Mexico Agriculture Tractor Market Overview, 2029

Mexico is predominantly an agricultural country and the economy is heavily dependent on the agriculture industry. The agriculture industry is divided into highly capitalized commercial sector catering to exports on the one hand, whereas small farmers producing for household consumption and domestic market on the other. Mexico Agricultural Tractors Market is experiencing enormous growth on the back of the growth in demand for food production. One of the key developments in this sector is the incorporation of modern technologies into tractor manufacturing, which includes precision agriculture tools like GPS guidance systems as well as sensors that support farmers optimize their crop yields. Governments must adopt effective and sustainable farming practices to ensure food security and safety. While the level of agricultural mechanization is low, the country is implementing the concept of precision agriculture to increase productivity. Precision farming is a management concept under which crops are grown according to the specifications of the soil. The focus on agricultural mechanization in developing countries will increase the tractor demand. The key players in the Mexico tractor market include John Deere, AGCO, CNH Industrial, TAFE, and Kubota. In February 2022, AGCO and AgRevolution showcased new solutions from Fendt International, Massey Ferguson, and Hesston by Massey Ferguson at the National Farm Machinery in Louisville, Kentucky. Mexico's agriculture tractor market witnessed the presence of established players in various segments. Vendors are improving their aftersales services, making loyal customers base to the existing brands. CNH Industrial, with its tractor brands Case IH, New Holland, and Steyr, has introduced the concept of autonomous technology in agriculture tractors in the country. The company has already incorporated technologies such as auto-steering and telematics in its agriculture tractors.

According to the research report "Mexico Agriculture Tractor Market Overview, 2029," published by Bonafide Research, the Mexico Agriculture Tractor market was valued more than USD 1.50 Billion in 2023. Leading this growth trajectory is the Mexican government, which is implementing tactical plans and programs to increase financing availability and optimize farming practices. It is anticipated that these coordinated efforts will have a cascade effect, fostering the expansion of the whole value chain within the industry. In the Mexico tractor market, the leading brands were Kubota, John Deere, Pauny, CNH Industrial, AGCO, and TAFE. These companies have used a variety of tactics to become more well-known. The idea of autonomous technology in agricultural tractors was first presented to the Mexican market by CNH Industrial, which is known for its tractor brands Case IH, New Holland, and Steyr. These companies have already equipped their agricultural tractors with telematics and auto-steering technologies. Additionally, during the forecast period, the industry's rivalry is anticipated to heat up due to a rise in M&As, technological advancements, and product and service extensions. In terms of agricultural and industrial production, farm mechanization in the Central region increased dramatically. The top companies dominate the majority of the business, resulting in a highly consolidated market for tractors in Mexico. In the industry, however, domestic and international brands are equally represented. The Mexican government is developing programs and projects aimed at enhancing credit availability and agricultural-related operations, both of which will support the expansion of the industry's value chain as a whole.

Based on the Engine Power, the market is divided into 30 HP, 30 HP - 100 HP, 100 HP - 200 HP, and Above 200 HP. The market share of Mexico tractors was higher in the 30 HP–100 HP categories. An important contributing cause to the consistent rise in the medium-power tractor market is the rise in the number of hobby and livestock farmers going out of business. Tractors with less than 30 horsepower frequently have features tailored to the needs and particular applications of small farms. Power take-off (PTO) systems for controlling different implements, hydraulic systems for raising and lowering attachments, and adjustable track widths for improved traction are a few examples of these features. These tractors are modest, but their versatility comes from the multitude of attachments and tools they can hold. They may be utilized with a variety of equipment, including backhoes, loaders, mowers, tillers, and seeders, making them adaptable for a wide range of tasks throughout the farming cycle.

Based on the Drive Type, the market is divided into 2WD; 4WD. Two-wheel-drive tractors are in high demand in the Mexican tractor industry due to their ease of use and versatility when carrying light loads and in open areas. Furthermore, Mexico is home to a large number of small and medium-sized farms, and many of them believe that 2WD tractors are sufficient for their type of farming and land area. Furthermore, the traction and pulling force are increased by four-wheel drive tractors' capacity to power all four wheels. These tractors are more versatile and are capable of doing a variety of farming duties, including ploughing, tiling, and maneuvering through challenging terrain. 4WD tractors are utilized in larger farms or heavy-duty equipment applications.

Based on the Level of Autonomy, the market is divided into Manual Tractor Vehicle, Autonomous Tractor Vehicle. The Mexican agricultural tractor market is seeing a rise in the importance of the Manual Tractor Vehicle (MTV) segment. Manual tractors may be preferred in some parts of Mexico due to infrastructure constraints or legal requirements. For instance, certain places might not have the internet or dependable energy infrastructure needed to enable automated tractor technologies. Under such circumstances, manual tractors continue to be a sensible and workable solution for satisfying agricultural demands while observing legal restrictions.



Based on the Application the market is divided into Harvesting, Seed Sowing, Spraying, Others. In Mexico, the market for agricultural tractors is beginning to focus more on the Harvesting segment. Mexico's agricultural industry is experiencing a manpower deficit. Advanced automation in harvesting machinery lessens the need for physical labour, particularly during busy harvest times. Optimizing crop quality and minimizing post-harvest losses are achieved through timely and efficient harvesting. With the use of yield monitoring systems and GPS guidance, modern harvesting tractors maximize productivity and assist a farmer in achieving the highest possible yield. Mexico’s average farm size is growing, which is creating a need for high-capacity harvesting machinery to efficiently manage greater landholdings.

Considered in this report:
• Geography: Mexico
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• Mexico Agriculture Tractor market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Engine Power:
• Below 30 HP
• 30 HP – 100 HP
• 100 HP – 200 HP
• Above 200 HP

By Drive Type:
• 2WD
• 4WD

By Level of Autonomy:
• Manual Tractor Vehicle
• Autonomous Tractor Behaviour


By Application:
• Harvesting
• Seed Sowing
• Spraying
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Agriculture Tractor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.