Trends and opportunities in the global machinery market

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He global machinery market consists of sales of industrial and commercial machinery, agricultural equipment, construction machinery, food manufacturing, semiconductors, sawmills, printing, binding, photography, metalworking equipment and even oil or gas field equipment.

As you can see, it is a broad market, which covers almost any industrial sector. Ultimately, a machine is simply a piece of equipment with moving parts that operate mechanically, electrically, or electronically. For this reason, it offers a large number of export opportunities which we are going to discuss in this article.

Data on the global machinery market

The global machinery market reached a compound annual growth rate in 2023 of 7.6%, going from 3,542.77 billion dollars in 2022 to 3,810.37 billion dollars in 2023.

However, it is no stranger to the challenges of recent years, such as the health pandemic caused by COVID-19 and the outbreak of the war in Ukraine.

The truth is that the consequences of the war in Eastern Europe, with the consequent economic sanctions on several countries, the increase in raw material prices and interruptions in the supply chain are reasons for stagnation in several global markets. . However, it is expected that by 2027, global machinery sales will reach 4,928.07 billion dollars in 2027, which represents a compound annual rate of 6.6%.

Global trends in the machinery market

In this context, it is worth asking what are the trends of this market to take advantage of export opportunities for Spanish companies.

Technological Innovations

Apart from the digitalization of the sector, which simplifies machinery leasing processes (and, therefore, drives its demand) in a more agile and comfortable way, improvements in data processing that allow improvement in machinery management They are presented as one of the main innovations.

Thanks to advances in Artificial Intelligence, automation or the interconnection of devices (IoT) It has improved the accuracy and predictive maintenance of machinery, which is useful for projects where problems are critical and reduce uptime, especially in the construction sector.

Likewise, these technological advances improve reliability and efficiency of the teams.  

 

Growth by region

The most relevant region in the machinery market in 2022 was the Asia-Pacific area (specifically, Indonesia and the Philippines have increased their imports), followed by Western Europe.

Regarding the export of the Spanish company, apart from the countries of the euro zone, the LATAM markets and Middle Eastern countries are gaining ground. Among other issues, these are emerging economies that show economic prosperity.

It is also worth highlighting the rise that Morocco (in addition to geographical proximity). This country is beginning to stand out in purchases of industrial machinery, whose operations exceed 700 million euros.

Continuing with Africa, Angola and Ghana They are frequent importers of second-hand machinery.

Expanding industrial sectors

It is expected that, in the period between 2023 and 2032, the agricultural sector is the protagonist of significant growth. At the very least, the growing demand for advanced agricultural equipment and the need to harvest a variety of crop types invite optimism.

To tell the truth, Spain is one of the world leaders in exports of greenhouse irrigation machinery thanks to the investment in R&D&I that has been carried out in this field.

On the other hand, the building automation systems that allow optimizing energy efficiency. Without counting the mini excavators, which allow tasks to be carried out in smaller urban areas.

Opportunities for Spanish exporters

The export of machinery is one of the main engines of the Spanish economy. More than 70% of capital goods produced in national territory are destined for the foreign sector.

But what are the keys to take advantage of opportunities of this type of exports? These are the most significant:

  • Adaptation: Although Spanish exporters are leaders in agricultural machinery, investment in R&D&i should not be neglected to provide the latest advances in technology and achieve a product capable of competing in international markets. 
  • Strategic orientation: It is advisable to direct efforts towards those sectors and regions with greater growth and potential demand. In this way, it is necessary to reformulate business strategies.
  • Taking advantage of trade agreements: using them regional trade agreements that Spain has with other regions facilitates entry into new markets and allows for better use of resources.
  • Alliances and collaborations: Sometimes it is not easy to carry out a company internationalization strategy. For this reason, it becomes necessary to carry out prospecting and sign agreements with other local firms that allow a safer and easier penetration into the market.
  • Bet on sustainability: It is not something temporary. True leaders carry out strategies to reduce emissions and meet environmental, social and corporate governance standards. In addition to being a point of improvement in productivity and energy cost savings, it has an impact on the company's image with a view to closing international agreements.
  • Competitive improvement: Of course, having a competitive offer is a first-order factor in taking advantage of opportunities related to the export of machinery. Aspects such as product quality, offering good customer service and providing mechanisms that allow financing operations represent a significant improvement in sales capacity.

Conclusions

Along these lines we have provided the Existing trends and opportunities in the global machinery market. However, it is possible that the company needs the necessary financial resources to address entry into the international market and carry out this type of projects; or implement improvements that allow us to be more efficient and competitive.

In this regard, there are a series of options and financial instruments designed for foreign trade operations. Contact Alter Finance and we will help you find the solution that best suits your needs.

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