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Brazil Agricultural Tractors Market Size (2024 - 2029)

The Brazil Agricultural Tractors Market is experiencing growth driven by the country's robust agribusiness sector, which significantly contributes to the economy. This growth is fueled by increased investments and the demand for agricultural mechanization due to rising labor costs and land consolidation. Government initiatives to enhance financing for agricultural activities further support the expansion of the tractor market. Brazil's position as a leading agricultural exporter, supported by advancements in technology and favorable resource costs, has led to increased productivity and surplus production for export, particularly to China.

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Market Size of Brazil Agricultural Tractors Industry

Brazil Agricultural Tractors Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.27 Billion
Market Size (2029) USD 4.08 Billion
CAGR (2024 - 2029) 4.50 %
Market Concentration High

Major Players

Brazil Agricultural Tractor Market Major Players

*Disclaimer: Major Players sorted in no particular order

Brazil Agricultural Tractors Market Analysis

The Brazil Agricultural Tractors Market size is estimated at USD 3.27 billion in 2024, and is expected to reach USD 4.08 billion by 2029, growing at a CAGR of 4.5% during the forecast period (2024-2029).

Tractors, pivotal in farm and off-farm activities, reign as Brazil's go-to agricultural machinery. These robust and versatile vehicles handle a gamut of tasks—from mowing and plowing to planting and transportation. As per the Brazilian Institute of Geography and Statistics, the planted area for cereals, vegetables, and oilseeds surged from 73.2 million ha in 2022 to 77.5 million ha in 2023. This uptick in agricultural acreage directly bolsters the demand for tractors.

Small-scale farmers in the country use tractors with less than 80 HP due to their compact size and ability to do most agricultural operations on farms. According to the International Fund for Agricultural Development, small-scale agriculture accounts for 77% of agricultural production. It employs three-quarters of the farm labor force in the Brazilian agricultural sector. While the appeal for low-powered tractors remains, there is a notable uptick in demand for mid-range models, ranging from 80 to 130 HP. For instance, Antonio Garcia, Director of John Deere's South American manufacturing, mentioned that the 100 to 120 HP tractors from Deere are a hit in Brazil, underscoring the market's appetite for medium HP tractors.

Furthermore, due to the rising demand for tractors, the major manufacturers in the country are launching products, which is boosting market growth. In 2023, New Holland Agriculture, under CNH Industrial, made waves by introducing the TL5 'Acessível,' the world's first farm tractor designed for individuals with lower limb disabilities. This innovative move not only catered to a niche but also showcased the industry's commitment to inclusivity. With agricultural acreage expanding, labor dwindling, and major players rolling out innovative products, the tractor market in Brazil is poised for significant growth in the coming years.

Brazil Agricultural Tractors Industry Segmentation

A tractor is an industrial vehicle usually used to move the attached implement, which does the work of plowing the field or performing other activities. For this report, the tractors used in agricultural operations have been considered. The tractors used for industrial and construction purposes are also excluded from the scope of the study. The Brazilian agricultural tractors market is segmented by engine power into less than 80 HP, 81 to 130 HP, and above 130 HP. By application, it is segmented into row crop tractors, orchard tractors, and other applications. The report offers the market size and forecasts for volume (units) and value (USD) for all the above segments.

By Engine Power
Less than 80 HP
81 to 130 HP
Above 130 HP
By Application
Row Crop Tractors
Orchard Tractors
Other Applications
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Brazil Agricultural Tractors Market Size Summary

The Brazil Agricultural Tractor Machinery Market is experiencing growth driven by the country's robust agribusiness sector, which significantly contributes to the national economy. The increasing labor costs and land consolidation have spurred demand for agricultural mechanization, supported by government initiatives to enhance financing and agricultural activities. As Brazil stands as the second-largest global exporter of agricultural products, advancements in agricultural technology have enabled Brazilian farmers to optimize previously unproductive lands, leading to increased productivity and export surplus. The country's low resource costs for farming, particularly in land and capital, facilitate expansion and productivity gains, with a significant portion of exports directed towards China, which has been a major driver of Brazil's export growth.

The demand for agricultural tractors in Brazil is further bolstered by the rising wages of farm labor, prompting a shift towards mechanization to replace manual labor. The market is witnessing a trend towards automated and technologically advanced tractors, including those with GPS and telematics systems, which enhance productivity and efficiency. The increasing mechanization and unavailability of farm laborers are driving the sales of row-crop tractors, which are essential for various agricultural operations. The market is consolidated, dominated by global manufacturers like AGCO Corporation, CNH Industrial, and Deere and Company, who leverage new product launches and strategic partnerships to expand their presence. These companies are investing in research and development to innovate and cater to the evolving needs of Brazilian farmers, with recent expansions and financial support from institutions like the Inter-American Development Bank further supporting the sector's growth.

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Brazil Agricultural Tractors Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Technological Advancements

      2. 1.2.2 Shortage of Agricultural Labors

      3. 1.2.3 Government Schemes and Initiatives

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Tractors and Price Sensitivity

      2. 1.3.2 Data Privacy Concerns among the Farmers

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Engine Power

      1. 2.1.1 Less than 80 HP

      2. 2.1.2 81 to 130 HP

      3. 2.1.3 Above 130 HP

    2. 2.2 By Application

      1. 2.2.1 Row Crop Tractors

      2. 2.2.2 Orchard Tractors

      3. 2.2.3 Other Applications

Brazil Agricultural Tractors Market Size FAQs

The Brazil Agricultural Tractors Market size is expected to reach USD 3.27 billion in 2024 and grow at a CAGR of 4.5% to reach USD 4.08 billion by 2029.

In 2024, the Brazil Agricultural Tractors Market size is expected to reach USD 3.27 billion.

Brazil Agricultural Tractors Market Report Snapshots

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