Mexico Agricultural Machinery Market Size (2024 - 2029)

Mexico Agricultural 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 arable land area accounting for 20.1 million hectares in 2021, as per the World Bank. 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, becoming priority markets for each other's industries.
• The major driver for the increase in the usage of agricultural machinery in Mexico is the need to increase agricultural productivity. The need for an increase in productivity is due to the growing food demand in the country, which is parallel to the growing population.
• According to the United States Department of Agriculture, the domestic consumption of corn in Mexico increased from 44,000 thousand metric tons to 45,700 thousand metric tons from 2022 to 2023. This rising consumption shows the increasing food demand, which can be dealt with by increasing crop productivity through agricultural advances, including the usage of agricultural machinery. Thus, agricultural machinery usage is anticipated to increase in the country.
• Along with this, the increase in combined harvester-threshers imports by Mexico depicts the increase in the usage of agricultural machinery in the country. For instance, the import of combined harvester-threshers was 1,541 units in 2022, an increase of 18.6% from the previous year, according to the ITC trade map. The high demand for agricultural machinery in Mexico promotes the imports of agricultural machinery into Mexico from the United States, India, China, Japan, etc., further aiding the market growth.
• Furthermore, Deere and Company, AGCO Corporation, CNH Industrial NV, and Kubota Mexico S.A. de C.V. are some of the major agricultural machinery manufacturing companies operating in the country. They are expanding the production of agricultural machinery to Mexico, which is anticipated to favor the market's growth during the forecast period. For instance, in 2022, John Deere expanded the company’s tractors and cab production from its Waterloo, Iowa, plant to Mexico due to the labor shortage in the US facility.

Mexico Agricultural Machinery Industry Segmentation

Agricultural machinery refers to the agricultural devices and tools used in the agriculture process. These tools can be hand tools, power tools, and tractors used in farming or other agricultural processes. 

The Mexican agricultural machinery market is segmented by tractors, equipment, irrigation machinery, harvesting machinery, and haying and forage machinery. The report offers the market size and forecasts in terms of volume (units) and value (USD) for all the above segments.