Italy Agriculture Equipment Market Outlook to 2027

Italy boasts of a diverse agricultural landscape, ranging from small family-owned farms to large-scale commercial enterprises

Italy boasts of a diverse agricultural landscape, ranging from small family-owned farms to large-scale commercial enterprises. This diversity influences the demand for various types of agricultural machinery and equipment. Like many other developed countries, Italy has experienced enough mechanization and modernization in its agriculture sector. Farmers increasingly rely on advanced machinery and equipment to improve efficiency, productivity, and output.

Italy has a strong manufacturing base for agricultural machinery and equipment. Companies including CNH Industrial (which includes brands like New Holland Agriculture and Case IH), SAME Deutz-Fahr, and Landini are prominent players in the market, both domestically and internationally. There is a growing emphasis on precision agriculture techniques in Italy. Farmers are adopting technologies like GPS-guided tractors, drones, and sensor-based systems to optimize resource use, monitor crop health, and enhance overall farm management practices. Government policies and support programs influence people to adopt agricultural machinery and equipment. Subsidies, incentives for modernization, and regulatory standards related to emissions and safety impact the market dynamics.

The agricultural equipment market in Italy is a consolidated market with the leading 4 players contributing to ~60% of the overall market revenue. The market players consist of established domestic manufacturers & leading global players. The companies selling tractors and combine harvesters in Italy are regulated by the FederUnacoma i.e. the Italian Agricultural Machinery Manufacturers Federation.

Italy Agricultural Equipment Market Analysis

The initial stages of Italy's agriculture machinery market were marked by the adoption of basic mechanized tools such as plows, harrows, and threshers.

Italy experienced the impact of the Green Revolution. During this period, people adopted advanced machinery to increase crop yields. More sophisticated machinery contributed to enhanced productivity.

Italy's diverse agricultural sector includes a wide range of crops, fruits, and vegetables, which creates demand for specialized equipment. Manufacturers catering to these specific needs can find growth opportunities in niche markets.

Precision agriculture technologies, GPS-guided machinery, remote sensing & automation have improved farm productivity, leading to increased demand for modern agricultural equipment.

Italian agricultural equipment manufacturers have a strong presence in international markets, with their reputation for producing high-quality machinery. Export opportunities provide a significant boost to the industry's growth.

Key Trends by Market Segment

Tractor Market by Power: In 2022, Italy Agriculture Equipment market is segmented by tractor market by power, with 4 wheelers contributing at ~50% of the overall segment’s contribution. Italy has diverse terrain, including hilly and mountainous regions, where four-wheeler tractors offer better stability and maneuverability compared to other types of tractors which further drives the demand of the market.

Tractor Market Power by Type: In 2022, tractor market is segmented into 2 wheelers & 4 wheelers wherein 4 wheelers contribute ~99% of the overall share. Italian farms vary in size, and smaller four-wheeler tractors may be more practical and cost-effective for many farmers, especially those operating smaller plots of land. Government regulations and subsidies also influence the choice of agricultural equipment. Due to the presence of incentives or regulations favoring the use of certain types of tractors, it contributes to the dominance of four-wheeler tractors in the market.

Tractor Market by Region: In 2022, the regions are segmented into North, South, East, West & Central regions. Central region dominates the segment with ~30% of contribution in the market. The Central region of Italy is known for its agricultural production, a contributing factor to the high demand for tractors in the region. The country is a major cultivator and exporter of rice. Moreover, the Central region of Italy is known for its olive oil production, which is made from the olive trees grown in the region.

Competitive Landscape

Major Players in Italy Agricultural Equipment Market

CNH, SDF, AGCO and John Deere dominated the market with approximately 62.5% share in the Italy Four Wheeled tractors market during 2022. The Two Wheeled Tractor sector was captured by CNH and AGCO with almost 98% market share.

In the combine harvester market, CNH, AGCO, Class and John Deere occupied a total of approximately 87% market share from sales volume.

Four wheeled tractors remain the highest selling agriculture equipment in Italy, both in terms of sales volume and revenue generated, with tractor sales accounting for 98.3% of total sales in the market.

Antonio Carraro is the oldest major tractor manufacturer in Italy, having been established in 1910 in Campodarsego.

Class, John Deere, and Kubota are international manufacturers. Their products are highly popular in Italy due to their quality and technological advancements.

Recent Developments

June 2023: AgriVerde Srl announced their expansion of their distribution area in Italy for the renowned agricultural brand Massey Ferguson. They have also added the regions of Rovigo and Padova to their portfolio to add to the existing presence in Verona.

Sept 2022: Representatives of Italian Trade and Investment Agency and 11 representatives of Italian machinery manufacturers hosted Pennsylvania farmers and equipment dealers at a luncheon at the Farm and Home Center as they attempted to make connections for a successful business model. The group went on a week-long tour, while stopping in Florida, Georgia, Pennsylvania and New York, to promote their products and excite U.S. dealers to offer Italian lines.

January 2021: 41 Italian Agricultural Equipment manufacturers were present at World Ag Expo Online 2021. These 41 companies exhibited a wide range of products from parts and components to highly specialized harvesting equipment.

Future Outlook

The market will grow at a CAGR of 13.3% during 2022-2027 due to increase of mechanized farming & supportive government policies.

Mechanized farming allows higher levels of efficiency and precision in various agricultural tasks, leading to increased productivity. Modern machinery, like advanced tractors, harvesters, and planting equipment, can perform tasks more quickly and accurately than traditional manual methods.

Mechanization also enables precision agriculture techniques like GPS-guided machinery and sensors, to optimize the use of resources such as water, fertilizers, and pesticides. This results in improved crop yields and reduced waste, contributing to sustainable farming practices.

The Italian government can promote initiatives that encourage the reuse and recycling of farming machinery like supporting programs for the refurbishment and resale of used machinery and the development of sustainable disposal methods for machinery that has reached the end of its life cycle.

Italy's agricultural equipment market will also be influenced by broader economic conditions and trade dynamics. Factors such as exchange rates, global commodity prices, and trade agreements can impact the cost of equipment and the competitiveness of Italian manufacturers in both domestic and international markets.