Chicago, Aug. 30, 2022 (GLOBE NEWSWIRE) -- According to the latest research report, Mexico tractors market is expected to grow at a CAGR of over 3.5% during 2022-2027. Mexican government is encouraging new farmers by providing additional support through the direct payment policy in Mexico national policy. The country must set aside 2% of their allocated direct payment funding to provide younger farmers with a 25% bonus during the first few years. Moreover, younger farmers are prioritized while receiving direct payment funding from the national to regional government.
The utilization of animal and human power in Mexico's agriculture sector has decreased significantly. Many of these are powered by fossil fuel-powered vehicles like tractors and diesel engines. As a result, the old agricultural process has given way to a more mechanized one. Hence, the market is likely to be driven by the adoption of programs by governments in the region, as well as an increase in tractor usage during the forecast period.
The agricultural tractor market in Mexico has the presence of established players in various segments. Vendors are improving their aftersales services, which is making customers loyal to the existing brands.
Mexico Tractors Market Report Scope
| Report Attributes | Details | |
| MARKET SIZE (2028) | 14k Units | |
| MARKET SIZE (2021) | Around 11k Units | |
| CAGR (2022-2028) | 3.79% | |
| BASE YEAR | 2021 | |
| FORECAST YEAR | 2022-2027 | |
| MARKET SEGMENTS | Horsepower, Drive Type, and Regions | |
| LARGEST SEGMENT BY HORSEPOWER | 50-100 HP | |
| LARGEST SEGMENT BY ZONE | Central | |
| KEY VENDORS | John Deere, AGCO, CNH Industrial, TAFE, and Kubota | |
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Key Insights
- 2-Wheel-Drive tractor market accounted 98.2% from the overall tractor market. 50-100 HP segment accounted for the largest market share is expected to grow at a CAGR of 4.22% during the forecast period.
- Mexico has diversified the agricultural economy with various opportunities for growth. It is a leading global exporter of tomatoes, avocados, green chilis, dry onions, sugar, and a variety of other fresh and frozen fruits and vegetables.
- In 2021, the 50-100 HP segment recorded high growth in Mexico. The major factor for the steady growth of the medium-power range of tractors is the high business turnover among hobby and livestock farmers. The sales of Above 250 HP tractors in the country are expected to remain steady during the forecast period as farm sales are likely to remain the same in the coming years.
- With the share of agricultural exports growing relatively slowly, Mexico's government is working on measures to double the quantity and revenues of agricultural farm products exported by 2025. The government is identifying regions according to their current production of export foods and their potential to increase production with the help of new institutional reforms.
- Government strategies to enhance the welfare of farmers by converting agriculture into a viable activity are paving the way for new tractor purchases. The awareness of advanced agriculture equipment to improve per hectare yield, reduce the overall cost of crop production, and increase the incomes of farmers is boosting the sales of new tractors in Mexico.
- Mexico, a new frontier of innovation is emerging as agriculture meets digital technologies, opening various paths to a smart agricultural future. The smart agriculture will happen with the help of various technologies such as self-driving or autonomous tractors and GPS technology, among others. Self-driving or autonomous tractors can help farmers reduce working hours, however, there is a huge potential for data monitoring.
- Mexico market witnessed an unexpected rise in tractor sales in 2021 and maintained it until now. Interestingly, the highest growth in Mexico tractor market was seen in the medium HP power segments.
- The key players in Mexico agriculture 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 overall Mexico agriculture tractors market in 2021.
Impact of Development of Smart and Autonomous Tractors
A new frontier of innovation is emerging as agriculture meets digital technologies, opening various paths to a smart agricultural future. Tractor manufacturers have become very competitive, and companies are constantly striving to innovate and ensure product differentiation at affordable prices.
GPS technology on tractors and other equipment helps farmers with field mapping, soil sampling, and crop scouting. It also allows them to work during 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 every aspect of life. Within the next ten years, the current way of farming will be completely revolutionized using autonomous tractors and agricultural robots, which will perform time-consuming tasks now performed by humans much more efficiently. The price of an autonomous tractor is estimated to be 40−50% higher than conventional tractors. Thus, affordability will be one of the major challenges for farmers. However, in the future, autonomous tractors will provide a better return and profits to farmers.
Key Vendors
- John Deere
- AGCO
- CNH Industrial
- TAFE
- Kubota
Other Prominent Vendors
- Mahindra & Mahindra
- Deutz-Fahr
- Yanmar
- CLAAS Group
- Foton
- Escorts
- Arbos Group
Market Segmentation
Horsepower
- Less than 50 HP
- 50–100 HP
- 101-150 HP
- 151-250 HP
- Above 250 HP
Drive Type
- 2-Wheel-Drive
- 4-Wheel-Drive
Regions
- Mexico
- North
- Central
- Gulf & south
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