Mexico Tractors Market - Industry Analysis & Forecast 2022-2028

Mexico Tractors Market - Industry Analysis & Forecast 2022-2028

Mexico tractors market is expected to grow at a CAGR of 3.79% during 2022-2028.

MARKET INSIGHTS

In 2021, the 50-100HP segment accounted for the largest share due to the increasing purchasing power of farmers due to better MSP and crop realization in Mexico.

Mexico holds a significant market share in the Latin America tractor market. It has over $130.3 million food consumers and is one of Latin America's second-largest food industries. Despite its high population density, Mexico has more than half of its area under agricultural land, covering more than 107 million hectares. The country has witnessed a massive increase in farm mechanization, both in terms of agricultural and industrial productivity, over the past four decades, driven by the technological renaissance.

KEY HIGHLIGHTS

  • Economic growth is expected to improve by 2023 due to low inflation, low-interest rates, and a reform package pushed by the government to re-establish competition.
  • The local F&B (food & beverages) sector continues to lead the growth and exports, supported by record production in several essential commodities such as wheat, rice, and barley.
  • The local sugar and ethanol industries continue to undergo a turnaround following massive defaults in previous years.
  • M&A activities across the F&A value chain will likely grow as strategic players, private equity investors, and institutional investors bid for assets across the value chain.
  • Many sectors are primed to grow and witness more consolidation, including input distribution, grain origination, trading, and animal protein – including aquaculture, fruit production, and forestry.
MARKET TRENDS

Mechanized feedlots typically characterize the agricultural scenario in Mexico to automatic irrigation systems and agricultural machinery. As the demand for food and associated resources from the world’s largest economy rises, there has been a tremendous rise in input resources such as farm machinery usage to improve productivity and efficiency.

The agriculture sector in the region is typically marked by a tremendous decline in the labor force, a consistent rise in productivity, and the consolidation of smaller farms into larger ones. Over the past three decades, there has been a 50% decline in the labor force engaged in the agriculture sector, while productivity increased by as much as 4.5% YOY because of farm mechanization. This indicates the maturity of farm machinery in the country and the rising growth in the Mexican agriculture tractors market.

The tractor fleet industry in the country is expected to witness the replacement demand as farmers are looking for more advanced agriculture tractors. Also, the country is seeing increasing demand for low-end hp tractors (less than 100 hp). This is mainly due to an increase in small family-owned farms.

Mexico’s Agriculture Incentives Support

Increasing mechanization, growing government aid, and increasing export are likely to boost the sale of tractors in the country. In 2020, the Federal Government introduced agricultural programs to support the agriculture industry (previously known as PROCAMPO, now named PROAGRO) worth $53.74 million for seeds, fertilizers, equipment, and other agriculture products.

Governments must adopt effective and sustainable farming practices to ensure food security and safety. While the level of agricultural mechanization is low, the country is implementing the concept of precision agriculture to increase productivity. Precision farming is a management concept under which crops are grown according to the specifications of the soil. The focus on agricultural mechanization in developing countries will increase the tractor demand.

SEGMENTS ANALYSIS

Segmentation by Horsepower
  • Less than 50 HP
  • 50–100 HP
  • 101-150 HP
  • 151-250 HP
  • Above 250 HP
Segmentation by Drive Type
  • 2-Wheel-Drive
  • 4-Wheel-Drive
GEOLOGICAL MARKET BENEFIT

Mexico’s economy has witnessed a brighter spot throughout Latin America’s countless slow-growth countries. Due to its proximity to the U.S., it enjoys benefits when its northern neighbor performs well. Although the Mexican Peso (MXN) has not been performing well because of the strength of the US dollar, Mexican’s GDP has increased due to remittances. Furthermore, NAFTA, the North American Free Trade Agreement, circulates free trade between the US, Mexico, and Canada. This provides a small buffer from the economic challenges faced by a multitude of other Latin American countries.

Segmentation by Regions

o Northern Mexico

o Central Mexico

o Gulf & Southern Mexico

VENDOR LANDSCAPE
  • The key players in the Mexico tractor market include John Deere, AGCO, CNH Industrial, TAFE, and Kubota.
  • John Deere and AGCO are the leaders in terms of units sold and dominated the Mexico tractor market with a collective share of over 60%.
  • In February 2022, AGCO and AgRevolution showcased new solutions from Fendt, Massey Ferguson, and Hesston by Massey Ferguson at the National Farm Machinery in Louisville, Kentucky.
  • Mexico's agriculture tractor market witnessed the presence of established players in various segments. Vendors are improving their aftersales services, making loyal customers base to the existing brands.
  • CNH Industrial, with its tractor brands Case IH, New Holland, and Steyr, has introduced the concept of autonomous technology in agriculture tractors in the country. The company has already incorporated technologies such as auto-steering and telematics in its agriculture tractors.
Key Vendors
  • John Deere
  • AGCO
  • CNH Industrial
  • TAFE
  • Kubota
Other Prominent Vendors
  • Mahindra & Mahindra
  • Deutz-Fahr
  • Yanmar
  • CLAAS Group
  • Foton
  • Arbos Group
KEY QUESTIONS ANSWERED

1. What is the growth rate of the Mexico tractor market?

2. What are the factors driving the growth of the Mexico tractor market?

3. Which companies will dominate the Mexico tractors market share?

4. Who are the major players in the Mexico tractor market?

5. How many units will be sold in the Mexico tractor market by 2028?

6. Tractors with which horsepower type will have the highest incremental growth by 2028?


1 RESEARCH METHODOLOGY
2 RESEARCH OBJECTIVES
3 RESEARCH PROCESS
4 SCOPE & COVERAGE
4.1 MARKET DEFINITION
4.1.1 INCLUSIONS
4.1.2 EXCLUSIONS
4.1.3 MARKET ESTIMATION CAVEATS
4.2 BASE YEAR
4.3 SCOPE OF THE STUDY
5 REPORT ASSUMPTIONS & CAVEATS
5.1 KEY CAVEATS
5.2 CURRENCY CONVERSION
5.3 MARKET DERIVATION
6 MARKET AT A GLANCE
7 PREMIUM INSIGHTS
8 INTRODUCTION
8.1 OVERVIEW
8.2 VALUE CHAIN ANALYSIS
8.2.1 OVERVIEW
8.2.2 RAW MATERIAL & COMPONENT SUPPLIERS
8.2.3 MANUFACTURERS
8.2.4 DEALERS/DISTRIBUTORS
8.2.5 RETAILERS
8.2.6 END-USERS
8.3 GROWING ADOPTION OF PRECISION FARMING
8.4 IMPORT & EXPORT ANALYSIS
8.5 TECHNOLOGICAL ADVANCEMENTS
8.6 IMPACT OF COVID-19 ON MEXICO’S AGRICULTURE SECTOR
9 MARKET LANDSCAPE
9.1 MARKET OVERVIEW
9.1.1 INVESTMENT & REGULATORY OUTLOOK IN MEXICO
9.1.2 MAJOR LABOR SHORTAGES IN THE AGRICULTURE SECTOR
9.2 MARKET SIZE & FORECAST
10 HORSEPOWER
10.1 MARKET SNAPSHOT & GROWTH ENGINE
10.2 MARKET OVERVIEW
10.3 LESS THAN 50 HP
10.3.1 MARKET OVERVIEW
10.3.2 MARKET SIZE & FORECAST
10.3.3 LESS THAN 50 HP AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
10.4 50–100 HP
10.4.1 MARKET OVERVIEW
10.4.2 MARKET SIZE & FORECAST
10.4.3 50–100 HP AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
10.5 101–150 HP
10.5.1 MARKET OVERVIEW
10.5.2 MARKET SIZE & FORECAST
10.5.3 101–150 HP AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
10.6 151–250 HP
10.6.1 MARKET OVERVIEW
10.6.2 MARKET SIZE & FORECAST
10.6.3 151–250 HP AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
10.7 ABOVE 250 HP
10.7.1 MARKET OVERVIEW
10.7.2 MARKET SIZE & FORECAST
10.7.3 ABOVE 250 HP AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
11 DRIVE TYPE
11.1 MARKET SNAPSHOT & GROWTH ENGINE
11.2 MARKET OVERVIEW
11.3 2-WHEEL-DRIVE
11.3.1 MARKET OVERVIEW
11.3.2 MARKET SIZE & FORECAST
11.3.3 2-WHEEL-DRIVE AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
11.4 4-WHEEL-DRIVE
11.4.1 MARKET OVERVIEW
11.4.2 MARKET SIZE & FORECAST
11.4.3 4-WHEEL-DRIVE AGRICULTURAL TRACTOR MARKET IN MEXICO BY REGION
12 REGION
12.1 MARKET SNAPSHOT & GROWTH ENGINE
12.2 MARKET OVERVIEW
12.3 NORTH
12.3.1 MARKET OVERVIEW
12.3.2 MARKET SIZE & FORECAST
12.3.3 MARKET BY HORSEPOWER
12.3.4 MARKET BY DRIVE TYPE
12.4 CENTRAL
12.4.1 MARKET OVERVIEW
12.4.2 MARKET SIZE & FORECAST
12.4.3 MARKET BY HORSEPOWER
12.4.4 MARKET BY DRIVE TYPE
12.5 GULF & SOUTH
12.5.1 MARKET OVERVIEW
12.5.2 MARKET SIZE & FORECAST
12.5.3 MARKET BY HORSEPOWER
12.5.4 MARKET BY DRIVE TYPE
13 MARKET OPPORTUNITIES & TRENDS
13.1 DEVELOPMENT OF SMART AND AUTONOMOUS TRACTORS
13.2 INCREASING POTENTIAL FOR ELECTRIC TRACTORS
13.3 USAGE OF ALTERNATIVE FUEL BASED TRACTORS
14 MARKET GROWTH ENABLERS
14.1 FISCAL SUPPORT TO FARMERS THROUGH LOANS & SUBSIDIES
14.2 DROPPING WORKFORCE BOOSTING FARM MECHANIZATION
14.3 GROWTH IN AGRICULTURAL PRODUCTIVITY & EXPORTS
15 MARKET RESTRAINTS
15.1 CLIMATE CHANGE ADVERSELY IMPACTING AGRICULTURAL ACTIVITIES
15.2 VOLATILITY IN THE COST OF RAW MATERIALS
15.3 RISING DEMAND FOR USED & RENTAL TRACTORS
16 FIVE FORCES ANALYSIS
16.1.1 THREAT OF NEW ENTRANTS
16.1.2 BARGAINING POWER OF SUPPLIERS
16.1.3 BARGAINING POWER OF BUYERS
16.1.4 THREAT OF SUBSTITUTES
16.1.5 COMPETITIVE RIVALRY
17 COMPETITIVE LANDSCAPE
17.1 COMPETITION OVERVIEW
17.1.1 RECENT DEVELOPMENTS BY TOP BRANDS
17.1.2 MARKETING & PROMOTIONAL ACTIVITIES
17.1.3 BRAND LOYALTY
18 KEY COMPANY PROFILES
18.1 JOHN DEERE
18.1.1 BUSINESS OVERVIEW
18.1.2 JOHN DEERE IN THE MEXICO AGRICULTURAL TRACTOR MARKET
18.1.3 PRODUCT OFFERINGS
18.1.4 KEY STRATEGIES
18.1.5 KEY STRENGTHS
18.1.6 KEY OPPORTUNITIES
18.2 AGCO
18.2.1 BUSINESS OVERVIEW
18.2.2 AGCO IN THE MEXICO AGRICULTURAL TRACTOR MARKET
18.2.3 PRODUCT OFFERINGS
18.2.4 KEY STRATEGIES
18.2.5 KEY STRENGTHS
18.2.6 KEY OPPORTUNITIES
18.3 CNH INDUSTRIAL
18.3.1 BUSINESS OVERVIEW
18.3.2 CNH INDUSTRIAL IN THE MEXICO AGRICULTURAL TRACTOR MARKET
18.3.3 PRODUCT OFFERINGS
18.3.4 KEY STRATEGIES
18.3.5 KEY STRENGTHS
18.3.6 KEY OPPORTUNITIES
18.4 TAFE
18.4.1 BUSINESS OVERVIEW
18.4.2 TAFE IN THE MEXICO AGRICULTURAL TRACTOR MARKET
18.4.3 PRODUCT OFFERINGS
18.4.4 KEY STRATEGIES
18.4.5 KEY STRENGTHS
18.4.6 KEY OPPORTUNITIES
18.5 KUBOTA
18.5.1 BUSINESS OVERVIEW
18.5.2 KUBOTA IN THE MEXICO AGRICULTURAL TRACTOR MARKET
18.5.3 PRODUCT OFFERINGS
18.5.4 KEY STRATEGIES
18.5.5 KEY STRENGTHS
18.5.6 KEY OPPORTUNITIES
19 OTHER PROMINENT VENDORS
19.1 MAHINDRA & MAHINDRA
19.1.1 BUSINESS OVERVIEW
19.1.2 PRODUCT OFFERINGS
19.2 DEUTZ-FAHR
19.2.1 BUSINESS OVERVIEW
19.2.2 PRODUCT OFFERINGS
19.3 YANMAR
19.3.1 BUSINESS OVERVIEW
19.3.2 PRODUCT OFFERINGS
19.4 CLAAS GROUP
19.4.1 BUSINESS OVERVIEW
19.4.2 PRODUCT OFFERINGS
19.5 FOTON
19.5.1 BUSINESS OVERVIEW
19.5.2 PRODUCT OFFERINGS
19.6 ARBOS GROUP
19.6.1 BUSINESS OVERVIEW
19.6.2 PRODUCT OFFERINGS
20 REPORT SUMMARY
20.1 KEY TAKEAWAYS
20.2 STRATEGIC RECOMMENDATIONS
21 QUANTITATIVE SUMMARY
21.1 MARKET BY HORSEPOWER
21.2 MARKET BY DRIVE TYPE
21.3 MARKET BY REGION
22 APPENDIX
22.1 ABBREVIATIONS

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