Market Size of Latin America Agricultural Machinery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Agricultural Machinery Market Analysis
The Latin America Agricultural Machinery Market size is estimated at USD 8.70 billion in 2023, and is expected to reach USD 11.70 billion by 2028, growing at a CAGR of 6.10% during the forecast period (2023-2028).
- Farmers in farmers in Mexico, Argentina, and Brazil are accepting mechanization in their farms. With the increasing demand for food and the need to produce more efficiently, the use of agricultural machinery is becoming more prevalent in many parts of the world.
- The support of government subsidy programs is also a significant factor in the rising adoption of mechanization in agriculture. By providing financial assistance to farmers who wish to purchase agricultural machinery, these programs make it more accessible for farmers to acquire the tools they need to improve their productivity and efficiency..
- The area under harvest in the region is increasing, and farmers have been able to generate more income as compared to the previous years. Thus, they have higher dispensable incomes to invest in machinery and other agricultural inputs. The Central and South American agricultural machinery market is dominated by local market players that are introducing new technologies to attract the attention of farmers.
- Farm mechanization in Brazil's agriculture sector has been slower than in other countries. However, the use of tractors and large machinery is gradually increasing, particularly in the South and Southeast regions as well as the western frontier. The availability of tractors and other large machinery in the Northeast region of Brazil is limited, and this has led to continued reliance on manual labor, even for sugarcane plantations.
- The United States is one of the largest exporters of agricultural machinery to the Latin American region. However, recently, imports from the Central and South American region declined because of the regulation on import taxes. Trade disagreement between the United States and Mexico led to declining demand from the country. China and Canada are the two other major exporters of agricultural machinery to the region.
