Brazil Agricultural Tractors Market Size (2024 - 2029)

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.