Factors Majorly Hindering the Market Growth
Low commodity prices in Brazil have impacted decreased sales of agricultural equipment have decreased since 2014. Other factors that impacted on the declining market were high interest rate on bank loans, high tariff on imports of agricultural machinery parts, productivity concern and lack of experienced labour force.
Rising Soybean Production in the Country
Soybean is the majorly cultivated and exported crop in Brazil. In 2017, Brazilian farmers have witnessed an increase in the soybean production by 2% from 2016 covering approximately 33 million hectares of cultivated land in the country. The farmer’s investment towards high cost inputs resulted in positive yields of the soybean crop. Increasing high-cost inputs in the agricultural farms will prevail over the forecast period as the country’s economic conditions have started recovering in 2017 and anticipated to grow during the forecast period. High return profits with increasing crop production and investment towards technology will urge the farmers to adopt agricultural machinery during the forecast period.
Tractors and combine harvesters remain the most popular machinery, with a well-developed ecosystem of manufacturing and sales by a number of regional manufacturers. Recently, self-propelled sprayers have been primarily adopted by the small and medium scale farmers due to its high benefits with competitive pricing over traditional sprayers in the market.
As per the market share, Brazil is the largest market in the South American region for farm equipment, having local manufacturers and a low proportion of import equipment. Agricultural machinery industry is dominated by the local manufactures like Agrale, AGCO followed by the global players John Deere, CNH industrial, Kuhn Group, etc.
Key Developments in the Market:
- September 2017: Mahindra & Mahindra (M&M) unveiled driverless tractors in India and anticipated to commercialize it by February 2018. The company plans to export the product to the countries like Brazil, US, Japan, and Turkey, to increase the M&M agricultural machinery export revenue target of 50% in the coming years.
Reasons to Purchase this Report:
- Latest technology trends adopted by the manufacturers in the agricultural machinery market.
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
- Study on the machinery type that is expected to dominate the market.
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst support, along with the Market Estimate Sheet (in Excel).
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1.1. Research Methodology
1.2. General Study Assumptions
2. Research Methodology
2.2. Analysis Methodology
2.3. Study Phases
3. Executive Summary
4. Market Overview And Technology Trends
4.1. Current Market Scenario
4.2. Technology Trends
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power Of The Suppliers
4.3.2. Bargaining Power Of The Consumers
4.3.3. Threat Of New Entrants
4.3.4. Threat Of Substitute Products And Services
4.3.5. Competitive Rivalry Within The Industry
5. Market Dynamics
5.1.1. Labor Shortage
5.2.1. Higher Prices of Agricultural Machinery
5.2.2. Volatility of Commodity Prices
5.3.1. Integration of Robotic Systems and GPS in Agricultural Machines
6. Brazil Agricultural Machinery Market Segmentation, By Machinery Type
6.1.1 Compact Utility Tractors
6.1.2 Utility Tractors
6.1.3 Row Crop Tractors
6.2 Plowing and Cultivating Machinery
6.2.3 Cultivators & Tillers
6.3 Planting Machinery
6.3.1 Seed Drills
6.4 Harvesting Machinery
6.4.1 Combine Harvester- Threshers
6.4.2 Forage Harvester
6.4.3 Others ( include Root Crop Harvesting and Fruit & Vegetable harvesting Machinery)
6.5 Haying and Forage Machinery
6.5.1 Mower- Conditioners
6.5.3 Tedders and Rakes
6.6 Irrigation Machinery
6.6.1 Sprinkler Irrigation
6.6.2 Drip Irrigation
7. Competitive Landscape
7.2 Market Share Analysis
8. Company Profiles
8.1 Deere & Company (John Deere)
8.2 CNH Industrial
8.3 AGCO Corporation
8.5 Mahindra Tractor
8.6 Kubota Corporation
8.8 Kuhn Group
8.9 Valmont Industries Inc.
8.10 Yanmar Company Limited
9 Future of the Market