The French market for agricultural machinery grew in 2017 according to AXEMA’s annual report.
In the space of 30 years, three crises disrupted the agro-equipment industry, with a drastic effect on the production levels: -24% in 1993-1994, -28% in 2009-2010 and –24% in 2016. Axema, the French association for agricultural machinery, points out that the latest of these was the result of an overall decline in the farming industry sector due to the cereal crisis. A year later, growth returned to all the sectors and the production of agricultural machinery increased by 5.4%. This growth is also observed in a significant increase in industry sales: + 10.1 % in 2017, following three years of decline.
Standing at 42.2 billion euros in total, France is the third largest producer of agricultural equipment in Europe. However, it continues to occupy the top position first in terms of trade in agricultural machinery. Furthermore, the agricultural equipment market in France (= production - exports + imports) was worth 5.1 billion euros in 2017, a 1.1% increase compared to 2016.
Growth also observed at international level
In 2017, global trade in agricultural equipment contributed to the dynamism of the sector. The import market represents 55 billion euros, including 54.1% into Europe. The export market reached 48 billion euros including 61.1% from Europe: tractors and landscaping equipment being the most exported products. Germany remains the leading supplier of tractors with 22% of market share, followed by the United States (12%) and Italy (10%).
The recovery of mature markets such as Europe and the United States compounded by the return to growth of emerging markets, fuelled the world business climate index which translates the proportion of industry stakeholders who expect to see their business grow in the next 6 months. Between 2014 and 2016 the index had declined, forecasting lower worldwide sales. These new figures indicate "the first signs of market recovery" emphasises Axema.
Innovation and Automation: the trends of today and tomorrow
Several innovations and new technologies are set to shape the agricultural machinery industry of tomorrow. According to Axema, robotics will be a key element in the growth of sales of agro-equipment: the market could rise from 131 billion to 196 billion dollars between now and 2035. These new technologies should be used in the following areas:
- Autonomous tractors
- Tilling, soil preparation
- Dairy management
- Crop protection
- Drones and equipment control
- Livestock management
- Fertilization, crop protection and forestry work
Source: Axema's 2017 market report