Brazil Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.40 Billion |
| Market Size (2029) | USD 9.30 Billion |
| CAGR (2024 - 2029) | 4.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Agricultural Machinery Market Analysis
The Brazil Agricultural Machinery Market size is estimated at USD 7.40 billion in 2024, and is expected to reach USD 9.30 billion by 2029, growing at a CAGR of 4.60% during the forecast period (2024-2029).
- Agriculture in Brazil is well developed in attaining self-sufficiency, and the country is also one of the major exporters of several agricultural commodities. The government has extensive farmland and the potential to expand it on a large scale. Therefore, the increase in area around agriculture caters to the growth of the agricultural machinery market. According to the Brazilian Institute of Geography and Statistics, the planted area for cereals, vegetables, and oilseeds in Brazil increased from 73.2 million ha in 2022 to 77.5 million ha in 2023. Additionally, the increased awareness of farmers about advanced agricultural equipment to improve production, reduction of crop production costs, and income-focused tendencies are pushing them to adopt agricultural equipment on farms.
- Along with this, more prominent farm owner's acquisition of smaller farms is increasing the consolidation of farms. Larger farms require a huge amount of farm labor for farming operations. On the other hand, agricultural employment in Brazil dropped from 9.5% in 2021 to 8.7% in 2022. Therefore, to fulfill the demand, large farm owners prefer agricultural machinery, making farming operations easy and cost-effective. Moreover, the government's supportive initiatives are also contributing to market growth. In 2023, the Minister of Agriculture and Livestock launched the country’s 2023-2024 Crop Plan and allocated USD 72.9 billion to support national agricultural production. This plan also reduces interest rates for acquiring agricultural machinery and equipment through the Program for Modernization of the Fleet of Agricultural Tractors and Associated Implements and Harvesters, which further supports market growth.
- The market is primarily dominated by players such as John Deere, AGCO, and CNH Industrial due to the higher quality of products and better after-sales service. The strategies adopted by the players are fueling the growth of agricultural equipment in the country. For instance, Valtra, an AGCO brand, a global leader in the design, manufacture, and distribution of precision agricultural machinery and technologies, launched Valtra's first FarmerCore satellite store in Brazil. The FarmerCore strategy aims to bring together and transform the way rural producers and dealerships interact and benefit from the services and products offered by the brand. Therefore, the expanding planted areas, favorable government initiatives, and strategic activities by the major players are expected to drive market growth during the forecast period.
Brazil Agricultural Machinery Market Trends
Tractors Segment Dominates the Market
- Tractors is the largest segment in the market studied. The vast and diverse Brazilian terrain, which ranges from the humid tropics to arid regions, demands robust and adaptable machinery. Tractors meet these needs effectively by offering the ability to handle different types of soil and crops, making them a preferred choice for Brazilian farmers. Along with this, soybean, corn, wheat, tobacco, grape, apple, sugar cane, cassava, and beans are the major crops grown in the country. Tractors are widely used in these crop types in the country to enhance the efficiency and productivity of farming operations. The growth in the area under these crops is aiding the market. As per FAOSTAT, the area harvested under wheat in Brazil grew from 2.7 million ha to 3.1 million ha from 2021 to 2022, thereby boosting the usage of tractors.
- Along with this, the cost-effectiveness of tractors plays a crucial role in their dominance. While the initial investment in tractors can be substantial, the long-term benefits in terms of increased productivity and reduced labor costs make them a worthwhile investment. This supports the tractor sales in Brazil during the study period. For instance, the sales of farm tractors grew from 13,287 in 2020 to 18,843 in 2021, according to the Association of Equipment Manufacturers.
- Brazil has seen significant advancements in tractor technology. Modern tractors are equipped with features such as GPS navigation, automated systems, and advanced engines that enhance their performance and efficiency in the market. In 2024, Fendt launched the new 700 Vario tractor series in Brazil. The models include the Fendt 726 Vario (263 HP) and Fendt 728 Vario (283 HP). These tractors have Vario transmission for improved handling, high fuel economy, and minimal slip. They also feature the Fendt Dynamic Performance concept, providing an extra 20 HP as needed for each specific job. Thus, the benefits of increasing productivity and cost-effectiveness, coupled with technological advancements, are expected to drive market growth during the forecast period.
Haying and Forage is the Fastest-growing Machinery Type
- Haying and forage machinery is the fastest-growing type of agricultural machinery in the Brazilian market. Mowers, balers, windrowers, forage choppers, fodder processors, rakers, and tedders are the machinery included in the haying and forage type. Brazil's vast livestock sector is a major driver of haying and forage machinery use. The country is one of the largest beef and dairy producers globally, and the production is expected to grow during the study period. For instance, according to the US Department of Agriculture, beef production in Brazil grew from 9.5 billion kg in 2021 to 9.8 billion kg in 2022. This necessitates a reliable and efficient supply of forage to feed its herds. This demand drives farmers to invest in advanced haying and forage machinery to ensure a steady and reliable supply of feed, thereby aiding the segment’s growth.
- Additionally, the demand for animal-based products is also observed to be growing in the country. As demand for animal products continues to grow, so does the need for high-quality, cost-effective forage. Corn is used as one of the major forage crops in Brazil. According to FAOSTAT, the area harvested under corn in Brazil grew from 18.9 million ha to 21.0 million ha from 2021 to 2022. The growth in forage crop cultivation is anticipated to increase further in the coming years, boosting the country's forage machinery sales.
- Furthermore, dairy production and livestock play an important role in the Brazilian economy. However, due to the constant challenges of providing high-quality food to animals, rural producers have been looking for effective methods, such as haymaking, to ensure adequate nutrition. Therefore, to better understand the techniques and benefits of haymaking, the major companies are coming forward with training on machinery usage in the haymaking process. For instance, in 2024, Massey Ferguson launched the web series “Hay and Action” in the Brazilian agricultural market. This offers a comprehensive view of the haymaking process with the usage of machinery, as well as testimonials from hay producers from different regions of the country, which supports the awareness and usage of the machinery among Brazilian farmers. Therefore, the growing production of livestock sectors, coupled with the rising usage of forage crops and innovative practices by the major companies, is expected to drive market growth during the forecast period.
Brazil Agricultural Machinery Industry Overview
The Brazilian agricultural machinery market is concentrated, with the international players occupying most of the market share. Some key players in the market are Deere and Company, Mahindra and Mahindra Ltd, CNH Industrial, Kubota Corporation, and AGCO Corporation. Farmers prefer international companies for assurance of quality and after-sales services offered by the big companies. Additionally, mergers and acquisitions, partnerships, expansion, and product launches are the business strategies adopted by major players in the market.
Brazil Agricultural Machinery Market Leaders
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Deere and Company
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CNH Industrial
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Kubota Corporation
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AGCO Corporation
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Mahindra and Mahindra Ltd
*Disclaimer: Major Players sorted in no particular order
Brazil Agricultural Machinery Market News
- May 2024: Case IH, a brand of CNH Industrial, launched the Axial-Flow Series 160 Automation, a new line of harvesters. These harvesters are produced in the Sorocaba plant in São Paulo, Brazil.
- April 2024: Valtra, a brand of AGCO Corporation, launched its Q5 tractor series for the Brazilian market. The models are available in power ranging from 265 to 305 HP and are known for their innovative design and cutting-edge technology.
- December 2023: John Deere allocated approximately BRL 180 million (USD 37 million) to establish the Brazil Technology Development Center, marking its inaugural foray into tropical agriculture R&D. The center’s primary goal is to enhance collaboration among its various R&D teams. These teams focus on innovating and certifying new products and technologies tailored to the primary production systems of grains, sugarcane, and specialty crops.
Brazil Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Technological Advancements
- 4.2.2 Government Initiatives Enhance Farm Mechanization
- 4.2.3 Brazilian Farm Structure and Consolidation of Smaller Farms
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4.3 Market Restraints
- 4.3.1 High Cost of Equipment and Price Sensitivity
- 4.3.2 Data Privacy Concerns
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4.4 Porter's Five Forces 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
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5.1 By Tractor
- 5.1.1 Below 80 HP
- 5.1.2 81 to 130HP
- 5.1.3 Above 130 HP
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5.2 Plowing and Cultivating Machinery
- 5.2.1 Ploughs
- 5.2.2 Harrows
- 5.2.3 Cultivators and Tillers
- 5.2.4 Other Ploughing and Cultivating Machinery
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5.3 Planting Machinery
- 5.3.1 Seed Drills
- 5.3.2 Planters
- 5.3.3 Spreaders
- 5.3.4 Other Planting Machinery
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5.4 Harvesting Machinery
- 5.4.1 Combine Harvesters
- 5.4.2 Forage Harvesters
- 5.4.3 Other Harvesting Machinery
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5.5 Haying and Forage Machinery
- 5.5.1 Mowers
- 5.5.2 Balers
- 5.5.3 Other Haying and Forage Machinery
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5.6 Irrigation Machinery
- 5.6.1 Sprinkler Irrigation
- 5.6.2 Drip Irrigation
- 5.6.3 Other Irrigation Machinery
6. COMPETITIVE LANDSCAPE
- 6.1 Market Share Analysis
- 6.2 Most Adopted Strategies
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6.3 Company Profiles
- 6.3.1 Deere & Company
- 6.3.2 AGCO do Brasil
- 6.3.3 CNH Industrial Brasil Ltda
- 6.3.4 Kubota Tractor Corp.
- 6.3.5 CLAAS America Latina Ltda
- 6.3.6 Mahindra Brasil
- 6.3.7 Lindsay America DO SUL Ltda
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityBrazil Agricultural Machinery Industry Segmentation
Machines used for agricultural activities, such as planting, seeding, fertilizing, pest control, irrigation, harvesting, and haymaking, and post-harvest activities, including loading, unloading, and storage, are considered agricultural machinery.
The Brazilian agricultural machinery market is segmented by tractor (below 80 HP, 81 to 130 HP, and above 130 HP), ploughing and cultivating machinery (ploughs, harrows, cultivators and tillers, and other ploughing and cultivating machinery), planting machinery (seed drills, planters, spreaders, and other planting machinery), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), haying and forage machinery (mowers, balers, and other haying and forage machinery), and irrigation machinery (sprinkler irrigation, drip irrigation, and other irrigation machinery). The report offers market sizes in terms of value (USD) for all the abovementioned segments.
| By Tractor | Below 80 HP |
| 81 to 130HP | |
| Above 130 HP | |
| Plowing and Cultivating Machinery | Ploughs |
| Harrows | |
| Cultivators and Tillers | |
| Other Ploughing and Cultivating Machinery | |
| Planting Machinery | Seed Drills |
| Planters | |
| Spreaders | |
| Other Planting Machinery | |
| Harvesting Machinery | Combine Harvesters |
| Forage Harvesters | |
| Other Harvesting Machinery | |
| Haying and Forage Machinery | Mowers |
| Balers | |
| Other Haying and Forage Machinery | |
| Irrigation Machinery | Sprinkler Irrigation |
| Drip Irrigation | |
| Other Irrigation Machinery |
Brazil Agricultural Machinery Market Research FAQs
How big is the Brazil Agricultural Machinery Market?
The Brazil Agricultural Machinery Market size is expected to reach USD 7.40 billion in 2024 and grow at a CAGR of 4.60% to reach USD 9.30 billion by 2029.
What is the current Brazil Agricultural Machinery Market size?
In 2024, the Brazil Agricultural Machinery Market size is expected to reach USD 7.40 billion.
Who are the key players in Brazil Agricultural Machinery Market?
Deere and Company, CNH Industrial, Kubota Corporation, AGCO Corporation and Mahindra and Mahindra Ltd are the major companies operating in the Brazil Agricultural Machinery Market.
What years does this Brazil Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Brazil Agricultural Machinery Market size was estimated at USD 7.06 billion. The report covers the Brazil Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Agricultural Machinery Industry Report
Statistics for the 2024 Brazil Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Agricultural Machinery analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
