Italy’s Agricultural Machinery Market Rebounds in 2025: Key Questions Answered

16 February 2026, Rome: After several challenging years marked by declining sales and cautious farm investment, Italy’s agricultural machinery sector is showing renewed vitality in 2025. The market’s return to growth reflects a combination of policy-driven incentives, gradual improvement in farm economics, and a rebuilding of confidence among farmers willing to modernise their equipment fleets. This recovery, while still measured, signals an important turning point for one of Europe’s most specialised mechanisation markets and offers insights into how targeted support and technological adoption can help stabilise agricultural industries emerging from economic uncertainty.

What is happening in Italy’s agricultural machinery market?

After three consecutive years of contraction, Italy’s agricultural machinery sector has entered a phase of recovery in 2025. The rebound reflects renewed confidence among farmers, improved access to investment support, and the stabilising effect of public incentive programmes aimed at modernising farm operations. The turnaround signals that the market has begun to move beyond the uncertainty that followed the post-pandemic surge and subsequent slowdown.

How much did tractor sales grow in 2025?

Official data compiled by FederUnacoma using figures from Italy’s Ministry of Transport show that tractor registrations reached 17,573 units in 2025. This represents a year-on-year increase of 13.7 percent, marking a significant recovery from 2024, when registrations fell to a historic low of 15,450 units. The growth indicates that farmers are gradually resuming capital investments after a period of caution.

Why had the market declined in previous years?

The downturn was driven by a combination of economic and structural pressures. Rising production costs pushed up machinery prices, while farm profitability weakened, reducing farmers’ ability to invest in new equipment. Broader economic uncertainty also led many agricultural businesses to postpone mechanisation upgrades. Even though 2021 saw a temporary spike in demand, with registrations peaking at 24,387 units during the post-pandemic rebound, that surge was not sustained in subsequent years.

Did the recovery happen evenly throughout 2025?

The recovery was not uniform across the year. The first half of 2025 remained relatively weak compared with the previous year, reflecting lingering caution in farm spending. However, market momentum strengthened significantly in the second half, with the final quarter delivering particularly strong results that enabled the sector to end the year on a positive note. This late-year acceleration suggests that policy support and improved sentiment translated into actual purchasing decisions as the year progressed.

Which machinery segments performed the best?

Growth extended beyond conventional tractors, although performance varied widely by segment. Tractors equipped with loading platforms, commonly referred to as transporters, recorded the strongest increase, with registrations jumping by 45.7 percent to 771 units. Telehandlers also showed solid expansion, rising by 18.2 percent to 1,216 units, reflecting growing demand for versatile material-handling solutions in mixed farming systems.

The trailer segment experienced more modest growth, with 7,812 units registered, an increase of just over 4 percent. Combine harvesters remained under pressure, declining by 12 percent to 234 units, despite showing signs of recovery toward the end of the year after steep losses during the spring and summer months.

What role did government incentives play in the recovery?

Public policy has been central to reviving the market. A range of government-backed measures provided financial support and investment certainty for farmers. These included the Innovation Fund managed by ISMEA, the ISI INAIL programme promoting safer machinery, and fiscal mechanisms such as the 4.0 tax credit and emerging 5.0 incentives designed to encourage digitalisation, sustainability, and automation in agriculture. In addition, Rural Development Plans co-financed by the European Union and regional authorities created a long-term framework for farm modernisation. Together, these instruments helped offset financial constraints and encouraged machinery replacement and technological upgrades.

What challenges does the sector still face?

Despite the recovery, structural challenges remain. Manufacturers continue to grapple with elevated input costs, while many farms are still rebuilding profitability after years of margin pressure. Investment capacity has improved but has not fully returned to earlier levels. The market’s rebound is therefore seen as cautious and policy-supported rather than a fully self-sustaining expansion.

What is expected for 2026?

The outlook for 2026 will depend heavily on the continuation of incentive programmes. The refinancing of support measures announced in mid-December by Agriculture Minister Francesco Lollobrigida is expected to play a decisive role in consolidating the recovery. Continued funding could stimulate not only tractor demand but also growth in construction machinery, implements, and component manufacturing linked to agriculture.

Why is EIMA International important for the sector this year?

EIMA International, scheduled for November, is expected to be a key barometer of industry sentiment. The exhibition will provide a platform for manufacturers, dealers, and farmers to assess technological innovation, sustainability solutions, and digital agriculture tools at a time when the market is regaining momentum. Participation and order activity at the event will likely offer early signals about whether the recovery is strengthening or stabilising.

What does this recovery mean for the global agricultural machinery industry?

Italy is one of Europe’s most specialised agricultural mechanisation markets, particularly in high-value crops such as vineyards, orchards, and horticulture. A recovery in this segment has implications beyond national borders, supporting demand for specialised machinery, precision technologies, and component manufacturing across global supply chains. The Italian experience also highlights how targeted policy support can help stabilise mechanisation markets during periods of economic volatility.

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