with over 17 thousand companies (42% of which are SMEs) and employing approximately half a million employees, SACE focus confirms the instrumental mechanics as one of the key sectors of the national economy, with an annual turnover of 156 billion euros and the highest added value among Italian industries (14,3% of total manufacturing).
Mechanical engineering: Italy beats France and Spain
Another industry first concerns technological innovation, both in terms of process and product. The percentage of innovative companies in the sector is higher than the Italian manufacturing average (75,8% versus 65,7%), assuming a strategic role as suppliers and developers of technologies along the entire production chain.
In comparison with European peers, the incidence of mechanics is higher than that recorded by France and Spain (5% share for both), but lower than that of the Germany (16,5%). Productivity, measured by value added per employee, also ranks second, after German machinery, but reaches the top spot if the analysis is restricted to micro, small, and medium-sized enterprises.
Mechanical engineering accounts for 2,4% of GDP
Overall, the production of mechanical engineering contributes directly to the 2,4% of Italian GDP, to which is added a further 3,3% including the indirect effects along the supply chain productive. In this context, to support investments functional to technological and digital transformation, the Draft Budget Law 2026 provides for a new incentive measure for capital goods based on hyper-depreciation, which will replace the tax credits of the Transition 4.0 and 5.0 plans. According to the reported forecasts, the investment volume in plant and machinery is expected to continue on a positive path, after the setback observed in 2024, accelerating to the average of 2% in the two-year period 2026-27.
The outlook also points to a recovery of nominal turnover, measured at current prices. In the first nine months of 2025, the index recorded an increase of +2,6% compared to the same period of the previous year, higher than a manufacturing average still stagnating. According to Prometeia's forecasts, in the next two years the total sales value The growth of Italian mechanical engineering firms is expected to accelerate by 4%. The largest contribution will come from domestic demand, driven by investments in technologically modernizing plants.
Mechanical engineering: the leading export sector for Made in Italy products
On the foreign front, mechanical engineering represents the leading export sector of Made in Italy. total exports of over 108 billion, cross-border sales contribute to the 17% of total assets. The excellences of the sector are particularly appreciated in emerging marketsItaly, where Italian machinery is a key driver of economic growth, supporting manufacturing and agricultural production. The contribution of machinery to exports rises to 22% when looking at emerging economies alone, and exceeds 40% in 38 countries.
Machinery was the second sector, behind chemicals and pharmaceuticals, in terms of export growth (increase of 41 billion euros), helping to consolidate Italy's competitive position as the fifth largest supplier in the world, with a market share of 4,5%. Among the main emerging geographies, in the last ten years a notable dynamism has been observed in countries such as Mexico (+8,1% on average), Qatar (+ 7,7%) and Singapore (+ 6,1%).
in this Gulf markets, in 2024, machinery exports exceeded 5 billion euros.Saudi Arabia It remains among the most dynamic countries, where manufacturing development is at the heart of the diversification strategy with the creation of thousands of new factories and the adoption of advanced technologies. Demand for machinery for construction, manufacturing, industrial automation, and precision agriculture is growing rapidly. Export opportunities are moving along similar lines in United Arab Emirates, spurred by the government's goal of doubling manufacturing's contribution to GDP by 2031 and by strategic agreements to promote investment.
Beyond the Gulf, Africa is among the most dynamic destinations, expected to grow by 4% in the next two years. Mattei plan Its goal is to facilitate synergies between Italian mechanical engineering production and local manufacturing and agricultural development ambitions. Indeed, the mechanization of agricultural processes, the spread of irrigation systems, and the demand for machinery for land cultivation and food preparation are crucial to development strategies.
Furthermore, it should not be forgotten Latin America. From Mexico Increased demand for packaging machinery will come. Further trade opportunities are expected from the free trade agreement between the EU and Mercosur, pending ratification. Machinery exports, which in the four signatory countries (Argentina, Brazil, Paraguay, Uruguay) exceed €2,5 billion and already contribute to over a third of Italian sales, will benefit from the elimination of 90% of tariffs on European goods and other non-tariff barriers.
