Market Size of South America Agricultural Machinery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 34.21 Billion |
| Market Size (2029) | USD 43.03 Billion |
| CAGR (2024 - 2029) | 4.70 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Agricultural Machinery Market Analysis
The South America Agricultural Machinery Market size is estimated at USD 34.21 billion in 2024, and is expected to reach USD 43.03 billion by 2029, at a CAGR of 4.70% during the forecast period (2024-2029).
South American agriculture has traditionally relied on labor-intensive methods. However, rising farm labor wages have positively impacted the demand for agricultural machinery in the region. Farmers are increasingly adopting mechanization, such as tractors, as a substitute for manual labor. For instance, the average monthly pay of an agricultural worker in Brazil reached BRL 2,018.99 in 2023, according to a study by FGV - Fundacao Getulio Vargas.
In 2022, Argentina's farm machinery manufacturing sector expanded to over 700 companies. According to the International Trade Administration, domestic production of agricultural machinery and equipment (including seeders, sprayers, and hand tools) accounts for approximately 80 percent of total agricultural machinery demand. This robust domestic production is contributing to the growth of the agricultural machinery market in South America.
Paraguay heavily relies on Brazil for importing agricultural machinery, including autonomous tractors. The availability of affordable imports encourages higher tractor purchases and consumption in the country. The growing labor shortage and increasing farm wages are driving demand for advanced farm machinery to enhance productivity across the region.
South America Agricultural Machinery Industry Segmentation
The South American agricultural machinery market analyzes the growth, trends, and types of agricultural machinery. The market is segmented by machinery type (tractors, plowing and cultivating machinery, planting and fertilizing machinery, harvesting machinery, haying and forage machinery, irrigation machinery, parts and attachments, and other equipment.) and geography, (Brazil, Argentina, and the Rest of South America.) The market sizing has been conducted in Value Terms (USD) for all the aforementioned segments.
| By Product Type | |
| Tractors | |
| Plowing and Cultivating Machinery | |
| Planting and Fertilizing Machinery | |
| Harvesting Machinery | |
| Haying and Forage Machinery | |
| Irrigation Machineries | |
| Parts and Attachments | |
| Other Product Types |
| By Geography | |
| Brazil | |
| Argentina | |
| Rest of South America |
South America Agricultural Machinery Market Size Summary
The South America Agricultural Machinery Market is poised for significant growth, driven by the increasing adoption of mechanization in agriculture. This sector offers a wide range of products that cater to every stage of the crop cycle, with a notable demand for machines that integrate scarification, fertilization, and seeding processes. Tractors and combine harvesters are particularly popular, supported by a robust ecosystem of regional and local manufacturers. The shift from traditional tools to advanced machinery is fueled by the need for enhanced capacity, timely farm operations, and efficient input utilization. This transition is evident in the growing awareness among farmers, especially in marginal and smallholding categories, about the benefits of mechanization.
The introduction of tractors has been a game-changer in agricultural mechanization, enabling farmers to cover large areas efficiently and reducing the reliance on manual labor for plowing and harvesting. The increase in row and horticultural crops has further boosted tractor usage, with a significant portion of farmers owning substantial land areas. The co-dependency of tractors and various agricultural machines has led to a consistent rise in tractor purchases. The market is predominantly led by local manufacturing industries, with Brazil standing out as a major exporter of machinery units. Key players in this market include Deere & Company, Buhler Industries Inc., Mahindra & Mahindra Ltd., Escorts Limited, AGCO Corporation, and TAFE, all contributing to the dynamic landscape of agricultural machinery in South America.
South America Agricultural Machinery Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Decling Agriculture Labor and Rising Labour Wages
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1.2.2 Increase in Area Harvested in South America
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1.2.3 Growing Government Support To Enhance Farm Mechanization
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1.3 Market Restraints
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1.3.1 Increasing Cost of Production is Limiting the Market
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1.3.2 Limited Access to Credit
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Tractors
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2.1.2 Plowing and Cultivating Machinery
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2.1.3 Planting and Fertilizing Machinery
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2.1.4 Harvesting Machinery
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2.1.5 Haying and Forage Machinery
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2.1.6 Irrigation Machineries
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2.1.7 Parts and Attachments
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2.1.8 Other Product Types
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2.2 By Geography
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2.2.1 Brazil
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2.2.2 Argentina
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2.2.3 Rest of South America
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South America Agricultural Machinery Market Size FAQs
How big is the South America Agricultural Machinery Market?
The South America Agricultural Machinery Market size is expected to reach USD 34.21 billion in 2024 and grow at a CAGR of 4.70% to reach USD 43.03 billion by 2029.
What is the current South America Agricultural Machinery Market size?
In 2024, the South America Agricultural Machinery Market size is expected to reach USD 34.21 billion.
