Central and South America Agricultural Machinery Market - Segmented by Geography - Growth, Trends, and Forecast (2018 - 2023)
Farmers in Mexico, Argentina, and Brazil are accepting mechanization in their farms, and are supported by government subsidy programs, thereby increasing the demand for agricultural machinery, especially tractors, which is on the rise in the region. The area under harvest in the region is increasing and farmers have been able to generate more income as compared to previous years, and hence, they have higher dispensable incomes to invest on machinery and other agricultural inputs.
Brazilian Tractors Dominates the Market
The use of tractors brought about an important change in the agricultural mechanization in the country. The introduction of tractors as a power source, provides the possibility of covering large agricultural areas in short periods of time. Due to the significant increase in row crops and horticultural crops, there is an increasing usage of tractors. In April 2017, Mahindra launched its high-power tractor platform, Mahindra JIVO, to target horticulture and row crop farmers.
The continuous decrease in import of tractors in Brazil had a significant impact on the market growth. In 2016, the revenue generated from the import of tractors was around USD 46.1 million, a decrease by 40.1% from 2015. The decrease in revenue generated was attributed to the increase in the price of agricultural commodities and the growth of Brazil’s large and prosperous domestic market for food and other agricultural products
Shrinking Agricultural Space Effects Agricultural Machinery Sales
Population has been growing fast, and the people have been occupying agricultural land to settle down. As the population continues to rise, the land resource shortage is expected to affect the farming activity. This can adversely affect the space available for tractor and machinery to enter farming. As land availability falls, farming activity is likely to see a crunch, regarding both available agriculture space and human resources willing to engage in farming. The unavailability/decrease of farming space can hamper the sale of agricultural machinery during the forecast period. Agriculture activity in many nations is expected to be affected by the growth in global population as farming activity falls due to lack of enough human resources and shrinking agricultural land.
Major Players: AGCO Corporation, CNH Industrial N.V, John Deere, Kubota Corporation, Mahindra and Mahindra Ltd. Claas, among others.
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To have an understanding of the fastest growing regions in the Central and South America agricultural machinery market and their growth trends during the forecast period
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