Republic of Korea: Tractor Market 2024

Tractor Market Size in Republic of Korea

In 2022, the South Korean tractor market decreased by -8% to $X, falling for the third year in a row after two years of growth. In general, consumption continues to indicate a abrupt contraction. Tractor consumption peaked at $X in 2019; however, from 2020 to 2022, consumption remained at a lower figure.

Tractor Production in Republic of Korea

In value terms, tractor production declined modestly to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +2.7% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2014 when the production volume increased by 28%. Tractor production peaked at $X in 2019; afterwards, it flattened through to 2022.

Tractor Exports

Exports from Republic of Korea

In 2022, overseas shipments of tractors increased by 17% to X units, rising for the third consecutive year after two years of decline. In general, exports continue to indicate significant growth. The growth pace was the most rapid in 2017 with an increase of 138% against the previous year. Over the period under review, the exports hit record highs in 2022 and are likely to continue growth in the near future.

In value terms, tractor exports rose remarkably to $X in 2022. Overall, exports posted a buoyant expansion. The most prominent rate of growth was recorded in 2021 when exports increased by 52%. Over the period under review, the exports hit record highs in 2022 and are expected to retain growth in the near future.

Exports by Country

The United States (X units) was the main destination for tractor exports from South Korea, with a 69% share of total exports. Moreover, tractor exports to the United States exceeded the volume sent to the second major destination, Canada (X units), tenfold.

From 2012 to 2022, the average annual rate of growth in terms of volume to the United States amounted to +31.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: Canada (+39.2% per year) and Australia (+15.3% per year).

In value terms, the United States ($X) remains the key foreign market for tractors exports from South Korea, comprising 66% of total exports. The second position in the ranking was held by Canada ($X), with a 7.4% share of total exports.

From 2012 to 2022, the average annual growth rate of value to the United States stood at +11.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Canada (+45.5% per year) and Australia (+4.5% per year).

Export Prices by Country

The average tractor export price stood at $X per unit in 2022, which is down by -6.6% against the previous year. Over the period under review, the export price saw a abrupt slump. The pace of growth appeared the most rapid in 2018 an increase of 31%. The export price peaked at $X per unit in 2015; however, from 2016 to 2022, the export prices failed to regain momentum.

Average prices varied noticeably for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was Canada ($X per unit), while the average price for exports to the United States ($X per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Canada (+4.5%), while the prices for the other major destinations experienced a decline.

Tractor Imports

Imports into Republic of Korea

In 2022, approx. X units of tractors were imported into South Korea; declining by -35.1% against 2021. Over the period under review, imports recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2016 with an increase of 92% against the previous year. As a result, imports reached the peak of X units. From 2017 to 2022, the growth of imports failed to regain momentum.

In value terms, tractor imports contracted markedly to $X in 2022. In general, total imports indicated a noticeable increase from 2012 to 2022: its value increased at an average annual rate of +2.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +15.7% against 2020 indices. The pace of growth appeared the most rapid in 2016 with an increase of 79%. Over the period under review, imports hit record highs at $X in 2021, and then reduced markedly in the following year.

Imports by Country

Japan (X units), Germany (X units) and Sweden (X units) were the main suppliers of tractor imports to South Korea, with a combined 67% share of total imports. The Netherlands, the UK, China, Italy and the United States lagged somewhat behind, together accounting for a further 22%.

From 2012 to 2022, the biggest increases were recorded for China (with a CAGR of +42.6%), while purchases for the other leaders experienced mixed trend patterns.

In value terms, Germany ($X), Sweden ($X) and Japan ($X) were the largest tractor suppliers to South Korea, together accounting for 61% of total imports. These countries were followed by the Netherlands, the UK, Italy, China and the United States, which together accounted for a further 23%.

In terms of the main suppliers, China, with a CAGR of +47.1%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average tractor import price amounted to $X per unit, increasing by 22% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.5%. The growth pace was the most rapid in 2019 an increase of 22%. Over the period under review, average import prices hit record highs in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Germany ($X per unit), while the price for Japan ($X per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Italy (+7.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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