questions (FAQ’s)

Q: What is the Japan agricultural machinery market size?

A: The market is expected to grow from USD 2.65 billion in 2024 to USD 4.48 billion by 2035, at a CAGR of 4.89% during the forecast period.

Q: What are the key growth drivers of the market?

A: Key drivers include labor shortages, aging farmer population, government support for mechanization, and adoption of smart farming technologies.

Q: What factors restrain the Japan agricultural machinery market?

A: High initial investment costs and financial constraints for small-scale farmers restrain market growth.

Q: Who are the key players in the Japan agricultural machinery market?

A: Major players include Kubota Corporation, Yanmar Holdings, Iseki & Co., and Mitsubishi Mahindra Agricultural Machinery.

Q: Who are the target audiences for this market report?

A: Market players, investors, end-users, government authorities, consulting and research firms, venture capitalists, and value-added resellers (VARs).