Mexico Agricultural Machinery Market Size

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.