The South America tractor market size reached around USD 10.41 Billion in 2025. The market is projected to grow at a CAGR of 5.40% between 2026 and 2035 to reach nearly USD 17.61 Billion by 2035. The market growth can be attributed to technological advancements in agricultural machinery and the introduction of sustainable tractor models. Moreover, rapid population growth has directly impacted the demand for food, thereby prompting farmers to adopt advanced ploughing and harvesting machines for maximising their yield.
Base Year
Historical Period
Forecast Period
With an ageing tractor fleet in countries like Brazil, the demand for tractors with improved fuel economy, efficiency, and productivity is increasing. Reportedly, over 50% of all agricultural tractors in Brazil were over 15 years old as of 2024. Key players are also capitalising on the ageing tractor fleet by developing locally sourced and cost-effective models with enhanced features like automation, GPS tracking, and fuel-efficient engines.
Supportive policies, including subsidies and low-interest loans, are driving tractor sales in South America. Countries like Brazil and Argentina offer financial incentives to encourage mechanisation, helping farmers adopt modern equipment. These initiatives are boosting agricultural productivity and ensuring long-term sustainability in the region’s farming sector, surging the demand for tractors.
The robustly growing agricultural sector in countries such as Brazil and Argentina is creating lucrative South America tractor market opportunities. Brazil ranks as the world’s second-largest grain producer and grows a wide range of crops on 92 million hectares of land. Hence, the increasing crop cultivation and the expansion of farming activities in the country are driving the need for advanced agricultural machinery, including tractors, to optimise productivity.
Compound Annual Growth Rate
5.4%
Value in USD Billion
2026-2035
*this image is indicative*
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South America Tractor Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
10.41 |
|
Market Size 2035 |
USD Billion |
17.61 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
5.40% |
|
CAGR 2026-2035 - Market by Country |
Colombia |
5.9% |
|
CAGR 2026-2035 - Market by Country |
Brazil |
5.7% |
|
CAGR 2026-2035 - Market by Propulsion |
Electric and Hybrid |
21.6% |
|
CAGR 2026-2035 - Market by Drive Type |
Four-Wheel Drive |
6.0% |
|
Market Share by Country 2025 |
Argentina |
9.8% |
The demand for agricultural tractors in Argentina is being driven by the robust growth of the agricultural sector in the country. Based on industry reports, agricultural activities are responsible for contributing a 7.2% share of the national GDP, which is higher than the regional average of 5.2%. Moreover, agricultural commodities account for nearly 58% share of overall exports and feed nearly 450 million people worldwide. Over 200,000 small-scale farmers grow crops on 14% of the total agricultural area. They produce 20% of the total agricultural commodities and account for the consumption of nearly 66% of all agricultural inputs. This is expected to sustain the future demand for heavy machinery to grow crops like cotton, sugarcane, soybean, wheat, and maize, among others. This is propelling the South America tractor market development.
Autonomous tractors are gaining traction in South America due to their ability to enhance efficiency, reduce labour dependency, and optimise farm operations. Equipped with AI, IoT, and GPS technology, these tractors enable precise seeding, fertilisation, and harvesting with minimal human intervention. Brazil and Argentina are leading in adoption, driven by large-scale commercial farming needs and growing investments in agri-tech innovations. Companies are launching autonomous solutions to improve productivity and sustainability, addressing labour shortages and high operational costs. This is leading to a favourable South America tractor market outlook. Additionally, favourable government initiatives supporting smart farming and digital agriculture are further accelerating the deployment of autonomous tractors across the region.
Mechanisation of agriculture; shift towards precision farming; introduction of sustainable tractors; and increasing demand for second-hand tractors are the major factors driving the South America tractor market growth.
Farmers are increasingly adopting tractors to boost productivity and efficiency. The shift from traditional methods to modern mechanised farming is driven by labour shortages and rising food demand. Governments are also supporting mechanisation through subsidies and financial assistance, promoting the use of tractors in small- and large-scale farming operations. This is facilitating the South America tractor market expansion.
Farmers in South America are investing in GPS-enabled tractors and smart equipment to improve yield, reduce input costs, and enhance sustainability. This trend is particularly strong in Argentina and Brazil, where large farms require advanced machinery for efficient resource management.
There is a rising demand for eco-friendly tractors as sustainability gains importance. Governments and manufacturers are focusing on electric and hybrid tractors to reduce carbon emissions. While adoption is still in the early stages, incentives and technological advancements are expected to increase the market size in the coming years.
The rising cost of new tractors has led to a thriving second-hand tractor market in South America. Small and medium-scale farmers prefer used tractors as a cost-effective alternative. Companies are also providing refurbished models with warranties, ensuring affordability without compromising on quality. This trend is expected to grow as farmers seek budget-friendly options.
Increasing investments in capacity expansion by key players
As per the South America tractor market analysis, Mahindra & Mahindra is expected to invest nearly USD 20 million in Brazil by 2029 to meet the rising demand for agricultural tractors in Mercosur countries. Moreover, it is expected to extend financial support schemes for small and medium-sized farm holding owners who deliver over 70% of Brazil’s agricultural output. With new investments in the production of tractor assembling facilities, the company is poised to attain significant growth in the coming years.
Shift towards sustainable tractors
Argentina’s agricultural sector is responsible for nearly 44.3% of the nation’s total greenhouse gas (GHG) emissions. This is substantially higher than other sectors, such as industrial processes (3.9%) and waste management (5%). This has prompted machinery manufacturers to introduce biomethane agricultural tractors in Argentina. This is one of the key South America tractor market trends. With the introduction of sustainable tractors, emissions from other agricultural activities like rice cultivation (1%), manure management (2.3%), and livestock rearing (97.7%) can be easily offset, thereby contributing to sustainable economic growth.
The EMR’s report titled “South America Tractor Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Engine Power
Breakup by Type
Breakup by Drive Type
Breakup by Propulsion
Breakup by Country
Based on drive type, the market is segmented into four-wheel drive and two-wheel drive. Over the forecast period of 2026-2035, the market for four-wheel drive is expected to grow at a CAGR of 6.0% as large-size farm-holding owners increase their demand for robust agricultural machinery and equipment.
Based on country, the market is segmented into Brazil, Colombia, and Argentina, among others. Argentina is projected to dominate the market, representing 9.8% of the overall market share. Over the forecast period of 2026-2035, the demand for agricultural tractors in Colombia and Brazil is expected to grow at a CAGR of 5.9% and 5.7%, respectively, aided by the increasing appeal for electric tractor vehicles and the expansion of the agricultural sector.
|
CAGR 2026-2035 - Market by |
Country |
|
Colombia |
5.9% |
|
Brazil |
5.7% |
|
Argentina |
XX% |
|
Others |
XX% |
As per the South America tractor market analysis, leading companies are expanding their product lines with advanced, fuel-efficient, and smart farming solutions. Companies focus on automation, precision agriculture, and sustainability to meet rising demand. They are also strengthening local manufacturing, dealership networks, and financing options to support farmers, driving overall market growth and mechanisation in the region.
AGCO Corp. was founded in 1990 and is headquartered in Georgia, United States. It is engaged in designing, manufacturing, and distributing smart agricultural solutions, including tractors, combine harvesters, seeding equipment, and grain storage systems.
AGRALE SA was founded in 1962 and is headquartered in Rio Grande do Sul, Brazil. It is a part of the Francisco Stedile Group and specialises in producing and servicing agricultural tractors and other types of heavy machinery.
ZETOR TRACTORS a.s. was founded in 1946 and is headquartered in Brno, Czech Republic. It specialises in producing auto parts like engines and powertrains for heavy agricultural machinery, including tractors.
CNH Industrial NV is a machinery manufacturing company that was founded in 2012 and is headquartered in Essex, United Kingdom. It is a publicly held company that also provides financial services.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the South America tractor market report are Deere and Company, CLAAS KGaA mbH, Yanmar Holdings Co., Ltd., SDF S.p.A (Deutz-Fahr), Mahindra & Mahindra Ltd., and among others.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 10.41 Billion.
The market is projected to grow at a CAGR of 5.40% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 17.61 Billion by 2035.
The different countries considered in the market report include Brazil, Colombia, and Argentina, among others.
The major market trends include the mechanisation of agriculture, the shift towards precision farming, the introduction of sustainable tractors, and the increasing demand for second-hand tractors.
The different types of tractors in the market are orchard tractors, and row-crop tractor, among others.
The different segments based on drive types of tractor include two-wheel drive and four-wheel drive.
Key players in the market are Deere and Company, AGCO Corp., CNH Industrial NV, CLAAS KGaA mbH, Yanmar Holdings Co., Ltd., SDF S.p.A (Deutz-Fahr), Mahindra & Mahindra Ltd., AGRALE SA, and ZETOR TRACTORS a.s., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Engine Power |
|
| Breakup by Type |
|
| Breakup by Drive Type |
|
| Breakup by Propulsion |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
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| Companies Covered |
|
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