Yanmar, one of the major Japanese farm equipment manufacturers, launched two variants of hi-tech tractors in Bangkok, Thailand on January 29, 2019. The two tractor variants—YM357A and YM351A—have engine outputs of 57 hp and 51 hp, respectively; they are fuel-efficient and can be accessed by means of a smartphone. The tractors have the SmartAssist technology, which allows operators to see the machine's operating status, receive error notifications via a smartphone, and provide customer service options in the event of breakdowns. These tractors can work for rice paddies & dry fields and haul loads.
MarketsandMarkets™ View Point:
Nagesh Manepalli - Head of Research : Food, Beverage, Animal Nutrition & Agriculture, at MarketsandMarkets™, shares his Point of View as mentioned below:
Yanmar was founded in 1912 and is headquartered in Osaka, Japan. The company manufactures engines used in a wide range of applications, such as generator sets, agriculture, and construction equipment. The company plans to increase its market share in South and Southeast Asia. According to FAO, the area of rice harvested increased by nearly 8%, and for sugarcane, it increased by nearly 18% between 2007 and 2017 in Southeast Asia. Thus, with an increased harvested area for various crops, the demand for efficient farm equipment has increased in the region. The farmers in these regions are demanding highly efficient, light-weight and reliable 50–60 hp tractors at lower costs to maximize income. Thus, by launching smart tractors, the company is expected to witness increased sales and consequently, increased market share in South and Southeast Asia.
Impact of Product Launch:
Yanmar Tractors has introduced tractors of various powers. However, with the launch of “smart” tractors, it has increased its product offerings to cater to increased demand for smart agriculture equipment in Asia Pacific region and other regions as well. The below figure shows the current market opportunity in the smart agriculture market. It also showcases the growth rate and future opportunities in the market. China, India, and Latin American countries are projected to be the potential markets in the next six years.
Impact on Top Competitors:
Some of the major competitors in the smart agriculture market include Deere & Company (US), Trimble (US), Raven Industries (US), AgJunction (US), and AGCO Corporation (US), The Climate Corporation (US), AG Leader Technology (US), Precision Planting Inc. (US), SST Development Group (US), Topcon Positioning Systems (US), SemiosBio Technologies (Canada), DeLaval Corporation (Sweden), GEA Group (Germany), and BouMatic (US). Yanmar stands a chance to capture a small yet promising market share in this business, as a result of this product launch. The competitors would also witness an increase in the product offerings of the company, as it plans to add more products to its existing portfolio.
The launch of smart tractors is expected to have a profound impact on the visibility of Yanmar, especially in Southeast Asia. The product launch is expected to help Yanmar achieve a better position in the market while also expanding its product portfolio in the global market. With increased demand for smart agriculture equipment, the demand for smart tractors would increase globally. This will have a positive impact on the sales of the company.