South America Agricultural Tractor Market Outlook, 2029

The South America Agricultural Tractor Market is segmented into By Engine Power (Below 30 HP, 30 HP - 100 HP, 100 HP - 200 HP, Above 200 HP), By Propulsion (IC, Electric), By Drive Type (2WD, 4WD), By Level of Autonomy (Manual Tractor Vehicle, Autonomous Tractor Vehicle), By Application (Harvesting, Seed Sowing, Spraying, Others).

The South America Agriculture Tractor market is projected to add more than USD 800 Million from 2024 to 2029 due to expansion of commercial agriculture

Agricultural Tractor Market Market Analysis

Throughout the projected period, there is expected to be growth in the South American agricultural tractor market. The rate of farm mechanization in the region is consistent with the recent increase in tractor sales recorded in South America. While soybeans and sugarcane are the main crops driving the demand for tractors with higher horsepower ratings, other key crops in the region that necessitate the use of associated gear for spraying have also increased demand for tractors in general. In addition, the cost of labour has increased in recent years as a result of the growing scarcity of farm labour. In South America, Brazil is the tractor market leader. To encourage tractor modernization, the Brazilian government introduced the Moderfrota agricultural credit program in 2015. In the Brazilian tractor market, Deere & Company holds the largest market share, followed by AGCO Corporation and CNH Industrial NV. While CNH Industrial NV makes tractors in Rio Verde, Curitiba, Piracicaba, and Sorocaba, Deere & Company has multiple production facilities in Catalão, Montenegro, and Horizontina. The market has been driven in recent years by these companies' on-going product improvements that introduce locally appropriate farm requirements in tractors. Tractor sales in South America are concentrated among a small number of significant firms who compete not only on the basis of equipment quality and promotion but also on strategic efforts to increase their market shares. Leading tractor companies in the region have embraced collaborations, acquisitions, and new product launches as their primary tactics. There are well-known companies in the open fields and horticulture divisions of the Latin American tractor market. There is not much of a threat from new merchants to the area's current vendors. According to the research report "South America Agriculture Tractor Market Outlook, 2029," published by Bonafide Research, the South America Agriculture Tractor market is projected to add more than USD 800 Million from 2024 to 2029. Fertile plains and abundant agricultural resources are the hallmarks of South America. The need for agricultural tractors is fueled by the growth of agribusiness businesses, such as commercial agriculture and large-scale farming operations. Modern, high-capacity tractors are essential for agribusinesses to boost production, profitability, and operational efficiency. The South American market for agricultural tractors is mostly driven by the introduction of mechanized farming techniques. In an effort to increase productivity and lessen their reliance on manual labour, farmers are mechanizing their operations more and more as labour costs rise and labour supply changes. Mechanized farming relies heavily on tractors, which help farmers carry out a variety of duties effectively, such as clearing land, planting, cultivating, and harvesting. The Amazon basin, the Pampas region, and the Cerrado savanna are just a few of the large areas of arable land in South America that are ideal for agriculture. The necessity for tractors to prepare and cultivate additional farmland is driven by the extension of agricultural frontiers and the conversion of wooded areas into crops. Farmers can increase the productivity of recently opened agricultural areas with the aid of tractors outfitted with cutting-edge features and technologies. Many different types of crops, such as soybeans, corn, sugarcane, coffee, fruits, and vegetables, are produced in large quantities throughout South America. The need for customized tractors made for particular cropping systems and agricultural techniques is driven by the diversification and specialization of crop production. Farmers in different crop types and regions have distinct needs, and tractors with different horsepower ratings, implements, and attachments meet those needs.

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Market Dynamic

Major Drivers Growing Farm Labour Costs Are Driving the Market: Based on basic demand-supply economics, the cost of farm labour directly affects the share of a nation's population that works in agriculture. This has an impact on the local market for agricultural tractors. The population in emerging economies, like Brazil and Argentina, is generally more dependent on agriculture. But as more and more individuals move to cities each year, the percentages have decreased over time. The cost of farm labour is increasing as a result of the decrease in agricultural labour. Therefore, during the projection period, there is expected to be a rise in the demand for agricultural tractors. Policies and Incentives of the Government: The demand for agricultural tractors in South America is driven by government programs and incentives that are intended to promote agricultural modernization and development. To encourage farmers to invest in agricultural equipment, such as tractors, governments may provide subsidies, tax breaks, and loan facilities. These regulations support the development of mechanized agricultural methods and assist in lowering entry barriers for smallholders. Governments in South America are increasingly focusing on promoting sustainable agricultural practices and environmental conservation. Policies and incentives that encourage sustainable farming methods drive the adoption of modern tractors equipped with advanced technologies for precision agriculture, reduced emissions, and resource-efficient farming. Major Challenges financial difficulties: It can be difficult for many South American farmers, particularly smallholders and rural producers, to get credit and funding for buying tractors. Farmers may have trouble affording new tractors due to financial institutions' strict lending standards or high interest rates. The adoption of effective farming practices is impeded and the overall demand for tractors is reduced when farmers are unable to purchase new tractors and mechanized equipment due to limited financing options. Changes in commodity prices have a significant impact on South American agriculture and can affect farmers' purchasing power and income. Farmers may decide to delay or reduce their investments in new tractors during times of low commodity prices in favour of putting money toward operating and necessary expenses. This may result in a decline in the market's demand for tractors. Land Tenure and Dispersal: Smaller farms as a result of fragmented land holdings restrict the economies of scale that farmers can get. There may be less of a market for huge, powerful tractors on smaller farms since they cannot afford to buy them. Inefficient land use techniques, such as asymmetrical plot layouts and ineffective crop rotations, are frequently the result of fragmentation. The total productivity of agricultural operations and the requirement for tractors to effectively manage bigger, more contiguous land holdings can both be impacted by this inefficiency. Adoption of automated agricultural practices, such as the use of tractors and machinery, might be hampered by small and dispersed land holdings. Limited-land farmers might favour manual labour or conventional agricultural practices, which could impede the adoption of contemporary tractors and mechanized technologies.

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Agricultural Tractor Market Segmentation

By Engine Power Below 30 HP
30 HP - 100 HP
100 HP - 200 HP
Above 200 HP
By Propulsion IC
Electric
By Drive Type 2WD
4WD
By Level of Autonomy Manual Tractor Vehicle
Autonomous Tractor Vehicle
By Application Harvesting
Seed Sowing
Spraying
Others
South AmericaBrazil
Argentina
Colombia

Based on the Engine Power, the market is divided into 30 HP, 30 HP - 100 HP, 100 HP - 200 HP, and Above 200 HP. In the South American agricultural tractor market, the category with less than 30 horsepower is becoming more significant. Smallholder farmers who manage modest land holdings are prevalent throughout South America. These smaller farms operate at a scale best suited for tractors with lower horsepower ratings (below 30 HP). In South America, there is a movement toward agricultural diversification with a growing emphasis on small-scale farming, horticulture, and specialty crops. Fewer than 30 HP tractors are flexible and adaptive for a variety of duties in these diverse farming settings. Based on the Drive Type, the market is divided into 2WD, 4WD. The leading part is 4WD. The topography of South America is varied, encompassing hilly areas, damp meadows, and undulating hills. Tractors with higher traction and stability are required in these difficult conditions, and 4WD variants excel in these areas. Furthermore, muddy fields are caused by severe rains in some areas, which emphasize the need for 4WD's improved grip and control. Larger planters, sprayers, and combine harvesters are examples of the heavier equipment used in modern farming operations. These call for tractors with more pulling capacity and stability, which 4WD models easily offer. Particularly on hills or in damp conditions, 4WD tractors manage these tools more skilfully, increasing production and operational efficiency. Based on the Level of Autonomy, the market is divided into Manual Tractor Vehicle, Autonomous Tractor Vehicle. In the agricultural tractor market for South America, the manual tractor vehicle segment is becoming more and more significant. Since they are frequently less expensive than their automated equivalents, manual tractor vehicles are available to smallholder farmers and individuals with restricted financial resources. A cheap way to mechanize farm activities in areas where purchasing agricultural gear with capital is difficult is by using manual tractors. Smallholder farmers who work small land holdings are prevalent in South America. These small-scale farming businesses, where the size of the land and the volume of production may not justify the investment in larger, mechanized tractors, are a good fit for manual tractor vehicles. > Based on the Application the market is divided into Harvesting, Seed Sowing, Spraying, Others. In fact, the market for agricultural tractors in South America is seeing growth in the harvesting category. There is now more focus on robotic harvesting methods in South America due to the growth of large-scale agribusiness enterprises, especially in nations like Brazil and Argentina. Large crop volumes and market demands require agribusinesses to have harvesting equipment that is both efficient and highly capacious. For farmers, the cost and availability of labour can present serious obstacles, particularly during the busiest harvest seasons. Combination harvesters and specialty tractors' attachments are examples of mechanized harvesting equipment that helps farmers overcome manpower shortages and lessen their reliance on manual labour, increasing their operational efficiency and cost-effectiveness.

Agricultural Tractor Market Market Regional Insights

Based on country report is majorly divided into three major countries, Brazil, Argentina, Colombia. Brazilian agriculture has always relied heavily on labour-intensive farming practices. Furthermore, over the past few years, nonsupervisory employed farm workers' average hourly real wage has climbed, which has raised demand for tractors across the nation. Only the United States is the world's greatest exporter of agricultural products, with Brazil coming in second. Brazil's farmers are building successful agricultural enterprises on terrain that was deemed unusable for agriculture hundreds of years ago, thanks to technological advances in agriculture that help farmers worldwide. These processes also use less area and are more productive, allowing for a larger harvest. In addition, governments in certain developing countries are offering financial assistance and subsidies to support the automation of important agricultural procedures. Furthermore, newer tractors with GPS and telematics pre-installed have become available due to various technological advancements. The growing acceptance of automated tractors and the pervasiveness of wireless connectivity for remote monitoring both of which may be applied to agriculture are projected to propel the global market for agricultural tractors. A new frontier of innovation emerged when digital technology and agriculture came together, opening up several possibilities for the advancement of smart agriculture. The tractor market in Argentina is very competitive, with companies constantly striving to create and ensure distinctive products at competitive prices. Modern tractors with cutting-edge technology are already available on the market. The accuracy and productivity of farming are increased by the use of GPS and remote sensing. The majority of Argentina's highly concentrated tractor market is controlled by the top businesses. The market for agricultural tractors in Colombia is a reflection of the country's diverse agricultural landscape, as well as its economic situation, laws and regulations, and advancements in technology. Agriculture employs a sizable portion of the labour force and contributes to both exports and Colombia's domestic food supply. The country's topography and climate make it ideal for a range of agricultural activities, including the raising of cattle, fruit, coffee, palm oil, and fruit. Colombia's agricultural sector is composed of large commercial operations, medium-sized enterprises, and smallholder farms. Smallholder farms are prevalent, especially in rural areas, and usually rely on manual labour or small-scale machinery.

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Companies Mentioned

  • CNH Industrial
  • John Deere Ltd
  • Kubota Corporation
  • AGCO Corporation
  • Mahindra & Mahindra Limited
  • Yanmar Co., Ltd.
  • J.C. Bamford Excavators Limited
  • VST Tillers Tractors Ltd.
Company mentioned

Table of Contents

  • Table of Contents
  • 1. Executive Summary
  • 2. Research Methodology
  • 2.1. Secondary Research
  • 2.2. Primary Data Collection
  • 2.3. Market Formation & Validation
  • 2.4. Report Writing, Quality Check & Delivery
  • 3. Market Structure
  • 3.1. Market Considerate
  • 3.2. Assumptions
  • 3.3. Limitations
  • 3.4. Abbreviations
  • 3.5. Sources
  • 3.6. Definitions
  • 4. Economic /Demographic Snapshot
  • 5. Global Agriculture Tractor Market Outlook
  • 5.1. Market Size By Value
  • 5.2. Market Share By Region
  • 5.3. Market Size and Forecast, By Engine Power
  • 5.4. Market Size and Forecast, By Propulsion
  • 5.5. Market Size and Forecast, By Drive Type
  • 5.6. Market Size and Forecast, By Level of Autonomy
  • 5.7. Market Size and Forecast, By Application
  • 6. South America Agriculture Tractor Market Outlook
  • 6.1. Market Size By Value
  • 6.2. Market Share By Country
  • 6.3. Market Size and Forecast, By Engine Power
  • 6.4. Market Size and Forecast, By Propulsion
  • 6.5. Market Size and Forecast, By Drive Type
  • 6.6. Market Size and Forecast, By Level of Autonomy
  • 6.7. Market Size and Forecast, By Application
  • 7. Market Dynamics
  • 7.1. Market Drivers & Opportunities
  • 7.2. Market Restraints & Challenges
  • 7.3. Market Trends
  • 7.4. Covid-19 Effect
  • 7.5. Supply chain Analysis
  • 7.6. Policy & Regulatory Framework
  • 7.7. Industry Experts Views
  • 7.8. Brazil Agriculture Tractor Market Outlook
  • 7.8.1. Market Size By Value
  • 7.8.2. Market Size and Forecast By Engine Power
  • 7.8.3. Market Size and Forecast By Propulsion
  • 7.8.4. Market Size and Forecast By Drive Type
  • 7.8.5. Market Size and Forecast By Level of Autonomy
  • 7.8.6. Market Size and Forecast By Application
  • 7.9. Argentina Agriculture Tractor Market Outlook
  • 7.9.1. Market Size By Value
  • 7.9.2. Market Size and Forecast By Engine Power
  • 7.9.3. Market Size and Forecast By Propulsion
  • 7.9.4. Market Size and Forecast By Drive Type
  • 7.9.5. Market Size and Forecast By Level of Autonomy
  • 7.9.6. Market Size and Forecast By Application
  • 7.10. Columbia Agriculture Tractor Market Outlook
  • 7.10.1. Market Size By Value
  • 7.10.2. Market Size and Forecast By Engine Power
  • 7.10.3. Market Size and Forecast By Propulsion
  • 7.10.4. Market Size and Forecast By Drive Type
  • 7.10.5. Market Size and Forecast By Level of Autonomy
  • 7.10.6. Market Size and Forecast By Application
  • 8. Competitive Landscape
  • 8.1. Competitive Dashboard
  • 8.2. Business Strategies Adopted by Key Players
  • 8.3. Key Players Market Positioning Matrix
  • 8.4. Porter's Five Forces
  • 8.5. Company Profile
  • 8.5.1. Deere & Company
  • 8.5.1.1. Company Snapshot
  • 8.5.1.2. Company Overview
  • 8.5.1.3. Financial Highlights
  • 8.5.1.4. Geographic Insights
  • 8.5.1.5. Business Segment & Performance
  • 8.5.1.6. Product Portfolio
  • 8.5.1.7. Key Executives
  • 8.5.1.8. Strategic Moves & Developments
  • 8.5.2. Kubota Corporation
  • 8.5.3. Mahindra & Mahindra Limited
  • 8.5.4. CNH Industrial N.V.
  • 8.5.5. Yanmar Co., Ltd.
  • 8.5.6. AGCO Corporation
  • 8.5.7. J.C. Bamford Excavators Limited
  • 8.5.8. CLAAS KGaA mbH
  • 9. Strategic Recommendations
  • 10. Annexure
  • 10.1. FAQ`s
  • 10.2. Notes
  • 10.3. Related Reports
  • 11. Disclaimer

List of Table
Table 1: Global Agriculture Tractor Market Snapshot, By Segmentation (2023 & 2029) (in USD Billion)
Table 2: Top 10 Counties Economic Snapshot 2022
Table 3: Economic Snapshot of Other Prominent Countries 2022
Table 4: Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars
Table 5: Global Agriculture Tractor Market Size and Forecast, By Engine Power (2018 to 2029F) (In USD Billion)
Table 6: Global Agriculture Tractor Market Size and Forecast, By Propulsion (2018 to 2029F) (In USD Billion)
Table 7: Global Agriculture Tractor Market Size and Forecast, By Drive Type (2018 to 2029F) (In USD Billion)
Table 8: Global Agriculture Tractor Market Size and Forecast, By Level of Autonomy (2018 to 2029F) (In USD Billion)
Table 9: Global Agriculture Tractor Market Size and Forecast, By Application (2018 to 2029F) (In USD Billion)
Table 10: South America Agriculture Tractor Market Size and Forecast, By Engine Power (2018 to 2029F) (In USD Billion)
Table 11: South America Agriculture Tractor Market Size and Forecast, By Propulsion (2018 to 2029F) (In USD Billion)
Table 12: South America Agriculture Tractor Market Size and Forecast, By Drive Type (2018 to 2029F) (In USD Billion)
Table 13: South America Agriculture Tractor Market Size and Forecast, By Level of Autonomy (2018 to 2029F) (In USD Billion)
Table 14: South America Agriculture Tractor Market Size and Forecast, By Application (2018 to 2029F) (In USD Billion)
Table 15: Influencing Factors for Agriculture Tractor Market, 2023
Table 16: Brazil Agriculture Tractor Market Size and Forecast By Engine Power (2018 to 2029F) (In USD Billion)
Table 17: Brazil Agriculture Tractor Market Size and Forecast By Propulsion (2018 to 2029F) (In USD Billion)
Table 18: Brazil Agriculture Tractor Market Size and Forecast By Drive Type (2018 to 2029F) (In USD Billion)
Table 19: Brazil Agriculture Tractor Market Size and Forecast By Level of Autonomy (2018 to 2029F) (In USD Billion)
Table 20: Brazil Agriculture Tractor Market Size and Forecast By Application (2018 to 2029F) (In USD Billion)
Table 21: Argentina Agriculture Tractor Market Size and Forecast By Engine Power (2018 to 2029F) (In USD Billion)
Table 22: Argentina Agriculture Tractor Market Size and Forecast By Propulsion (2018 to 2029F) (In USD Billion)
Table 23: Argentina Agriculture Tractor Market Size and Forecast By Drive Type (2018 to 2029F) (In USD Billion)
Table 24: Argentina Agriculture Tractor Market Size and Forecast By Level of Autonomy (2018 to 2029F) (In USD Billion)
Table 25: Argentina Agriculture Tractor Market Size and Forecast By Application (2018 to 2029F) (In USD Billion)
Table 26: Colombia Agriculture Tractor Market Size and Forecast By Engine Power (2018 to 2029F) (In USD Billion)
Table 27: Colombia Agriculture Tractor Market Size and Forecast By Propulsion (2018 to 2029F) (In USD Billion)
Table 28: Colombia Agriculture Tractor Market Size and Forecast By Drive Type (2018 to 2029F) (In USD Billion)
Table 29: Colombia Agriculture Tractor Market Size and Forecast By Level of Autonomy (2018 to 2029F) (In USD Billion)
Table 30: Colombia Agriculture Tractor Market Size and Forecast By Application (2018 to 2029F) (In USD Billion)

List of Figures
Figure 1: Global Agriculture Tractor Market Size (USD Billion) By Region, 2023 & 2029
Figure 2: Market attractiveness Index, By Region 2029
Figure 3: Market attractiveness Index, By Segment 2029
Figure 4: Global Agriculture Tractor Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 5: Global Agriculture Tractor Market Share By Region (2023)
Figure 6: South America Agriculture Tractor Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 7: South America Agriculture Tractor Market Share By Country (2023)
Figure 8: Brazil Agriculture Tractor Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 9: Argentina Agriculture Tractor Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 10: Columbia Agriculture Tractor Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 11: Competitive Dashboard of top 5 players, 2023
Figure 12: Porter's Five Forces of Global Agriculture Tractor Market

Agricultural Tractor Market Market Research FAQs

The growth of agribusiness, mechanization of farming techniques, government policies, infrastructure development, and technology improvements are the main factors driving the need for tractors in South America.

Large-scale farming operations and abundant agricultural production have made countries like Brazil, Argentina, and Chile home to some of the largest agricultural tractor markets in South America.

The size and layout of tractors used in South America vary according on the size and kind of farming operations. Utility tractors are typically used on smaller farms, high-horsepower tractors are used in large-scale agriculture, and specialist tractors are used for particular crops or tasks.

Tractor adoption and other mechanized farming techniques are heavily influenced by government policies and incentives, including financial support, subsidies, and technology adoption programs, throughout South America.

Various obstacles such as insufficient funds, inadequate infrastructure, challenges related to land tenure, ecological concerns, restricted technology availability, and unstable political environments might impede the expansion and advancement of the agricultural tractor industry.
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South America Agricultural Tractor Market Outlook, 2029

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