The agricultural equipment market in Latin America is projected to grow at a compound annual growth rate (CAGR) of 4.57% from 2023 to 2029, driven by factors such as a growing population, urbanization, and shifting dietary habits. The industry is highly concentrated, with the majority of the market share held by a few key players. Both domestic and international brands are well-represented within the sector.
In 2023, John Deere, CNH Industrial, AGCO Corporation, and Kubota together held over 60% of the market share. These companies employ various strategies to maintain their dominance, making it difficult for new entrants to compete. Key competitive factors in the market include equipment efficiency, product reliability, availability, after-sales service, and pricing.
These leading companies continue to heavily invest in research and development (R&D) to create innovative technologies and are actively expanding their presence in emerging markets. For instance, John Deere has established a significant footprint in Brazil, with multiple manufacturing plants and a robust distribution network. The company is also promoting precision agriculture technologies and offers a wide range of machinery tailored to Brazilian farmers’ needs. Similarly, AGCO Corporation has expanded its operations in Argentina, investing heavily in local manufacturing and distribution. The company’s popular brands, Massey Ferguson and Valtra, are widely used by Argentine farmers.
Brazil is the largest market in Latin America, accounting for over 40% of the region’s agricultural equipment sales in 2023. The country is expected to remain the top market during the forecast period, supported by a large farming population and government initiatives to promote agricultural mechanization. Mexico and Argentina are also expected to see strong demand for agricultural machinery, driven by the adoption of advanced farming practices. In Mexico, government programs such as the Planting Life Program and the Fertilizer Program aim to support farmers’ income and enhance food security.
Governments across Latin America are implementing policies to improve access to credit and boost agricultural operations, which will further drive growth in the region’s agricultural equipment market. The increasing focus on enhancing productivity and expanding agricultural exports is also contributing to the rising demand for advanced farming equipment across the region.
