Mexico Agriculture Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 732.35 Million |
| Market Size (2029) | USD 908.28 Million |
| CAGR (2024 - 2029) | 4.40 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico Agriculture Machinery Market Analysis
The Mexico Agricultural Machinery Market size is estimated at USD 732.35 million in 2024, and is expected to reach USD 908.28 million by 2029, growing at a CAGR of 4.40% during the forecast period (2024-2029).
- Mexico has a large agriculture industry with a vast cultivated land area. The Mexican government has been encouraging the mechanization of farms, which has aided the growth of agricultural machinery in the country. The United States and Mexico have developed a lucrative relationship for agricultural machinery and equipment and have become priority markets for each other's industries. Mexico has attempted to develop its own agribusiness machinery industry, production has been limited and focused primarily on low-end items. The country has become dependent on foreign suppliers to meet its machinery and equipment needs.
- Farm mechanization saves time and labor, cuts down crop production costs in the long run, reduces post-harvest losses, and boosts both crop output and farm income. Steady growth was observed in manually operated tools, animal-operated implements, and equipment operated by mechanical and electrical power sources. The unavailability of abundant and cheap labor has led to the growth in the demand for plant machinery, in the country. The growing agribusiness sector of Mexico is driven directly by the greater use of modern-day agricultural equipment.
- The favorable programs of the Mexican Government to enable agricultural mechanization, offering supports and financing for the purchase of agriculture machinery and equipment, and training for the operators of agricultural machinery have been driving the tractor market in Mexico.
- Moreover, the Government's policies to promote agriculture exports aid the growth of agriculture mechanization, beginning with the use of tractors. As a result, around 40% of the agricultural land is mechanized, and protected agriculture is also expanding rapidly in Mexico, providing huge growth potential for the tractor industry. However, the slow adoption rate of mechanization by small and marginal farmers hinders the growth of the market.
Mexico Agriculture Machinery Market Trends
Farm Labor Shortage And Decreasing Arable Land
According to the International Labor Organization, in Mexico, 6,752 thousand human resources engaged in agriculture were skilled in 2021. As technologically assisted agriculture needs skilled laborers that are in an acute shortage of availability, farmers are adopting technologies such as autonomous tractors that can be productive, considering the current challenge. This scenario is one of the major factors that drive the market forward.
Mexico has been witnessing an acute shortage of farm laborers. A survey by the Mexico Farm Bureau revealed that more than 40% of the farmers faced a consistent labor shortage in various farm operations in the state in the past five years. It led to an increased adoption rate of modern technologies such as autonomous tractors to ensure better management of farm resources.
According to the FAO, agricultural land accounted for 96,106 thousand hectares during the year 2019 which is lower than the previous year with 96,516 thousand hectares. As per a study conducted by the Economic Research Service (ERS), USDA in 2020, large farms are more likely to adopt autonomous tractors along with other agricultural technologies, with some of the highest adoption rates witnessed across farms of more than 3,800 acres. As a result, the shortage of farm labor, with the decreasing area of arable land, is anticipated to drive the rate of adoption of autonomous tractors among farmers, providing a boost to the overall market during the forecast period.
Tractors Dominates the Agricultural Machinery Market
In Mexico, there has been a trend in the launch of highly technological tractors over the past few years. For instance, in 2018, a group of investigators from the Chapingo Autonomous University designed a multipurpose robot tractor for the farming sector in the country. This is built to participate in the sowing of large grains, such as beans and corn, and is equipped with a tool for the detection and control of weeds. The special wheels of this tractor are capable of treading different terrains along with a rotary sensor which allows mapping the robot's location.
Increasing mechanization, growing government aid, and increasing export are likely to boost the sale of tractors in the country. In 2020, the Federal Government introduced agricultural programs to support the agriculture industry (previously known as PROCAMPO, now named PROAGRO) worth USD 53.74 million for seeds, fertilizers, equipment, and other agriculture products.
The recovery of the agricultural sector in the last two years in Mexico has been driven by the counter-cyclical nature of growth and recovery in the sector, along with the increase in exports of agricultural products to Central and South America. This is enabling farmers to make investments in automation, which is also supporting the growth of the market in Mexico.
Mexico Agriculture Machinery Industry Overview
Mexico's agricultural machinery market is consolidated, with major companies accounting for the majority of the market shares. The major players in the agricultural machinery market included in Mexico are John Deere, CNH Industrial, AGCO Corporation, Kubota, and KUHN Group. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market in the country. Along with innovations and expansions, investments in R&D and developing novel product portfolios will likely be crucial strategies in the coming years.
Mexico Agriculture Machinery Market Leaders
Deere and Company
AGCO Corp.
CNH Industrial NV
Kubota Mexico S.A. de C.V.
KUHN Group
*Disclaimer: Major Players sorted in no particular order
Mexico Agriculture Machinery Market News
- June 2022: John Deere has expanded the company's tractors and cab production from its Waterloo, Iowa plant to Mexico due to a tight labor market in the United States.
- February 2022: Cellestial E-Mobility, the first electric tractor brand from India had a strategic collaboration with a Mexican company, Grupo Marvelsa to get an imported tractor in Mexico to support eMobility and is ready to make a change in the automobile industry.
Mexico Agriculture Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porters Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Tractors
5.1.1 Engine Power
5.1.1.1 Less than 40 HP
5.1.1.2 41 to 60 HP
5.1.1.3 61 to 100 HP
5.1.1.4 101 to 150 HP
5.1.1.5 More than 150 HP
5.2 Equipment
5.2.1 Plows
5.2.2 Harrows
5.2.3 Rotovators and Cultivators
5.2.4 Other Equipment
5.3 Irrigation Machinery
5.3.1 Sprinkler Irrigation
5.3.2 Drip Irrigation
5.3.3 Other Irrigation Machinery
5.4 Harvesting Machinery
5.4.1 Combine Harvesters
5.4.2 Forage Harvesters
5.4.3 Other Harvesting Machinery
5.5 Haying and Forage Machinery
5.5.1 Mowers and Conditioners
5.5.2 Balers
5.5.3 Other Haying and Forage Machinery
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 John Deere Mexico
6.3.2 AGCO Corp.
6.3.3 CNH Industrial NV
6.3.4 Massey Ferguson
6.3.5 Aquafim Culiacan
6.3.6 Kubota Mexico S.A. de CV
6.3.7 Case IH
6.3.8 Valmont Industries Inc.
6.3.9 Jumil Mexico Implementos Agricolas
6.3.10 CLAAS KGaA mbH
6.3.11 EnorossiMexicana SA de C
6.3.12 New Holland CNH de Mexico
6.3.13 Mahindra & Mahindra Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mexico Agriculture Machinery Industry Segmentation
Agricultural machinery refers to the agricultural device and tools used in the agriculture process. These tools can be hand tools, power tools, and tractors used in Farming or another agriculture process. The Mexican Agricultural Machinery Market is Segmented by Tractors (Less than 40HP, 41HP to 60HP, 61HP to 100HP, 101HP to 150HP, and More than 150HP), Equipment (Plows, Harrows, Rotavators and Cultivators, and Other equipments), Irrigation Machinery (Sprinkler Irrigation, Drip Irrigation, and Other Irrigation Machinery), Harvesting Machinery (Combine Harvesters, Forage Harvesters, and Other Harvesting Machinery), and Haying and Forage Machinery (Mowers and Conditioners, Balers, and Other Haying and Forage Machinery). The report offers the market size and forecasts for volume in (units) and value in (USD million) for all the above segments.
| Tractors | |||||||
|
| Equipment | |
| Plows | |
| Harrows | |
| Rotovators and Cultivators | |
| Other Equipment |
| Irrigation Machinery | |
| Sprinkler Irrigation | |
| Drip Irrigation | |
| Other Irrigation Machinery |
| Harvesting Machinery | |
| Combine Harvesters | |
| Forage Harvesters | |
| Other Harvesting Machinery |
| Haying and Forage Machinery | |
| Mowers and Conditioners | |
| Balers | |
| Other Haying and Forage Machinery |
Mexico Agriculture Machinery Market Research FAQs
How big is the Mexico Agricultural Machinery Market?
The Mexico Agricultural Machinery Market size is expected to reach USD 732.35 million in 2024 and grow at a CAGR of 4.40% to reach USD 908.28 million by 2029.
What is the current Mexico Agricultural Machinery Market size?
In 2024, the Mexico Agricultural Machinery Market size is expected to reach USD 732.35 million.
Who are the key players in Mexico Agricultural Machinery Market?
Deere and Company, AGCO Corp., CNH Industrial NV, Kubota Mexico S.A. de C.V. and KUHN Group are the major companies operating in the Mexico Agricultural Machinery Market.
What years does this Mexico Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Mexico Agricultural Machinery Market size was estimated at USD 701.48 million. The report covers the Mexico Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexican Agricultural Machinery Industry Report
Statistics for the 2024 Mexican Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Mexican Agricultural Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
