Brazil Agricultural Machinery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Brazil Agricultural Machinery Market Analysis

The Brazil Agricultural Machinery Market size is estimated at USD 7.40 billion in 2024, and is expected to reach USD 9.30 billion by 2029, growing at a CAGR of 4.60% during the forecast period (2024-2029).

• Agriculture in Brazil is well developed in attaining self-sufficiency, and the country is also one of the major exporters of several agricultural commodities. The government has extensive farmland and the potential to expand it on a large scale. Therefore, the increase in area around agriculture caters to the growth of the agricultural machinery market. According to the Brazilian Institute of Geography and Statistics, the planted area for cereals, vegetables, and oilseeds in Brazil increased from 73.2 million ha in 2022 to 77.5 million ha in 2023. Additionally, the increased awareness of farmers about advanced agricultural equipment to improve production, reduction of crop production costs, and income-focused tendencies are pushing them to adopt agricultural equipment on farms.
• Along with this, more prominent farm owner's acquisition of smaller farms is increasing the consolidation of farms. Larger farms require a huge amount of farm labor for farming operations. On the other hand, agricultural employment in Brazil dropped from 9.5% in 2021 to 8.7% in 2022. Therefore, to fulfill the demand, large farm owners prefer agricultural machinery, making farming operations easy and cost-effective. Moreover, the government's supportive initiatives are also contributing to market growth. In 2023, the Minister of Agriculture and Livestock launched the country’s 2023-2024 Crop Plan and allocated USD 72.9 billion to support national agricultural production. This plan also reduces interest rates for acquiring agricultural machinery and equipment through the Program for Modernization of the Fleet of Agricultural Tractors and Associated Implements and Harvesters, which further supports market growth.
• The market is primarily dominated by players such as John Deere, AGCO, and CNH Industrial due to the higher quality of products and better after-sales service. The strategies adopted by the players are fueling the growth of agricultural equipment in the country. For instance, Valtra, an AGCO brand, a global leader in the design, manufacture, and distribution of precision agricultural machinery and technologies, launched Valtra's first FarmerCore satellite store in Brazil. The FarmerCore strategy aims to bring together and transform the way rural producers and dealerships interact and benefit from the services and products offered by the brand. Therefore, the expanding planted areas, favorable government initiatives, and strategic activities by the major players are expected to drive market growth during the forecast period.

Brazil Agricultural Machinery Market Trends

Tractors Segment Dominates the Market

Brazil Agricultural Machinery Industry Segmentation

Machines used for agricultural activities, such as planting, seeding, fertilizing, pest control, irrigation, harvesting, and haymaking, and post-harvest activities, including loading, unloading, and storage, are considered agricultural machinery.

The Brazilian agricultural machinery market is segmented by tractor (below 80 HP, 81 to 130 HP, and above 130 HP), ploughing and cultivating machinery (ploughs, harrows, cultivators and tillers, and other ploughing and cultivating machinery), planting machinery (seed drills, planters, spreaders, and other planting machinery), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), haying and forage machinery (mowers, balers, and other haying and forage machinery), and irrigation machinery (sprinkler irrigation, drip irrigation, and other irrigation machinery). The report offers market sizes in terms of value (USD) for all the abovementioned segments.