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Machinery
Date of information update : 07.04.2025, 15:11
Ukraine’s large manufacturing base was historically focused on heavy industry. Machine production continues to be one of the key growth drivers of the Ukrainian economy. The Ukrainian light machinery industry includes turbo propellers, gas turbines, pumps and insulated wires and cables for vehicles. The heavy machinery industry includes vehicles, railway and tramway locomotives and parts and components.
The industrial machinery sector in Ukraine is dominated by an extensive network of machine-building companies that produce mining equipment, railway rolling stock, farm equipment, turbo propellers, gas turbines, machine tools, aircraft engines and instrumentation for light industry and the food sector.
Ukraine has both significant reserves of raw materials and a developed metallurgy sector. Given this combination, it is well placed to meet high levels of production demand. Ukraine is well supplied with a highly trained labour force. Around 10,000 students graduate from machine-building faculties at domestic universities and colleges every year.
Despite the full-scale war in Ukraine, the machinery manufacturing sector plays an important role in the country's exports. Ukraine’s well-developed transport infrastructure allows easy access to the large export markets of Europe, Asia and the Middle East.
The export volume of machine-building products in 2024 was 5,2% of total export earnings. During the three war years, there was a decline in exports, but after a significant drop in 2022 (by 40,3% compared to 2021), in 2023 and 2024 the rate of decline in exports was already significantly lower (5,7% and 6,4%, respectively). Export revenue from machine-building products in 2024 amounted to 52.7% of the pre-war 2021 volume.
Ukraine has both significant reserves of raw materials and a developed metallurgy sector. Given this combination, it is well placed to meet high levels of production demand. Ukraine is well supplied with a highly trained labour force. Around 10,000 students graduate from machine-building faculties at domestic universities and colleges every year.
Ukraine has a potential to become a regional leader in the field of complex and science-intensive engineering services such as:
industrial automation and complex engineering;
programming in the field of industrial high-tech;
industrial design (electrical, mechanical, electronic etc.).
Interests of the Ukrainian industrial automation community are represented by the Association of Industrial Automation of Ukraine (APPAU) which includes 54 members: manufacturers of industrial automation products, control system integrators and engineering companies, IT companies and IT integrators, machine-building enterprises and local Universities. In 2016 Association created the national movement «Industry 4.0 in Ukraine», that unites more than 80 members with the aim to promote and educate the local market in 4.0 technologies (IoT, big data, A.I., robotics, additive manufacturing, Vr/AR).
Agricultural Machinery and Technology
Economic and geopolitical factors have a significant impact on agricultural machinery manufacturing in Ukraine. In 2024, the agricultural machinery market in Ukraine continues to develop despite the challenges faced by the agricultural sector.
In 2024, the export volume of agricultural machinery from Ukraine amounted to $29,58 million. In 2024, the most prominent exports from Ukraine were:
HS Code 8428 90: Other equipment – $8,92 million USD
HS Code 8432 90: Parts of agricultural machines – $5,05 million USD
HS Code 8432 39: Seeders, planters, and transplanting machines: others – $4,62 million USD
HS Code 8432 29: Harrows, cultivators, hoes, and weeders: others – $4,2 million USD
HS Code 8433 90: Parts of machines or mechanisms for harvesting or threshing agricultural crops – $3,57 million USD
HS Code 8428 39: Other machines and devices for lifting, moving, loading, or unloading: others – $3,24 million USD
In 2024 main destination countries for Ukrainian export of agricultural machinery are Moldova, Kazakhstan, Poland, Germany, China, Netherlands and Romania.
A significant reduction in agricultural machinery exports in 2024 indicates the negative impact of both internal and external challenges on the Ukrainian economy (57% decrease in production compared to 2023). Ukrainian manufacturers are mainly focused on the domestic market, only storage equipment and attached machinery are stably exported. The main buyers of Ukrainian equipment include Eastern and Central Europe (Moldova, Lithuania, Romania, Poland).
For more details about the sector please see Analysis of the Agricultural Machinery Market in the Context of a Full-scale War.
Stakeholders
DLG Ukraine brings together Ukrainian manufacturers of agricultural machinery and other agricultural product and service providers to build an alliance of exporters and to promote their export activities through trade events and training. DLG Ukraine arranges for its members to exhibit their goods at agricultural trade fairs in the EU, Central Asia and Africa.
The Ukragromash Association is part of the Federation of Employers of Ukraine. It represents machine-building manufacturers in negotiations with the Ukrainian Government and successfully lobbied for the introduction of a 25% subsidy for farmers buying domestically produced agricultural machinery and equipment.
Aircraft and Spacecraft
Ukraine has a long and unique history in the field of aerospace technology going back to the early decades of the ‘space race’ in the 20th century. During that time, many of the leading Soviet design and production facilities were located in Ukraine – where they continue to remain active to the present day.
As a result, Ukraine is one of the few nations with a developed aerospace industry, involving a full cycle of design, production and operation of advanced civil, military and cargo aircraft, as well as supplying space technology. It is also an important supplier of turbine engines for aircraft, helicopters and aerospace industries worldwide.
5 design bureaus
8 manufacturing enterprises
48,000 employees
169 launches of rockets built in collaboration with Ukrainian companies
5000 graduates with aerospace engineering degrees (annually)
Examples of aircraft and spacecraft manufacturing:
Cargo and passenger aircrafts
Aircraft parts
Gas turbine engines for aircraft and helicopters
Industrial gas turbine installations
However, Ukraine’s production of aircraft on a large-scale basis has never been realized, in part, because of the fragmentation of the supply chain that occurred following the collapse of the Soviet Union. The Government is now devoting significant attention to redress this condition and is expanding opportunities for public-private investment in this sector.
Ukraine is also becoming known for its niche market in the production of unique ultra-light planes, hang-gliders and paragliders of all designs and models. The Aeroprakt models, in particular, have become very well-known and have attracted buyers in the United States, Australia, New Zealand and in many European countries.
Stakeholders
The Antonov Design Bureau is best known for designing and building the world’s largest transport plane (the AN-225 Mriya). It also designed a number of mid-range commercial and military transport aircraft.
State Enterprise Production Association Yuzhny Machine-Building plant named after A.M. Makarov (YUZHMASH) produces spacecraft, launch vehicles (rockets), liquid-propellant rockets, landing gears, castings, forgings and other industrial products.YUZHMASH is a full cycle company. Production of the main body of components and units, assembling and testing under conditions similar to the open space is carried out at its own unique industrial base.
Motor Sich is one of the leading enterprises in the world manufacturing engines for airplanes and helicopters as well as industrial gas turbine installations.
GS Association of Innovation and Space Clusters provides an opportunity for scientists and environmentalists to work with space monitoring data to create an objective understanding of the environmental situation in the region, which allows them to develop proposals and measures aimed at improving the environmental safety situation.
Railway Machinery
Railway transport plays a decisive role in the transport sector of Ukraine. With the beginning of the full-scale Russian invasion, the importance of rail transport increased due to the blockade of sea transport. The railway also provides transportation of goods for the needs of the Armed Forces, humanitarian goods, and evacuation of the population.
The railway equipment market in Ukraine is represented by producers, importers and consumers of the main rolling stock (locomotives, stock and containers of various types and kinds) and spare parts for them. The main buyers of rail freight services are cargo owners and/or shippers who need a comprehensive service - the carriage of goods by rail.
Ukrainian railway engineering products were exported to nearly 76 countries worldwide in 2019-2024. The highest export potential lies in freight wagons, spare parts (namely axles, wheelsets, wheels, and their components), and containers.
At the end of 2024, 174,9 million tonnes were transported by rail, up 17,9% year-on-year. The main driver in 2024 was export cargo transportation, whose share in the total volume increased to 48%. The volume of cargo exports by nomenclature was as follows:
Grain cargo with 34 million tonnes (40%).
Iron and manganese ore with 33 million tonnes (39%).
Ferrous metals with 5 million tonnes (6%).
Construction materials 4 million tonnes (5%).
Railway equipment was exported to 42 countries in 2024. Main product groups by export volume:
Parts of locomotives and wagons (HS Code 8607), remaining the largest product group. Export volume – $180 million, or 81,5% of the total.
Non-self-propelled freight railcars (HS Code 8606) – $32 million, or 14,3% of the total.
Containers for transport by one or more modes of transport (HS Code 8609) – $7,6 million, or 3,5% of the total.
Locomotives (HS Code 8601, 8602) – $1,6 million, or 0,7% of the total.
Railway transport for track maintenance (HS Code 8604) – this commodity group emerged as new in 2023, demonstrating the industry’s potential for adaptation and innovation.
Ukraine's most accessible destinations for railway equipment exports are the Baltic States and the Eastern European countries. In 2022-2024 main destination countries for Ukrainian export of railway equipment are Slovakia, Bulgaria, Germany, France, USA and Lithuania.
For more details about the sector please see Analysis of the Railway Equipment Market in the Context of a Full-scale War.
Refrigeration and Climate Equipmen
As of the end of 2024, around 670 refrigeration and climate equipment operators were officially registered in Ukraine. Despite the challenges of wartime conditions, industry revenues and tax contributions continued to grow until 2023. The leading regions by revenue remain Poltava, Kharkiv, and Lviv region, while Kharkiv region and Kyiv have the highest concentration of key manufacturers.
The Ukrainian refrigeration and climate technology industry includes the production of commercial refrigeration equipment (display cases, shelving units, cabinets, chest freezers), industrial refrigeration systems, heat exchange equipment (condensers, air coolers), ventilation equipment (residential and industrial fans, air recuperators), climate control systems (residential and semi-industrial air conditioners, fan heaters, heat pumps), as well as automation and control systems.
A significant portion of production across various segments focuses on energy-efficient and environmentally safe solutions. One of the key trends is the increasing automation of processes: Ukrainian companies are beginning to develop their own monitoring and remote control systems, providing a cost-effective alternative to imported counterparts.
The research revealed that the primary challenge in refrigeration equipment manufacturing is manufacturers' dependence on imports. The use of imported components is one of the obstacles to optimizing production costs. However, manufacturers enhance their competitiveness by implementing lean production approaches.
As of the end of 2024, imports of refrigeration and climate equipment in Ukraine exceed exports. Household refrigerators and air conditioners are the most frequently imported items, as they are not produced domestically. At the same time, export values surpass import values in the categories of commercial refrigeration and ventilation equipment.
In 2024, Ukraine exported industry products worth $135,52 million, which is 46% more than the export volume of the previous year.
Research experts see export potential in Ukrainian high-tech products, such as refrigeration equipment with an energy efficiency rating of A or higher.
According to them, Ukraine has favourable conditions for high-tech production, particularly due to the large number of technical universities and highly skilled engineers. These specialists currently provide Ukrainian manufacturers with key competitive advantages — the ability to fulfill custom orders of varying complexity.
On the other hand, experts see opportunities to increase industry revenues through the export of low-value-added products, such as heat exchange equipment.
For Ukrainian manufacturers and exporters, the most promising markets are neighboring countries such as Moldova, Poland, the Czech Republic, Hungary, and Romania. This proximity provides significant logistical advantages.
The research was conducted by the Fama Research Agency in cooperation with the Refrigeration Association of Ukraine, at the request of the Entrepreneurship and Export Promotion Office, the national project Diia.Business. And with the support of the international cooperation program EU4Business: Recovery, Competitiveness, and Internationalization of SMEs, co-financed by the EU and the German government and implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.