South America Agricultural Tractor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Agricultural Tractor Market Analysis
The South America Agricultural Tractor market is estimated to register a CAGR of 4.5%, during the forecast period (2020-2025). The recent growth observed in the sales of tractors in South America is evident in the pace of farm mechanization in the region. While sugarcane and soybean are the major crops driving the demand for tractors in the higher HP range, the major crops that require attached machinery for spraying purposes have also induced the demand for overall tractors in the region. Furthermore, the accelerating labor cost due to the rising unavailability of farm labor has also spurred the demand in recent years. Brazil is the major market for tractors in South America. In 2015, the Brazilian government launched the agricultural credit program, Moderfrota, in order to stimulate the modernization of tractors. Deere & Company is the most significant player occupying the highest share in the tractor market in Brazil, followed by AGCO Corporation and CNH Industrial NV. Deere & Company has various manufacturing plants in Catalão, Montenegro and Horizontina, whereas CNH Industrial NV manufactures tractors in Rio Verde, Curitiba, Piracicaba, and Sorocaba. The continual product developments by these players in introducing indigenously suited farm requirements in tractors have played a pivotal role in driving the market in recent years.
South America Agricultural Tractor Market Trends
This section covers the major market trends shaping the South America Agricultural Tractor Machinery Market according to our research experts:
Increasing Cost of Farm Labor Driving the Market
The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics, thereby affecting the agricultural tractors market in the region. On average, emerging economies, such as Brazil and Argentina, have larger percentages of the population dependent on agriculture. However, the percentages have declined over time as a large number of people migrating to urban areas every year. As a result, the percentage of the population engaged in agriculture in Brazil fell to 43.86% in 2018, as compared to 45.12% in 2016. Due to the decline in agricultural labor, the cost of farm labor is rising. Hence, it is expected to increase the demand for agricultural tractors, during the forecast period.
Brazil - The Largest Market for Tractors in South America
Brazil was the largest market for tractors in South America, in 2019. According to the Brazilian Department of Agriculture, around 50% of the farmers own 500 acres or more in the country. Manual plowing, harvesting and other operations have been touted as unfeasible and time-consuming, thus, giving rise to a strengthened demand for tractors and machinery, in order to address challenges, such as cost, accuracy and labor shortage. According to the National Association of Manufacturers of Automotive Vehicles (ANFAVEA), the year-on-year tractor sales in the country increased by 71.6% in January, as it recorded the sales of 2,025 units in January 2019, as compared to 1,180 in January 2018, but the sales reduced to 1,194 units in February 2019. Companies are investing in R&D to innovate new series of tractors in the HP range suitable for Brazilian farms, which is further expected to drive the overall market for tractors in the country.
South America Agricultural Tractor Industry Overview
The market for tractors is consolidated in South America, with the major players not only competing based on equipment quality and promotion but are also focused on strategic moves, in order to hold larger market shares. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the tractor market in the region. AGCO Corporation, Deere & Company, Kubota Corporation, CNN Industrial, and CLAAS KGaA mbH, are some of the leading players in the region. In May 2016, AGCO launched its Fendt range in Brazil, with an investment valued at USD 38.0 million, specifically aimed at the soybean and corn cultivators in the center-west states such as Mato Grosso and Goiás in Brazil.
South America Agricultural Tractor Market Leaders
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Deere & Company
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AGCO Corporation
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CNH Industrial NV
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Kubota Corporation
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CLAAS KGaA mbH
*Disclaimer: Major Players sorted in no particular order
South America Agricultural Tractor Market Report - Table of Contents
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1. INTRODUCTION
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1.1 Study Assumptions & Market Definition
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1.2 Scope of the Study
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2. RESEARCH METHODOLOGY
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3. EXECUTIVE SUMMARY
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4. MARKET DYNAMICS
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4.1 Market Overview
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4.2 Market Drivers
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4.3 Market Restraints
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
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4.4.1 Bargaining Power of Buyers
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4.4.2 Bargaining Power of Suppliers
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4.4.3 Threat of Substitutes
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4.4.4 Threat of New Entrants
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4.4.5 Intensity of Competitive Rivalry
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5. MARKET SEGMENTATION
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5.1 Horsepower
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5.1.1 Below 80 HP
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5.1.2 81 HP to 130 HP
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5.1.3 Above 130 HP
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5.2 Type
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5.2.1 Orchard Tractors
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5.2.2 Row-Crop Tractors
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5.2.3 Other Types
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5.3 Geography
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5.3.1 Brazil
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5.3.2 Argentina
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5.3.3 Rest of South America
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6. COMPETITIVE LANDSCAPE
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6.1 Most Adopted Strategies
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6.2 Market Share Analysis
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6.3 Company Profiles
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6.3.1 Deere & Company
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6.3.2 Kubota Corporation
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6.3.3 CNH Industrial NV
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6.3.4 AGCO Corporation
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6.3.5 CLAAS KGaA mbH
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6.3.6 Mahindra & Mahindra Ltd
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6.3.7 AGRALE S.A
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6.3.8 ZETOR TRACTORS a.s.
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6.3.9 Agrinar SA
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7. MARKET OPPORTUNITIES & FUTURE TRENDS
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8. IMPACT OF COVID-19
South America Agricultural Tractor Industry Segmentation
For the purpose of this report, the tractors used in agricultural operations have been considered. The report does not cover other agricultural machinery and attachments to the tractor. The tractors used for industrial and construction purposes have been excluded from the study. The market is segmented by horsepower, type, and geography. The review period considered for the study is 2016-2019 and the forecast period is 2020-2025.
| Horsepower | |
| Below 80 HP | |
| 81 HP to 130 HP | |
| Above 130 HP |
| Type | |
| Orchard Tractors | |
| Row-Crop Tractors | |
| Other Types |
| Geography | |
| Brazil | |
| Argentina | |
| Rest of South America |
South America Agricultural Tractor Market Research FAQs
What is the current South America Agricultural Tractors Market size?
The South America Agricultural Tractors Market is projected to register a CAGR of 4.5% during the forecast period (2024-2029)
Who are the key players in South America Agricultural Tractors Market?
Deere & Company , AGCO Corporation, CNH Industrial NV, Kubota Corporation and CLAAS KGaA mbH are the major companies operating in the South America Agricultural Tractors Market.
What years does this South America Agricultural Tractors Market cover?
The report covers the South America Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Agricultural Tractors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Agricultural Tractor Industry Report
Statistics for the 2024 South America Agricultural Tractor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Agricultural Tractor analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South America Agricultural Tractor Market Report Snapshots
