The agricultural equipment market - Italy

Since 2020, the global agricultural machinery and equipment market has demonstrated resilience and growth despite economic disruptions caused by the COVID-19 pandemic. Notably, the market has not experienced significant losses and has maintained an upward trajectory, with tractor machines, telehandlers, and heavy tractors seeing particularly high growth rates in 2021. Tax incentives in Italy, along with the Sabatini law and the Rural Development Program (RDP), have catalyzed this expansion. Factors driving this growth include increasing mechanization, government support, technological advancements, implementation of precision agriculture, and the rising demand for food due to population growth. Italy remains a significant player, being the third-largest market in Europe with an estimated value of €3.9 billion and second in production. In terms of trade, Italy is a net exporter of agricultural and forestry machinery, with imports growing by 60 percent and exports increasing by 32 percent from 2018 to 2022. The Russian-Ukrainian conflict is impacting the sector, disrupting trade flows and posing challenges for the future.

Trends in Agricultural Machinery Demand in Italy

The agricultural machinery and equipment sector in Italy has been showing substantial growth, reflecting a steady increase in the demand for such products. Tracing its origins back to the significant shift in agricultural practices in the late 19th century, the modern market has expanded extensively, now pivotal for boosting agricultural productivity. This market growth is fueled by the increasing need for food due to population rise and the pressure of decreasing arable land, inspiring farmers to maximize yield with the utilization of mechanized equipment. Even as the global economic downturn impacted many sectors in 2020 due to the Covid-19 pandemic, the agricultural industry in Italy remained resilient, underlined by a robust growth trend in succeeding years. The year 2021, in particular, experienced a surge in growth rates, especially notable in the tractor segment. Tax incentives and the Sabatini law have played essential roles in supporting this expansion, offering both opportunities and evolution within the sector. Globally, the market for agricultural equipment is anticipated to grow from around $165 billion in 2022 to over $300 billion by 2032, with a compound annual growth rate hovering about 6.4 percent.

Asia and North America lead the market, contributing to nearly two-thirds of the industry. Italy, being the third-largest market in Europe for these machines, with an estimated worth between 3 and 4 billion euros, plays a crucial role in shaping the European landscape of agricultural machinery. Italian production of agricultural machinery is substantial, ranking second in Europe, with Germany holding the top position. Italian exports reflect a strong manufacturing base, with France, Germany, and the United States being the top importers of Italian-made agricultural and forestry machinery. The increased focus on smart agriculture has sparked a wave of innovative advancements in agricultural equipment. Innovations aimed at enhancing tractor performance and integrating advanced systems for environmental interaction are becoming increasingly common. This includes satellite systems for precise navigation, advanced sensors for data collection, and soil mapping technologies to optimize farm operations. These improvements are streamlining agricultural processes, making them more sustainable and cost-effective, and could potentially lead to up to a 20 percent increase in productivity. In Italy, the demand for agricultural machinery bounced back in 2021, following a slight dip in 2020, as indicated by the number of registrations. The growth was specifically pronounced in the telehandler category, and the tractor segment witnessed a substantial rise as well.

Key Players in the Italian Agricultural Machinery Market

The Italian agricultural equipment industry is buoyed by a cohort of major players, each with its unique strengths and market influence. These companies form the backbone of the sector, providing a range of machinery that caters to the diverse needs of modern agriculture.

• CNH Industria is a titan in the world of agricultural machinery, having emerged from the merger of CNH Global and Fiat Industrial. The company has continually innovated to lead the market in the design, production, and sale of farm equipment. Known for its global reach and broad portfolio, CNH Industrial has cemented itself as a trusted brand among farmers across Italy and beyond.
• SAME Deutz-Fahr (SDF) is another prominent name with a strong international presence. This company has a rich history that originated in the heart of Italy and has since spread to become a global entity specializing in the manufacture of tractors, combine harvesters, and diesel engines. SDF's commitment to quality and its strategic focus on research and development have positioned it as a key player with a loyal client base.
• Argo Tractors represents the dynamism of the Italian agricultural machinery sector. Argo Tractors is synonymous with efficient and innovative tractor design, offering machinery that meets the ever-evolving challenges faced by the agricultural industry. The company has developed a reputation for building tractors that combine performance with user-friendly operation.
• Maschio Gaspardo, with its Gaspardo Brand, stands out for its dedication to the farming community, particularly for planting and tilling equipment. Established over five decades ago, this Italian multinational is now a leading figure in the agricultural implement market. Maschio Gaspardo's relentless pursuit of advancement and its emphasis on reliability and effectiveness resonate with farmers globally.
• Lastly, John Deere, albeit an American powerhouse, has a significant presence in Italy through its subsidiary John Deere Italiana S.r.l. As a revered name worldwide, John Deere brings international standards of excellence to the Italian market, offering an extensive lineup of agricultural machinery that is known for its durability and advanced technology.

Together, these players weave a strong fabric for Italy’s agricultural machinery industry, ensuring it remains at the forefront of innovation and continues to support the country’s agricultural productivity and sustainability.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 26/07/2023

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