Agricultural machinery represents one of the sectors in which Made in Italy expresses a particularly effective combination of engineering expertise, customization capabilities, and production specialization. Tractors, operating machines, equipment, components, irrigation systems, and digital solutions constitute a complex industrial ecosystem, composed of large groups as well as numerous highly specialized SMEs.
The most recent data confirms the strategic importance of international markets.
These data show how internationalization is not an ancillary option for Italian manufacturers, but a structural component of their business model.
The main transformation characterizing the sector in 2026 concerns the geography of demand.
In recent years, many mature markets have experienced a slowdown driven by declining agricultural profitability, rising financing costs, geopolitical tensions, and new trade policies. In 2025, tractor sales recorded significant declines in the United States, Germany, France, and the United Kingdom. At the same time, other markets are showing much higher growth rates.
This evolution does not mean that global demand for agricultural machinery is structurally declining. On the contrary, the needs related to increased food production, labor shortages, natural resource management, and the need to improve agricultural yields continue to support mechanization.
FederUnacoma estimates that international trade in agricultural machinery may return to growth during the period 2026-2029 at an average annual rate of 1.9%, reaching about 92.5 billion euros at the end of the period.
For Italian companies, it therefore becomes essential to move beyond a strategy focused exclusively on Western Europe and North America and to analyze the new centers of global demand with greater attention.
| Market | Key fact | 2026-2029 Outlook |
| India | Approximately 1.1 million tractors sold in 2025 (+20%) | already the largest market in the world, strong competitive pressure on prices |
| Sub-Saharan Africa | mechanization still very heterogeneous | +4.8% annually, the highest estimate among the regions mentioned |
| Asia (excluding India) | fast-growing markets | +3.81 TP3T per year |
| Latin America | Brazil, Argentina, Chile: large agricultural areas | +2.91 TP3T per year |
| Turkey | Italian-Turkish trade approaching 500 million euros in 2025 | nearby market, solid agricultural and manufacturing base |
| United States | estimated loss for the Italian industry of over 230 million euros in 2025 due to new tariffs | mature market, but more complex |
| Western Europe | France, Germany, Spain, United Kingdom: essential markets for advanced technologies | mature market, high competition |
Among the markets that deserve the most attention, India occupies a particular position. In 2025 the country reached about 1.1 million tractors sold, an all-time high, with growth exceeding 20% compared to the previous year. The first four months of 2026 further confirmed the trend: out of approximately 512 thousand tractors sold overall in the main monitored markets, about 375 thousand were absorbed by India.
However, interpreting these numbers exclusively as a great commercial opportunity would be reductive. The Indian market features a strong local industry and significant competitive pressure on prices. For Italian manufacturers, the most interesting opportunities therefore tend to concentrate on specialized technologies, high-value-added equipment, and applications capable of improving productivity, precision, and efficiency.
Machinery for specialty crops, soil tillage, irrigation, harvesting, viticulture, horticulture, post-harvest, and precision agriculture can find significant opportunities if supported by an adequate commercial strategy.
Furthermore, in a market the size of India, it is not enough to identify the country as a target. It is necessary to analyze the federal states, the predominant crops, the average size of farms, the level of mechanization, and the organization of distribution. In other words, geographical segmentation becomes as important as product segmentation.
The African continent also represents one of the areas with the greatest potential in the medium to long term.
In many African countries, demographic growth and the need to increase food production are making agricultural modernization an economic and political priority. However, the level of mechanization remains extremely heterogeneous: alongside already relatively structured agricultural systems, there are vast areas where activities continue to be characterized by low technological intensity.
In 2026, FederUnacoma strengthened its activities for the promotion of Italian technology in markets such as Morocco, Kenya and Ethiopia, specifically emphasizing the need to introduce technologies capable of increasing agricultural productivity.
The opportunity for Italian manufacturers does not necessarily consist in exporting the same machinery used in European markets. In many African contexts, robustness, simplicity of maintenance, availability of spare parts, adaptability to climatic conditions, and the economic sustainability of the investment are decisive.
This aspect highlights one of the fundamental principles of internationalization in the agricultural machinery sector: The technically most advanced product is not always the most suitable product for the market. The ability to calibrate technology, price, and level of complexity against the real needs of users often represents the decisive factor for success.
Latin America also presents interesting prospects. Brazil, Argentina, Chile, and other markets in the region have large agricultural areas, important agri-food supply chains, and significant demand for technologies to improve efficiency and productivity.
The forecasts cited by FederUnacoma indicate an annual growth in agricultural machinery trade for the Latin American region of nearly 3% for the 2026-2029 period. However, competition is very intense and includes both large international manufacturers and local producers. For Italian companies, it is therefore particularly important to identify niches where their skills can generate a real competitive advantage.
Instead, Turkey represents a geographically closer market characterized by a significant agricultural and manufacturing base. In 2025, Italian-Turkish trade in the agricultural machinery sector nearly reached 500 million euros, with Italian exports amounting to around 230 million. Italy has confirmed its position as one of the main suppliers to the Turkish market. Even in this case, however, price, local production, and macroeconomic conditions make a careful evaluation of positioning necessary.
The growth of emerging markets does not mean that Europe and the United States have lost relevance. France, Germany, Spain, the United Kingdom, and North America remain key markets for Italian agricultural machinery, especially for the most advanced technologies. However, these are mature areas where competition is particularly intense and demand depends heavily on farm profitability, available incentives, and credit conditions.
The United States represents the most evident example of the change that has occurred compared to what was recounted in our previous in-depth analysis on’ agricultural machinery export. In 2023 and 2024, they represented the primary destination market for Italian agricultural technologies; in 2025, however, the new pricing policies have contributed to a loss for the Italian industry estimated by FederUnacoma at over 230 million euros.
This scenario shows how important it is to geographically diversify the portfolio of markets. Relying too heavily on one or two countries exposes the company to regulatory, tariff, or geopolitical changes that can rapidly alter competitive conditions.
The second major transformation of the sector concerns technology. The future of agricultural mechanization no longer simply coincides with more powerful or productive machines. Value is progressively shifting toward the ability to collect data, automate operations, and use water, fertilizers, plant protection products, and energy more efficiently.
Among the technologies that are transforming tractors and equipment into true technological platforms:
In specialized crops, this evolution is particularly evident. In 2026, FederUnacoma presented applications that include autonomous robots, GPS and LiDAR systems, agricultural drones, soil analysis sensors, and machines capable of performing targeted treatments.
The goal is twofold: to increase productivity and reduce the inputs used. A machine capable of applying a treatment only where necessary can reduce costs and environmental impact; similarly, autonomous or semi-autonomous systems can help address the growing difficulty in finding skilled agricultural labor.
For the Italian industry, this trend represents a great opportunity. In fact, national specialization in machinery for vineyards, orchards, horticulture, and high-added-value crops makes it possible to compete not necessarily through large volumes, but through the quality of the technological solution.
In the capital goods sector, the commercial process does not end with the delivery of the machine.
A tractor, harvester or piece of agricultural equipment represents a productive investment, and potential machine downtime can result in immediate financial losses for the user. The availability of spare parts and technical assistance therefore becomes an integral part of the commercial proposal. Before entering a new market, it is necessary to ask who will install or commission the machine, who will train the user, where the main spare parts will be available, and what response times can be guaranteed. This element also directly influences the choice of distributor. An importer equipped exclusively with commercial capabilities might prove less effective than a partner with a technical network, trained personnel, and local spare parts warehouses.
For Italian companies, therefore, partner selection should not be based solely on the number of clients in its database. It is necessary to verify:
Agricultural machinery presents a regulatory complexity higher than that of many other industrial goods because it can simultaneously involve requirements related to machine safety, road circulation, emissions, engines, electrical components, and telecommunication systems.
Within the European Union, the EU Regulation No. 167/2013 it regulates the type-approval and market surveillance of agricultural and forestry vehicles, including category T and C tractors, category R trailers, and certain towed interchangeable equipment.
At the same time, companies must prepare for the new framework introduced by EU Regulation 2023/1230 on machinery, scheduled to replace the previous Machinery Directive during 2027.
When exporting outside the European Union, however, CE marking should not be automatically interpreted as a universal passport. Each market may provide for its own homologation procedures, technical standards, emission limits, documentary requirements, markings, importer rules, and provisions relating to manuals and the language of the documentation.
Therefore, prior to commercialization, it is advisable to verify:
The new geography of the sector is making the approach based on the simple search for a generic distributor less and less effective.
An internationalization project should start from understanding where there is actually a compatible demand for the machine produced by the company. This means analyzing not only the overall market value, but also the predominant crops, farm sizes, level of mechanization, distribution structure, existing competitors, and investment capacity of end users.
Once the most interesting markets have been identified, it is necessary to build a map of local operators and distinguish between importers, dealers, specialized distributors, cooperatives, large farms, contractors, and institutional operators.
The next phase concerns the definition of the entry model. In some countries, an exclusive distributor may represent the most effective solution; in others, it may be preferable to work with multiple regional dealers. In the most strategic and mature markets, however, it may become appropriate to evaluate a local commercial structure, dedicated staff, or a direct corporate presence.
Trade fairs also continue to play an important role. The same EIMA International 2026, scheduled to take place in Bologna from November 10 to 14, represents a prime platform for meeting operators from major international markets and observing the technological evolution of the sector. However, trade fair participation yields results only when it is integrated into a structured commercial process, involving scouting activities prior to the event and systematic follow-ups afterwards.
The global agricultural machinery market is undergoing a phase of profound transformation. The slowdown in some traditional markets coexists with expanding demand in India, Asia, Africa, and Latin America, while digitalization, robotics, and artificial intelligence are redefining the very characteristics of the technologies demanded by farmers.
For Italian businesses, therefore, the opportunities remain significant, but they require a more selective approach than in the past. Identifying the correct market, understanding the specific characteristics of local agricultural supply chains, defining product positioning, verifying regulatory compliance, and building an adequate distribution and support network are essential steps to transform market potential into concrete commercial results.
Along this path, Octagona supports Italian companies through:
The markets with the fastest growth are India, Sub-Saharan Africa, Asia and Latin America. FederUnacoma forecasts an annual growth of +4.8% for Sub-Saharan Africa, +3.8% for Asia and +2.9% for Latin America in 2026-2029. Western Europe and North America remain strategic for advanced technologies, but they are mature markets and very competitive.
India is the world’s largest market in terms of number of tractors: in 2025 it sold approximately 1.1 million, with growth of over 20%. However, there is a strong local industry and pressure on prices. For Italian companies, the main opportunities relate to specialized crops, irrigation, harvesting, viticulture, post-harvest, and precision agriculture, with segmentation by federal state.
The new tariff policies contributed in 2025 to a loss for the Italian industry estimated by FederUnacoma at over 230 million euros. In 2023 and 2024 the United States was the first destination market for Italian agricultural technologies. For this reason, companies should diversify their markets and avoid depending on one or two countries.
Precision agriculture, sensors and GPS, automatic guidance, telemetry and ISOBUS connectivity, computer vision, robotics and artificial intelligence are growing. The value shifts towards data collection, automation and efficient use of water, fertilizers, plant protection products and energy. Italy can compete with quality solutions for vineyards, orchards and horticulture, rather than with large volumes.
No, the CE marking is not a universal passport outside the European Union. Each country can require its own standards, homologations, emission limits, tests, registrations, rules for the importer, and documentation in the local language. Before selling, the customs classification, applicable standards, required tests, registration procedures, and responsibilities of the local importer must be verified.
The distributor should be chosen based on technical as well as commercial capabilities, because they must guarantee installation, training, spare parts and support: a downtime of a machine causes immediate losses for the user. The geographical coverage, product portfolio, conflicts with competing brands, technical expertise, financial strength and ability to invest in brand development should all be verified.
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