Agricultural automation equipment is often transformed from traditional agricultural machinery, and many production enterprises are not standalone agricultural robot manufacturers but rather traditional agricultural machinery producers undergoing transformation. According to the "Rural Revitalization Strategic Plan", by 2035, China will basically achieve modernization in agriculture and rural areas. With the development of modern agriculture, more and more agricultural cooperatives are adopting smart agricultural production models, and the automation management technology for environmental control, fertilization, and irrigation is gradually becoming popular. So, what is the future outlook and current status of the efficient agricultural industry in the country?

2022 Analysis of the Current Status and Market Prospects of the Agricultural Automation Equipment Industry

Intelligent planting is achieved through the use of various automated, intelligent, and remote-controlled production terminal equipment to realize real-time quantitative "precise" management, improving agricultural production efficiency. The agricultural automation equipment industry is gradually shifting from a labor-centered production model that relies on isolated machinery to an information and software-centered production model, which not only helps promote the development of modern agriculture but also ensures the quality and safety of agricultural products.

Data shows that China can basically achieve self-sufficiency in the seed industry for major grain crops, with 100% self-sufficiency in wheat and rice seeds, a coverage rate of over 96% for high-quality crop varieties, 87% self-sufficiency in vegetable varieties, and over 75% self-sufficiency in core livestock and poultry breeding sources.

By 2050, the world population is expected to reach 9.7 billion, and the production costs to meet the food needs of the global population will continue to increase. To feed the growing population, humanity must increase food production by 70%. By 2030, global water supply will be insufficient to meet 40% of water demand, and the continuously rising costs of energy, labor, and nutrition will severely compress the profit margins in agriculture.

The total power of agricultural machinery in the country is close to 1 billion kilowatts, with an average power of about 0.38 kilowatts per mu. The main business income of enterprises in the agricultural automation equipment industry above designated size is 429.135 billion yuan, an increase of 6.15% compared to the previous year. Among the 2,429 large-scale agricultural machinery enterprises in the agricultural automation equipment industry, 217 reported losses. According to the State Council's "Guiding Opinions on Accelerating the Promotion of Agricultural Mechanization and the Transformation and Upgrading of the Agricultural Machinery Equipment Industry", by 2025, the total power of agricultural machinery in the country will reach about 1.1 billion kilowatts.

Usage Rate of Agricultural Automation Equipment Industry

Since the 13th Five-Year Plan, China's agricultural mechanization has made significant progress, forming a good trend towards a comprehensive, high-quality, and efficient transformation and upgrading. The total power of agricultural machinery nationwide reached 1.056 billion kilowatts, an increase of 17% compared to the end of the 12th Five-Year Plan. The comprehensive mechanization rate of crop planting and harvesting reached 71.25%, an increase of 7.4 percentage points compared to the end of the 12th Five-Year Plan.

The agricultural automation equipment industry has brought new development opportunities. It is necessary to deepen the supply-side structural reform of agricultural mechanization, focus on addressing shortcomings, strengthening weak points, and promoting coordination, vigorously promoting the integration and adaptation of mechanization with agronomic systems, intelligent information technology, agricultural management methods, and farmland construction, leading and promoting the innovative development of the agricultural automation equipment industry.

Future Outlook of the Agricultural Automation Equipment Industry

According to the "14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the 2035 Long-Range Objectives Outline", it is proposed to strengthen the research and application of large and medium-sized, intelligent, and composite agricultural machinery, with the comprehensive mechanization rate of crop planting and harvesting increased to 75%. It can be seen that under the promotion of policies, the products of the large and medium-sized, intelligent, and composite agricultural automation equipment industry will accelerate development.

It is expected that China's agricultural automation equipment industry import and export business will continue to maintain a stable growth trend, especially in export business. In fact, at the beginning of the new year, some companies, including Lovol and Nantong Fulaiwei, have already secured a number of export orders.

The "2022-2026 China Agricultural Automation Equipment Industry Competition Pattern and Development Trend Forecast Report" was written by the Zhongyan Puhua Research Institute. This report analyzes the supply and demand situation of the industry in China, the current development status of the efficient agricultural industry, changes in sub-industry development, etc., focusing on the current development status of the efficient agricultural industry, how to face the development challenges of the industry, industry development suggestions, industry competitiveness, as well as investment analysis and trend forecasts, etc. The efficient agricultural industry also integrates the overall development dynamics of the industry, providing reference suggestions and specific solutions for the efficient agricultural industry in terms of products.