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South America Agricultural Tractors Market Size (2024 - 2029)

The South American tractor market is experiencing growth driven by increased farm mechanization and rising labor costs, which have boosted demand for tractors, particularly in Brazil. The market size is influenced by the need for higher horsepower tractors for major crops like sugarcane and soybean, as well as those requiring attached machinery for spraying. Government initiatives, such as Brazil's agricultural credit program, have further stimulated market expansion. Key players in the market are focusing on product development to meet local agricultural needs, contributing to the market's growth trajectory.

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Market Size of South America Agricultural Tractors Industry

Market Snapshot
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

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*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 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
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South America Agricultural Tractors Market Size Summary

The South American tractor market is experiencing notable growth, driven by the increasing pace of farm mechanization in the region. The demand for tractors, particularly those with higher horsepower, is primarily fueled by the cultivation of major crops such as sugarcane and soybean, which require advanced machinery for efficient farming operations. The rising cost of farm labor, attributed to a decline in the agricultural workforce due to urban migration, has further accelerated the need for tractors. Brazil stands out as the largest market within South America, supported by government initiatives like the Moderfrota program, which aims to modernize agricultural equipment. Key industry players, including Deere & Company, AGCO Corporation, and CNH Industrial NV, are actively contributing to market growth through strategic manufacturing and product development tailored to local agricultural needs.

The tractor market in South America is characterized by a consolidated landscape, with leading companies competing through quality, strategic partnerships, and innovative product launches. The decline in the agricultural labor force has led to an increased reliance on mechanized farming solutions, enhancing the demand for tractors. Companies are investing in research and development to introduce new tractor models suitable for the region's diverse agricultural practices. The market dynamics are shaped by the need for efficient farming solutions to address challenges such as labor shortages and the need for precision in agricultural operations. As a result, the South American tractor market is poised for continued expansion, with Brazil at the forefront of this growth trajectory.

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South America Agricultural Tractors Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of Substitutes

      4. 1.4.4 Threat of New Entrants

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Horsepower

      1. 2.1.1 Below 80 HP

      2. 2.1.2 81 HP to 130 HP

      3. 2.1.3 Above 130 HP

    2. 2.2 Type

      1. 2.2.1 Orchard Tractors

      2. 2.2.2 Row-Crop Tractors

      3. 2.2.3 Other Types

    3. 2.3 Geography

      1. 2.3.1 Brazil

      2. 2.3.2 Argentina

      3. 2.3.3 Rest of South America

South America Agricultural Tractors Market Size FAQs

The South America Agricultural Tractors Market is projected to register a CAGR of 4.5% during the forecast period (2024-2029)

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.

South America Agricultural Tractor Market Report Snapshots

South American Tractor Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)