Emerging Markets for Agricultural Machinery in Southeast Asia and Africa

Europe and North America will remain key markets, while demand for agricultural machinery grows in Indonesia, Vietnam, the Philippines, Thailand, and Africa, driven by population growth.

Bologna, Italy - The agricultural machinery sector is set for significant growth, with Europe and North America maintaining high investment levels for quality standards. Meanwhile, India and China will stabilize mechanization, and emerging markets in Southeast Asia and Africa will see growth. This was discussed at the EIMA International conference in Bologna, running from November 6th to 10th.

The demand for agricultural machinery is set to grow in regions with significant agricultural development and population growth, requiring more advanced technology, as explained by FederUnacoma President Mariateresa Maschio during the conference.

Indonesia, with nearly 300 million people, is a key country for agricultural machinery demand. Imports have grown from EUR 140 million in 2009 to nearly EUR 700 million in 2023, with an annual growth rate of 8.6%. A further increase of 6.7% per year is expected from 2024 to 2027.

Imports of agricultural machinery are growing across Southeast Asia, with Vietnam (100 million people) expected to rise by 6.2% annually, the Philippines (110 million) by 7.8%, and Thailand (71 million) projected to increase by 6.8% annually from 2024-2027. In Africa, demographic growth is even more significant, with Sub-Saharan Africa set to account for 50% of global population growth by 2050. Nigeria, with 230 million people today, will surpass 400 million by 2050, followed by Ethiopia and the Democratic Republic of Congo, both set for major population growth.

In Nigeria, only 46% of cultivable land is used, and in the Democratic Republic of Congo, just 10% is utilized for agriculture. Expanding agricultural land is a priority, driving increased demand for technology. From now until 2027, machinery imports will grow by 7% annually in Ethiopia and 12% in Congo, with even greater growth expected over the next 20 years.