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[ 英語タイトル ] South America Agricultural Tractor Market - Growth, Trends, & Forecast (2020 - 2025)

Product Code : MDAG0089484
Survey : Mordor Intelligence
Publish On : November, 2020
Category : Agriculture and Allied Activities
Report format : PDF
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 - Deere & Company
- Kubota Corporation
- CNH Industrial NV
- AGCO Corporation
- Mahindra & Mahindra Ltd
- Agrinar SA

[Report Description]

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.

Key Market Trends

Increasing Cost of Farm Labor Driving the Market

The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics, thereby affecting the agricultural tractors market in the region. On average, emerging economies, such as Brazil and Argentina, have larger percentages of the population dependent on agriculture. However, the percentages have declined over time as a large number of people migrating to urban areas every year. As a result, the percentage of the population engaged in agriculture in Brazil fell to 43.86% in 2018, as compared to 45.12% in 2016. Due to the decline in agricultural labor, the cost of farm labor is rising. Hence, it is expected to increase the demand for agricultural tractors, during the forecast period.​

Brazil - The Largest Market for Tractors in South America

Brazil was the largest market for tractors in South America, in 2019. According to the Brazilian Department of Agriculture, around 50% of the farmers own 500 acres or more in the country. Manual plowing, harvesting and other operations have been touted as unfeasible and time-consuming, thus, giving rise to a strengthened demand for tractors and machinery, in order to address challenges, such as cost, accuracy and labor shortage. According to the National Association of Manufacturers of Automotive Vehicles (ANFAVEA), the year-on-year tractor sales in the country increased by 71.6% in January, as it recorded the sales of 2,025 units in January 2019, as compared to 1,180 in January 2018, but the sales reduced to 1,194 units in February 2019.​ Companies are investing in R&D to innovate new series of tractors in the HP range suitable for Brazilian farms, which is further expected to drive the overall market for tractors in the country.

Competitive Landscape

The market for tractors is consolidated in South America, with the major players not only competing based on equipment quality and promotion but are also focused on strategic moves, in order to hold larger market shares. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the tractor market in the region. AGCO Corporation, Deere & Company, Kubota Corporation, CNN Industrial, and CLAAS KGaA mbH, are some of the leading players in the region. In May 2016, AGCO launched its Fendt range in Brazil, with an investment valued at USD 38.0 million, specifically aimed at the soybean and corn cultivators in the center-west states such as Mato Grosso and Goiás in Brazil.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
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1.1 Study Assumptions & Market Definition
1.2 Scope of the Study



4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of Substitutes
4.4.4 Threat of New Entrants
4.4.5 Intensity of Competitive Rivalry

5.1 Horsepower
5.1.1 Below 80 HP
5.1.2 81 HP to 130 HP
5.1.3 Above 130 HP
5.2 Type
5.2.1 Orchard Tractors
5.2.2 Row-Crop Tractors
5.2.3 Other Types
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Rest of South America

6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere & Company
6.3.2 Kubota Corporation
6.3.3 CNH Industrial NV
6.3.4 AGCO Corporation
6.3.5 CLAAS KGaA mbH
6.3.6 Mahindra & Mahindra Ltd
6.3.7 AGRALE S.A
6.3.9 Agrinar SA





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