The agricultural equipment market - Italy

The global market for agricultural machinery and equipment is expanding rapidly because of increased demand for food due to population growth. The market is expected to reach a value of nearly $200 billion by 2026. In addition, this market is greatly affected by the decrease in arable land, a phenomenon that is a major source of concern for farmers who therefore aim to maximize their productivity, which is facilitated by agricultural equipment and machinery. Despite the fact that in 2020 the economy was characterized by a considerable downturn due to the spread of the Covid-19 pandemic, the same cannot be said with regard to the agricultural sector, which has instead been rediscovered as the driving organ of the Italian economy during such a period of crisis. Therefore, the agricultural machinery market has not suffered particularly large losses such as to limit the steady growth by which this market has been characterized in recent years. As of the2021, the agricultural machinery market has undergone a real explosion, presenting high growth rates particularly with regard to tractor machines, telehandlers and heavy tractors. Of particular relevance to fully understand the strong expansion of this market is the new system of tax incentives granted by the Italian state together with the Sabatini law, in line with the Rural Development Program (RDP), which is seen as a great opportunity for the advancement and development of the agricultural sector.