Mexico will witness the sale of 14,000 units of tractors by 2027.

Chicago, Aug. 30, 2022 (GLOBE NEWSWIRE) — According to the latest research report, the Mexican tractor market is expected to grow at a CAGR of over 3.5% during the period 2022-2027. The Mexican government encourages new farmers by providing additional support through the direct payment policy in Mexico’s national policy. The country must set aside 2% of its direct payment funding to provide young farmers with a 25% bonus in the first few years. Additionally, young farmers are given priority while receiving direct payments from the national government to the regional government.

The use of animal and human force in the Mexican agricultural sector has decreased considerably. Many of them are powered by fossil fuel vehicles like tractors and diesel engines. As a result, the old agricultural process gave way to a more mechanized process. Therefore, the market is likely to be driven by the adoption of programs by governments in the region, as well as an increase in the use of tractors during the forecast period.

The agricultural tractor market in Mexico counts on the presence of established players in various segments. Sellers are improving their after-sales service, which is building customer loyalty to existing brands.

Scope of the Mexico Tractor Market Report

Report attributes Details
MARKET SIZE (2028) 14,000 units
MARKET SIZE (2021) Approximately 11,000 units
CAGR (2022-2028) 3.79%
YEAR OF REFERENCE 2021
FORECAST YEAR 2022-2027
MARKET SEGMENTS Power, drive type and regions
LARGEST SEGMENT BY POWER 50-100 HP
LARGEST SEGMENT PER ZONE Central
KEY SUPPLIERS John Deere, AGCO, CNH Industrial, TAFE and Kubota

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key ideas

  • The 2WD tractor market accounted for 98.2% of the overall tractor market. The 50-100 HP segment accounted for the largest market share and is expected to grow at a CAGR of 4.22% during the forecast period.
  • Mexico has diversified agricultural economy with various opportunities for growth. It is one of the world’s leading exporters of tomatoes, avocados, green peppers, dried onions, sugar and a variety of other fresh and frozen fruits and vegetables.
  • In 2021, the 50-100 HP segment recorded strong growth in Mexico. The main factor for the constant growth of the line of medium-power tractors is the high turnover of breeders and hobby breeders. Sales of tractors over 250 HP in the country are expected to remain stable over the forecast period as agricultural sales are expected to remain the same in the coming years.
  • With the share of agricultural exports growing relatively slowly, the Mexican government is working on measures to double the quantity and revenue of agricultural agricultural products exported by 2025. The government identifies regions based on their current food production from export and their potential to increase production with the help of further institutional reforms.​
  • Government strategies to improve the welfare of farmers by converting farming into a viable business are paving the way for the purchase of new tractors. Awareness of advanced agricultural equipment to improve yield per hectare, reduce the overall cost of agricultural production and increase farmers’ incomes is driving sales of new tractors in Mexico.
  • Mexico, a new frontier of innovation is emerging as agriculture meets digital technologies, opening up diverse pathways to a smart agricultural future. Smart farming will be done using various technologies such as autonomous or self-driving tractors and GPS technology, among others. Self-driving or self-driving tractors can help farmers reduce their working hours, but there is huge potential for data monitoring.
  • The Mexican market has seen an unexpected increase in tractor sales in 2021 and has maintained it so far. Interestingly, the highest growth in the Mexican tractor market has been seen in the mid horsepower HP segments.
  • Major players in the Mexican agricultural tractor market are John Deere, AGCO, and CNH Industrial. In terms of units sold, John Deere and AGCO are the market leaders which accounted for more than 50% of the overall agricultural tractor market in Mexico in 2021.

Impact of the development of intelligent and autonomous tractors

A new frontier of innovation is emerging as agriculture meets digital technologies, opening various pathways to a smart agricultural future. Tractor manufacturers have become very competitive and companies are constantly striving to innovate and provide product differentiation at affordable prices.

GPS technology on tractors and other equipment helps farmers map fields, sample soils and locate crops. It also allows them to work in low visibility field conditions such as rain, dust and fog and maximize efficiency..

The world is changing rapidly, increasing innovation and the extensive use of robotics and AI are transforming all aspects of life. In the next ten years, the current way of farming will be completely revolutionized using autonomous tractors and agricultural robots, which will perform the time-consuming tasks now performed by humans much more efficiently.. It is estimated that the price of an autonomous tractor is 40-50% higher than that of conventional tractors. So, affordability will be one of the main challenges for farmers. However, in the future, autonomous tractors will provide better output and profits for farmers.

Main suppliers

  • John Deere
  • AGCO
  • CNH Industrial
  • TAFE
  • Kubota

Other Important Suppliers

  • Mahindra and Mahindra
  • Deutz-Fahr
  • Yanmar
  • CLAAS Group
  • Photon
  • Escorts
  • Arbos Group

Market segmentation

Powerful

  • Less than 50 HP
  • 50–100 HP
  • 101-150 HP
  • 151-250 HP
  • Above 250 HP

Reader Type

  • 2 wheel drive
  • 4 wheels driving

Regions

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