The Portuguese construction and agricultural equipment markets face stiff competition

The 2026 Country Analysis: Portugal reports that with the minimum wage having been raised several times over the past five years, sales of compact construction equipment have also increased, although this sector does experience a high degree of competition, while standard construction equipment and agricultural tractors are major contributors to volume, and growth.  

Leading distributors have diversified into sectors such as forestry, recycling, quarrying, mining and drilling to improve profitability and reduce dependence on cyclical construction activity. To survive, importers are focusing on used construction equipment, and attachments. The rental sector remains underdeveloped compared with many Western European countries and continues to be characterised by a fragmented structure. Customer relationships, dealer support and after-sales service remain vital factors influencing purchasing decisions.  

Off-Highway Research forecasts the construction equipment market in Portugal is expected to remain a stable medium-sized market for construction equipment during the forecast period. Growth will be supported by infrastructure investments, urban regeneration projects, renewable energy developments and ongoing demand for residential construction. 

Meanwhile, although costs for fertilisers, herbicides, and other agricultural inputs start to rise, with farmers finding their margins increasingly squeezed, leaving them with less capital to invest in new equipment, suppliers remain positive, confident that the government will continue to support the replacement of ageing machinery.  

Off-Highway Research forecasts that tractor sales in Portugal will grow in 2026 by over 10 per cent and continue this upward trajectory to reach 5,700 units by 2029, equivalent to the 2024 high.  

The Country Analysis: Portugal provides in-depth analysis of market size and trends, population of machines and end-users, equipment available, as well as comprehensive profiles of Portugal’s leading construction equipment distributors and forecasts up to 2030. The report is essential reading for companies active in Portugal, or those considering entering the market and is intended as a decision-making tool for manufacturers, distributors, rental companies, financial institutions, importers and all other stakeholders. 

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