Market growth came back in 2017 for the agricultural machinery industry

France remains the first European country for the trading of agricultural machinery, with 18,1 billion euros

The French market for agricultural machinery increased in 2017 according to AXEMA’s annual report.

Within 30 years, three crises disrupted the agro equipment industry while impacting drastically the production levels: -24% in 1993-1994, -28% in 2009-2010 and –24% in 2016. Axema, the industrial labor union for agricultural machinery, highlights that the latest one was the result of a generalized decline in the farming industry sector due to the cereal crisis. A growth was recorded a year later within all the sectors and the production of agricultural machinery increased by 5.4 %. This growth is also translated by a significant increase in turnover: + 10.1 % in 2017, after three years of decline.

With 42.2 billion euros in total, France is the third producer of agricultural equipment in Europe. Furthermore, it remains first in terms of agricultural machinery trade. In addition, the agricultural equipment market in France (= production - exports + imports) reached 5.1 billion euros in 2017, a 1.1% increase compared to 2016.

Infographie Tracteur

A growth also felt a the international level

In 2017, world exchanges of agricultural equipment contributed to the dynamism of the sector. The imports market represents 55 billion euros, among which 54,1 % of it is Europe. The exports market reached 48 billion euros including 61,1 % from Europe: tractors and the materials for green spaces being the most exported products. Germany remains the first supplier of tractors with 22 % of market shares, followed by the United States (12 %) and Italy (10 %).

Infographie Export

The recovery of mature markets such as Europe and the United States added on the return to the growth of emerging countries pushed the world index for business environment upward. This index translates the amount of professionals who expect a business growth in the next 6 months. Between 2014 and 2016 the index was going downward, indicating a declining in sales at the world level. These figures show "the first signs of recovery for the market " underlines Axema.

Innovations and Automation: the trends of today and tomorrow

Several innovations and new technologies are designing the draw the agricultural industry of tomorrow. According to Axema, robotics will be a key element of sales growth of agroequipement: the market could pass from 131 billion dollars to 196 billion by 2035. The use of these new technologies will be divided in the following way:

  • Autonomous Tractors
  • Ground work
  • Dairy management
  • Protection of the cultures
  • Drones and equipment management
  • Animals managament
  • Work of fertilization, protection of the cultures and the forest

Discover the full report from Axema

Sources : Axema's 2017 market report