| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.17 Billion |
| Market Size (2030) | USD 1.43 Billion |
| CAGR (2025 - 2030) | 4.12% |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Agricultural Tractors Market Analysis by Mordor Intelligence
The South America Agricultural Tractors Market size is estimated at USD 1.17 billion in 2025, and is expected to reach USD 1.43 billion by 2030, at a CAGR of 4.12% during the forecast period (2025-2030).
South America's tractor sales growth reflects the region's increasing farm mechanization. The demand for high-horsepower tractors is primarily driven by sugarcane and soybean cultivation, while crops requiring spraying equipment contribute to overall tractor demand. The increasing scarcity of farm labor and rising labor costs have further accelerated tractor utilization.
Brazil dominates the South American tractor market, with agribusiness being a significant economic contributor. The country's extensive agricultural land and expansion potential support tractor usage. The Brazilian Institute of Geography and Statistics reports that the planted area for cereals, vegetables, and oilseeds in Brazil increased from 73.2 million hectares in 2022 to 77.5 million hectares in 2023.
The declining agricultural workforce has intensified the need for mechanization. World Bank data shows that agricultural employment in Brazil and Argentina decreased by 0.99% and 0.13% respectively in 2022 compared to the previous year, encouraging farmers to adopt tractors as an alternative to manual labor. The market has seen increased demand for mid-range tractors (80-130 horsepower) alongside low-powered models. Modern tractors incorporate precision agriculture technologies and advanced innovations. The combination of expanding agricultural areas, labor shortages, and new product introductions by manufacturers continues to drive market growth during the forecast period.
South America Agricultural Tractors Market Trends and Insights
Row-Crop Tractors are the Largest Segments in the Market
Row crop tractors dominate the South American tractor market through their versatility and efficiency in large-scale commercial farming. These tractors are designed for row-based agricultural activities, including planting, fertilizing, and harvesting crops such as soybeans, corn, wheat, and sugarcane. South America's agricultural sector, characterized by vast farmlands and export-oriented crop production, depends on row crop tractors to optimize farm operations. According to the ITC Trade Map, Argentina's maize exports increased from 21.8 million metric tons in 2023 to 32.1 million metric tons in 2024.
The increased adoption of precision agriculture in South America has increased row crop tractor demand. Modern tractors feature GPS guidance systems, automated steering, and telematics, enabling farmers to optimize inputs, reduce costs, and increase productivity. In 2023, New Holland Agriculture introduced the TL5 'Acessível' at their Curitiba plant, the first commercially available farm tractor designed for operators with lower limb disabilities, enabling independent field operations. With fluctuating global commodity prices, South American farmers seek machinery that maximizes crop yields while reducing labor and fuel expenses across large row crop areas, driving the market of row crop tractors.
Government initiatives and financing programs support row crop tractor market growth. The ApexBrasil program in August 2024 connected buyers from 63 countries, projecting USD 86.05 million (BRL 470 million) in agricultural industry support. These programs help farmers invest in advanced row crop tractors to improve productivity and maintain international competitiveness. As South America's agricultural sector expands, row crop tractors remain essential for commercial farmers, requiring efficiency and adaptability. Their capacity for large-scale farming operations, integration with advanced technology, and government support establish them as the dominant segment in the South American tractor market.
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Brazil is the Largest Market for Tractors in South America
Brazil, with its extensive arable land, ranks as one of the top producers of 34 agricultural commodities and stands as one of the world's largest agricultural net exporters. According to the Brazilian Institute of Geography and Statistics (IBGE) Agricultural Report 2023, agriculture covers 41% of Brazil's land area. The country encompasses 851.4 million hectares (2.1 billion acres), with 5,073,324 farming operations spread across 351.2 million hectares (867.4 million acres). The agricultural area has expanded by 5.8% in the past decade, supporting farm tractor market growth. The inefficiency and time-intensive nature of manual plowing and agricultural operations have prompted farmers to adopt automated and technology-equipped agricultural machinery, including tractors, to overcome challenges related to cost, precision, and labor shortages.
Agricultural machinery has evolved to incorporate GPS systems in tractors, spraying devices, and harvesting machines, enabling efficient field operations with minimal errors. The implementation of technology-equipped machinery has improved crop production efficiency, increased farmer income, and streamlined operations while reducing workforce requirements. These systems deliver precise and timely results with minimal errors and shorter completion times.
Increasing real wages in farm labor have accelerated agricultural mechanization adoption in Brazil, with farmers transitioning from traditional labor-intensive methods to tractor-based operations. Sugarcane cultivation, a dominant force in Brazilian agriculture, requires substantial machinery for harvesting operations. The Food and Agriculture Organization (FAO) reports that the harvested sugarcane area increased from 9.8 million hectares in 2022 to 10.1 million hectares in 2023. This expansion, coupled with growing agricultural land area and reduced availability of skilled labor, has intensified farmers' dependence on tractors and mechanical equipment to maintain and enhance farm productivity.
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Competitive Landscape
The market for agricultural 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 agricultural 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.
South America Agricultural Tractors Industry Leaders
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Deere & Company
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AGCO Corporation
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CNH Industrial NV
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Kubota Corporation
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CLAAS KGaA mbH
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- August 2023: Mahindra and Mahindra Ltd launched four revolutionary OJA tractor platforms with the mission of global transformation of farming. The OJA is Mahindra’s most ambitious global lightweight tractor platform and was developed in collaboration with Mitsubishi Mahindra Agriculture Machinery, Japan, at an investment of USD145 million. OJA will be launched in India, North America, Japan, ASEAN, Brazil, Australia, South Africa, Europe, and the SAARC region.
- August 2023: New Holland Agriculture, a brand of CNH Industrial, introduced an accessible farm tractor at its Curitiba plant in Brazil. The TL5 Acessivel model is designed for farmers with lower limb disabilities, enabling independent operation of agricultural activities. This development removes barriers that previously prevented farmers with disabilities from accessing and operating tractors.
- August 2023: New Holland and its Brazilian dealer Agromax opened a new store in Para. The facility spans 3.7 thousand square meters with 1.2 thousand square meters of built area, providing enhanced space for farmers. Agromax, as New Holland's authorized dealer, operates two other locations in Para: Ananindeua (headquarters) and Paragominas, alongside the Santarem store.
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South America Agricultural Tractors Market Report Scope
An agricultural tractor is an industrial vehicle usually used to move the attached implement that does the work of plowing the field or performing other activities. The South American Tractor Market is segmented by Horsepower (Below 80 HP, 81 HP to 130 HP, and Above 130 HP), Type (Orchard Tractors, Row-Crop, and Other Types), and Geography ( Brazil, Argentina, Rest of South America). The report offers the market size and forecasts for volume in (units) and value in (USD) for all the above segments.
Horsepower
| Below 80 HP |
| 81 HP to 130 HP |
| Above 130 HP |
Type
| Orchard Tractors |
| Row-Crop Tractors |
| Other Types |
Geography
| Brazil |
| Argentina |
| Rest of South America |
| Horsepower | Below 80 HP |
| 81 HP to 130 HP | |
| Above 130 HP | |
| Type | Orchard Tractors |
| Row-Crop Tractors | |
| Other Types | |
| Geography | Brazil |
| Argentina | |
| Rest of South America |
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Key Questions Answered in the Report
How big is the South America Agricultural Tractors Market?
The South America Agricultural Tractors Market size is expected to reach USD 1.17 billion in 2025 and grow at a CAGR of 4.12% to reach USD 1.43 billion by 2030.
What is the current South America Agricultural Tractors Market size?
In 2025, the South America Agricultural Tractors Market size is expected to reach USD 1.17 billion.
Who are the key players in South America Agricultural Tractors Market?
Deere & Company, AGCO Corporation, CNH Industrial NV, Kubota Corporation and CLAAS KGaA mbH are the major companies operating in the South America Agricultural Tractors Market.
What years does this South America Agricultural Tractors Market cover, and what was the market size in 2024?
In 2024, the South America Agricultural Tractors Market size was estimated at USD 1.12 billion. The report covers the South America Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Agricultural Tractors Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America Agricultural Tractors Market Report
Statistics for the 2025 South America Agricultural Tractors market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Agricultural Tractors analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
