Mexico Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 732.35 Million |
| Market Size (2029) | USD 908.28 Million |
| CAGR (2024 - 2029) | 4.40 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexico Agricultural Machinery Market Analysis
The Mexico Agricultural Machinery Market size is estimated at USD 732.35 million in 2024, and is expected to reach USD 908.28 million by 2029, growing at a CAGR of 4.40% during the forecast period (2024-2029).
- Mexico has a large agriculture industry with a vast arable land area accounting for 20.1 million hectares in 2021, as per the World Bank. The Mexican government has been encouraging the mechanization of farms, which has aided the growth of agricultural machinery in the country. The United States and Mexico have developed a lucrative relationship for agricultural machinery and equipment, becoming priority markets for each other's industries.
- The major driver for the increase in the usage of agricultural machinery in Mexico is the need to increase agricultural productivity. The need for an increase in productivity is due to the growing food demand in the country, which is parallel to the growing population.
- According to the United States Department of Agriculture, the domestic consumption of corn in Mexico increased from 44,000 thousand metric tons to 45,700 thousand metric tons from 2022 to 2023. This rising consumption shows the increasing food demand, which can be dealt with by increasing crop productivity through agricultural advances, including the usage of agricultural machinery. Thus, agricultural machinery usage is anticipated to increase in the country.
- Along with this, the increase in combined harvester-threshers imports by Mexico depicts the increase in the usage of agricultural machinery in the country. For instance, the import of combined harvester-threshers was 1,541 units in 2022, an increase of 18.6% from the previous year, according to the ITC trade map. The high demand for agricultural machinery in Mexico promotes the imports of agricultural machinery into Mexico from the United States, India, China, Japan, etc., further aiding the market growth.
- Furthermore, Deere and Company, AGCO Corporation, CNH Industrial NV, and Kubota Mexico S.A. de C.V. are some of the major agricultural machinery manufacturing companies operating in the country. They are expanding the production of agricultural machinery to Mexico, which is anticipated to favor the market's growth during the forecast period. For instance, in 2022, John Deere expanded the company’s tractors and cab production from its Waterloo, Iowa, plant to Mexico due to the labor shortage in the US facility.
Mexico Agricultural Machinery Market Trends
Drip Irrigation holds a Significant Share of Irrigation Machinery
The agricultural sector is a major component of the Mexican economy, with more than 20 million people, or about 15% of the country’s population, working in the sector. The country faced major challenges from frequent droughts and extreme weather conditions, such as floods and hurricanes. The unpredictability of climate change is disturbing traditional farming practices and making it challenging for farmers to plan their cultivation cycles. Many farmers face declined yields, increased crop failures, financial hardships, and food insecurity. To overcome these challenges, Mexican farmers are adopting innovative planting, growing, and harvesting techniques, including climate-smart irrigation practices, to maintain higher yields.
In the state of Sonora, farmers use drip irrigation systems to conserve water. The Mexican government is providing subsidies to farmers to adopt climate-smart practices, and other non-government organizations are providing training and technical assistance to farmers. These initiatives result in the higher adoption of drip irrigation systems in agricultural production, which supports enhancing agricultural production. For instance, vegetable production in Mexico in 2021 was 14.8 million metric tons, which increased to 15.6 million metric tons in 2022, as per the FAO.
Moreover, players in the market are collaborating to launch new drip irrigation systems, which are anticipated to support the growth of the drip irrigation market in the country. For instance, in November 2023, Rivulis and Dragon-Line formed an exclusive distribution agreement in North American countries, including Mexico, to launch a new Dragon-Line Mobile Drip Irrigation System based on a newly developed Rivulis drip line product for this application.
The Tractor Market is on an Upward Trajectory
The Mexican tractor market is experiencing robust growth, driven by various factors that contribute to its expansion. The increasing demand for mechanized agriculture has propelled the tractor market forward. As farmers in Mexico seek to enhance efficiency and productivity in their operations, adopting tractors equipped with advanced technologies has become imperative. This can be witnessed by the data released by ITC Trade Map, which states that the country imported tractors valued at USD 393.6 million in 2022, which increased to USD 1,081.3 million in 2023. The rising regional population also necessitates greater food production, prompting farmers to invest in modern and powerful tractors that can handle larger-scale cultivation. Furthermore, government initiatives and subsidies are pivotal in stimulating the tractor market.
The growing trend of precision farming has also significantly contributed to the surge in tractor sales. Tractors equipped with GPS and other precision technologies enable farmers to optimize resource utilization, reduce wastage, and improve overall farm management. As a result, precision farming has become a key driver, propelling the tractor market toward sustained growth. In conclusion, a confluence of factors, including mechanized agriculture, government support, and precision farming, collectively propels the country’s tractor market forward, fostering innovation and driving technological advancements in the sector.
Mexico Agricultural Machinery Industry Overview
The Mexican agricultural machinery market is consolidated, with major players such as Deere and Company, CNH Industrial, AGCO Corporation, Kubota Mexico SA de CV, and KUHN Group. New product launches, partnerships, and acquisitions are the major strategies adopted by leading companies in the Mexican market. Along with innovations and expansions, investments in R&D and developing novel product portfolios are expected to be crucial strategies in the coming years.
Mexico Agricultural Machinery Market Leaders
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Deere and Company
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AGCO Corp.
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CNH Industrial NV
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Kubota Mexico S.A. de C.V.
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KUHN Group
*Disclaimer: Major Players sorted in no particular order
Mexico Agricultural Machinery Market News
- December 2023: Grupo Rotoplas acquired HiTech Irrigation de Mexico in Calioma for water storage and piping products under irrigation systems.
- February 2022: Celestial E-Mobility, the first electric tractor brand from India, had a strategic collaboration with a Mexican company, Grupo Marvelsa, to get an imported tractor in Mexico to support eMobility and is ready to make a change in the automobile industry.
Mexico Agriculture Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
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 Consolidation of Smaller Farms
4.2.2 Government Initiatives to Enhance Farm Mechanization
4.2.3 Technological Advancements are Expected to Drive the Market's Growth
4.3 Market Restraints
4.3.1 High Cost of Equipment and Price Sensitivity
4.3.2 Security Concerns in Modern Farming
4.4 Porters Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Tractors
5.1.1 Engine Power
5.1.1.1 Less than 40 HP
5.1.1.2 41 to 60 HP
5.1.1.3 61 to 100 HP
5.1.1.4 101 to 150 HP
5.1.1.5 More than 150 HP
5.2 Equipment
5.2.1 Plows
5.2.2 Harrows
5.2.3 Rotovators and Cultivators
5.2.4 Other Equipment
5.3 Irrigation Machinery
5.3.1 Sprinkler Irrigation
5.3.2 Drip Irrigation
5.3.3 Other Irrigation Machinery
5.4 Harvesting Machinery
5.4.1 Combine Harvesters
5.4.2 Forage Harvesters
5.4.3 Other Harvesting Machinery
5.5 Haying and Forage Machinery
5.5.1 Mowers and Conditioners
5.5.2 Balers
5.5.3 Other Haying and Forage Machinery
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere & Company
6.3.2 AGCO Corp.
6.3.3 CNH Industrial NV
6.3.4 Lindsay Corporation
6.3.5 Kubota Mexico SA De CV
6.3.6 Valmont Industries Inc.
6.3.7 Jumil Mexico
6.3.8 Class KGaA mbH
6.3.9 Mahindra and Mahindra Limited
6.3.10 Kuhn Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mexico Agricultural Machinery Industry Segmentation
Agricultural machinery refers to the agricultural devices and tools used in the agriculture process. These tools can be hand tools, power tools, and tractors used in farming or other agricultural processes.
The Mexican agricultural machinery market is segmented by tractors, equipment, irrigation machinery, harvesting machinery, and haying and forage machinery. The report offers the market size and forecasts in terms of volume (units) and value (USD) for all the above segments.
| Tractors | |||||||
|
| Equipment | |
| Plows | |
| Harrows | |
| Rotovators and Cultivators | |
| Other Equipment |
| Irrigation Machinery | |
| Sprinkler Irrigation | |
| Drip Irrigation | |
| Other Irrigation Machinery |
| Harvesting Machinery | |
| Combine Harvesters | |
| Forage Harvesters | |
| Other Harvesting Machinery |
| Haying and Forage Machinery | |
| Mowers and Conditioners | |
| Balers | |
| Other Haying and Forage Machinery |
Mexico Agriculture Machinery Market Research FAQs
How big is the Mexico Agricultural Machinery Market?
The Mexico Agricultural Machinery Market size is expected to reach USD 732.35 million in 2024 and grow at a CAGR of 4.40% to reach USD 908.28 million by 2029.
What is the current Mexico Agricultural Machinery Market size?
In 2024, the Mexico Agricultural Machinery Market size is expected to reach USD 732.35 million.
Who are the key players in Mexico Agricultural Machinery Market?
Deere and Company, AGCO Corp., CNH Industrial NV, Kubota Mexico S.A. de C.V. and KUHN Group are the major companies operating in the Mexico Agricultural Machinery Market.
What years does this Mexico Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Mexico Agricultural Machinery Market size was estimated at USD 700.13 million. The report covers the Mexico Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexican Agricultural Machinery Industry Report
Statistics for the 2024 Mexican Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexican Agricultural Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
