State and Forecasts of the Agricultural Machinery Market
Current Situation in the European Mechanization Sector
The European agricultural mechanization sector, as indicated by the CEMA Business Barometer, is currently in a negative state. In June 2024, the sentiment index in the sector fell to -56, one of the lowest levels in the last ten years, excluding the COVID-19 pandemic period in 2020. This index ranges from -100 to +100 and is based on a survey of 140 plant representatives from nine CEMA countries (Germany, Italy, France, the United Kingdom, Belgium, Spain, Austria, Denmark, the Netherlands).
Tractor and garden machinery manufacturers are particularly pessimistic, with sentiment indexes of -74 and -80, respectively. Meanwhile, livestock equipment manufacturers are somewhat less negative, with an index of -17.
Increase in Orders
Despite the overall negativity, there are also positive changes. Manufacturers note a slight increase in the number of orders, which may indicate reaching the bottom of the crisis and the beginning of recovery. However, 60% of plant representatives expect a decrease in income over the next six months, while only 10% hope for growth.
Global Market Forecasts for 2025
In 2025, a more significant growth in the agricultural machinery market is forecasted. The main factors contributing to this growth include:
- Implementation of new technologies: Automation and the use of advanced technologies in agriculture, such as precision farming, will increase efficiency and productivity, stimulating demand for new equipment.
- Economic conditions: Improved economic conditions and rising farmer incomes will promote investment in new equipment.
- Increased demand for food products: Population growth and increased demand for food products will contribute to the development of the agricultural sector, which in turn will increase the demand for agricultural machinery.
- Government support: Governments of many countries provide subsidies and preferential loans to farmers for purchasing modern equipment, which will also contribute to market growth (Grand View Research) (Mordor Intelligence).
Regional Forecasts
- North America: Stable market growth is expected due to the presence of developed mechanization systems and the introduction of new technologies in agriculture. Leading companies such as John Deere and AGCO are actively developing automated and autonomous machines, which will increase agricultural production efficiency.
- Europe: Moderate market growth is forecasted due to the introduction of innovative technologies and increased investment in research and development. The main markets will remain Germany, France, and Italy.
- Asia and Oceania: The fastest market growth is expected in this region, especially in countries like China and India. Population growth and government support for farmers will contribute to the active adoption of agricultural machinery. The development of electric tractors and precision farming will become an important factor.
Forecasts remain cautiously optimistic, and the sector is preparing for new challenges and opportunities in the near future. But you can always rely on Bas-Agro Group LLC - your reliable supplier and manufacturer of spare parts for agricultural machinery.
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