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Latin America Agricultural Machinery Market - Growth, Trends, and Forecast (2020 - 2025)

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  • 159 Pages
  • August 2020
  • Region: Latin America
  • Mordor Intelligence
  • ID: 5176062
UP TO OFF until Jun 30th 2023
Latin America Agricultural Machinery Market is projected to grow at a CAGR of 3.8% during the forecast period (2020-2025).
  • Farmers in Mexico, Argentina, and Brazil are accepting mechanization in their farms, and they are supported by government subsidy programs, thereby increasing the demand for agricultural machinery, especially tractors, which are on the rise in the region.
  • The area under harvest in the region is increasing, and farmers have been able to generate more income as compared to the previous years. Thus, they have higher dispensable incomes to invest in machinery and other agricultural inputs.
  • The Central and South American agricultural machinery market is dominated by local market players that are introducing new technologies to attract the attention of farmers.
  • The United States is one of the largest exporters of agricultural machinery to the region. However, recently, imports from the Central and South American region declined because of the regulation on import taxes. Trade disagreement between the United States and Mexico led to the declining demand from the country. China and Canada are the two other major exporters of agricultural machinery to the region.

Key Market Trends

Increase in Area Harvested in Central and South America

There has been a significant increase in the agricultural land under cultivation in Argentina, Brazil, and Mexico. The Pampas region has more than two-thirds of the Argentine agricultural land, and the average size of the cultivated landholding in the region is 533 ha. Farmers generally own 10-15% of the land, and rest of the land is leased on a yearly basis. Family farms have around 84% share in the Brazilian agriculture sector, while the other 16% comprises of non-family farms.
Smaller farms dominate more than 90% of the agricultural land in Mexico, and hence, the average farm size in Mexico can be estimated at around 25 ha, owing to the rise in the number of smallholder farms under 5 ha and large farms that are greater than 100 ha.

Brazilian Tractors Dominate the Market

The use of tractors brought about an important change in agricultural mechanization in the country. The introduction of tractors as a power source provides the possibility of covering large agricultural areas in short periods. Due to the significant increase in row crops and horticultural crops, there is increasing usage of tractors. The continuous decrease in the import of tractors in Brazil had a significant impact on market growth. In 2016, the revenue generated from the import of tractors was around USD 46.1 million, a decrease of 40.1% from that in 2015. The decrease in revenue generated was attributed to the increase in the price of agricultural commodities and the growth of Brazil’s large and prosperous domestic market for food and other agricultural products.

Competitive Landscape

The market is highly competitive, owing to the presence of few prominent players, accounting for more than half of the market. The key players in the market include Deere and Company, AGCO Corporation, CNH Industrial NV, Iseki & Co. Ltd, and Kubota Corporation. The main strategy adopted by the key players is to invest in R&D to encourage innovation and maintain a strong market base. The advent of advanced technologies, like Artificial Intelligence and robotics, and the growing number of government initiatives have driven the increase in demand for agricultural machinery.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Competitive Rivalry
5.1 Type
5.1.1 Tractors By Engine Power Less than 40 HP 41 to 60 HP 61 to 100 HP 101 to 150 HP More than 150 HP
5.1.2 Equipment Plows Harrows Rotovators and Cultivators Other Equipment
5.1.3 Irrigation Machinery Sprinkler Irrigation Drip Irrigation Other Irrigation Machinery
5.1.4 Harvesting Machinery Combine Harvesters Forage Harvesters Other Harvesting Machinery
5.1.5 Haying and Forage Machinery Mowers and Conditioners Balers Other Haying and Forage Machinery
5.2 Geography
5.2.1 Brazil
5.2.2 Argentina
5.2.3 Mexico
5.2.4 Peru
5.2.5 Chile
5.2.6 Rest of Latin America
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 AGCO Corporation
6.3.2 CNH Industrial NV
6.3.3 Deere & Company
6.3.4 Kubota Corporation
6.3.5 Mahindra and Mahindra Ltd
6.3.6 CLAAS KGaA mbH
6.3.7 Kuhn Group
6.3.8 Yanmar Co. Ltd
6.3.9 Agrale SA
6.3.10 Aquafim Culiacan
6.3.11 EnorossiMexicana SA de C
6.3.12 Jumil Mexico Implementos Agricolas

Companies Mentioned

A selection of companies mentioned in this report includes:

  • AGCO Corporation
  • CNH Industrial NV
  • Deere & Company
  • Kubota Corporation
  • Mahindra and Mahindra Ltd
  • CLAAS KGaA mbH
  • Kuhn Group
  • Yanmar Co. Ltd
  • Agrale SA
  • Aquafim Culiacan
  • EnorossiMexicana SA de C
  • Jumil Mexico Implementos Agricolas