Report Overview

Mexico Agricultural Machinery Market – Industry Trends & Forecast Report, 2030

Mexico Agricultural Machinery Market size was estimated at USD 3.3 billion in 2023. During the forecast period between 2024 and 2030, the Mexico Agricultural Machinery Market size is projected to grow at a CAGR of 12.11% reaching a value of USD 5.13 billion by 2030. A prominent driver of the market is the increasing adoption of farm mechanization. Mexican government's push for farm mechanization, which has spurred the use of agricultural machinery across the country. The initiative has strengthened Mexico's relationship with the United States, leading to a lucrative exchange of agricultural machinery and equipment between the two nations. Despite Mexico's efforts to develop its own agricultural machinery industry, production has primarily been limited to basic, low-end items. Consequently, the country relies on foreign suppliers to meet its machinery needs. Also, government programs supporting agricultural mechanization, offering financing for equipment purchases, and providing training for operators, have propelled the tractor market in Mexico. Policies promoting agricultural exports further support this trend, with tractors serving as a gateway to mechanization. Currently, about 40% of Mexico's agricultural land is mechanized, with protected agriculture expanding rapidly, presenting significant growth opportunities for the tractor industry.

Agricultural Machinery – Overview

Farm mechanization provides significant benefits, including reduced labor and time costs, lower crop production expenses, minimized post-harvest losses, and increased crop yield and farm income. The growth in manually operated tools, animal-operated implements, and machinery powered by mechanical and electrical sources underscores Mexico's increasing reliance on modern agricultural equipment. As labor shortages and higher costs continue, the demand for machinery in agribusiness rises.

Mexico Agricultural Machinery Market

Growth Drivers

Government Support for Farm Mechanization

The Mexican government has taken proactive steps to support farm mechanization, driving the growth of agricultural machinery. Through favorable policies, financial support for purchasing equipment, and training programs for operators, the government has fostered a thriving tractor market. These initiatives have also strengthened the relationship between the United States and Mexico, making both countries key markets for each other's agricultural machinery industries.

Expansion of Protected Agriculture

Around 40% of Mexico's agricultural land is mechanized, and protected agriculture is expanding rapidly. This trend opens up significant growth opportunities for the tractor industry and other agricultural machinery sectors. The government's support for mechanization and policies promoting agricultural exports have contributed to this expansion, despite the slow adoption of technology by small and marginal farmers.

Challenges

Volatile Raw Material Prices

The shortage of skilled labor poses a significant restraint on the growth of the Mexico Agricultural Machinery Market. As the sector embraces more advanced technology and mechanization, the demand for skilled operators and technicians has risen sharply. However, the labor force has not kept pace, leading to a bottleneck in the adoption of modern agricultural machinery. This gap between technological advancement and workforce capability hinders market expansion, making it challenging for farms to fully utilize and maintain new equipment. As a result, the overall growth of the Mexico Agricultural Machinery Market is constrained by this skilled labor deficit.

Impact of Escalating Geopolitical Tensions on Mexico Agricultural Machinery Market

Geopolitical tensions can have a multifaceted impact on the Mexico Agricultural Machinery Market. The agricultural sector has experienced direct disruptions due to geopolitical events, with conflicts damaging arable land, machinery, and labor forces, thereby reducing productivity, output, and exports. Sanctions and countersanctions have diminished global fertilizer and energy supplies, driving up production costs for agricultural products. Additionally, transportation disruptions and border blockades have hampered the cross-regional flow of food, disrupting the food supply chain. These geopolitical tensions also contribute to rising food prices, prompting countries to impose export restrictions to combat domestic inflation, which, in turn, fuels trade protectionism. This growing trend of food trade restrictions increases the risk of global food insecurity and further complicates the Mexico Agricultural Machinery Market, as investors face escalating uncertainty and market volatility. Understanding these dynamics is crucial for managing risks and ensuring the stability of the agricultural machinery market in Mexico.

Mexico Agricultural Machinery Market

Segmental Coverage

Mexico Agricultural Machinery Market – By Type

By type, the Mexico Agricultural Machinery Market is divided into Tractors, Harvesters, Soil Preparation & Cultivation, Irrigation & Crop Processing, Agriculture Spraying Equipment, and Hay & Forage Machines segments. The tractors segment holds the highest share in the Mexico Agricultural Machinery Market by type, as tractors are versatile and essential for various agricultural tasks. They are used for plowing, planting, tilling, and hauling, which are key operations in farming. Mexico's emphasis on agriculture as a significant economic sector has driven demand for efficient machinery like tractors. Also, government support through subsidies and agricultural programs, such as PROAGRO, encourages farmers to invest in tractors. The technological advancements and increased mechanization within the sector make tractors a practical choice, leading to their dominance in the Mexican agricultural machinery market.

Mexico Agricultural Machinery Market – By Automation

Based on automation, the Mexico Agricultural Machinery Market is divided into Automatic, Semi-automatic, and Manual segments. The manual segment holds the highest share in the Mexico Agricultural Machinery Market. It is primarily due to its cost-effectiveness and appeals to small-scale farmers with limited budgets. In rural areas, manual machinery is often more accessible than automated alternatives. The prevalence of a robust agricultural labor force in Mexico supports manual operations, allowing many farms to rely on traditional labor-intensive methods. Additionally, cultural preferences for conventional farming practices contribute to this trend, with many farmers choosing manual techniques over automation. Government programs aimed at supporting small-scale farmers further reinforce the use of manual tools, contributing to the manual segment's substantial share in the market.

Competitive Landscape

Major players operating in Mexico Agricultural Machinery Market include John Deere, CNH Industrial, AGCO Corporation, Kubota Corporation, Mahindra & Mahindra, CLAAS, AGROASEMEX, Grupo Gonher, Trupper, and Metalúrgica Roset. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 - The U.S. Department of Agriculture opened a new Foreign Agricultural Service (FAS) office in Guadalajara, Mexico. This expansion reflects the growing United States-Mexico agricultural trade, which estimated to reach over USD 76 billion in 2023.

Scope of the Report

By Type

• Tractors

• Harvesters

• Soil Preparation & Cultivation

• Irrigation & Crop Processing

• Agriculture Spraying Equipment

• Hay & Forage Machines

By Automation

• Automatic

• Semi-automatic

• Manual

By End Users

• Original Equipment Manufacturers (OEMs)

• Aftersales

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Mexico Agricultural Machinery Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing demand for agricultural products
         2. Government support for farm mechanization
         3. Expansion of protected agriculture
      2. Restraints
         1. Slow adoption by small farmers
         2. Limited access to financing
         3. Skilled labor shortage
      3. Opportunities
         1. Technological advancements
         2. Focus on rental models
         3. Increased focus on used machinery
      4. Challenges
         1. Import dependence
         2. After-sales service limitations
         3. Infrastructure limitations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Mexico Agricultural Machinery Market: Marketing Strategies
5. Mexico Agricultural Machinery Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Tractors
         2. Harvesters
         3. Soil Preparation and Cultivation
         4. Irrigation and crop processing
         5. Agriculture spraying equipment
         6. Hay and forage machines
         7. Others
      2. By Automation
         1. Automatic
         2. Semi-automatic
         3. Manual
      3. By End Users
         1. Original Equipment Manufacturers (OEMs)
         2. Aftersales
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Mexico Agricultural Machinery Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on Mexico Agricultural Machinery Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. John Deere
   2. CNH Industrial
   3. AGCO Corporation
   4. Kubota Corporation
   5. Mahindra & Mahindra
   6. CLAAS
   7. AGROASEMEX
   8. Grupo Gonher
   9. Trupper
   10. Metalúrgica Roset
   11. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Mexico Agricultural Machinery Segmentation

Figure 2       Mexico Agricultural Machinery Market Value Chain Analysis        

Figure 3       Company Market Share Analysis, 2023

Figure 4       Mexico Agricultural Machinery Market Size, By Value (USD Million), 2019–2030         

Figure 5       Mexico Agricultural Machinery Market Share, By Type, By Value, 2019–2030 

Figure 6       Mexico Agricultural Machinery Market Share, By Automation, By Value, 2019–2030 

Figure 7       Mexico Agricultural Machinery Market Share, By End Users, By Value, 2019–2030         

List of Tables

Table 1        Mexico Agricultural Machinery Market Size, By Value (USD Million), 2019–2030

Table 2        Mexico Agricultural Machinery Market Size, By Type, By Value, 2019–2030

Table 3        Mexico Agricultural Machinery Market Size, By Automation, By Value, 2019–2030

Table 4        Mexico Agricultural Machinery Market Size, By End Users, By Value, 2019–2030

Table 5        John Deere Company Overview

Table 6        John Deere Financial Overview

Table 7        CNH Industrial Company Overview

Table 8        CNH Industrial Financial Overview

Table 9        AGCO Corporation Company Overview

Table 10      AGCO Corporation Financial Overview

Table 11      Kubota Corporation Company Overview

Table 12      Kubota Corporation Financial Overview

Table 13      Mahindra & Mahindra Company Overview

Table 14      Mahindra & Mahindra Financial Overview

Table 15      CLAAS Company Overview

Table 16      CLAAS Financial Overview

Table 17      AGROASEMEX Company Overview

Table 18      AGROASEMEX Financial Overview

Table 19      Grupo Gonher Company Overview

Table 20      Grupo Gonher Financial Overview

Table 21      Trupper Company Overview

Table 22      Trupper Financial Overview

Table 23      Metalúrgica Roset Company Overview

Table 24      Metalúrgica Roset Financial Overview

Table 25      Other Prominent Players Company Overview

Table 26      Other Prominent Players Financial Overview