Agricultural Tractors: The "Map" of the Global Market
The year 2023 ends with a decline in tractor sales, but with an increase in revenue due to higher manufacturing costs. India remains the leader in terms of the number of units, while the United States and Europe record declines in sales, with a more substantial decrease observed in China. Climatic variables, as well as geopolitical factors, are increasingly crucial in different regions of the world.
The global market for agricultural tractors closes 2023 with a decline in terms of units but with growth in terms of value. The total number of tractors sold amounts to approximately 2.2 million units, marking an 8% decline compared to the previous year. However, the revenue rises to $57 billion, representing a 2% increase compared to the previous year. To the $57 billion related to tractors, as explained this afternoon during the FederUnacoma Assembly held at Palazzo Albergati in Zola Predosa (Bologna), $73 billion for other types of machinery (+2%) and $34 billion for sector components (+5%) are added. In total, the revenue for agricultural machinery stands at $164 billion, up 3% compared to 2022. This increase is primarily due to higher price lists, driven mainly by inflation and the increased cost of raw materials. Beyond the overall figure, individual markets show varying results, primarily due to the performance of harvests and agricultural incomes. At the end of the year, India confirmed a total of 915,000 tractors sold, in line with the record volumes reached in 2022, while China halted at around 380,000 units, showing a significant decline compared to the previous year (-28%). This decline highlights the cyclical nature of the local market, which is also significantly influenced by public support policies. The United States recorded a total of 250,000 tractors, an 8% decline compared to the previous year. This decrease is attributed to the contraction of agricultural incomes, partly due to reduced exports of commodities to the Chinese market and increased competition from other producing countries in international markets. Europe recorded a total of 158,000 tractors, a 5% decline compared to the previous year. This decrease is a consequence of insufficient agricultural profitability, partly due to unfavourable weather conditions that negatively impacted certain crops. Within the continental market, different results are recorded from country to country. France shows a countertrend with a 2% increase, amounting to 36,400 tractors registered, and Germany remains stable with 28,900 units, in line with the previous year. In contrast, the Italian market declined by 13%, amounting to 17,600 units, and the Spanish market saw an even steeper decline of 18%, totalling 7,700 units. Beyond the four major markets represented by India, China, the United States, and Europe, individual countries show varying trends: Turkey grows by 16%, reaching nearly 78,000 tractors, Canada halts at 28,000 (-10%), and Russia records 36,000 units sold, a figure in line with the registrations of the previous year. Sales in Japan remain essentially unchanged at 34,000 units. In recent years, the trend in Japan has shown a gradual market contraction due to the decreasing number of agricultural enterprises, offset by an increase in the power and technological features of the machinery. The forecasts for the near future, as explained during the Assembly, predict a potentially still high global demand, with the market increasingly exposed to climatic and geopolitical variables. The declines in cereal production in Ukraine and Russia tend to be offset by increases in Brazil, Australia, or India. This could result in a new "geography" for the machinery and technology market as well.
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