Brazil Agricultural Tractor Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Brazilian agricultural tractor machinery market is segmented by engine power (Less than 80 HP, 81-130 HP and above 130 HP) and application (row crop tractors, orchard tractors, and others).

Market Snapshot

tractor machinery market
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 3.9 %

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Market Overview

The Brazilian agricultural tractor machinery market is projected to register a CAGR of 3.9% during the forecast period of 2020-2025. Agribusiness is one of the main activities in Brazil and contributes significantly to the Brazilian economy. This has led to more investments, leading to the growth of the market of agricultural machinery and implements in the country. The increasing wage of labor and the growing land consolidation created a demand for the agricultural mechanization. This factor, in turn, is expected to boost the sales of tractors.

The recent trade war between the United States and China promoted many US-based companies, such as AGCO Corporation, to expand their operations in Brazil to manufacture low-horsepower tractors, in order to avoid a 25% tariff on Chinese products. This factor, in turn, is expected to drive the growth of the market for tractors in the country.

Scope of the report

A tractor is an industrial vehicle usually used to move the attached implement that does the work of plowing the field or perform other activities. For the purpose of this report, the tractors used in agricultural operations have been considered. The report does not cover other agricultural machinery and attachments to tractors. The tractors used for industrial and construction purposes are also excluded from the scope of the study.

By Engine Power
Less than 80 HP
81-130 HP
Above 130 HP
By Application
Row Crop Tractors
Orchard Tractors
Other Applications

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Key Market Trends

Farm Labor Shortage Resulting in Farm Mechanization

Farming has traditionally been a highly-labor intensive method in Brazil agriculture. But the continually rising real wage of farm labor has had a positive impact on the demand for tractors in the region, as farmers are increasingly adopting agricultural mechanization including tractors as a substitute for manual labor. According to the World Bank database, the employment in agriculture out of total employment in Brazil stood at 9.27% in 2019, as opposed to 10.18% in 2016. Moreover, the average hourly real wage for nonsupervisory hired farm workers has been increased over the last few years, which has further instigated the demand for tractors in the country.


Rising Land Consolidation Leading To Mechanization

According to the Brazilian Department of Agriculture, around 70% of the farmers own 500 acres or more in the country. Manual plowing, harvesting, and other operations are found to be unfeasible and time-consuming. This has led farmers to opt for tractors and other types of machinery to address the challenges, such as cost, accuracy, and shortage of labor . As a result, the purchase of tractors has shown a positive trend over the year. Increasing land consolidation and cost of production creates the need for mechanization so as to increase productivity. This factor compels the farmers in Brazil to purchase tractors, leading to the increased sales of the tractors.   

Brazil Agricultural Tractor Machinery Market

Competitive Landscape

The agricultural machinery market in Brazil is consolidated and is dominated by global manufacturers since farmers prefer international companies for assurance of quality and after-sales services offered by the big companies. The key players in the market are AGCO Corporation, CNH Industrial, Deere and Company, Kubota Agriculture Machinery, Mahindra and Mahindra Ltd.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 By Engine Power

      1. 5.1.1 Less than 80 HP

      2. 5.1.2 81-130 HP

      3. 5.1.3 Above 130 HP

    2. 5.2 By Application

      1. 5.2.1 Row Crop Tractors

      2. 5.2.2 Orchard Tractors

      3. 5.2.3 Other Applications


    1. 6.1 Most Adopted Competitor Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 AGCO do Brasil

      2. 6.3.2 John Deere Brasil Ltda

      3. 6.3.3 CNH Industrial Brasil Ltda

      4. 6.3.4 Mahindra & Mahindra Ltd

      5. 6.3.5 Kubota Agricultural Machinery

      6. 6.3.6 Tractors and Farm Equipment Limited (TAFE)

      7. 6.3.7 Escorts Limited

      8. 6.3.8 Kuhn

      9. 6.3.9 Claas KGaA mbH

      10. 6.3.10 New Holland Agriculture


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Frequently Asked Questions

The Brazil Agricultural Tractors Market market is studied from 2016 - 2026.

The Brazil Agricultural Tractors Market is growing at a CAGR of 3.9% over the next 5 years.

AGCO Corporation, CNH Industrial, Deere and Company, Kubota Agriculture Machinery are the major companies operating in Brazil Agricultural Tractors Market.

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