DUBLIN--(BUSINESS WIRE)--The "Brazil Agricultural Equipment Market Outlook to 2023 - By Product Type (Tractors, Combine Harvesters, Tillage Equipment, Precision Farming Equipments, Planters & Seeders and Others), By Domestic Production & Imports and By Region (South, North, Midwest and Mideast)" report has been added to ResearchAndMarkets.com's offering.
Brazil Agricultural Equipment Market plays an important role in the overall economy of Brazil by acting as a growth catalyst in GDP contribution. After going through a recession during 2014-2016, the market is currently in a recovery stage with a positive growth rate witnessed during 2017-2018. Domestic demand is principally being met through local manufacturing with almost all major international OEMs having plants within the country.
Major operations in the market are accomplished by three types of entities, that of domestic manufacturers, importers and distributors/dealers. Business strategies such as new product launches, better after sales care & increasing use of precision farming technology have been adopted by major players to expand market presence in the country. The CAGR recorded for the review period was close to -5% primarily due to intense recession & drought.
The market has been stimulated by increased government incentives supporting farm mechanization for small and rural producers, growth of precision farming, expansion of planted area due to the growing soybean demand and extensive marketing initiatives carried out by all players.
The tractor market is further split on the basis of horse power for 2018 volume sales. The report also covers snapshots on aftermarket services extended in Brazil. Competitive landscape of major players including John Deere, Massey Ferguson, Valtra, Case IH, Agrale, Stara, Kuhn and Semeato have been compiled including overview, management, business strategies, distribution network, manufacturing, best products, recent products, financing and after sales care. The report also covers future industry analysis by sales volume, future market segmentation, growth opportunities, customer profiling (decision making parameters & pain points), price range, government regulations and analyst recommendations.
The report is useful for existing agricultural equipment companies, potential entrants, investors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
Brazil's agricultural economy consists of both large scale commercial farmers & cooperatives and subsistence based family farmers, making it a dual agricultural country. The country is self sufficient in terms of agricultural produce and in the recent decade, it has transformed itself from a net importer to a leading net global exporter of agricultural produce. The southern half of the country is subjected to higher rainfall, increased soil fertility and advanced use of technology making it a highly productive region especially for grains and oilseeds.
The country is currently in its recovery stage owing to recent decline in sales due to major recession and drought, which had limited the growth in terms of productivity. Brazil is expected to be the leading food provider for the growing world population and would increase its arable land by 49 million hectares in the coming decade. Brazil's major produce include sugarcane, soybeans, beef, poultry, coffee & orange juice.
By Product Type: Tractors account for the highest sales share in terms of sales volume followed by tillage equipment in 2018. Precision farming tools account for third highest contribution followed by combine harvesters. The remaining share is taken by planters & seeders, sprayers and other equipments such as balers and rakes. Tractors account for a largest sales volume as they are used in almost all farming applications. Majority of tractors sold in 2018 belong in the low power level category i.e. below 130 HP contributing close to half of the sales share. This is because majority of farmers in the country are family farmers with small farm sizes. The high power tractors are mostly used by large crop producing corporation in the cerrado region of the country.
By Place of Production: Brazil domestically manufactures close to 90% of its machinery as there is a large presence of global players such as John Deere and Massey Ferguson with their own manufacturing plants within the country. The high import duties on agriculture equipment also hinder imports. The few imported products are those that cannot be manufactured locally due to technological constraints.
By Region: The southern region has the highest market share in terms of sales volume, Midwest followed closely by the Mideast. The southern regions, especially the cerrado region has ideal conditions for agricultural production and the highest level of mechanization, explaining the high market share in the south.
Competition Scenario: The overall competition stage of the market has been concentrated wherein the landscape is extensively dominated top 5 players accounting for 90% tractor and combine harvester sales in 2018. Although there are over 50 players, both global and domestic in the market, John Deere, ACGO and CNH account for the vast majority of sales.
There is a preference for global players due to the higher quality and better after sales service associated with these entities. The two main domestic manufacturers are Agrale and Stara. The major importers & distributors involved in the market are Kesoja, Mahindra Group, Myron L Company, Innovator Sensor Technology, Nova Lynx Corporation, BrazAgro and Durham Geo Enterprises.
Competition Parameters: Major competing parameters for the entities include extensiveness of distribution and dealership network, price of the products offered, after sales services offered, product portfolio, years of establishment, quality of product, marketing & promotions and digitalization brought in the equipments. Penetration of precision farming in the equipments has been a major parameter to drive the competition in the market.
Future Analysis and Projections: The market is projected to register a CAGR of close to 12% during 2018-2023 in terms of sales volume of agricultural equipments in Brazil. The double digit growth is expected to be driven due to a variety of factors including population growth, growing energy demand, multifunctional machinery, consumer pattern changes and rising demand & prices of agriculture produce Precision farming equipment is projected to witness the highest growth due to the increased efficiency and productivity it offers to the farmer. The main catchment areas include the south and central west regions, especially the cerrado region of Brazil.
- Art's Manufacturing and Supply, Inc. (AMS Inc.)
- Case IH
- Durham Geo Enterprises
- Innovative Sensor Technology (IST)
- John Deere
- MacDon Brazil
- Massey Ferguson
- Myron L Company
- New Holland
- NovaLynx Corporation
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