Argentina Tractors Market - Industry Analysis & Forecast 2023-2028

Argentina Tractors Market - Industry Analysis & Forecast 2023-2028

The Argentina tractor market is expected to grow at a CAGR of 3.42% from 2022-2028.

KEY HIGHLIGHTS

• Argentina has over 46.2 million food consumers. The country witnessed a massive increase in farm mechanization in terms of agricultural and industrial productivity.
• The Argentina tractor market is highly concentrated, with the top players controlling most of the market. Domestic and global brands, on the other hand, are equally represented in the industry.
• Argentina's government plans schemes and initiatives to facilitate credit and improve agriculture-related operations, which will contribute to the growth of the overall value chain of the industry.
• The Argentina tractor market increased by 3.2% in 2022 from 2021. The increase in crop production and tractor sales was due to favorable climate conditions and government support to farmers.

MARKET TRENDS & OPPORTUNITIES

Growing Prospects of Precision Farming

Manufacturers of agriculture equipment and machinery are increasingly entering the precision agriculture vertical. The demand for precision equipment can be generated among farmers in Argentina due to unfavorable rainfall. Precision agriculture equipment can intelligently calculate the farm size and crop population to use the correct amounts of water for irrigation and plantation segments.

Technological Advance in Tractor Technology

A new frontier of innovation emerged as agriculture met digital technology, opening various paths to a smart agricultural future. Tractor manufacturers in the Argentina tractor market are competitive, and companies constantly strive to innovate and ensure product differentiation at affordable prices. State-of-the-art technology-based tractors are currently available in the industry. GPS and remote sensing make farming more accurate and productive.

SEGMENTATION INSIGHTS

INSIGHTS BY HORSEPOWER

50 HP-100 HP horsepower segment recorded a high Argentina tractor market share in 2022. The major factor for the steady growth of the medium-power range of tractors is the increased business turnover among hobby and livestock farmers. The versatility of 50–100 HP tractors is the major factor that drives their adoption. These tractors have the power to operate generators for irrigation and both company- and domestic-made harvesters and threshers. The use of these tractors helps to reduce labor costs and labor dependency. The high prevalence of small and medium farmlands in Argentina, coupled with country-wide government schemes to enhance farming capabilities, boosts the sales of 50-100 HP tractors.

Segmentation by Horsepower

• Less Than 50 HP
• 50 HP-100 HP
• 101–150 HP
• Above 150 HP

INSIGHTS BY DRIVE TYPE

Ease of driving and flexibility with light loads and in plain fields are major factors that boost the demand for two-wheel-drive tractors in the Argentina tractor market. These are typically used on farms where a tractor’s pulling strength is irrelevant and operational ability is the priority. 2WD tractors are a conventional choice for farmers in Argentina. Older farmers use 2WD tractors as they are more comfortable with traditional 2WD tractors than with 4WD tractors. John Deere, CNH Industrial, and AGCO share most of the 2-wheel drive tractors segment.

Segmentation by Wheel Drive

• 2-Wheel-Drive
• 4-Wheel-Drive

REGIONAL ANALYSIS

The Pampas region has the highest demand for agricultural tractors in the Argentina tractor market. The Pampas region has a substantial demand for agriculture tractors due to its extensive agricultural activities. The market size for tractors in the region has been consistently growing. Adopting mechanization and modern farming techniques has increased the demand for tractors in the Pampas.

Segmentation by Region

• Pampas
• North
• Patagonia
• Andes

VENDOR LANDSCAPE

John Deere, CNH Industrial, and AGCO dominated the Argentina tractor market with an industry share of over 40% in 2022. These manufacturers have adopted several strategies to gain traction in the industry. Argentina has easy and free-trade policies with neighboring countries. Therefore, vendors can use Argentina as an ideal location to set up manufacturing or assembly facilities in the country. Such factors give access to the major countries of Latin America, including Brazil and Mexico.

Key Company Profiles

• John Deere
• CNH Industrial
• AGCO
• Kubota

Other Prominent Vendors

• CLAAS
• Deutz-Fahr
• Mahindra
• KIOTI
• Hanomag
• RolandH
• Agrale
• Zetor
• LS Tractor
• TYM Corporation

Recent Developments in the Argentina Tractor Market

• In March 2023, John Deere announced MY24 updates for its 7, 8, and 9 Series Tractors lineup that will help prepare them for the future of precision agriculture.
• In June 2022, The CLAAS AXION 900 series of large tractors for contractors and big farms the new AXION 900 series are equipped as standard with the updated, continuously variable ZF Terramatic transmission.
• AGCO launched the latest Fendt 700 Vario series tractors in August 2022, featuring an upgraded powertrain with VarioDrive transmission and Fendt iD low engine speed concept. This new generation aims to enhance efficiency and productivity for customers.

KEY QUESTIONS ANSWERED:

1. What are the expected units sold in the Argentina tractor market by 2028?

2. What is the growth rate of the Argentina tractor market?

3. How big is the Argentina tractor market?

4. Which region holds the largest Argentina tractor market share?

5. Who are the key companies in the Argentina tractor market?