Brazil Agricultural and Construction Equipment Market - 2023-2030

Brazil Agricultural and Construction Equipment Market - 2023-2030

Brazil Agricultural and Construction Machine Equipment Market reached US$ 13.09 billion in 2022 and is expected to reach US$ 23.87 billion by 2030, growing with a CAGR of 7.8% during the forecast period 2023-2030.

The agricultural and construction sectors in Brazil are experiencing a surge in demand for mechanized equipment, driven by the need to streamline operations and boost productivity. Farmers and construction companies are investing in machinery such as tractors, combines, harvesters, excavators, and loaders to meet these objectives. This trend reflects a shift towards mechanization and automation in both industries, enabling more efficient and effective work processes.

By leveraging advanced equipment, businesses can achieve higher levels of output while reducing labor requirements and operational costs. Overall, the growing adoption of mechanized equipment in Brazil signifies a transformative shift towards modernization and technological advancement in the agriculture and construction industries.

At the 27th Agrishow in Sao Paulo, from April 25 to 29 2022, XCMG inked a $200 million U.S. supply agreement for E20 new energy equipment with Brazil's top mining equipment sales and rental company. XCMG reported ongoing growth in the South American market. These programs demonstrate the industry's dedication to innovation and its readiness to offer state-of-the-art solutions to satisfy the changing requirements of Brazilian building projects.

Dynamics

Growing Agricultural Sector in Brazil

Brazil has emerged as a global agricultural powerhouse, with vast expanses of arable land and favorable climatic conditions for crop cultivation. According to FAO, Brazil employs 63.5 million hectares of its total potential arable land—more than 410 million hectares—for crop production. Farmers are increasingly adopting mechanized solutions for land preparation, planting, crop maintenance, harvesting, and post-harvest processing. This trend is driving the growth of agricultural machinery such as tractors, harvesters, planters, sprayers, etc.

As the agricultural sector expands, there is a rising demand for advanced machinery and equipment to enhance productivity & efficiency. In November 2023, John Deere, manufacturer of software and equipment for the agriculture, construction, and forestry sectors, revealed that it is building its first tropical agriculture development and testing center in Brazil. The corporation committed approximately R$180 million to the project for the primary production systems—grain, sugarcane, and special crops.

Infrastructure Development

Infrastructure development plays a significant role in driving the growth of the construction machine equipment market in Brazil. A report by the United Nations Conference on Trade and Development (UNCTAD) states that in 2021 alone, there were 53% more financing proposals for Brazil's infrastructure sector. As the country invests in expanding its infrastructure, including roads, highways, bridges, airports, and urban development projects, there is a growing demand for equipment to support these initiatives.

With the expansion of road networks and transportation infrastructure, there is a rising need for construction machinery such as excavators, bulldozers, and graders to prepare the ground, lay foundations, and pave roads. Brazil's urban centers are experiencing rapid growth and development, leading to increased construction activities. This trend drives the demand for construction equipment like cranes, concrete mixers, and scaffolding.

High Cost of Equipment and Price Sensitivity

Many agricultural producers and construction companies in Brazil operate within tight budget constraints. The high upfront cost of purchasing new machinery and equipment can be prohibitive, particularly for small and medium-sized enterprises (SMEs) or farmers with limited financial resources. The Brazilian market is price-sensitive, with buyers often seeking cost-effective solutions that offer value for money. The relatively high cost of agricultural and construction equipment, compounded by factors such as import tariffs and taxes, can deter potential buyers from investing in new machinery.

Segment Analysisn

The Brazil agriculture and construction equipment market is segmented based on type, operation, capacity, and application.

Large-Scale Farming Operations

Agriculture is a cornerstone of Brazil's economy, with the country being a major producer and exporter of commodities such as soybeans, sugarcane, coffee, etc. Brazil has vast expanses of arable land, and many agricultural enterprises operate on large-scale farms. To manage extensive acreage effectively, farmers rely on mechanized equipment such as tractors, combines, planters, and harvesters to perform various tasks, including land preparation, planting, irrigation, and harvesting.

Manufacturers are expanding their distribution networks across Brazil's vast geographic expanse. This extensive network ensures the widespread availability of agricultural machinery and provides farmers with convenient access. In July 2022, Mahindra & Mahindra, a tractor manufacturer announced opening an assembly factory in Brazil, the sixth-largest tractor market in the world, as part of its deliberate global growth.

COVID-19 Impact Analysis

The pandemic disrupted supply chains in Brazil, causing delays in the production and delivery of agricultural and construction machinery components and parts. Factory closures, logistics constraints, and trade restrictions affected the availability of equipment, leading to inventory shortages and delivery delays for manufacturers and customers alike. Economic uncertainties, lockdown measures, and reduced purchasing power among farmers and construction companies resulted in decreased demand for new machinery.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war had significant implications for the agricultural and construction machine equipment market, particularly in terms of supply chain disruptions, economic instability, and geopolitical tensions. Fluctuations in currency exchange rates, trade disruptions, and inflationary pressures have impacted investment decisions and consumer confidence, leading to a slowdown in equipment purchases and investment in agricultural and construction projects.

By Type
• Agriculture Machinery
Tractor
Ploughing and Cultivating Machinery
Planting Machinery
Harvesting Machinery
Others
• Construction Machinery
Earthmoving Equipment
Material-Handling Equipment
Heavy Construction Vehicles
Others

By Operation
• Autonomous
• Semi-Autonomous

By Capacity
• Small
• Medium
• Large

By Application
• Agriculture Industry
• Construction Industry

Key Developments
• In December 2021, the Inter-American Development Bank (IDB) approved a credit line of up to $1.2 billion to support the enhancement of Brazil's agricultural sector's resilience and production, as well as to increase income and access to essential services in rural regions.
• In August 2023, New Holland Agriculture, a brand of CNH Industrial, commercially introduced the world’s first accessible farm tractor. Produced at the Brand's plant in Curitiba (PR), the TL5 ""Acessível"" (Accessible in Brazilian Portuguese) is made for persons with lower limb limitations, allowing them to labor independently in fields. The ""Acessível"" New Holland TL5 made in Curitiba, Brazil.
• In July 2023, XCMG, a multinational heavy machinery manufacturing company released new electric trucks and construction machinery in Brazil. It Includes five trucks, two loaders, and one excavator.

Competitive Landscape

The major players in the market include Deere & Company, AGCO Corporation, Mahindra & Mahindra Ltd., PLANTI CENTER, CNH Industrial N.V., J C Bamford Excavators Ltd., Komatsu Forest, Hitachi Construction Machinery Co., Ltd., AB Volvo, Caterpillar

Why Purchase the Report?
• To visualize the Brazil agricultural and construction machine equipment market segmentation based on type, operation, capacity and application as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of agricultural and construction machine equipment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Brazil agricultural and construction machine equipment market report would provide approximately 42 tables, 28 figures and 200 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies