Argentina Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.33 Billion |
| Market Size (2029) | USD 1.77 Billion |
| CAGR (2024 - 2029) | 5.80 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Argentina Agricultural Machinery Market Analysis
The Argentina Agricultural Machinery Market size is estimated at USD 1.33 billion in 2024, and is expected to reach USD 1.77 billion by 2029, at a CAGR of 5.80% during the forecast period (2024-2029).
- Argentina's farm machinery and equipment market plays a pivotal role in bolstering its agriculture sector, a cornerstone of the nation's economy. As a leading global producer of soybeans, corn, wheat, and other key crops, Argentina's agricultural prowess drives a robust demand for cutting-edge machinery and equipment. Furthermore, with an export-oriented agriculture sector, crops such as soybeans, corn, and wheat constitute a substantial portion of the nation's exports. For instance, according to FAOSTAT, Argentina exported 19,776,942 metric tons of wheat in 2020, which increased by 22,150,287 metric tons by 2022. To stay competitive on the global stage, Argentine farmers are increasingly turning to efficient machinery that not only curtails costs but also boosts yields. Moreover, to uphold export quality benchmarks, mechanized equipment guarantees consistency in planting, harvesting, and processing. Such uniformity is vital for securing trade agreements and ensuring access to global markets.
- In Argentina, tractors reign supreme in the agricultural machinery landscape, due to their versatility and indispensable role across the nation's expansive agricultural terrain. Serving as the backbone of farming, tractors undertake crucial tasks, from plowing and planting to transporting goods. Their ability to adapt to various attachments allows them to seamlessly transition through all stages of crop production, including post-harvest activities. For numerous farms, the tractor stands as the inaugural and most vital investment in mechanization, not only anchoring field operations but also setting the stage for future mechanized advancements.
- Argentina's demand for irrigation machinery is on the rise, driven by factors like climate variability, water scarcity in key agricultural zones, and the pursuit of consistent crop yields. The nation has been grappling with more frequent droughts, notably affecting regions such as the Pampas and northwestern provinces. With climate change intensifying these challenges, irrigation emerges as a crucial investment for dependable crop yields.
- Additionally, the Argentine government has rolled out financing programs and incentives, aiding farmers in bolstering their irrigation infrastructure. This includes investments in advanced systems like sprinklers and drip irrigation. Such governmental backing proves invaluable, especially for small to medium-sized farms that might struggle with capital-intensive investments. Highlighting the government's commitment, Argentina's Ministry of Agro-industry unveiled a national irrigation blueprint for 2019-2030, aiming to triple the irrigated area for crop production. Currently at 2 million hectares, the target is to expand this to 6 million hectares by 2030. These proactive measures by the government are anticipated to create avenues for industry players in the market.
Argentina Agricultural Machinery Market Trends
Surge in Farm Machinery Imports Amid Domestic Production
Despite robust domestic production, the import value of agricultural machinery has been on a steady rise over the past few years. Key drivers for these imports include a surging demand and a gap in the availability of cutting-edge technology. In 2022, John Deere made headlines by selecting new partners for its Startup Collaborator program. This initiative aims to strengthen the multinational's ties with innovative emerging firms, propelling technological advancements in Argentina's agricultural machinery sector. Such moves are poised to fuel market growth in the years ahead.
Data from the International Trade Center (ITC) highlights the United States as the dominant player in the agricultural machinery arena, boasting a 38.3% market share, trailed by Brazil and Germany. In 2023, a significant agreement was forged between the Deputy Minister of Rural Economic Development of Guatemala and Argentina, emphasizing enhanced cooperation and trade. Argentine efforts will zero in on bolstering Guatemalan rural development, especially in elevating the agricultural sector's competitiveness. This includes technology transfers and refining agricultural machinery for family-run farms, all aimed at boosting productivity through sustainable water and land resource management. Such collaboration is set to pave the way for Argentine agricultural machinery to penetrate the Guatemalan market.
Argentina's domestic production leans heavily towards smaller machinery, such as tractors and cultivators. Adding to the landscape, Climate FieldView, a frontrunner in digital farming platforms, has made its debut in Argentina, just in time for the upcoming growing season. Already a global sensation, FieldView is revolutionizing farm management with its data-centric digital tools, ensuring Argentine farmers maximize their hectare yields. FieldView, crafted by The Climate Corporation (a Bayer subsidiary and a digital agriculture innovator), stands out as the premier digital farming platform. It empowers farmers with year-round field insights, enabling efficient data collection, swift management decisions, and optimized yields with minimal crop input. Such advancements signal a bright future for domestic firms eyeing the development of large-scale farm machinery, suggesting a bullish market trajectory during the forecast period.
Surge in Crop Exports Fuels Tractor Demand in Argentina
As global demand for Argentina's key exports such as soybeans, corn, and wheat is becoming more prominent. According to FAOSTAT, Argentina's wheat exports jumped from 19.8 million metric tons in 2020 to 22.2 million metric tons in 2022. Similarly, soybean exports rose from 58.4 million metric tons in 2020 to 59.0 million metric tons in 2022. This surge in crop exports is driving tractor demand, as farmers strive to enhance productivity and quality to align with international market standards. Thus, tractors have evolved from mere productivity tools to pivotal assets in Argentina's export-centric agricultural approach. Moreover, export markets impose stringent quality standards. To meet these, many farmers are turning to precision agriculture, often utilizing GPS-equipped tractors for meticulous field operations. Such precision not only boosts crop quality but also aligns with export standards.
Tractors play a crucial role in land preparation, planting, and hauling, making them vital for enhancing productivity. Given the export markets' demand for consistent, high-quality yields, efficient field operations become paramount. Modern, high-powered tractors allow farmers to cover larger areas swiftly, ensuring they adhere to export timelines and optimize land use. Furthermore, tractors boasting over 100 HP are indispensable for extensive farming tasks, from field preparation to heavy-duty operations. These powerful tractors are a staple in Argentina's mechanized, export-focused farming landscape.
Argentina Agricultural Machinery Industry Overview
The Argentina farm machinery market is consolidated, with few players holding a major market share. Agrale, Kubota, Deere and Company, AGCO group, Mahindra, CNH Industrial, and Yanmar Co. Ltd are some of the major players in the market. Argentina's agricultural machinery companies also compete based on product quality or promotion. Still, they are also focused on other strategic moves, like acquisitions and expansions, to acquire a larger share and expand their acquired market size.
Argentina Agricultural Machinery Market Leaders
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Agrale
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AGCO Argentina S.A.
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Deere & Company
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YANMAR CO., LTD.
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Kubota
*Disclaimer: Major Players sorted in no particular order
Argentina Agricultural Machinery Market News
- January 2023: John Deere Argentina and ExpoAgro have forged a strategic alliance, bolstering the prominence of their brands in the agro-industrial sector. This collaboration seeks to enhance their joint efforts, delivering superior solutions to producers. The alliance emphasizes promoting and disseminating technological and digital solutions, granting Argentine producers access to more sustainable production methods.
- October 2022: Brazilian start-up FieldPRO has crafted an AI system that leverages environmental data to command autonomous John Deere machinery across South America. This AI discerns the environmental nuances of rural locales. It's a comprehensive autonomous solution, integrating hardware, software, and analytical tools. This integration boosts field operation efficiency and curtails costs by averting unsuitable conditions and optimizing machinery behavior, considering factors like tractor sliding, wind, temperature, humidity during spraying, and seeding downforce.
Argentina Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Declining Agricultural Labor
4.2.2 Rising Technological Advancements
4.2.3 Growing Government Support to Enhance Farm Mechanization
4.3 Market Restraints
4.3.1 Increasing Farm Expenditure
4.3.2 Security Concerns in Modern Farming Machinery
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Tractors
5.1.1.1 Less Than 40 HP
5.1.1.2 40 HP to 99 HP
5.1.1.3 Greater than 100 HP
5.1.2 Plowing and Cultivating Machinery
5.1.2.1 Ploughs
5.1.2.2 Harrows
5.1.2.3 Cultivator and Tillers
5.1.2.4 Other Ploughing and Cultivating Machinery
5.1.3 Planting Machinery
5.1.3.1 Seed Drills
5.1.3.2 Planters
5.1.3.3 Spreaders
5.1.3.4 Other Planting Machinery
5.1.4 Harvesting Machinery
5.1.4.1 Combine Harvesters
5.1.4.2 Forage Harvetsers
5.1.4.3 Other Harvesting Machinery
5.1.5 Haying and Forage Machinery
5.1.5.1 Mowers
5.1.5.2 Balers
5.1.5.3 Other Haying and Forage Machinery
5.1.6 Irrigation Machinery
5.1.6.1 Sprinkler Irrigation
5.1.6.2 Drip Irrigation
5.1.6.3 Other Irrigation Machinery
5.1.7 Other Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Agrale
6.3.2 AGCO Argentina SA
6.3.3 Deere & Company
6.3.4 Mahindra and Mahindra
6.3.5 Yanmar Co. Ltd
6.3.6 Netafim Limited
6.3.7 Kubota Corporation
6.3.8 Foton Lovol International Heavy Industries Company Ltd
6.3.9 Industrias Romi SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Argentina Agricultural Machinery Industry Segmentation
Farm machinery and equipment play a pivotal role in various farming activities, including harvesting, plowing, irrigation, and planting. The market studied is categorized into distinct segments, namely tractors, plowing and cultivating machinery, planting machinery, harvesting machinery, haying and forage machinery, and irrigation machinery. The report offers market estimation and forecasts in value (USD ) for the above-mentioned segments.
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Argentina Agricultural Machinery Market Research FAQs
How big is the Argentina Agricultural Machinery Market?
The Argentina Agricultural Machinery Market size is expected to reach USD 1.33 billion in 2024 and grow at a CAGR of 5.80% to reach USD 1.77 billion by 2029.
What is the current Argentina Agricultural Machinery Market size?
In 2024, the Argentina Agricultural Machinery Market size is expected to reach USD 1.33 billion.
Who are the key players in Argentina Agricultural Machinery Market?
Agrale, AGCO Argentina S.A., Deere & Company, YANMAR CO., LTD. and Kubota are the major companies operating in the Argentina Agricultural Machinery Market.
What years does this Argentina Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Argentina Agricultural Machinery Market size was estimated at USD 1.25 billion. The report covers the Argentina Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Argentina Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Argentina Agricultural Machinery Industry Report
Statistics for the 2024 Argentina Farm Machinery and Equipment market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Argentina Farm Machinery and Equipment analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Argentina Agricultural Machinery Market Report Snapshots
