Searching for your content…
In-Language News
Contact Us
888-776-0942
from 8 AM – 10 PM ET
News provided by
Dec 13, 2022, 12:00 ET
Share this article
DUBLIN, Dec. 13, 2022 /PRNewswire/ — The “Mexico Tractors Market – Industry Analysis & Forecast 2022-2028” report has been added to ResearchAndMarkets.com’s offering.
In 2021, the 50-100HP segment accounted for the largest share due to the increasing purchasing power of farmers due to better MSP and crop realization in Mexico.
Mexico holds a significant market share in the Latin America tractor market. It has over $130.3 million food consumers and is one of Latin America’s second-largest food industries. Despite its high population density, Mexico has more than half of its area under agricultural land, covering more than 107 million hectares. The country has witnessed a massive increase in farm mechanization, both in terms of agricultural and industrial productivity, over the past four decades, driven by the technological renaissance.
MARKET TRENDS
Mechanized feedlots typically characterize the agricultural scenario in Mexico to automatic irrigation systems and agricultural machinery. As the demand for food and associated resources from the world’s largest economy rises, there has been a tremendous rise in input resources such as farm machinery usage to improve productivity and efficiency.
The agriculture sector in the region is typically marked by a tremendous decline in the labor force, a consistent rise in productivity, and the consolidation of smaller farms into larger ones. Over the past three decades, there has been a 50% decline in the labor force engaged in the agriculture sector, while productivity increased by as much as 4.5% YOY because of farm mechanization. This indicates the maturity of farm machinery in the country and the rising growth in the Mexican agriculture tractors market.
The tractor fleet industry in the country is expected to witness the replacement demand as farmers are looking for more advanced agriculture tractors. Also, the country is seeing increasing demand for low-end hp tractors (less than 100 hp). This is mainly due to an increase in small family-owned farms.
Mexico’s Agriculture Incentives Support
Increasing mechanization, growing government aid, and increasing export are likely to boost the sale of tractors in the country. In 2020, the Federal Government introduced agricultural programs to support the agriculture industry (previously known as PROCAMPO, now named PROAGRO) worth $53.74 million for seeds, fertilizers, equipment, and other agriculture products.
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.
GEOLOGICAL MARKET BENEFIT
Mexico’s economy has witnessed a brighter spot throughout Latin America’s countless slow-growth countries. Due to its proximity to the U.S., it enjoys benefits when its northern neighbor performs well. Although the Mexican Peso (MXN) has not been performing well because of the strength of the US dollar, Mexican’s GDP has increased due to remittances. Furthermore, NAFTA, the North American Free Trade Agreement, circulates free trade between the US, Mexico, and Canada. This provides a small buffer from the economic challenges faced by a multitude of other Latin American countries.
KEY HIGHLIGHTS
VENDOR LANDSCAPE
Key Vendors
Other Prominent Vendors
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Premium Insights
8 Introduction
8.1 Overview
8.2 Value Chain Analysis
8.3 Growing Adoption of Precision Farming
8.4 Import & Export Analysis
8.5 Technological Advancements
8.6 Impact of Covid-19 on Mexico’s Agriculture Sector
9 Market Landscape
9.1 Market Overview
9.1.1 Investment & Regulatory Outlook in Mexico
9.1.2 Major Labor Shortages in the Agriculture Sector
9.2 Market Size & Forecast
10 Horsepower
10.1 Market Snapshot & Growth Engine
10.2 Market Overview
10.3 Less Than 50 Hp
10.4 50-100 Hp
10.5 101-150 Hp
10.6 151-250 Hp
10.7 Above 250 Hp
11 Drive Type
11.1 Market Snapshot & Growth Engine
11.2 Market Overview
11.3 2-Wheel-Drive
11.4 4-Wheel-Drive
12 Region
12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 North
12.4 Central
12.5 Gulf & South
13 Market Opportunities & Trends
13.1 Development of Smart and Autonomous Tractors
13.2 Increasing Potential for Electric Tractors
13.3 Usage of Alternative Fuel Based Tractors
14 Market Growth Enablers
14.1 Fiscal Support to Farmers Through Loans & Subsidies
14.2 Dropping Workforce Boosting Farm Mechanization
14.3 Growth in Agricultural Productivity & Exports
15 Market Restraints
15.1 Climate Change Adversely Impacting Agricultural Activities
15.2 Volatility in the Cost of Raw Materials
15.3 Rising Demand for Used & Rental Tractors
16 Five Forces Analysis
16.1.1 Threat of New Entrants
16.1.2 Bargaining Power of Suppliers
16.1.3 Bargaining Power of Buyers
16.1.4 Threat of Substitutes
16.1.5 Competitive Rivalry
17 Competitive Landscape
17.1 Competition Overview
17.1.1 Recent Developments by Top Brands
17.1.2 Marketing & Promotional Activities
17.1.3 Brand Loyalty
For more information about this report visit https://www.researchandmarkets.com/r/ss0dfk
Media Contact:
Research and Markets
Laura Wood, Senior Manager
[email protected]
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
SOURCE Research and Markets
More news releases in similar topics
Cision Distribution 888-776-0942
from 8 AM – 9 PM ET
Mexico Tractors Market Analysis Report 2022-2028: Rising Demand … – PR Newswire
