In recent years, rigid demand in the agricultural machinery market has continued to grow. Driven by rigid market demand growth and strong policy support, China's agricultural machinery industry has achieved double-digit high-speed growth for ten consecutive years, making the country a veritable major agricultural machinery manufacturer. As China's agricultural production and rural construction accelerate their two modernization processes, demand for agricultural machinery has remained urgent and vigorous, which is the foundation for the sustained and rapid development of the agricultural machinery industry.

 

　　Over the past decade, China's economy has developed at a pace that has astonished the world. For enterprises, no matter which industry they are in, China with its 1.3 billion population is a highly attractive market. China's future growth potential in agricultural machinery, demand for technology development, and low production costs with high export profits have all made China and its agricultural machinery market the focus of global agricultural machinery manufacturers.

 

　　China's agricultural machinery market is vast and will have even better market space in the future. At present, foreign agricultural machinery giants are optimistic about the Chinese market one after another, and the competitive situation will become even more severe. Facing the covetous attention of foreign competitors, as a deeply rooted national industry, it should formulate an international development strategy, continuously enhance its innovation capability, integrate advantageous resources at home and abroad, and actively engage in competition in the world market.

 

　　Agricultural machinery market

 

　　After rapid development in recent years, China's agricultural machinery market has entered a brand-new stage. Although domestic low-end agricultural machinery products dominate the market, the trend toward high-end products is gradually becoming prominent. With changes in many elements of the agricultural machinery market, the focus of competition in China's agricultural machinery market will undergo major changes. After rapid development in recent years, China's agricultural machinery market has entered a brand-new stage. Although domestic low-end agricultural machinery products dominate the market, the trend toward high-end products is gradually becoming prominent. With changes in many elements of the agricultural machinery market, the focus of competition in China's agricultural machinery market will undergo major changes.

 

　　High-end products approaching reality

 

　　Although the overall technical level of China's agricultural machinery products still lags far behind that of developed countries in Europe and America in terms of automation, intelligence, and full-process coverage, high-end agricultural machinery products in particular are overly dependent on imports.

 

　　It is understood that the total output value of the global agricultural machinery industry has shown a stable growth trend, reaching 86 billion euros in 2012. In 2012, China's total agricultural machinery output value was 338.24 billion yuan, growing at a rate of more than 20% for ten consecutive years, making it the world's largest agricultural machinery manufacturer. At present, the overall trend of global agricultural machinery industry output value is basically stable and moving along an upward channel, but slowing output growth is the general trend.

 

　　From the perspective of global agricultural machinery industry development trends, from 2006 to 2013, global agricultural machinery industry output value went through two stages. From 2006 to 2008, it gradually rose and reached a peak in 2008. After that, it experienced the disastrous 2009 financial crisis, and output value fell to a trough with a sharp year-on-year decline, after which it began a slow recovery.

 

　　Industry insiders expect that in 2013, driven by the gradual economic recovery in Europe, America, and other international markets, global agricultural machinery industry output value will move along an upward channel and is expected to achieve growth of about 9%. In contrast, China's current agricultural mechanization rate is only 57%, compared with 90% in developed countries, leaving even greater room for development.

 

　　A brand-new market demand model emerges. With land concentration in China and the very low level of agricultural mechanization in mountainous and hilly areas, a new demand model for China's agricultural machinery market will be created: the dumbbell model. That is, in terms of demand volume, it will show a pattern of large at both ends and small in the middle.

 

　　First, market demand is trending toward large-scale equipment. This change is mainly occurring in plain areas rich in land resources. With the rapid advancement of land concentration and large-scale operation, as well as the rapid rise of agricultural cooperative organizations and family farms, new rural models similar to the European manor economy model will emerge in some economically developed regions. This model will directly push China's agricultural machinery demand toward large-scale equipment and combined operations, while small and medium-sized agricultural machinery will completely return to the role of field management.

 

　　Second, from the perspective of China's agricultural mechanization development, as the Central Plains region gradually achieves mechanization, mountainous and hilly areas, which are the weak link in agricultural mechanization, will surely become the focus and hot spot of the Chinese government. Beneficial agricultural policies will further tilt toward them, and these regions will usher in a period of rapid development opportunities, while small machinery suited to the needs of these regions will enter a stage of rapid development.

 

　　Industry insiders believe that the development trend of China's agricultural machinery market in 2014 will remain the focus of the industry.