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Tractor Market in Latin America - Industry Outlook and Forecast 2018-2023

Tractor Market in Latin America - Industry Outlook and Forecast 2018-2023

This market research report on tractor market in Latin America offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by horsepower type (<40 HP, 40-100 HP, 100+ HP, and 4 WD), by wheel drive (2 WD and 4 WD), and by countries (Brazil, Mexico, and Argentina).

Tractor Market in Latin America - Overview

The availability of significant natural resources and vast expanses of unexploited agricultural land is one of the main factors attributing to the demand in the tractor market in Latin America. The annual food and agricultural exports in 2016 across Brazil, Argentina, Mexico, and Chile accounted for over $100 billion. The favorable government policies and the growing demand for ethanol will drive the tractor sales in the Latin American market. The rising demand for 40-200 HP tractors across the region will create lucrative opportunities for leading manufacturers in the Latin American market. The growing awareness among land-owners about the potential agricultural mechanization will encourage large-scale farmers to adopt technology-driven farming methods in the region. The growing trend of precision agriculture aided with the increasing penetration of the Internet and rise in the number of smartphones is propelling the demand for farm mechanization in the Latin American market. Leading IT and telecommunication provider such as Cisco is investing in the development of the Internet of Things network in Argentina. Such investments will promote easy access to farmers to agricultural solutions and advanced technology that requires internet connectivity to operate thereby, accelerating the growth of the tractor market in Latin America.

The leading vendors are focusing on offering aftermarket services to increase the credibility of the product and increase brand loyalty among consumers to boost their revenues in the Latin American market. The farmers are leveraging smart technologies such as sensor technology, GPS, and climate satellites to understand the impact of climate change on crop production and promote sustainable practices in the region. The tractor market in Latin America is expected to reach volumes of around 87 thousand units by 2023, growing at a CAGR of more than 4% during 2018-2023.



Tractor Market in Latin America - Dynamics

The growing focus on using alternate fuel-based machines will propel the growth of the tractor market in Latin America. The leading manufacturers are developing tractors with alternative fuels such as bio-diesel and electric or battery operated machines to attract new consumers and boost sales in the Latin American market. The introduction of products will alternative fuel sources will help vendors gain a larger market share and boost their revenues. The increasing availability of machines that run on liquefied natural gas (LNG), compressed natural gas (CNG), propane, diesel, and kerosene will help in the development of the Latin American market. Bio-diesel tractors initially cost a lot of money but over the period of time require less maintenance thereby, making them more profitable than the traditional ones. The increasing investments in R&D and manufacturing of machines that operate on alternative fuels will revolutionize the tractor market in Latin America.

Tractor Market in Latin America - Segmentation

This market research report includes a detailed segmentation of the market by HP type, by wheel drive, and by countries.

Tractor Market in Latin America – By Horsepower Type

Agribusinesses to drive the demand for 40-100 HP machines in the tractor market in Latin America during 2023

The tractor market in Latin America by HP type is segmented into <40 HP, 40-100 HP, 100+ HP, and 4 WD. The 40-100 HP segment dominated the majority market share in 2017, growing at a CAGR of more than 3% during the forecast period. Brazil recorded the highest sale of 40-100 HP machines in the Latin American market. The increasing productivity and rise in crop exports in Argentina will boost the demand for 40-100 HP machines in the Latin American market. Brazil, Argentina, and Mexico together contributed to more than 85% of the unit sales in this segment and is expected to increase over the next few years. The growing adoption of farm mechanization and the introduction of precision farming will propel the growth of this segment in the market in Latin America. The development of agribusiness that enables production and commercialization of agricultural commodities will have a positive impact on the tractor market in Latin America. The trend of using modern agricultural techniques and minimal input cost to increase productivity will augment the development of this segment in the Latin American market.

Tractor Market in Latin America – By Wheel Drive

Upgrades to boost the use of 2WD machines in the tractor market in Latin America during the forecast period

The wheel drive segment in the tractor market in Latin America is classified into 2 WD and 4 WD. The 2 WD segment controls more than 3/4th of the market share in 2017, growing at a CAGR of more than 4% during the forecast period. The increasing use of 2 WD machines by traditionalist farmers and the cost efficiency of these products is driving the growth of this segment in the Latin American market. The leading vendors are focusing on designing 2 WD models to introduce more power and ease of handling features, so that farmers can upgrade their tractors and buy new ones as per the usage in the Latin American market. The introduction of machines with better fuel efficiencyand operational at confined spaces especially in countries such as Brazil and Mexico will help manufacturers gain a larger market share and boost their revenues in the region. The focus on customization as per the requirement of the farmers will contribute to the growth of the tractor market in Latin America. Massey Ferguson and John Deere are largest manufacturers in the 2 WD segment in the regional market.

Tractor Market in Latin America – By Countries

Government subsidies in Brazil will drive the growth in the tractor market in Latin America during the forecast period

The tractor market in Latin America by countries is divided into Brazil, Mexico, and Argentina. Brazil is the largest consumer and occupied most of the market share in 2017, growing at a CAGR of approximately 5% during the forecast period. Brazil is the largest exporter of coffee, soybeans, crop-based ethanol, and a major exporter of cotton, corn, rice, and sugarcane in the world. Brazil is the second largest region after the US in tractor sales across the world market. The availability of government financing subsidies in the country will propel the growth of the Latin American market during the forecast period. The introduction of a new emission standard, called as Mar 1 will help vendors launch new agricultural machines in the Brazilian market. The growing demand for high HP tractors for better productivity and yield will propel the development of the tractor market in Latin America during the forecast period.

Key Vendor Analysis

The tractor market in Latin America witnesses the presence of several established players in various segments that includes open fields and horticulture. These companies are driving the demand and controlling the level of competition in the Latin American market. The leading vendors are focusing on offering superior aftermarket services to improve customer loyalty and increase their market share. The increase in farm consolidation is encouraging players to introduce higher horsepower tractors, especially in Brazil to boost their revenues in the Latin American market. Free trade policies will encourage international companies to invest in business expansion plans in the Latin American market. The increasing focus on the integration of production, machines, and agronomic data will encourage vendors to introduce technologically advanced agricultural solutions to sustain the competition in the tractor market in Latin America.

The major vendors in the Latin American market are:

  • Deere & Company
  • CNH Industrial
  • AGCO
  • Kubota
Other prominent vendors include SDF, Class, Argo Tractors, LS Corporation, Mahindra & Mahindra, Agrale, Zetro, Sonalika Group, and Agrinar.

Key market insights include

1. The analysis of tractor market in Latin America provides market size and growth rate for the forecast period 2018-2023.

2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the tractor market in Latin America.

3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.

4. It offers a complete overview of market segments and the regional outlook of tractor market in Latin America.

5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

Report snapshot

The tractor market in Latin America is estimated to reach volumes of around 87 thousand units by 2023, growing at a CAGR of over 4% during 2018-2023.

The tractor market in Latin America is driven by increasing investments made by governments and large corporations to improve agricultural solutions in the region. The use of smart technology to intensify production and meet increasing food demand from growing populations without expanding farmland will transform the Latin American market. The market research report provides in-depth market analysis and segmental analysis of the Latin American market by HP type, by wheel drive, and by countries.

Base Year: 2017

Forecast Year: 2018–2023

The report studies the present scenario of the tractor market in Latin America and its market dynamics for the period 2018−2023. It covers a detailed overview of various market growth enablers, restraints, and trends. The study covers both the supply and demand sides of the market. It also profiles and analyzes the leading companies and various other prominent companies operating in the market.

Major Vendors in the Tractor Market in Latin America
  • Deere & Company
  • Business Overview
  • Deere & Company in the European Market
  • Major Product Offerings
  • Key Strategies
  • Key Strengths
  • Key Opportunities
  • CNH Industrial
  • AGCO
  • Kubota
Prominent Players in the Tractor Market in Latin America
  • SDF
  • Business Overview
  • Product Offerings
  • Class
  • Argo Tractors
  • LS Corporation
  • Mahindra & Mahindra
  • Agrale
  • Zetro
  • Sonalika Group
  • Agrinar
Market Segmentation by HP Type
  • <40 HP
  • 40-100 HP
  • 100+ HP
  • 4 WD
Market Segmentation by Wheel Drive
  • 2 WD
  • 4 WD
Market Segmentation by Countries
  • Brazil
  • Mexico
  • Argentina


1 Research Methodology
2 Research Objectives
3 Research Process
4 Report Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of Study
4.3.1 Market Segmentation by HP Type
4.3.2 Market Segmentation by Countries
4.3.3 Segmentation by Wheel Drive
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Inclusions
5.3 Exclusions
5.4 Currency Conversion
5.5 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Overview
8 Market Dynamics
8.1 Market Growth Enablers
8.1.1 Government Subsidies and Credit Support Systems
8.1.2 Investments by International Manufacturers
8.1.3 Agriculture as Increasing Part of GDP
8.1.4 YOY Impact of Market Growth Enablers
8.2 Market Growth Restraints
8.2.1 Looming Unfavorable Weather Conditions
8.2.2 Fluctuating Commodity and Fertilizer Prices
8.2.3 Growing Usage of Rental Tractors
8.2.4 YOY Impact of Market Growth Restraints
8.3 Market Opportunities & Trends
8.3.1 Growing Prospects of Precision Farming
8.3.2 Increasing Focus on Smart and Autonomous Tractors
8.3.3 YOY Impact of Market Opportunities & Trends
9 Agriculture Tractor Market in Latin America
9.1 Historical Data 2010–2016
9.2 Market Size & Forecast 2017–2023
9.3 Porter’s Five Forces Analysis
9.3.1 Threat of New Entrants
9.3.2 Bargaining Power of Suppliers
9.3.3 Bargaining Power of Buyers
9.3.4 Threat of Substitutes
9.3.5 Competitive Rivalry
10 Agriculture Tractor market by Wheel Drive
10.1 Market Overview
10.2 2WD Tractor MArket
10.2.1 Market Size & Forecast
10.3 4WD Tractor Market
10.3.1 Market Size & Forecast
11 Agriculture Tractor Market by HP
11.1 Market Overview
11.2 Below 40 HP
11.2.1 Market Size & Forecast
11.3 40-100 HP
11.3.1 Market Size & Forecast
11.4 Above 100 HP
11.4.1 Market Size & Forecast
11.5 4WD
11.5.1 Market Size & Forecast
12 Major Countries: Agri Tractor Market
13 Brazil: Tractor Market
13.1 Historical Data 2010–2016
13.2 Market Size & Forecast 2017–2023
13.2.1 Investment and Regulatory Outlook in Brazil
13.3 Segmentation by HP
13.3.1 Below 40 HP Tractor: Market Size & Forecast
13.3.2 40-100 HP Tractor: Market Size & Forecast
13.3.3 Above 100 HP Tractor: Market Size & Forecast
13.3.4 4WD Tractor Market: Market Size & Forecast
13.4 Market Share Analysis
14 Mexico: Tractor Market
14.1 Historical Data 2010−2016
14.2 Market Size & Forecast
14.3 Segmentation by HP
14.3.1 Below 40 HP Tractor: Market Size & Forecast
14.3.2 40-100 HP Tractor: Market Size & Forecast
14.3.3 Above 100 HP Tractor: Market Size & Forecast
14.3.4 4WD Tractor Market: Market Size & Forecast
14.4 Market Share Analysis
15 Argentina: Tractor Market
15.1 Historical Data 2010−2016
15.2 Market Size & Forecast
15.3 Segmentation by HP
15.3.1 Below 40 HP Tractor: Market Size & Forecast
15.3.2 40-100 HP Tractor: Market Size & Forecast
15.3.3 Above 100 HP Tractor: Market Size & Forecast
15.3.4 4WD Tractor Market: Market Size & Forecast
15.4 Market Share Analysis
16 Competitive Landscape
16.1.1 Marketing and Promotional Activities
17 Key Company Profiles
17.1 Deere & Company
17.1.1 Business Overview
17.1.2 Deere & Company in Latin America Tractor Market
17.1.3 Major Product Offerings
17.1.4 Key Strategies
17.1.5 Key Strengths
17.1.6 Key Opportunities
17.2 CNH
17.2.1 Business Overview
17.2.2 CNH in Latin America Tractor Market
17.2.3 Major Product Offerings
17.2.4 Key Strategies
17.2.5 Key Strengths
17.2.6 Key Opportunities
17.3 AGCO
17.3.1 Business Overview
17.3.2 AGCO in Latin America Tractor Market
17.3.3 Major Product Offerings
17.3.4 Key Strategies
17.3.5 Key Strengths
17.3.6 Key Opportunities
17.4 Kubota
17.4.1 Business Overview
17.4.2 Kubota in Latin America Tractor Market
17.4.3 Major Product Offerings
17.4.4 Key strategies
17.4.5 Key Strengths
17.4.6 Key Opportunities
18 Other Prominent Vendors
18.1 SDF
18.1.1 Business Overview
18.1.2 Product Offerings
18.2 CLASS
18.2.1 Business Overview
18.2.2 Product Offerings
18.3 Argo Tractors
18.3.1 Business Overview
18.3.2 Product Offering
18.4 LS CORP.
18.4.1 Business Overview
18.4.2 Product Offerings
18.5 Mahindra & Mahindra
18.5.1 Business Overview
18.5.2 Product Offerings
18.6 Agrale
18.6.1 Business Overview
18.6.2 Product Offerings
18.7 Zetro Tractors
18.7.1 Business Overview
18.7.2 Product Offering
18.8 Sonalika
18.8.1 Business Overview
18.8.2 Product Offering
18.9 Agrinar
18.9.1 Business Overview
18.9.2 Product Offering
19 Report Summary
19.1 Key Takeaways
19.2 Qualitative Summary: Tractor Market in Latin America
19.3 Quantitative Summary: Tractor Market in Latin America
19.3.1 Market by Geography
19.3.2 Market by HP
19.3.3 Market by Wheel Drive
20 Appendix
20.1 Abbreviations
List of Exhibits
Exhibit 1 Segmentation of Tractor Market in Latin America
Exhibit 2 Market Size Calculation Approach 2017
Exhibit 3 Tractor Market in Latin America Overview 2017 & 2023 (000 ‘units)
Exhibit 4 Share of Agriculture in Latin America’s Workforce
Exhibit 5 Land Holding Structure in Latin America Economies 2014
Exhibit 6 Precision Agriculture Market in Latin America 2017−2023 ($ million)
Exhibit 7 Agriculture as Part of GDP Latin America 2010−2016 (%)
Exhibit 8 Latin America: Average Price of Commodities ($ per metric ton)
Exhibit 9 Latin America Fertilizer Price Changes
Exhibit 10 Latin America: Number of Cases When Weeds are Resistant to any Herbicide
Exhibit 11 Global Autonomous Tractor Market 2017−2023 (units)
Exhibit 12 Tractor Market in Latin America 2010–2016 (000’ units)
Exhibit 13 Tractor Market in Latin America 2017−2023 (000’ units)
Exhibit 14 Tractor Seasonality Sales in Latin America 2017
Exhibit 15 Tractor Market in Latin America 2017 & 2023 (000’ units)
Exhibit 16 Typology of Family Farming
Exhibit 17 Five Forces Analysis 2017
Exhibit 18 Tractor Market in Latin America by Wheel Drive 2017 & 2023 (000’ units)
Exhibit 19 Tractor Market by Wheel Drive 2017–2023
Exhibit 20 2WD Tractor Market in Latin America 2017–2023 (ooo’ units)
Exhibit 21 2WD Market Share (Changes from 2017 to 2023)
Exhibit 22 4WD Tractor Market in Latin America 2017–2023 (000’ units)
Exhibit 23 4WD Drive Segment Market Share Changes 2017 to 2023
Exhibit 24 Tractor Market in Latin America by HP 2017 and 2023 (000’ units)
Exhibit 25 Latin America Tractor Market by HP 2017–2023
Exhibit 26 Latin America: Below 40HP Tractor Market 2017–2023 (000’ units)
Exhibit 27 Latin America: 40-100HP Tractor Market 2017–2023 (00o’ units)
Exhibit 28 Latin America: Above 100 HP Tractor Market 2017–2023 (000’ units)
Exhibit 29 Latin America: 4WD Tractor Market 2017–2023 (000’ units)
Exhibit 30 Tractor Market in Latin America by Major Countries 2017 and 2023 (units)
Exhibit 31 Tractor Market in Brazil 2010–2016 (000’ units)
Exhibit 32 Tractor Market in Brazil 2017–2023 (units)
Exhibit 33 Tractor Market in Brazil by HP 2017−2023 (000’ units)
Exhibit 34 Below 40 HP Tractor Market in US 2017–2023 (000’ units)
Exhibit 35 40-100 HP Tractor Market in Brazil 2017–2023 (000’ units)
Exhibit 36 Above 100 HP Tractor Market in Brazil 2017–2023 (000’ units)
Exhibit 37 4WD Tractor Market in Brazil 2017–2023 (units)
Exhibit 38 Tractor Market in Brazil by Leading Players 2017
Exhibit 39 Tractor Market in Mexico 2010−2016 (000’ units)
Exhibit 40 Tractor Market in Mexico 2017−2023 (units)
Exhibit 41 Tractor Market in Mexico by HP 2017−2023 (units)
Exhibit 42 Below 40 HP Tractor Market in Mexico 2017–2023 (000’ units)
Exhibit 43 40-100 HP Tractor Market in Mexico 2017–2023 (000’ units)
Exhibit 44 Above 100 HP Tractor Market in Mexico 2017–2023 (000’ units)
Exhibit 45 4WD Tractor Market in Mexico 2017–2023 (000’ units)
Exhibit 46 Tractor Market in Mexico by Leading Players 2017 (%)
Exhibit 47 Tractor Market in Argentina 2010–2016 (000’ units)
Exhibit 48 Tractor Market in Argentina 2017–2023 (000’ units)
Exhibit 49 Tractor Market in Argentine by HP 2017–2023 (000’ units)
Exhibit 50 Below40 HP Tractor Market in Argentina 2017–2023 (000’ units)
Exhibit 51 40-100 HP Tractor Market in Argentina 2017–2023 (000’ units)
Exhibit 52 Above 100 HP Tractor Market in Argentina 2017–2023 (000’ units)
Exhibit 53 4WD Tractor Market in Argentina 2017–2023 (units)
Exhibit 54 Tractor Market in Argentina by Leading Brands 2017
List of Tables
Table 1 Key Caveats
Table 2 Currency Conversion 2013−2017
Table 3 YOY Impact of Market Growth Enablers 2017−2023
Table 4 YOY Impact of Market Growth Restraints 2017−2023
Table 5 YOY Impact of Market Opportunities & Trends 2017−2023
Table 6 Farmland Investment Funds by Region and Agricultural Focus 2017
Table 7 Tractor Market in Latin America by Wheel Drive 2017–2023 (units)
Table 8 2WD Tractor Market in Latin America 2017–2023 (000’ units)
Table 9 4WD Tractor Market in Latin America 2017–2023 (000’ units)
Table 10 Latin America: Percentage Share of Tractors by Power by Countries 2017
Table 11 Latin America Tractor Sales by HP in Major Countries 2017–2023
Table 12 Below 40HP Tractors in Major Countries 2017–2023 (units)
Table 13 Below 40HP Tractors in Major Countries 2017–2023 (Market Share %)
Table 14 40HP to 100HP Tractor Sales in Major Countries 2017–2023 (units)
Table 15 40HP to 100HP Tractor Sales in Major Countries 2017–2023 (Market Share)
Table 16 100 + HP Tractor Sales in Major Countries 2017–2023 (Units)
Table 17 100 + HP Tractor Sales in Major Countries 2017–2023 (Market Share %)
Table 18 4 WD Tractor Sales in Major Countries 2017–2023 (Units)
Table 19 4 WD Tractor Sales in Major Countries 2017–2023 (Market Share)
Table 20 Tractor Market in Brazil 2017−2023 (000’ units)
Table 21 Tractor Market in Mexico 2017–2023 (000’ units)
Table 22 Tractor Market in Argentina 2017−2023 (000’ units)
Table 23 Major Players Market Share in Latin America 2017
Table 24 Deere & Company: Product Offerings
Table 25 CNH: Product Offerings
Table 26 AGCO: Product Offerings
Table 27 Kubota: Product Offerings
Table 28 Qualitative Summary of Tractor Market in Latin America
Table 29 Quantitative Summary of Tractor Market in Latin America by Geography (000’ units)
Table 30 Quantitative Summary of Tractor Market by HP 2017–2023 (000’ units)
Table 31 Quantitative Summary of Tractor Market by Below 40 HP 2017–2023 (000’ units)
Table 32 Quantitative Summary of Tractor Market by 40 - 100 HP 2017–2023 (000’ units)
Table 33 Quantitative Summary of Tractor Market by 100+ HP 2017–2023 (000’ units)
Table 34 Quantitative Summary of Tractor Market by 4WD 2017–2023 (000’ units)
Table 35 Quantitative Summary of Tractor Market by 2WD 2017–2023 (000’ units)

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