South & Central America Compact Tractors Market Forecast to 2030 - Regional Analysis - by Capacity (Below 30 HP, 30 HP - 40 HP, and 40 HP - 60 HP), Drive Type (Two-Wheel Drive and Four-Wheel Drive), and End Use (Agriculture and Utility)

The South & Central America compact tractors market is expected to grow from US$ 374.45 million in 2022 to US$ 474.78 million by 2030. It is estimated to grow at a CAGR of 3.0% from 2022 to 2030.

Use of Compact Tractors in Various End-Use Applications Drive South & Central America Compact Tractors Market

Compact tractors' small size and operational efficiency are boosting their application in different end-use applications in construction, mining, vineyards, orchards, and landscaping. Compact tractors between 15 HP (horsepower) and 30 HP are suitable for hauling. However, with technological advancements, compact tractors of more than 30 HP range also efficiently perform small-scale hauling tasks. In addition, transportation of farming equipment and assets from farm to workshop is also convenient with compact tractors. The application of compact tractors for snow removal or dirt road maintenance is fueling the demand for compact tractors.

In mining operations, compact tractors are used to excavate and haul rubble or gravel. Moreover, compact tractors can be utilized to spray herbicides and pesticides on farming lands to save crops from locusts and pests. The small size of compact tractors is ideal for vineyards and orchards as it can be fitted into narrow spaces. Compact tractors can perform routine duties such as transporting feed and hay or cleaning stalls for livestock, making the farmers' work easier. Compact tractors are also used for residential commercial landscaping of gardens. Attaching box scrapers, hydraulic tillers, blades, or cultivators can make compact tractors more efficient for landscaping. The increasing use of compact tractors in various end-use applications drives the compact tractors market.

South & Central America Compact Tractors Market Overview

The South & Central America compact tractors market is further segmented into Brazil, Argentina, and the Rest of SAM. SAM plays an important role in the global supply chain of food and non-food agriculture products. According to the report published by the OECD and the Food and Agriculture Organization (FAO) in 2019, South America is projected to contribute 25% of global agriculture and fishery exports by 2030. Further, the region's population is expected to increase by more than 35% by 2050. Thus, to keep up with the growing demand, the region's agricultural production has to increase by ~80% in the same period. The agriculture industry of the region is witnessing increasing technological adoption to increase the productivity of small-scale farmers. Thus, various private and public players are focusing on the mechanization of the agriculture industry of the region. According to the Economic Commission for Latin America and the Caribbean (ECLAC), the agricultural productivity of small-scale food producers is projected to double by 2030. Compact tractors are becoming popular with small-scale farmers owing to their compact size and affordability. Thus, the growing trend of mechanization among the small-scale farmers of the region is anticipated to offer promising growth opportunities for the compact tractor market. Brazil and Argentina are major countries in the compact tractors market in South and Central America. The small size of compact tractors is ideal for vineyards and orchards as it can be fitted into narrow spaces. Compact tractors can perform routine duties such as transporting feed and hay or cleaning stalls for livestock, making the farmers' work easier. Compact tractors are also used for residential and commercial landscaping of gardens. The increasing demand for budget-friendly yet efficient tractors is fueling the compact tractors market growth in South and Central America.

South & Central America Compact Tractors Market Segmentation

The South & Central America compact tractors market is segmented into capacity, drive type, end use, and country.

Based on capacity, the South & Central America compact tractors market is segmented into below 30 HP, 30 HP - 40 HP, and 40 HP - 60 HP. The 40 HP - 60 HP segment held the largest share of the South & Central America compact tractors market in 2022.

Based on drive type, the South & Central America compact tractors market is bifurcated into two-wheel drive and four-wheel drive. The two-wheel drive segment held a larger share of the South & Central America compact tractors market in 2022.

Based on end use, the South & Central America compact tractors market is bifurcated into agriculture and utility. The agriculture segment held a larger share of the South & Central America compact tractors market in 2022.

Based on country, the South & Central America compact tractors market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America compact tractors market in 2022.

AGCO Corp, Argo Tractors SpA, CNH Industrial NV, Deere & Co, Iseki and Co Ltd, Kubota Corp, Mahindra & Mahindra Ltd, and Yanmar Holdings Co Ltd are some of the leading companies operating in the South & Central America compact tractors market.