Global agricultural machinery market 2026 :- Global Farm Machinery Market Slows Down, but India and China Continue to Grow: FederUnacoma
Global agricultural machinery market 2026 :- While tractor sales are falling in major markets such as the US, Brazil and Europe, India and China are showing positive growth. Government support, rising mechanisation and incentives are helping these two countries maintain demand for agricultural machinery.
The global agricultural machinery market is facing a slowdown as farmers in several major economies reduce spending on new tractors and equipment. Rising production costs, inflation, limited access to credit and declining farm incomes are affecting machinery purchases. However, India and China are moving in the opposite direction, recording growth in tractor sales.
These trends were highlighted by FederUnacoma, the Italian association of agricultural machinery manufacturers, during a press conference ahead of EIMA International 2026 in Bologna, Italy.
The 47th edition of EIMA International, one of the world’s major exhibitions for agricultural and gardening machinery, is being held at the Bologna Exhibition Centre from November 10 to 14, 2026. The exhibition brings together manufacturers, technology companies, farmers and industry experts from across the world.
Tractor Sales Decline in Major Agricultural Markets
Presenting the global market outlook, FederUnacoma President Mariateresa Maschio explained that economic uncertainty is putting pressure on agricultural machinery demand in several countries.
The United States has reported a 13% decline in tractor sales between January and September 2026. The country has been experiencing a continuous fall in demand over the past four years. Annual tractor sales dropped from 318,000 units in 2021 to 196,000 units in 2025.
Canada also recorded a decline of more than 9%.
The situation is similar in Latin America. Brazil reported a 19% fall in tractor sales during the first seven months of 2026, while Argentina saw a 27% decline during the first six months.
European markets are also facing weak demand. Tractor sales during the first nine months of 2026 declined in several major countries:
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Germany: Down 6%
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France: Down 3.3%
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Spain: Down 4.6%
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Poland: Down 18.8%
The United Kingdom was an exception, recording 17.4% growth in tractor sales. This increase helped the country recover some of the losses experienced during 2024 and 2025.
Turkey faced an even sharper decline, with tractor sales falling by 46.2% during the first eight months of 2026. According to Maschio, higher production costs, reduced purchasing power and difficulties in accessing credit are among the main reasons behind the decline.
India and China Show Positive Growth
While several established markets are struggling, India and China are providing a positive outlook for the global agricultural machinery industry.
According to figures presented by FederUnacoma, China recorded a 5.5% increase in tractor sales in June, reaching 178,000 units. India reported 15% growth in September, with nearly 900,000 tractors registered since the beginning of 2026.
Government initiatives, financial support and programmes promoting agricultural mechanisation are helping both countries maintain demand.
India’s growing focus on farm mechanisation is particularly important for improving farm productivity, reducing dependence on manual labour and encouraging the use of modern agricultural equipment.
The growth in these two major agricultural economies also highlights the increasing importance of emerging markets for global machinery manufacturers.
Demand for Agricultural Technology Expected to Increase
Despite the present slowdown, FederUnacoma believes the long-term future of agricultural machinery remains promising.
Modern machinery is becoming increasingly important for improving farm productivity, making better use of resources and supporting sustainable agriculture.
The demand is also expanding beyond traditional farming. Machinery is now required for activities such as land development, land management, bioenergy production and the maintenance of parks and green spaces.
According to estimates by research firm Export Planning, global demand and international trade in agricultural machinery are expected to grow by around 4.5% annually between 2026 and 2029.
This growth is likely to receive additional support from increasing demand for equipment used in allied agricultural and land-management activities.
FederUnacoma Calls for Stronger Government Support
Global agricultural machinery market 2026 :- Addressing the challenges facing the industry, Mariateresa Maschio highlighted the need for government policies that encourage farmers and agricultural businesses to invest in modern machinery and technologies.
She said that rising geopolitical tensions and protectionist policies are creating additional uncertainty for the global agricultural economy.
Maschio stressed that governments should introduce measures to improve investment opportunities for agricultural businesses and make modern technologies more accessible.
She also called for stronger international cooperation and dialogue between countries.
According to her, agriculture plays a major role in economic development, food security and social stability. Supporting agricultural investment and technological progress is therefore essential for building a stronger and more sustainable global agricultural sector.
What This Means for India’s Agricultural Machinery Industry
Global agricultural machinery market 2026 :- India’s positive tractor sales figures offer encouraging signs for domestic manufacturers and international agricultural machinery companies.
With increasing interest in mechanisation, precision farming and modern agricultural equipment, India has the potential to become an increasingly important market for the global farm machinery industry.
However, making advanced machinery affordable and accessible to small and marginal farmers will remain an important challenge.
The latest global outlook suggests that although economic pressures are slowing machinery sales in many developed markets, countries such as India and China could play a major role in supporting the next phase of growth in agricultural mechanisation.
Source- AgroSpecturm
